THE world is ever changing and Zambians cannot afford to remain static in the way they do things hence the need to move with time.
One field which is posting unprecedented changes at a rapid rate is the banking sector where now there are products like mobile banking and use of the Automated Teller Machines (ATMs) among many other innovations.
If sustainable and affordable, these innovative banking products are wide in range can play a critical role towards the growth of the banking sector and the national economy.
The Zambian economy yearns for convenient and affordable banking products which can help increase the business activities and the rate of transactions in the country.
We are, therefore, elated that Barclays Bank Zambia yesterday launched the first Kwacha-denominated credit card on the local market.
We are aware that there are already other financial institutions offering credit cards in other currencies, like United States (US) dollars but this is the first time there is a Kwacha-denominated one.
Mindful of the fact that the use of the credit card is a new development it is imperative to look at the issue critically for the benefit of all potential users.
A credit card can be defined as a payment document issued to users as a system of payment which allows to pay for any goods and services based on his/her promise to pay for them later.
The difference between the credit card and a charge card is that a charge card requires the balance to be paid in full each month while the credit card allows the consumers a continuing balance of debt, subject to interest being charged.
Among the merits of having a credit card is the eradication of the risk associated with moving with large amounts of cash, which can easily be lost or stolen.
Since a cardholder can pay for an assortment of goods and services using the card it makes it easier and convenient to do shopping.
For the purpose of loans, the payment pattern can be used to assess the holder’s creditworthiness whenever he/she is applying for a loan.
The size and weight of the card also makes it more portable than huge amounts of cash while in the emergency situation it can be used to make the required payments.
In general terms, the credit card payment system allows an individual to spend money he/she does not have through a mere promise.
We agree with Bank of Zambia Governor Michael Gondwe that this non-cash payment system is more efficient and would enhance convenience, flexibility and security.
We would, however, like to urge the potential cardholders to use it responsibly and avoid reckless spending which can result in incurring huge debts.
As Dr Gondwe advised one challenge is that it encourages the holder to spend money he/she does not have and where there are instances of monthly defaults the interest will ensue thereby compounding the debts.
However, the onus to avoid this debt-trap is entirely on individual cardholders and everyone should exercise prudence otherwise the credit card could throw one into miseries if not wisely used.
Indeed, on one hand the credit card can make the cardholder’s life easier by facilitating payments but, on the other, if lavishly used it could become a huge financial encumbrance and a liability.  OPINION