The world has seen a big decline in the popularity of credit card usage over the past 10 years. Like the large prehistoric reptiles that once roamed our planet, the credit card too looks like its gearing up to join them on the extinction list. One of the main reasons for this is that shoppers these days are asking themselves questions like, why are we still paying extra charges to use a credit card? Should it still be treated as a privilege to pay with one even though the entire world uses them. As smartphones become more and more prevalent in our everyday lives, the likelihood that they will one day replace credit cards for making payments is becoming far more likely.
“Tap-and-go” payments are increasing in popularity, whilst eftpos payment figures having more than doubled since 2009. Yet many stores across Australia, and the world, still charge up to several dollars in fees to pay with a card while some even demand you spend more than $10 if you choose to pay with one. Paying an additional $1 for a coffee, for example, that costs $3 can generate additional costs of up to $260 being paid just on fees every weekday for a year. So why do we have to still put up with this and what changes do we need to see in the market before the mobile payments take over?
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