Ever since credit cards began featuring magnetic strips to hold personal information electronically, there has been very little innovation in terms of the way payments are processed by merchants. Now, fifty years after the advent of magnetic strips, it seems the credit card industry is ready to take its next big leap forward. The good ol' mates down in Australia have recently unleashed an exciting new technology that may provide a glimpse into the future of credit cards. The new innovation is called "Visa Contactless", and it works in conjunction with consumer iPhones.
How Visa Contactless Works
VISA customers in Australia can receive a nifty iPhone protective case from VISA with an embedded micro SD card that contains their encrypted credit card information. Users then download an app onto their phone, and activate the app when they're ready to make an in-store purchase at merchants that accept contactless payments. By holding their phone near the contactless reader, costumers complete their purchases instantaneously and are on their way within seconds. No signatures, no photo ID necessary. Some reading this may be nervous about potential security issues, but VISA assures users it's every bit as safe as the cards you're used to using. Because you have to personally activate the app and wave it in front of the reader, there is never any danger of accidentally purchasing anything. If you lose your phone, you go through the exact same process with VISA to cancel your account as if you lost your credit card. Time saved isn't the only benefit. Contactless saves paper by eliminating the need for paper receipts, and allows users to keep a handy record of all their past purchases neatly organized within their iPhone. Intriguingly, VISA contactless provides us a glimpse into a possible future when humans won't need anything other than their smartphones when they leave their house. Phones will be able to do anything from making payments to starting cars, meaning no more endless searching through the couch cushions to find your keys. Sounds like a future that's impossible to wait for…
