Credit cards are just the easiest and safest way to buy things. You know it and I know it, so don't be ridiculous.
There are a whole class of people who can't get credit cards, for example young people, students (in Europe) who have no regular income. Poor people who are too poor to get even a bank account, in developing countries. Illegal immigrants who can't go to a bank where they live. People with bad or no credit rating, ...
The list can go on and on.
This is a sizable chunk of the market which is currently not served by regular credit card companies.
Yes, but the banks aren't standing still as far as moving to serve that market.
This just making headlines today:
Prepaid Enters Mainstream
Venture Between Wal-Mart and American Express Illustrates Industry Shift
http://online.wsj.com/article/SB10000872396390444897304578044313831625492.htmlNot long ago, mainstream financial institutions shunned people without checking accounts. Now those former undesirables are among the industry's most coveted customers.
The latest example of the shift came Monday when American Express Co. and Wal-Mart Stores Inc. rolled out a prepaid card aimed at tens of millions of middle-class and lower-income Americans eager to avoid fees charged by banks.