The History of Credit Cards
Posted October 23rd, 2008 and last modified November 21st, 2011
Discover the origins of this modern breakthrough in the world of commerce and capitalism.
Credit Cards today have become an accustomed part of everyday life, whether it’s used for groceries, petrol or just everyday expenditure.
The credit card has become natural for at least one type of payment. Today’s credit cards have evolved from a variety of credit schemes used throughout the 1920s mostly in the United States, designed to sell fuel to a large increase in cars, which was handed out by the oil companies to use their goods.
The concept was a sheet metal card that held the customers name, city and state but no address. However the cards were only used for specific companies, it was not until the 1950′s where the first major card company (Diners Club) had evolved the card into a card that could be used throughout most businesses that took credit cards.
Through the 50′s to 70′s The credit card evolved into a payment method which could allow for cash free wallets and be very handy for business people traveling frequently.
American Express and MasterCard like other several companies grew enormously, becoming some of the biggest companies today. Through the popularity of the public becoming habitual to the use of credit cards, naturally the big banks got grasp of the idea and knew they could profit from the concept.
Credit Company Growth
Since the Rise of Major Credit Card Companies, there economic growth is beyond comparison to other leading companies around the world. Cash advances since 1990 have risen from $223 Million to Today’s $1.012 Billion. The number of accounts in Australia has risen from
- 6,608,000 in 1995 to
- 1,396,6000 in 2008.
It’s evident to see that although accounts have increased by double the amount cash advances has increased by over 4.5 times. As of August 2008 there are 141,943,000 credit card accounts worldwide, spending an average per month of $17000 million in 2008. In January 1992, the amount was a relatively meager $1310 Million.
Leading Companies
MasterCard and Visa are the two biggest credit companies Sharing 88.3% of the market. This in comparison to Amex and Diners who have a respectable 11.5%.
A total of $17797 million was transacted throughout August 08 with a total repayment of $44594 million. Just over double, displaying facts, that suggest the average persona is not paying on time, due to economic redundancy and also displays how much credit card companies earn there power.
There is limited room left for new companies to create there own credit card. The four major credit companies hold such a monopoly over the population.
What’s Ahead of Us
Credit Cards have a big future as the world becomes a less cash in hand society. Already we can see cash becoming less of an everyday currency with the introduction of credit card-only gas pumps. A cash free environment may be increasingly difficult for those who have trouble saving, but they’ll need to adjust in order to match societies changing finance.
Image source: Kari_Marie
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