Industry Analysis Case Study

Credit Cards and Business Growth

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Abstract:
Credit cards have been one of the most important revolutions in the way people pay for goods and services through the ages. Credit cards were first employed in the 1950s in the US and within half-a-century they were used in almost every country in the world. Despite high consumer debts, credit cards were encouraged in most countries as it was believed to spur consumer demand and boost economic growth. However, with the increase in the use of credit cards across the world, credit card thefts and personal bankruptcies also increased at a rapid rate. By the early 21st century, a new method of payment service called 'pay by touch' was conceptualised that could completely eliminate the need to carry cash and cards.

Pedagogical Objectives:

• To discuss the impact of credit cards on global business growth and the inherent risks underlying the rampant usage of credit cards.

Keywords : Credit cards, Frank X McNamara, Diners Club, BankAmericard, MasterCard, Visa card, Fresno drop, Credit card debt, Credit card delinquents, Credit cards and bankruptcy, Pay by touch, International Trade & World Economy Case Study, Credit cards in USA, Risks involved in credit cards, Credit cards usage, Credit cards as a mode of payment