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Credit cards getting updated instead of made over

March 19, 2012

Before consumers and retailers see a drastic change in the way products and services are paid for, they may be more likely to see innovative versions of what they're already familiar with.

Before consumers and retailers see a drastic change in the way products and services are paid for, they may be more likely to see innovative versions of what they’re already familiar with.

“To work the average consumer away from their cards is going to take a while,” wrote JJ Hornblass, executive director of Bank Innovation, in a blog post. “Plastic works. It’s hard to get consumers to change payment methods.”

Credit card executives agree. At the 2012 Mobile World Congress, MasterCard’s head of mobile product development predicted that cards and mobile payments would have a long period of co-existence.

Issuers may choose to update plastic payments with four technology trends – credit cards in form of other objects, biometric devices that let customers pay with a fingerprint, cloud-based account information and “smarter” cards, according to Fox Business.

Until retailers and consumers make major investments in mobile credit card processing technology, there may be developments in the functionality of cards, according to The Street. EMV-chip and combination debit and credit cards make the current payment method more convenient and secure, especially as consumers increasingly use them for online credit card payment processing

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