Are credit card payments out of date?

Credit cards are one of the most popular means of payment in the last decade. This is because it reduces the amount of money in people's hands, it is practical and can be used anywhere. But, with the advancement of technological changes, it is already possible to talk about the end of the credit card?

Physical credit card loses space for virtual cards

In recent years, Brazilians have been able to witness the birth of several fintechs, companies focused on the financial market with a strong use of technology. technology, responsible for revolutionizing money management and access to credit.

However, if in the beginning fintechs turned their attention to credit through physical cards, today the reality is very different. Virtual credit cards are increasingly being offered, which can be used for a transaction and then deleted.

This is because the intention of these companies is to provide ever greater transaction speed and security for customers. In this sense, the end of the physical credit card is already starting to become reality.

After all, in addition to virtual cards, payments can be made using approximation and digital wallets through cell phones. In this way, the physical credit card becomes less and less necessary.

So, credit cards will continue to be one of the main means of payment for Brazilians. However, the tendency is for digital wallets, such as Google Pay, Apple Pay and virtual cards, to steal the already consolidated space of physical credit cards.

Forecasts for the future

In 2022, Roberto Campos Neto, president of the Central Bank, stated that, at some point, the credit card will cease to exist, due to the open finance system, which aggregates all information from people in one platform.

According to him, with all the data in a single place, it will not be necessary to use several applications from institutions financial services, in addition to having the option to pay by credit, debit or via Pix, which is already being used as a credit.