As the world continues to adapt to continuous technological advancements, mobile and alternative payments are experiencing significant growth. This means that the credit card industry has experienced changes in the process too.
What credit card trends can we expect in 2017?
Increased use by small businesses
More small businesses are making use of credit cards. Most of this can be attributed to increased industry innovation as well as favourable macroeconomic trends. Small business owners are finding it easier to also process credit card payments by using innovative technology like the Square, which facilitates easy credit card payments on-the-go.
Adoption of EMV technology
“Europay, MasterCard and Visa” (EMV) credit cards are those that contain microprocessor chips inside.
Already standard in Europe and Africa, this technology is set to become increasingly popular in the United States. The technology alleviates fraud by making it harder for hackers to steal information. MasterCard says it will expand to 98 percent by the end of 2017.
Co-branded Credit Card
These cards look set to be targeted towards affluent consumers. These cards offer more rewards and better benefits and give customers the benefit of exclusive offers from credit card companies.
Less use of credit cards
One of the credit card trends expected in 2017 is that the use of credit cards may decline slightly. As contactless or virtual credit card payments become more popular, the use of actual credit cards may be decline.
Enhancements to credit card designs
Trends indicate that services which are linked to security are set to affect acquisition and retention.
If credit cards have identity theft protection services, more consumers are more likely to get that credit card.
More innovative rewards systems
A major incentive for using credit cards over cash is usually the rewards system. Credit card companies are competing over who can offer the most appealing rewards systems. Card issuers are set to become more creative with the types of rewards they offer.