In 2012, Barclay card issued a new style of credit card in the United Kingdom, one which could have long-term implications for the way we buy things, and for our overall relationship with our personal finances. If the new development is a success, it may even be the case that we stop carrying cash altogether.
The latest release is a ‘sticky’ credit card, far smaller than a standard card, but with the usual capabilities and functions. It’s designed to be stuck to the underside of a mobile phone, and to be used as a contact less card specially made for small purchases that won’t require the user to input a PIN number at the checkout desk.
Contact less payment is nothing new, of course - it has become an accepted method of buying in many countries, and is particularly popular in Japan. But the interesting thing about the latest gadget is that it’s intended to be carried around by users all the time. The reason for its small size and its adhesive quality is that Barclay card realize that people carry their phones around with them 24 hours a day, seven days a week.
For the company, the hope is that customers will start to use their credit cards for purchases that would usually involve a debit card or even cash. Barclay card know this sector of purchasing does not generally involve the use of a credit card, so if it’s a success it could prove to be a lucrative step into a previously untapped market.
Success could be crucial
Needless to say, it will be an abject failure if the consumer doesn’t take to the idea, but Barclay card are hoping this could be the start of something big. If the concept becomes an extremely popular one over the next couple of years, it may be that contact less payment software will be incorporated into the mobile phone itself, and once that happens the possibilities are almost endless.
The recent economic recession has led to something of a sea change in the way consumers use their credit cards. A growing number of users have had their accounts frozen because they have failed to keep up with repayments, so a whole customer base has been lost to the issuers. For many other people, financial difficulties have prevented them from using their cards at all, so any development that can persuade us to go back to using them is likely to prove something of a goldmine to the companies.
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About The Author
David Showell lives in the United Kingdom and keeps a close eye on the financial industry. He works for a company that provides the best cheap car hire Dundee motorists will find anywhere.
