What does the future hold for plastic cards?
The financial industry has been evolving at a rapid speed and a lot of financial services that people thought would be around for decades to come, are actually being replaced with faster, safer, cheaper and easier methods. This concerns the banks, the loan companies, money transfers and everything in between.
And fintech is the driving force behind all these changes. With so many young entrepreneurs looking for easy solutions for the unnecessarily complicated financial procedures, over the last 3-4 years the financial industry has been completely transformed.
While more and more people look for financial services online and communicate directly with banks less and less one wonders whether these changes will also affect the cards we use to pay.
Mobile apps, eWallets have been gaining popularity and while these innovations get more than enough coverage, not enough people are talking about the future of cards, specifically the microchips. Mobile apps and eWallets still rely on traditional cards in one way or another to conduct the transactions but wth the microchip becoming popular, but most importantly accessible, the cards could be completely pushed out of the picture in a matter of years.
This is why companies like Visa and Mastercard have been so passionate about getting involved in the fintech franchises, because they realize that the future will look drastically different to what it is right now and in turn, they will need to adapt, more than anyone else, if they want to stay in the business, because the form of the said payments will be the first thing to change, and the one that will have the most users follow the innovation around the world.
Using microchips as the upgraded versions of debit cards is a concept that has been around for quite some time. It has always been a controversial idea, with many skeptics seeing this trend as crossing the boundaries.
The ultimate mobile payment
This innovation would allow people to pay without having to use any other object because these implants give people bionic abilities. Often criticized for being physically invasive and unclarified ethical ground this technology has always had a bit of a bad rep. But towards the end of the last year, we saw many users wanting to try out this innovative mobile payment method.
Specifically, it was a Swedish startup, Epicenter that started offering microchip implants to its employees. A bit later, the same news came out about the company in Wisconsin, the U.S. so it seems like the reality of paying through microchips will be here sooner or later.
The response from the employees all-around has been mixed. While technically this would make payment much easier, there is not enough experience with the technology for people to embrace it fully, this fast.
But the fact that more and more companies are offering this technology to their employees means that this service has enough confidence in its safety and efficiency to offer it to its employees freely. While many misconceptions around this technology remain, considering the speed at which the industry has been developing, it is not too far off to say that microchips will definitely be replacing cards in the future.
Myths surrounding microchips
The more contemporary and convenient payment methods are definitely taking over and as we’ve seen with fintech, the safety concerns never last too long.
Two years ago working with fintech instead of banks was considered risky and dangerous but these days the attitude is completely different because people are focusing on the positive attributes but also as the time goes on and most of these myths prove to be a lie, people are more comfortable with trusting these new technologies to do the job faster.
Microchips would eliminate a lot of inconveniences that usually are tied to using cards, like forgetting it at home, losing it and so on. It could be an extremely comfortable change for those using digital and mobile payment methods. And as soon as coupled people share their experience with the rest of the world, the rest will feel more comfortable in investing in this cutting edge financial technology.