Same Benefit With Normal Credit Cards example essay topic
297 words
1. Who stands to benefit most from smart cards: banks, retailers or consumers? Explain. I think compared to banks and retailers, the consumer have the best benefit from Smart Cards. It is not only a substitute for credit cards, but also can be used for medical objects. Then the user don't have to carry a lot of different types of cards, like now.
Banks have the same benefit with normal credit cards, because they are already a substitute for cash. The consumer on the other hand can use it in the future as online banking, which saves time, because they can transfer more easily. Retailers have to get one of the card reader, which cost a lot of money in the beginning, even so it is securer. 2.
Why might consumers and merchants in developing countries be more receptive to using smart cards than consumers and merchants in the United States? Consumer and merchants in developing countries are not used to any kind of money cards, so it is anyway new for them. United States citizen use already credit cards for many years and a switch to Smart Cards would be difficult. The merchants have to change their machines and every ATM machine have to be changed. It doesn't seem profitable, because all these changes cost a lot of money and it exist a working infrastructure for credit cards. Also people wouldn't use the Smart Card if there exist no machines for usage and then it would be easier to use normal credit cards.
The people in the developing countries have to get machines anyway and they are open to any kind of system, because everything would be new for them..
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