According to a recent report technological advancements in making payments in the future could see the use of credit cards wane or even end in as little as five years. Some officials have predicted that many people will start paying for purchases in other way such as by phone, fingerprint, or key fob, which will make credit cards unnecessary. Experts have said in the same way that CDs replaced records and DVDs replaced VHS, other payment forms could soon replace plastic cards.

Barclaycard, which brought out the first credit card in 1966, said recently that it was ploughing millions of pounds into developing contactless payment technology. Barclaycard has already developed a credit card that can be read without it even being taken out of the wallet. It now wants to look at inserting payment chips into mobile phones and this would enable consumers to use their phones to make payment for purchases. With this technology consumers would not even need to go to checkout, as they can put their PIN into the phone using their keypads.

One official from Barclaycard said: ‘The chips on credit cards now have incredible untapped capability but the plastic around the chip limits its potential. Take the plastic away and the possibilities are endless, allowing the customer to pay by using something that they are already carrying, be it a mobile, key fob or even via biometrics. In time you won’t have to carry a plastic credit card around with you if you don’t want to, although some people will choose to for nostalgic reasons.’

However, one security official said: ‘There are going to be flaws and we need to ensure contactless payment technology is secure before it is rolled out to everyone.’

Barclays has already launched a contactless plastic card, where cards can be used to make payments on purchases of up to £10 without any PIN or signature required through the use of a special reader.