The Future of Banking ? Mastercard’s Breakthrough

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Breakthrough: Mastercard has created a card that can display your balance and even talk to you, while also doubling as a reward card

They say, such a card will have wafer-thin microprocessors and will run on batteries that last up to three years. The new cards are created by Dynamics Inc., which is working on several other high-tech cards. The new concept card is expected to hit the ground in the US later this year. Bankers are looking ahead to it rather curiously as it has the promise to halt card frauds significantly. Also,the winning story of the magnetic strip credit cards, which swiped and changed lives, has gone four decades old. People need new stories to spice up their lives.

There is reason to believe that the new turn will prove to be a stopper on card fraud cases. The magnetic strip, invented by IBM in the 60’s, too, had drastically lowered the rate of frauds in Europe and the US. France experienced an 80 percent fall in financial frauds, all thanks to that mighty magnetic strip card.

Though the US wants a bit of change in the basic concept, and it has its own good reasons too, but Citibank recently experimented with a new 2G card with a programmable magnetic strip and buttons on the front. Users could choose to use it as a credit card or to spend reward points. Mastercard, too, has released a card that has a small LCD screen to displays a one-time code. The customer uses that code to make an online purchase. So, losing a credit card will be a non-issue as the stolen card will be useless for shopping without that randomly generated one-time code.

So, things are shaping up very fast in the form of step innovations. Banks, phone providers, Google and Apple, are trying a bankable mobile payment system. It will rely on short-range wireless technology that allows devices to transmit encrypted data. As credit cards have become a modern day must, a revolution is keenly awaited.

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