Credit Cards

ETS 373 Technology Assessment and Forecasting

Gloria Angell

Content

BackgroundCompeting TechnologiesRegulationDemographicsSocial EffectForecast

Background

• The use of credit to pay for goods has been used for many years.

• Originated in The United States in the early 1900’s.• In 1938 companies began to accept credit cards from other companies.• In 1950 the first credit card

company was formed• In 1966 Barclaycard launched the first Credit Card

outside of the U.S.

Competing Technologies

• Checks

•Cash

Regulation

• Credit cards are regulated by the Federal Trade Commission, Federal Deposit Insurance Corporation, the Federal Reserve, and Consumer Advocate groups.

• Congress can also pass laws regarding credit card companies and fees.

• President Elect Barrack Obama has also been Very vocal about credit Card reform.

Demographics

• Credit card companies target ages 18-45.• At 74% in debt, Ages 24-34 have the highest

rate of credit card debt.• People 50 and older are more likely to own a

credit card, but use them far less often than their younger counterparts.

Social Effect

• Approximately 51 percent of the U.S. population has at least two credit cards• 55 percent of credit card users keep a balance on

their credit card, up 2 percent from 2007• Total U.S. consumer debt reached $2.55 trillion at the end of 2007, up from $2.42 trillion at the end of 2006.

Social Effect Cont…

• There are more than 292 Million credit cards in use in the US.• The typical consumer has access to

approximately $19,000 on all credit cards.

Future

• Advances are being made in Credit card technology all the time. • Pay Pass• Pay by touch•There are also ways to pay using your self phone and while driving in your car. •New more secure technology.

Forecast

• Five year Forecast- Credits Cards will increase quickly due to new technology after a short decline in the next year or so due to current financial instability.

*75% chance of this happening.• 20 year Forecast- Credit Cards and Credit Card use will

increase steadily due to the efficient nature of using credit cards.

*65% chance of this happening

Bibliography• Woosley, Ben and Schulz, Ben. (2008) Credit Cards.com. Retrieved November 25, 2008,

from Credit Cards Web Site http://www.creditcards.com/credit-card-news/credit-card-industry-facts-personal-debt-statistics-1276.php

• Hornaday, Ann. (2005) Washington Post. Retrieved November 25, 2008, from Washington Post Web Site http://www.washingtonpost.com/wp-dyn/content/article/2007/03/08/AR2007030802178.html

• (2008) Agencies Seek Comment on Proposed Interagency Appraisal and Evaluation Guidelines. Retrieved November 23, 2008 from The Federal Reserve Web Site: http://www.federalreserve.gov/newsevents/press/bcreg/20081113a.htm

• Baldwin, Mike. (2005) Cartoon Stock. Retrieved November 20, 2008, from Cartoonstock Web Site: http://www.cartoonstock.com/newscartoons/directory/C/Credit_card.asp

• Kate, Nancy Ted. (1997) Retail Industry. Retrieved November 25, 2008, from Find Articles Web Sitehttp://findarticles.com/p/articles/mi_m4021/is_n5_v19/ai_19561578/pg_1?tag=artBody;col1

• Manning, Robert D. (2000). Credit Card Nation. New York: Basic Books• Evans, Davis S. (1999). Paying with Plastic. London, England: MIT Press