Credit cards have come a long way from being just a charge card made from cardboard. With banks and credit card issuers are constantly finding ways to improve and strengthen their digital offerings, it is quite possible that in seven years time you will not be able to recognize your own credit card. But this does not mean that credit cards are going away anytime soon, so for people looking to get the best credit card options. Look At This to find the best options on credit companies online.
Thanks to technology and innovation, credit cards are now being made ready for easier use and firmer security. Do you think that contactless credit card payments sound oxymoronic? Yes, perhaps. But it is now possible! So the question is: just how willing are you to embrace and spread this new generation of “smart cards”?
The “The Future of Credit Cards” infographic showcases the latest in payment technologies as well as a rundown of its foreseeable future in the credit card industry.
What are contactless credit cards?
- RFID (radio frequency identification) –an embedded microchip that contains information about the card and its owner and enables it to be read by a remote machine located a number of feet away; no swiping of card and internal power source necessary.
- A RFID-enabled credit card has a storage capacity that is a hundred times greater than a magnetic stripe credit card
- 35 million RFID-enabled cards are in circulation in the US
- It is estimated that the market for chipless RFID tags will be at $2 Billion by 2017 and $4 Billion by 2020 for contactless cards, tickets and systems.
- Con: can possibly be scanned by unauthorized devices; Solution: a mesh shield that blocks radio signals—a Faraday cage.
- Passive NFC (near field communication) – chips in credit cards that transmit information when placed within a few inches of an external reader. Their short-range enables tighter security; no swiping of card necessary.
- Between 2011 and 2015 the market for NFC chips has increased 135%.
- EZ-Link Imagine American Express prepaid card – first NFC prepaid card
Credit Card Payments via Cell Phone:
- NFC Mobile Payments – active NFC chips, which enable the possibility of two-way communication and safer modes of payment, embedded in smart phones; require internal power source.
- In 2011, 35 million NFC-equipped phones sold and 2.5 million NFC-ready point-of-sale terminals shipped.
- By 2014, 20% of smart phones will be equipped with NFC — 300 million NFC-capable smart phones.
- Biggest market for NFC-enabled smart phones: North America.
Cell phone as Mobile Wallet:
- Mobile Payments – mobile payment platform for sending money to merchants, adding charge to the user’s phone bill and could act as a mobile store credit card.
- 50% of people worldwide use financial services with 87% using mobile phones
- By 2015, an estimated $670 billion worth of mobile transactions
- Dynamic Stripe Technology – reprogrammable cards that can mimic several types of cards.
Echo – developed by Protean and to be released this 2013, can mimic and hold three magnetic strip cards, such as credit, debit, loyalty, and ID cards, at one time; cannot replace RFID or NFC cards.