October 2009 Archives

While most of the article deals with credit card issuers and regulations in the UK, the author makes some interesting points.

One cannot help thinking that we may have already seen the peak of the credit card market. Prepaid cards, debit cards and the likes of PayPal are steadily gaining market share and if the faithful credit card loses some more of their allure the trend may continue.

...There is a market for the credit card but it looks likely to get smaller.

Maybe we really have seen a peak in the credit card market. It's not realistic to expect that people will just keep getting more and more credit cards. Of course, this doesn't necessarily apply to all markets. In some countries, credit cards are really just taking off. I don't think that debit cards or prepaid cards are really taking away too much business from the credit card companies. After all, credit cards offer a lot more flexibility and rewards.

BBC News: What's the future for credit cards?

Visa just announced that they made a $514 million profit in the last quarter. Payment volumes are still down but the number of cards and transactions are up.

The chief executive, Joseph W. Saunders, said Visa was beginning to see signs of stabilization that appeared to reflect early signs of economic recovery.

Wanna tell that to all the unemployed people?

NYT: Debit Card Use Helps Visa Post a Profit