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In recent years we’ve detailed some of the innovations in an attempt to have an idea what the credit card of the future could look like. Some of those innovations are common sense like adjusting it from horizontal or vertical for better readability while dipping. Others may not be quite as likely to take hold like having multiple cards on one card (which is actually reality). All of that may now be moot.
A Digital Debit Card
MasterCard and Digi have partnered to develop a digital debit card. It is a digital card designed to run on a customer’s smartphone via an app. MasterCard claims that this will increase security for the card as there is now no physical card to steal. The card is intended to be used for online shopping only to start.
This new “card” is expected to be trialed in Malaysia sometime this year. It is designed to get people in the country, many of whom do not use banks, to have some sort of payment card. When money needs to be added a kiosk developed by Digi can be used to refill.
Why Malaysia
Given that about 3 out of 4 Malaysians have a debit card while only about 1 in 5 have a credit card this may be the ideal market to trial this. Of course this is not just an attempt to bring the consumer into an ever more increasingly cashless society. This is also an attempt to bring merchants in the country into that as well. While details of the release have been scarce many have wondered why neither MasterCard nor Digi utilized a digital wallet despite both offering one.
The app is expected to be similar to the app developed by MasterCard for their Happy prepaid card. With that app people sign up and use that card for online services rather than their credit card. This helps to increase security as their credit card is not given to anyone reducing the chances of having that information stolen and the app gives customers a real time account balance and real time control.
Something like this is the future of the credit card. The days of having a physical card may be numbered. For merchants this is something that you need to keep in mind and technology like this is right around your corner. While you don’t need it just yet it will be good to keep an eye on this and if you have any questions give JLE Business Consultants a call.
