Credit Card Trends Expected in 2017
Credit Card Trends in 2017
Changes in the credit card industry in South Africa are “on the cards” as ever improving advancements in the technological era alter consumer habits.
Mobile and other forms of payment methods could have an adverse impact on the credit card industry’s growth rate.
However, financial institutions have pinpointed some positive trends that can stop the decline or even accelerate the usage of credit cards.
Credit cards in South Africa have built-in microchips.
These are known as EMVs (Europay, MasterCard, Visa) and are in standard use throughout Africa and Europe.
EMVs are now also becoming increasingly popular in America.
EMVs act as a theft protection mechanism, safeguarding users from fraudsters and blocking hackers from stealing personal information.
EMV cards are set to increase its usage to 98 percent by the end of 2017, according to MasterCard.
Small business growth
Another growing trend is the increase in the use of credit cards by small business operators.
Banks attribute the growth rate of credit card usage by small businesses to macroeconomic trends which have clear credit card payment processes.
Business owners are also increasingly making use of “Square” which is an innovative technological advancement for on-the-go simple credit card payments.
Another huge attraction on offer by banks is Visa and MasterCards.
That is particularly attractive to businesses employing contract or temporary workers. Companies can automatically load the employee’s wages onto prepaid payroll cards, reducing overheads on bank fees and increasing administrative efficiency.
Another Prepaid card has seen the advent of Incentive Cards. One can load these cards with cash rewards, and business owners use them to recognise worker loyalty and productivity.
Other Positive Credit Card Trends in 2017
South African banks are fiercely competitive when it comes to their rewards programmes.
Most banks regard credit card rewards programmes as a huge new client drawcard. Therefore, 2017 will see the introduction of additional and more creative incentives.
Co-branded credit cards
This credit card is aimed at the top end of the market, co-branded credit cards offer bigger benefits and more rewards.
Card holders also benefit from exclusive offers by financial institutions.
No matter what new gimmicks and gadgets enter the banking scene in 2017, credit cards are set to hold their lion’s share of the market.
In current climes, it is almost impossible to implement financial transactions without a credit card which augers well for the South African financial sector.
All info was correct at time of publishing