Today, most people actively use plastic bank cards. This is very convenient, because you don’t need to constantly carry a large wallet with you. It is enough to have a small cardholder, where the card will be. Some people even carry it in their pocket, which is also quite normal. In addition, it is much safer than banknotes, because in case of theft, the card can be blocked with one call to the bank and the thief will not have access to your finances. He simply will not be able to use your money.
Having "plastic" also gives you other advantages, for example, you will have access to online banking. You can easily and quickly top up your account online, pay for utilities, the Internet, make online purchases, and so on.
And what is it? history of bank cards? Where did the first bank card appear?? Who came up with their concept anyway? Let's try to understand this rather interesting topic.
Prerequisites for the emergence of bank cards
The idea of creating something like this was around in the first half of the 20th century. At that time, people actively used cash, checks, and other traditional payment methods, but many people already understood that this was not always convenient. It would be nice to have something that could always be with you, and you would have access to all your funds.
The economy did not stand still, but was constantly developing. The volume of financial transactions increased. As a result, the idea of creating a universal means of payment began to be increasingly "flying in the air", especially among wealthy people.
If we talk about specific prerequisites, these are:
- The growing popularity of credit accounts in large stores.
- The development of technologies that allowed customer information to be stored in electronic format.
- The proliferation of gas stations and restaurants that were looking for ways to avoid risks when handling cash (to minimize the possibility of robberies and muggings).
The history of the first bank card
If we talk about the specific date when it appeared the first plastic bank card, then it is 1950 (United States of America). And who invented the bank card?? Interestingly, the idea does not belong to the bank, which would be quite logical. It is the invention of the company Diners Club – an organization that served customers in New York restaurants. If we talk about the specific name of the inventor, it is Frank McNamara.
How did it happen? He once faced a situation where, after dinner at a restaurant, he realized that he didn’t have the money to pay the bill. This inspired him to develop a card that would allow him to pay for services using a line of credit – a credit card.
The first cards weren't plastic. They were made of cardboard. They worked like this: the customer presented the card, and the bill was issued for payment at the end of the month. Initially, only wealthy people had access to them. These were people whom the company could trust financially.
The demand for this solution was very high. As a result, within a year, more than twenty thousand people were using it.
The evolution of bank cards
The basis was laid. Over time, the concept began to expand. The principle of operation of the cards was improved. The first bank cards Plastic cards didn't take long to appear. They appeared as early as 1958. They belonged to the American Express company.
What is the reason for changing the material? Everything is quite obvious here - plastic is more durable than cardboard. A product made of it could be used longer and at the same time not lose its functionality or appearance.
A year later, in 1959, Bank of America also launched its product. Initially called the BankAmericard, it was later transformed into first Visa cardOf course, a monopoly cannot exist for long, especially if it is a new niche, so a competitor appeared a little later - the companyMasterCard (1966). The first MasterCard card was released almost immediately. It was called Master Charge.
Progress did not stand still. Various new technologies appeared. They were actively used by banks. For example, in the 70th year "plastic" began to be equipped with a magnetic strip that stored information about the owner. They were used for the next twenty years, until chips were invented in the 90s, which gradually began to replace magnetic strips. Another ten years later technology is being used NFC (contactless payment), which we actively use to this day. Here it is the evolution of payment cards.
The first bank cards in Ukraine
AND When did bank cards appear in Ukraine?? If we talk about our country, then "plastic" appeared in our country much later than in the USA. This is understandable, Ukraine gained independence only in 1991. Only after that did the various benefits of the West become available to our people.
By the way, at first people didn't have much trust in banks or their products, but later everyone began to understand that it was really very convenient. One of the first banks to introduce card payments was PrivatBank. This happened in 1996. Back then, they were used to pay salaries. People realized that they didn't need to stand at cash desks for hours and wait for physical money to arrive at the accounting department. They could simply get funds on their card. As a result, transactions became much faster and more convenient.
A little later, ordinary people had access to credit and debit cards. Today, the functionality of cards is simply enormous. Most Ukrainians actively use them. With their help, you can pay for goods and services online, withdraw cash at ATMs and use contactless payments. Most Ukrainian banks offer their customers modern card products that meet international standards. The most popular are products from companies PrivatBank and MonoBank.
Let's summarize
It is no exaggeration to say that bank cards have come a long way in evolution. It all started with the idea of a convenient and secure payment method for wealthy citizens, and now it is something that is available to everyone.
Sooner or later, something like this was bound to appear. The economy was constantly developing. People had more money in their hands. In addition, various receipts and checks had been actively used in various countries, including the USA, for more than a decade. In fact, they were the prototype of the future, first cardboard, and then plastic payment cards.
Today, every bank offers a wide variety of solutions to meet the needs of each client. If you wish, you can choose a truly suitable banking product that will satisfy all the needs of a particular person.
