TED Business How we got hooked on credit cards | from TED Talks Daily
Dec 29, 2025
Explore how a wallet mishap in 1949 led to the birth of the Diner's Club card, revolutionizing consumer spending. Discover how banks transformed credit into a booming $500 billion industry, using clever marketing to shift public perception of debt. The episode highlights the complex history of credit cards, from operational challenges to the rise of credit scores that perpetuated biases. Dive into the modern landscape of consumer debt and the contrasting simplicity of early charge cards. It's a fascinating journey through financial evolution!
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Walletless Dinner Sparked Diner's Club
- Frank McNamara forgot his wallet at dinner and created the Diner's Club card to avoid that problem.
- The card let users buy at many restaurants and settle monthly, gaining 10,000 users in a year.
Credit Decentralized Across Businesses
- McNamara's card centralized credit across multiple unassociated businesses, which was revolutionary.
- That decentralization enabled rapid consumer adoption and broader merchant networks.
From Fees To Interest Revenue
- Banks profited from transaction fees and later from interest by letting customers carry balances.
- Allowing partial payments turned cards into ongoing revenue streams for banks.