The history of credit cards is closely related to the evolution of transactions. From basic bartering to the modern e-payments we know today, technology advancements have made trading and the payment process easier.
Prehistoric age – No business transactions, everything was shared for survival.
Bartering – The earliest trading system, it requires the mutual agreement of two parties to exchange goods or services.
9000 – 6000 BC: Cattle – Trades involve animals with farming abilities, e.g. two goats for one cow.
1200 BC: Cowry shells – Cowry shells were suitable for trading because it is a rare and hard to fake.
1000 BC: Metal cowries – Evoluted from cowry shells, this was the first metal currency made with bronze or copper, created by China.
Knives & Tools – These are made with valuable metal, and therefore suitable for trading.
500 BC: Silver coins – Created in Sardis Turkey, similar to metal cowries, they are made with rare metal.
120 BC: Leather money – China pioneered “paper currency”.
806: Paper currency – The first paper currency, a certificate that is similar to a modern cheque, which allows users to make exchanges.
1535: Wampum beads – A clam shell trading tool used by Americans.
1821: Gold acted as standard currency, starting from England then followed by Australia, Canada, France, Germany and the United States.
1891: American Express traveler cheques – A travelers cheque can be exchanged for money.
1930: The Gold Standard ends – Paper money become “flat” currency that is no longer convertible into gold.
1946: Bank cards introduced – The first credit card was created by Brooklyn banker John Biggins. Card holders use it to purchase items with any local merchant.
1950: Diners Club – The first widely used credit card for travel and entertainment purposes.
1966: Modern credit cards – Established by Bank of America, the card was later re-branded as VISA.
1972: ATM (automated teller machine) – The first electronic machine that allows users to withdraw money without visiting their bank.
1983: RFID (radio-frequency identification) – Invented by Charles Walton, this payment system is widely use on toll roads.
1994: Pizza Hut & Online Banking – Widespread Internet usage led Pizza Hut to establish the first online banking store.
1995: Amazon & eBay – A year later, both eBay and Amazon launch their e-commerce system, and online buying became increasingly common.
1997: Mobile payment – The first vending machines that accept payment via SMS.
1998: Billpoint established – Acquired by eBay in 1999, it is solely used by eBay as a person-to-person payment system.
1999: PayPal established – An online payment choice.
2002: PayPal acquired by eBay, and Billpoint was completely phased out.
2004: NFC (near field communication) – Payment can be easily accepted by phone. Users no longer need to carry cards to swipe for payment.
2007: Mobile payment developed – Release of iPhone leads to development of mobile payment apps.
2010: Square – Founded by Twitter’s Jack Dorsey, the device can be attached to any smart phone or tablet to swipe a customer’s credit card.
The Future – Who knows? It may be possible to make payments with Google Glass, rings, or our bare hands.
Google Glass

Smarty Ring

Apple iWatch and Samsung Gear


Infographic source: www.innerfx.com