Credit cards have been around for a long time. You might be surprised to learn that credit cards were first used in the 1920s. Like most things, it took time for them to develop into the convenient payment method we know today. Scroll down to know the history of credit cards:
The first cashless payment system was launched in New York City in 1950.
The first cashless payment system was launched in New York City in 1950. It was used to pay for parking, and the card had a magnetic stripe that stored information about how much money you had on your account. The New York City Parking Authority (NYCPA) issued the card, which still issues parking tickets today.
SoFi experts say, “In 1950, McNamara returned to the same restaurant with his business partner, Ralph Schneider, where he used a cardboard card to pay the bill. That card was the Diners Club Card, and the dinner became known as the “First Supper.”
The magnetic stripe technology was used for the first time in 1967.
The magnetic stripe technology was first used in 1967, but it wasn’t until 1981 that credit cards became widespread. Technology has continued to evolve to meet the needs of a growing society, and new technologies are being developed all the time.
In the late 1970s, smart cards emerged as a new technology.
Smart cards, which feature an embedded microchip, are a type of electronic payment card. One can use it for payments, identification and other purposes. For example, in the late 1970s, smart cards emerged as a new technology that helped drive many of the changes in credit cards we see today.
EMV chip cards were introduced in 1992.
You may have heard of EMV chips, but if you’re not sure what they are and their history, we’ll break it down for you. EMV stands for Europay, MasterCard and Visa—the three companies that created the technology in 1992. The acronym “EMV” is now used to refer to chip cards.
Chip cards contain an embedded microchip that stores data such as your name and account information. When inserted into a terminal at checkout, this information is transferred from the chip to another device within seconds. Rather than simply swiping through a magnetic stripe on the back of your card, as traditional credit cards do. As a result, these transactions are processed more securely than those made with traditional cards because they contain more information about you, making it harder for someone else’s info to be accidentally transmitted during payment processing.
Mobile payments and digital wallets have become popular in recent years.
Mobile payments and digital wallets have become popular recently, with mobile apps like Venmo, PayPal and Apple Pay. These apps allow people to send each other money via their smartphones. So instead of writing a check or handing cash over to a friend, you can transfer funds directly into your bank account using your phone.
Thanks to new technology, today’s credit cards are more secure than ever. They also offer more opportunities for users to manage their finances. While they may not be as convenient as cash or debit cards, credit cards are still the most popular payment method in the US because they give you access to credit if you don’t have enough money in your bank account right now.
