Plastic Capitalism

How did a simple payment card help reshape the American financial system?

In this episode, Carmen Hofmann (eabh) speaks with financial historian Sean Vanatta (University of Glasgow) about his book Plastic Capitalism: Banks, Credit Cards, and the End of Financial Control. They explore how credit cards emerged from the highly regulated and fragmented US banking system of the post-war era—and how banks used them to expand across state borders, reach new customers and challenge existing financial regulation.

The conversation examines the role of banks, consumers and policymakers in the growth of consumer credit, the consequences of the 1978 Marquette decision, and the shift towards a more concentrated and highly indebted financial system. It also considers the unequal effects of wider access to credit, from rewards and benefits for affluent cardholders to high interest rates and “predatory inclusion” for more vulnerable consumers.
Looking beyond the history of credit cards, Carmen and Sean discuss fintech, buy now, pay later, the recurring tension between financial innovation and regulation, and what this history can teach us about consumer finance today.

Recorded at Mediobanca in Milan.