Innovation of payment cards

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Innovation plays an important role in both social and economic developments. Many products and services were innovated exploiting the latest technology to enhance human life standards. One of the most important innovations is the plastic payment card. Paying with plastic cards is considered a revolution in the payment industry. This radical innovation was first limited to specific locations to where it belongs at the very beginning, but with the incremental improvement in the related systems and technologies used in developing those cards, they eventually changed from single purpose to multi-purposes in which they can be used for even hundreds of services as long as the limit allows all over the world. Use of plastic cards is very convenient and secure and this is the main selling point of the cards. Individuals as well as businesses prefer the use of credit cards for this purpose. However, there are a number of risks associated with these cards. Fraud and security risks have increased especially with the introduction of Internet, the benefits of plastic cards for payments still overweigh the risks associated to their usage and are still seen as one of the best innovations in the payment industry. This paper will highlight some general innovation theories and focus on the contribution of payment cads, as an innovation, to our live and economy as well as addressing some of this innovation’s controversies and risks.

Literature Review
Definition of innovation:
The general definition of innovation refers to any product or service containing a set of feature, which is introduced to the market as a complete new aspect with new advantages and qualities. Business Innovation narrows the context to that of creating a profit...

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...contribute to the economic growth and is expected to reduce friction in the global economy. (Zandi et al., 2013)
Figure 3: (Zandi and Zingh et al., 2013)

The use of payment cards has increased dramatically in the last few decades due to their security and convenience of use.. However, there are some challenges associated with the use of these cards especially in the current times of the Internet. Addressing the challenges should enhance the payment cards industry and pass down the benefits to the users. Conversely, cooperation among the parties involved in this industry can really help addressing the current challenges and foreseeing possible challenges in the future as well as addressing them before their time. The continuous research and development can provide the solutions needed in the payment card industry to make it healthier and sustainable.

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