The End of Credit/Debit Cards

[Oluwa-btc]

Have you ever wondered what the future of credit/debit cards will be once CBDCs (Central Bank Digital Currencies) go public? People will no longer need to use a plastic card to pay for goods and/or services, as everything will be done through a mobile (or desktop) app. This means people will directly interact with the central bank for deposits and/or withdrawals. No need for middlemen like Visa or Mastercard. At least, that's what I think it will happen.

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 this is true that credit/debit cards will not have much value after the launch of CBDCs,on a norms technology has played a vital role in the global world and as it evolve people tend to adopt the New system of technology so I think after the launch of CBDCS debit/credit cards won't be of Great use anymore depending on the usage and likeness of the new technology.

And by the way,most person like myself even with the fact that I have my credit cards I tend not to do transact with it and prefer online or my mobile banking instead,so definitely it'll surely hit hard on credit card or debit card as well.and it can also be in use cause not everyone is comfortable with this Mobile banking of a thing.

[eightdots]

Have you ever wondered what the future of credit/debit cards will be once CBDCs (Central Bank Digital Currencies) go public? People will no longer need to use a plastic card to pay for goods and/or services, as everything will be done through a mobile (or desktop) app. This means people will directly interact with the central bank for deposits and/or withdrawals. No need for middlemen like Visa or Mastercard. At least, that's what I think it will happen.

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.

Technology renews itself after a certain period of time and different types of services emerge. Even if the situation we assume will replace bank and credit cards happens, the use of bank and credit cards will not end completely. It is very difficult to make some people give up the things they are used to. It is possible to expect something to disappear over a certain period of time rather than disappear completely.

It may be possible that older people do not prefer such a change. There may be people in many parts of the world who have similar preferences. Therefore, if this change is going to happen, it will take time and bank credit cards will not disappear completely.

[DrBeer]

Have you ever wondered what the future of credit/debit cards will be once CBDCs (Central Bank Digital Currencies) go public? People will no longer need to use a plastic card to pay for goods and/or services, as everything will be done through a mobile (or desktop) app. This means people will directly interact with the central bank for deposits and/or withdrawals. No need for middlemen like Visa or Mastercard. At least, that's what I think it will happen.

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.

Nothing will change...
Sounds bold, but... Let's find out what CBDC is, shall we?
If anyone WISHES that CBDC is a cryptocurrency from the government, or cryptocurrency freedom, then I have to disappoint you very much.... CBDC is an evil that not everyone has realized and not everyone understands. CBDC is TOTAL CONTROL, and total management of YOUR money without your consent !
Loans and credit cards are a “stealth” mechanism to profit from your every payment. You think you have paid 1 dollar/euro/pound/yen/..... but in fact you paid 95 cents and 5 cents goes to the banking system in their pocket as their profit.... And exactly the same will happen because the government won't ban the banks from operating

[STT]

Credit cards are massively profitable, they wont be ended easily by any other product.  I expect them to be around in some shape or form if not actually physically for some time yet, probably decades.   Even if the only sign of your credit card account is your phone which you pay with it will still be the same in effect.   Its hard to overcome all the standing advantages given to this particular part of the financial landscape over anything new especially 'virtual' arrangements.  I'm looking for a peak dollar situation and not a replacement by other government arrangements but a receding tide of politics into proper capitalism but I might just be idealistic in that hope, CBDC isnt that.

People will no longer need to use a plastic card to pay for goods

But they dont pay, alot of people get into the habit of not paying but using the credit of a larger organization.  Thats what's its really about even a debit card will link to a lending agreement on the bank account.    We all know its better not to lend but also learn to do so anyway.  It will take a quantum shift to move the economy on every level away from debt as it is currently, from top to bottom people use credit not proper value up front.

[MainIbem]

Credit cards are massively profitable, they wont be ended easily by any other product.  I expect them to be around in some shape or form if not actually physically for some time yet, probably decades.   Even if the only sign of your credit card account is your phone which you pay with it will still be the same in effect.   Its hard to overcome all the standing advantages given to this particular part of the financial landscape over anything new especially 'virtual' arrangements.  I'm looking for a peak dollar situation and not a replacement by other government arrangements but a decline into proper capitalism but I might just be idealistic in that hope, CBDC isnt that.

Exactly, the CBDC might serve as an alternative, but won't completely end the use of plastic cards, I think it would be very functional in 1st world countries, where there's steady power supply and people would mostly have their devices charged to carry out transactions, but not very functional in some 3rd world countries where there's no steady power supply and during emergency the plastic cards would serves as a better alternative when their devices are not accessible due to lack of power supply. What I think is that both the CBDC have their advantages and would both serve as the best option in different societies like I earlier stated, even though the CBDC eliminates third parties like Visa and Mastercard that are the owners of most plastic cards the CBDC would still be regulated by the government through banks and some monthly maintenance or whatsoever would still be paid to them, so automatically the government are still in charge.

[X-ray]

I think this is true that credit/debit cards will not have much value after the launch of CBDCs,on a norms technology has played a vital role in the global world and as it evolve people tend to adopt the New system of technology so I think after the launch of CBDCS debit/credit cards won't be of Great use anymore depending on the usage and likeness of the new technology.

And by the way,most person like myself even with the fact that I have my credit cards I tend not to do transact with it and prefer online or my mobile banking instead,so definitely it'll surely hit hard on credit card or debit card as well.and it can also be in use cause not everyone is comfortable with this Mobile banking of a thing.

as much as I like the convenience of credit card, I just never feeling safe using credit card, like you, mobile banking is always my way to go, the reduced risk of unauthorized transaction is honestly a really huge advantage.
so I don't know why people are fancy about credit card so much, while it's just abstracted debt in a nutshell, which often people got themselves into trouble by overspending.

the more advanced technology and the higher rate of online transaction should instead make credit card obsolete.

[Abiky]

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.

Of course not! PayPal has its very own stablecoin, too. So it can do well without credit/debit card companies. They'd be the ones in trouble. Especially with the shift towards digitalization. Right now, Visa and Mastercard issue virtual cards. Maybe they will stay with that business model after CBDCs go public? All they have to do is phase out the use of plastic cards for good.

I don't know. I'm just speculating here. Whatever happens, you can rest assured Bitcoin won't be going anywhere soon. Fiat will evolve as history has shown us. What's important is that people get true financial freedom and self-sovereignty. And what currency does it better than Bitcoin itself?

[majeikk]

A debit card is pretty much an offline wallet / payment app, which is already integrated (both legally and technically) into the digital commerce, and neither the technology nor its users will vanish overnight. Most likely, people will use cards to send moneys over blockchains

[DrBeer]

One of the reasons the world financial system will not let the debit/credit card system be “destroyed” is the loss of HUGE revenue, to the world financial system. It's not just interest on transactions, even more important to them is the actual management of your money (real) through “card accounts” (virtual).

In addition, there is one more thing to consider - card payments generate inflation. No, this is not nonsense... Let's take for example 1 dollar, which came to you in the form of part of your salary. You pay this 1 dollar, for example, for a bottle of water. From this dollar, inside the banking system, a commission is withdrawn, for example 5% (this is to make it convenient to count). Total, the real security of your “card dollar” is already 0.95 dollars. Then the same dollar goes through such operations again and again and again ... At each step - it loses part of its value, as it goes to the BANKS

[mich]

Well I do believe that credit cards will still be around in the future as acceptable forms of payment. I don’t think that credit cards will go away because it is a way of being able to borrow money from the lender. And showing the lender they get paid back within a certain amount of time.

Also by having good credit you’re able to qualify for car, house, loans, and better interest rate to make purchases. The credit card companies can charge us interest for our credit and they make alot of money when they does that. I think payment companies like that you said are going to be here a long time too like paypal.

[Altryist]

Well I do believe that credit cards will still be around in the future as acceptable forms of payment. I don’t think that credit cards will go away because it is a way of being able to borrow money from the lender. And showing the lender they get paid back within a certain amount of time.

Also by having good credit you’re able to qualify for car, house, loans, and better interest rate to make purchases. The credit card companies can charge us interest for our credit and they make alot of money when they does that. I think payment companies like that you said are going to be here a long time too like paypal.

Our society has led to loans and a credit card is an integral part of life, almost every person. Not even talking about life on credit, when housing, a car and other things are taken on credit, people are simply accustomed to the fact that paying for unexpected purchases with a credit card is also very convenient. Therefore, I do not see any reason why it should change, it suits everyone, and the banks that earn money on this and the people who can afford what they want already and pay for it for some time.

[mindrust]

One of the reasons the world financial system will not let the debit/credit card system be “destroyed” is the loss of HUGE revenue, to the world financial system. It's not just interest on transactions, even more important to them is the actual management of your money (real) through “card accounts” (virtual).

In addition, there is one more thing to consider - card payments generate inflation. No, this is not nonsense... Let's take for example 1 dollar, which came to you in the form of part of your salary. You pay this 1 dollar, for example, for a bottle of water. From this dollar, inside the banking system, a commission is withdrawn, for example 5% (this is to make it convenient to count). Total, the real security of your “card dollar” is already 0.95 dollars. Then the same dollar goes through such operations again and again and again ... At each step - it loses part of its value, as it goes to the BANKS

It is not only the commissions, credit cards affect your psychologically too. When you pay with cc, it doesn't hurt you much at that moment. It feels like you are getting the stuff for free and that makes you spend more. When you spend more and more like that, it also generates inflation because you are pretty much dumping your FIAT on the market.

That's why the FED kept the interest rates low for many years because they wanted people to buy stuff all the time. And you know what, It made sense to do that because why not? If they are giving you free money, you go and dump them on the market. Why keep it? If you don't do that, somebody else will and in the end your free FIAT will lose its purchasing power.

[Abiky]

Well I do believe that credit cards will still be around in the future as acceptable forms of payment. I don’t think that credit cards will go away because it is a way of being able to borrow money from the lender. And showing the lender they get paid back within a certain amount of time.

Also by having good credit you’re able to qualify for car, house, loans, and better interest rate to make purchases. The credit card companies can charge us interest for our credit and they make alot of money when they does that. I think payment companies like that you said are going to be here a long time too like paypal.

Can't just central banks build a credit system into CBDCs (otherwise known as government-issued digital currencies)? It's much easier and cost-effective. Such a move might leave Visa, and Mastercard out of business. Although, they could become node operators/validators of central banks' own blockchain network to reap all of the benefits.

The thing is that rich corporations never lose. The only ones losing would be individuals themselves. We'll be forced to become "slaves" of the corrupt monetary system. If you've thought credit/debit cards, and digital banking were bad, CBDCs are going to be a lot worse. But hey, at least we've got Bitcoin. As long as it stays decentralized, nothing should be able to take away our freedom.

[mrmacintosh]

I really need to cut up my credit card. But you never know when you might need that emergency credit. It's like a thorn in my pocket.

[Fortify]

Have you ever wondered what the future of credit/debit cards will be once CBDCs (Central Bank Digital Currencies) go public? People will no longer need to use a plastic card to pay for goods and/or services, as everything will be done through a mobile (or desktop) app. This means people will directly interact with the central bank for deposits and/or withdrawals. No need for middlemen like Visa or Mastercard. At least, that's what I think it will happen.

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.

It's a bit weird to jump to the conclusion that things like credit cards will become obsolete, but then I guess at a certain point - probably around the same time the CBDC's are mainstream - then we might have transitioned to only storing debit/credit card apps on our phones anyway. A digital currency does not somehow replace these payment processors, these payment processors can use any digital currency and would likely transform themselves into a trusted exchange. It's likely that hackers would be much more aggressive at targeting home computers in a society that had transitioned to a "digital wallet at home" type setup and most people would feel more comfortable storing their money with well positioned and skilled experts.

[mrmacintosh]

Have you ever wondered what the future of credit/debit cards will be once CBDCs (Central Bank Digital Currencies) go public? People will no longer need to use a plastic card to pay for goods and/or services, as everything will be done through a mobile (or desktop) app. This means people will directly interact with the central bank for deposits and/or withdrawals. No need for middlemen like Visa or Mastercard. At least, that's what I think it will happen.

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.

It's a bit weird to jump to the conclusion that things like credit cards will become obsolete, but then I guess at a certain point - probably around the same time the CBDC's are mainstream - then we might have transitioned to only storing debit/credit card apps on our phones anyway. A digital currency does not somehow replace these payment processors, these payment processors can use any digital currency and would likely transform themselves into a trusted exchange. It's likely that hackers would be much more aggressive at targeting home computers in a society that had transitioned to a "digital wallet at home" type setup and most people would feel more comfortable storing their money with well positioned and skilled experts.

Do you think we'll see a new form of banking with crypto? The banks will no longer have a monopoly like they do. Any person would be able to form their own bank to hold people crypto. Technically, there's private firms that do this for private asset holding. Due to the small amount of physical storage, if any, that you need for bitcoin, I bet the startup and maintenance costs will compete against a bank.

[Abiky]

It's a bit weird to jump to the conclusion that things like credit cards will become obsolete, but then I guess at a certain point - probably around the same time the CBDC's are mainstream - then we might have transitioned to only storing debit/credit card apps on our phones anyway. A digital currency does not somehow replace these payment processors, these payment processors can use any digital currency and would likely transform themselves into a trusted exchange. It's likely that hackers would be much more aggressive at targeting home computers in a society that had transitioned to a "digital wallet at home" type setup and most people would feel more comfortable storing their money with well positioned and skilled experts.

Payment processors would effectively become custodians of your CBDC holdings. Perhaps, they will charge maintenance fees and whatnot to stay in business. The thing is, the world is becoming "digitized" at a fast pace. Physical assets will no longer be relevant. They will become a thing of the past.

Like I've stated previously, the climate change agenda will completely remove the need for plastics and paper to help protect the environment. This is the future whenever we like it or not. My guess is that credit/debit card companies will only issue virtual cards after the rollout of CBDCs. Old generations are not quite fond of digital payments, so it's going to take a while before the transformation is complete. Who cares about Fiat anyways? As long as we have a decentralized cryptocurrency like Bitcoin, there should be nothing to worry about.

[TastyChillySauce00]

You bring up some interesting ideas about how CBDC could change the way we pay for things. Even if CBDC allow people to pay directly without needing a credit or debit card, many people are used to using cards because they’re simple and work almost everywhere. Credit cards also have extra benefits like rewards and is a way to borrow money easily, which might not be possible with CBDCs alone.

I think credit cards and paypal might still be used even if CBDC become common. Instead of going away, these companies could change and find new ways to help people manage their money.

Almost certainly they will do that, whenever ther eis CBDC proposal coming up I bet these companies already readying themselves to incorporate them to their platform, I mean they can do the exact thing with cryptocurrency but the legality and regulation is what keeping them from doing so.

since CBDC is created by the government anyway, the regulation won't be a hindrance and they will do it the first day CBDC goes out in public.

almost certainly the gov also will make these company incorporate the CBDC to boost the adoption in day 1, so I think it will not be the end of anything. CBDC will just be another alternative if any.

[ChiBitCTy]

I personally don't think we are even close to being there yet  (and likely never will be in our lifetimes) for one major factor, phones and computers (electronics) are highly susceptible to hacking /sim swapping etc, and leaving cards on your phone is a security vulnerability. This alone ensure plastic cards will be used for a long time to come.  Also, what if your phone dies.  There are still plenty of people who don't like using phones at all.

This is somewhat similar to using a hot wallet, versus a paper wallet or a hardware wallet, where you go from having your crypto online to cold storage.  

IMO eventually people will be able to scan their finger prints or eye balls which will be linked to cards.  Not saying this is good, as many issues can come from it, but I just think that's the silly type of shit companies will push for.  

[m2017]

I personally don't think we are even close to being there yet  (and likely never will be in our lifetimes) for one major factor, phones and computers (electronics) are highly susceptible to hacking /sim swapping etc, and leaving cards on your phone is a security vulnerability. This alone ensure plastic cards will be used for a long time to come.  Also, what if your phone dies.  There are still plenty of people who don't like using phones at all.

My opinion is the opposite of yours.
Progress canэt be stopped and the fate of plastic cards is predetermined - these cards will disappear as a rudiment of the banking system. The world is gradually moving from an offline format to an online one. Every day I see people paying through mobile apps from smartphones. It is almost impossible to see plastic cards on people. Despite some negative aspects mentioned by you (the vulnerability of SIM cards, smartphone OS, limited battery capacity), convenience compensates for all the shortcomings. People "vote" with their actions, choosing convenience, and in this case, a smartphone with a banking app instead of plastic cards is more convenient. Because of individual supporters of plastic cards, the banking system will not leave plastic cards just for their sake. The majority of consumers have made their choice, the banking system will satisfy their demand, and not those like:

There are still plenty of people who don't like using phones at all.