The Ascent of Plastic Money: The International Adoption of the Bank Credit Card, 1950-1975

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This paper studies the genesis and early international expansion of the bank-issued credit card – an American innovation that quickly took hold in Western Europe. Empirical evidence undermines the proposition of a single firm building a proprietary network. In fact it was a constellation of participants who combined three characteristics, namely, a critical mass of both retail customers and retail merchants; the capacity to implement new technological solutions; and the ability to forge resilient collaborations across national borders. This evidence endorses the value of collaboration in retail financial services as means of appropriating network externalities. Moreover, other conceptual and empirical studies, especially those based on two-sided markets; neglect the greater implications that initial conditions in this industry have on long-term success.

Keywords

  • Credit card, Payments, Cashless, Two-sided markets, Payment tolls, Bank of America, Barclays, Banamex, Bancomer, Banco de Bilbao, British banks, Mexican banks, Spanish banks
Original languageEnglish
Pages (from-to)509-533
JournalBusiness History Review
Volume92
Issue number3
Early online date25 Oct 2018
DOIs
Publication statusPublished - 2018

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