The beginning of the credit card era

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The beginning of the credit card era

Ever wondered when and how the credit card came about?

References to credit cards can be traced as far back as 1890 in Europe. Although back then, it looked nothing like the precious metal coloured plastic we carry in our wallets today. Before the arrival of plastic, credit cards or credit tokens often took the form of metal coins, metal plates, celluloid, metal, fibre and paper.

The first use of magnetic stripes on cards was in the early 1960's, when the London Transit Authority installed a magnetic stripe system.

Early credit cards...

Early credit cards involved sales directly between a trader and the customer and could only be used in one store. It was not until 1938 that other companies began to accept each other's cards.

In 1951, Diners Club issued the first credit card to 200 customers. They could use it in 27 restaurants in New York City.

By the early 1960's more companies were offering credit cards and American Express and MasterCard became widely recognised and used.

Today, credit cards are widely accepted around the world and have become an indispensable part of everyday life. From paying for fuel and groceries, to flights and accommodation, credit cards offer more than just an instant line of credit.

They come with reward programs, allow you to spread out repayments over several months, and offer a range of features and benefits. The credit card has come a long way since 1890.

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