The End of Credit/Debit Cards

[Hispo]

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Do you think credit/debit cards will still be a thing after the launch of CBDCs? If not, why? Will payment processors like PayPal, Visa, and Mastercard survive? Your input would be greatly appreciated. Thank you.

I think they are going to continue to exist in some way or another, but I am not sure how. It seems to me that the government of the United States and the Central Bank/Federal Reserve of that country won't be foolish enough to completely replace those companies and tanking the value of the value of their shares in the stock market. If I had to guess, Visa, MasterCard and PayPal are going to work as agents or workers in the process of the functioning of the CBDC itself, by providing technological infrastructure and cryptographic security for the centralized system to work.
I am just guessing, of course, In spite of the name/term we use, just because a CBDC is issued by the Federal reserve or the central bank, it does not mean they are going to completely get rid of the middle man when one carry out transactions. It is a matter of control or the data and the flow of money, not about people saving money and erasing the middle man.

[Abiky]

I do not think that we are going to really end it, we may change shape of it, but the idea that you need a credit card is still there. Sure it could turn into an app, but that doesn't mean that we are going to be getting rid of the mastercard or visa situation, they might be the ones that start an app for it and they may keep on making billions from it as well.

I do not really understand what it is that they do to make this much money that others can't do, I feel like others should be possible to do the same thing, but I guess it's a very difficult business to enter so I believe that these two companies will continue to make as much money as they want from this even if they have to change shape to fit the new technology that comes with it.

Isn't the future all about "digitization"? This means the transition from the analog world to the digital world. Physical/tangible items like paper money, plastic cards, and even passes/tickets will become a thing of the past. Credit/debit card companies are already providing access to virtual cards.

With digital payments becoming the norm since the emergence of COVID-19, it should only be a matter of time before plastic cards are phased out. Especially now with banks announcing their intentions to launch CBDCs. Everything will be "contactless" and digital. RWAs (Real World Assets) on Blockchains, and NFTs are just the tip of the iceberg. Don't expect existing payment processors to go anywhere despite the recent advancements in the FinTech space. They will change their business model to stay ahead of the game. Who cares about these greedy corporations? As long as we have a fair money system like Bitcoin, there should be nothing to worry about.

[passwordnow]

I think that there's still gonna be usage for these cards with CBDCs. We can see that exchanges have made crypto debit cards and that's why I think that there will be soon CBDC cards that are mainly going to be use for this purpose. Also, having a card is also a back up if the mobile app or desktop app intended for it doesn't work. That's why they're also likely here to stay just as how BTC is going to be.

As for PayPal, mastercard, visa and other giant and known payment processors, they sure are going to survive. And, they anticipate something like this to happen and it is imminent. They have all planned all of these on how they're going to react with such innovation and they don't want to get left behind. It's either they make something out of this or the most common strategy of these companies is to join the bandwagon.

There's no other way round with it but just to be adaptable and deal with the situation. They're in the financial technology and everything is going to innovate from now on. We might have been seeing the peak of it but there's gotta be more and let's see how the CBDCs are going to change th game for all of these tech giants but I don't think that us, who are into Bitcoin should be worried with them.

[trendcoin]

We can make cardless transactions by scanning a QR code, but when we don't have internet access, using a card is the best option. Also, it would be great to get a loan directly from the central bank and avoid the commissions of the intermediary banks. Actually, it is possible to get loans at rates close to policy rates through state banks, but an all-inclusive system through the central bank sounds good. Yes, it all sounds good, but are we missing what we feared: CBCDCs, citizenship points, annnnnd welcome, 1984 Orwell.

[eightdots]

Millions still use actual cards. Not everyone is tech-savvy or has fast internet. Converting everything to digital takes time. Security is another issue. This is digital money, therefore we need to authenticate identities without compromising convenience or opening the door to hackers. This is significant stuff we can't ignore

Remember Visa and Mastercard, the big boys. These guys won't leave soon. They've got the money, experience, and infrastructure to adapt. They may even become CBDC transaction facilitators or security consultants. The key is, they won't surrender. CBDCs might be the future, but the shift won't be easy. There are many moving elements and significant challenges to address. But it's also about how we connect that technology into our existing systems, assure security and convenience, and adapt to a quickly changing financial world

The transformation of everything to digital also reveals the need for adaptation. There are many people who cannot keep up with innovations. There are many people who will not prefer the innovations made. It is always difficult to give up old habits, and if these habits have been used until now and no problems have been observed, there may be many people who will not keep up with the change.

It is also an important issue whether the changes to be made are safe and useful. Change takes time and must be chosen.

[StreakW]

Credit/debit card users will continue to dominate because not everyone understands the use of CBDC. Moreover, the presence of CBDC can make it easier for people to make transactions, but credit/debit cards are also needed when making transactions, for example when you forget to bring your cellphone.

[STT]

Even Chequebooks still exist while not being used often.    Cards will retain their place to some extent while other methods take over.  I do think it will take decades for that to happen and it depends on feedback from elements such as fraud or efficiency considerations.

[Abiky]

Even Chequebooks still exist while not being used often.    Cards will retain their place to some extent while other methods take over.  I do think it will take decades for that to happen and it depends on feedback from elements such as fraud or efficiency considerations.

With the "climate change" propaganda, we should expect plastic and paper to be phased out in the future. After all, processing such materials cause environmental harm. The future will be digital where you won't truly own anything. It'll be more like a lease. Central banks and governments will have more power than ever to manipulate your financial life via the use of CBDCs. Blockchain tech promises faster, secure, and cheap cross-border payments. So why not replace the existing system with a new one based on Blockchain tech?

Sooner or later, physical credit/debit cards will become a thing of the past. Same goes for paper money. The new generation is already used to digital payments. They will definitely pave the way for a radical transformation of our society. The question is: Are we ready for such a drastic change?

[Wakate]

Credit/debit card users will continue to dominate because not everyone understands the use of CBDC. Moreover, the presence of CBDC can make it easier for people to make transactions, but credit/debit cards are also needed when making transactions, for example when you forget to bring your cellphone.

Maybe you would have to take a good look at the future because very soon I don't think there would be need for people to be carrying credit cards in their bags to make transactions. The world is moving very fast in technology and what we might be seeing in the next few years from now could be something else that is different from the normal fiat cards. People would tend to use more if barcode to make transactions without needing any virtual cards to pay for goods and services. Maybe we might not even need a phone to scan the products we might have purchased because digital implant will be available for people to make transactions with ease. Just wait till then, it's not gonna take too long.

[JeffBrad12]

Credit/debit card users will continue to dominate because not everyone understands the use of CBDC. Moreover, the presence of CBDC can make it easier for people to make transactions, but credit/debit cards are also needed when making transactions, for example when you forget to bring your cellphone.

well honestly nowadays people forget carrying debit/credit card more frequently than they forget carrying phone, since credit card could also be integrated into some payment processor such as apple pay and so on, i'm pretty sure even if we forgot credit card we can still use it through phone.

but I think the reason why credit/debit card will still persist is because the prestige and simplicity, people just want to swipe and be done with it, also, there are many credit cards that offer prestige and exclusivity that could be a great deal for some of people.

even if credit or debit card somehow decreasing in market share, it will still be a really good niche market if i'm being honest.

[Poker Player]

I am not so sure if they will end or simply mutate, as they are already doing, by being integrated into cell phones. I'm sure Visa and MasterCard are studying the market and will adapt to whatever comes.

well honestly nowadays people forget carrying debit/credit card more frequently than they forget carrying phone, since credit card could also be integrated into some payment processor such as apple pay and so on, i'm pretty sure even if we forgot credit card we can still use it through phone.

At the moment I also prefer to have the physical card, although sometimes I don't carry it and I only carry my cell phone, in case my cell phone is lost or stolen, especially if I am traveling, having the physical card I could continue using it, but not if I depend only on my cell phone.

[NotATether]

Will payment processors like PayPal, Visa, and Mastercard survive?

Asking about the survival of debit cards differs greatly from asking about the survival of these companies. These companies will likely survive, because they're not directly linked to retail banks, which are the entities that might ultimately fall in terms of economic prosperity, or even cease to exist at some point.

PayPal is an e-money business and also a payment processor of its own. It doesn't need cards to survive.

It's Visa and Mastercard that need to be worried, because most of their money comes from card network fees and I'd imagine a good amount of their business comes from debit cards, which they would need to replace with their own CBDCs (ironic right) if those were to go away.

Prepaid cards would definitely be in trouble though.

[Rikafip]

PayPal is an e-money business and also a payment processor of its own. It doesn't need cards to survive.

It baffles me that PayPal is still around and popular.

I mean, I used them for a long time, but that was 10-15 years ago when there weren’t as many options as there are now. In this day and age, their service, with its crazy high fees, seems completely outdated to me, and I can’t imagine a scenario where I would need to use them again. Or maybe something has changed, and they’re not as bad as I remember.

[Lucius]

@Rikafip, people use PP for the reason that maybe they don't know that there is something better - but also for the reason that as customers they probably feel safe when they buy considering that someone can't send you a brick in a package and get your money at the same time. However, what was good and new for us 10-15 years ago is probably just as good and interesting for some others today

I haven't used it for years, they became too demanding with their checks and KYC, and for some reason I didn't pass the last verification and I gave up on them.

[Rikafip]

However, what was good and new for us 10-15 years ago is probably just as good and interesting for some others today

True, but back then we didn't have any other choice while now they do. My guess is they mostly have the old users who can't bother to look for better options.

I haven't used it for years, they became too demanding with their checks and KYC, and for some reason I didn't pass the last verification and I gave up on them.

Same here. I couldn't pass KYC for whatever reason so in the end I just abandoned it (I haven't used it before thast for years but still wanted to have it as a backupo) and they basically did me a favor.

[shinratensei_]

Credit/debit card users will continue to dominate because not everyone understands the use of CBDC. Moreover, the presence of CBDC can make it easier for people to make transactions, but credit/debit cards are also needed when making transactions, for example when you forget to bring your cellphone.

I think CBDC is gonna be developed as alternative to current international payment system, sort of another high way for financial transaction so a credit / debit card could actually take advantage of CBDC as well.
credit / debit card is too common for it to just get replaced by some new system like CBDC, not everyone is educated in advanced technology like this, there will be a lot abstraction that put the complexitiy, behind the scene and maybe it will incorporate the old ways of financial transaction into the new one like CBDC

[stompix]

It's Visa and Mastercard that need to be worried, because most of their money comes from card network fees and I'd imagine a good amount of their business comes from debit cards, which they would need to replace with their own CBDCs (ironic right) if those were to go away.

Yeah, worry about what?
The hundreds of thousands of crypto cards they've issued to make money out of users who despite owning crypto think it's better to pay with a card that on chain? Really troubling, just as how banks are scared about the millions they've made in transaction fees in and out of exchanges, and normally both WU and MG would have been dead by now but WU had just a 3% drop after a record year.

@Rikafip, people use PP for the reason that maybe they don't know that there is something better - but also for the reason that as customers they probably feel safe when they buy considering that someone can't send you a brick in a package and get your money at the same time. However, what was good and new for us 10-15 years ago is probably just as good and interesting for some others today

 

Customer protection or more like buyer protection si what will keep most of those services popular, with the easiness with which you can void a transaction or make a chargeback with your bank there is no way you're going to have an influx of people to a system where the money it's sent and it's gone. Sellers might love crypto but buyers are not that keen on it.

[Qiubell5]

PayPal is an e-money business and also a payment processor of its own. It doesn't need cards to survive.

For now, PayPal is still widely used for financial transactions, but with the shifting progress that continues to innovate with the emergence of new ways of online transactions, PayPal has experienced a decline in users for several reasons, and users are starting to be wise to see all of that, they judge from the convenience they get.

[FatFork]

Yeah, worry about what?
The hundreds of thousands of crypto cards they've issued to make money out of users who despite owning crypto think it's better to pay with a card that on chain? Really troubling, just as how banks are scared about the millions they've made in transaction fees in and out of exchanges, and normally both WU and MG would have been dead by now but WU had just a 3% drop after a record year.

True. But I think that the problem is not so much in users (buyers) as in merchants and still a very limited number of online stores that accept payments with cryptocurrencies directly in the shops. Although this would essentially lower the fees they currently pay to banks and card companies.

It's a bit ironic that people who own crypto are choosing to use cards that convert their crypto back into fiat.  But unfortunately, it's often the only option for shopping at large online stores like Amazon or eBay. Until more businesses are willing to accept crypto directly, we're going to see this kind of behavior. It's a chicken-and-egg situation: more users will adopt crypto payments if more merchants accept them, and more merchants will accept crypto if more users are using it.

[glendall]

I quite doubt it.

It's true if CBDC exist, people should able to transact through cell phones without need to use plastic card.

But, considering there are many cases where someone claimed their money disappeared due to malware or getting hacked, so I don't think people will feel safe when their phones are connected to most of their money.

Using plastic card will decrease the chance to get hacked.

malware is the scariest thing in the digital world, so I agree with you that plastic cards will stay until banks feel ready to stop issuing plastic cards.
and actually atm cards can also be hacked or stolen but not as easily as with digital