The story of the credit card, nowadays an essential financial tool, starts with an unexpected event that sparked a payments revolution. Its development from limited-use paper cards to internationally accepted plastic and digital setups highlight the altering face of consumer money.
The idea initiated in the early 20th century when individual retailers and oil companies in the US presented exclusive charge cards usable only at their own outlets. Though, an essential moment occurred in 1950 when Frank McNamara, eating at a New York restaurant, forgot his wallet. This led to the formation of Diners Club International, which launched the first all-purpose charge card in 1950, known at numerous merchants for travel and entertainment costs.
However revolutionary, the Diners Club Card was not allotted by a bank and functioned as a charge card, need full payment every month.
The foremost bank-issued revolving credit card, which permit consumers to carry a balance with interest, was launched in 1958 by Bank of America. Termed BankAmericard, it marked the start of the modern credit card era and finally evolved into Visa, now one of the world’s largest payment systems.
Credit Cards in India: A Parallel Journey
India’s venture into credit cards started few years later with a different trajectory.
• Diners Club’s Entry in India (1961):
Though not a bank, Diners Club converted the first to introduce credit cards in India over an invite-only franchise. These were limited cards targeted at elite clients, placing the groundwork for broader adoption.
• Central Bank of India, Initial Bank Issuer (1980):
Amongst Indian banks, Central Bank of India, in association with Visa, was one of the most primitive to issue credit cards around 1980. This was a vital step in the proper banking sector’s participation in consumer credit.
• SBI Card, First Organized Bank-Backed Credit Card (1998):
A major landmark created in 1998 when State Bank of India issued SBI Card, a joint initiative with GE Capital. This marked the starting of organised, large-scale credit card facilities in India, serving formalize and developing the digital payments ecosystem.
Since a restaurant mishap in New York to the escalate fintech platforms in India, the credit card has gone over decades of innovation. Considering this evolution helps irradiate how today’s seamless, contactless, and app-based payment systems came to be.
Also Read: IndiGo & IDFC FIRST Bank’s New Credit Card Will Make Your Flights Much Cheaper
Ankur Mishra is a journalist who covers an extensive range of news, from business, stock markets, IPOs to geopolitics, world affairs, international crises, and general news. With over a decade of experience in the business domain, Ankur has been associated with some of the reputed media brands. Through a sharp eye on global marketplaces along with deep insights and analysis of business strategies, Ankur brings simplicity to the complex economic matrix to decode market trends and empower people.
He is committed to entrenched data, facts, research, solutions, and a dedication to value-based journalism. He has covered trade tariff wars, international alliances, corporate policies, government initiatives, regulatory developments, along with micro- and macroeconomic shifts impacting global fiscal dynamics.
