It was the traditional bricks and mortar high-street bank that fell out of popularity with customers, and later physical cash itself. Now the time is now for bank cards that are physical too.
The way we manage our finances and interact with finance is changing and becoming more mobile-centric, particularly on a daily basis.
The way we pay for things is becoming more digital, and this trend will be further away from traditional cash use. Recent studies show that global use of mobile wallets and payments are growing at a constant rate. With this in mind, do the expiry dates of our bank cards now getting more quickly than anticipated?
Digital natives driving change
The digital native generation (a person who grew up with technology that is digital) comprised of Gen Z and Millennials are leading the way in changing the world. It’s not often that you’ll be behind a digital native when standing in an ATM waiting line these days, as they continue to seek the fastest, most efficient solutions in financial services.
The introduction of innovative technologies like Google Pay and Apple Pay makes it easier for people to pay through mobile. Gen Z as well as Millennials seldom leave their homes without phones as they are more than just a communication device. It’s a wallet virtual payment method or bank account, and many more. Fintech continues to create new ideas in these areas, since it’s safer, more efficient and more sustainable than traditional card and cash payment methods.
Fintech goes green
ESG goals are now at the heart of all industries’ objectives and goals and fintech isn’t an exception. Research conducted by Thales indicates that how much plastic used every year by physical card manufacturing is equivalent to the to the weight of 95 commercial aircrafts. So, it is clear that there is no doubt that finance has a degree of responsibility to influence positive environmental change.
As a species we’ve made an effort to remove the use of plastic in our lives as much as is possible. Businesses like retail and hospitality have made progress in eliminating single-use plastics like straws and bags from their operations. Fintech is now making the shift to decrease its dependence on plastic cards. Instead of the mass production card, the mobile payments provide an alternative that is greener for consumers. The users now have the possibility to stop having to discard old cards (which are not biodegradable) globally.
Traditional financial systems are disrupted by fintech
Fintech’s success can be attributed to the growing demand of customers for a technology-driven service that was not available through traditional financial institutions. It’s no accident that the challenger banks, digital assets along with mobile-based payments (to just a few examples) have seen a surge in popularity in the last 10 years or more.
Fintech continues to invent and change the paradigm of traditional finance by leveraging the latest technology on behalf of the customer. One example is technologies like PIX which has come to rule the field of Brazilian payment options. With PIX technology testing cash withdrawals using cards It is expected to accelerate the transition away from traditional bank cards as well as payments as the mainstream acceptance is in place.
The future will be completely unaffordable?
Fintech is setting the pace in ending our dependence on traditional payment methods by utilizing the most advanced technology. Users are soon able to access their financial data in one location as the industry is pushing the boundaries on the capabilities it’s capable of to offer its customers. Making mobile payments, transfer funds between digital wallets and also access digital assets on your phone is now possible by fintech.
The need to cater to a market that is growing populated by digital natives has speeded down the procedure of shifting away from traditional credit card usage. The ability to provide a more sustainable, personalized and secure experience while dealing with finance can be a desirable alternative to less dependable services offered by traditional financial institutions. The Covid-19 virus was the end of the use of cash by a large portion of us. It’s likely that digital change and fintech innovations will bring the same fate to your bank cards.