Credit card theft and fraud are two of the largest problems plaguing consumers, banks and businesses today. The problem is exacerbated by the ease at which criminals can steal credit card numbers – either by stealing data with a magnetic strip reader, or by copying a number down with pen and paper. A new revolution in credit card technology, however, looks to solve these problems by creating an ultra-secure smart credit card.
Dynamics Inc., a startup which recently raised $5.7M in series A funding (second in size in the financial sector only to Jack Dorsey’s mobile payment startup Square), announced its high-tech solution to credit card theft this week at DEMO in Santa Clara, California (see video embedded below). The company has developed electronic credit cards that provide users with both added functionality and security.
By creating thin and flexible electronics components, Dynamics’ credit cards can feature buttons, displays and – the killer app – automatically reprogrammable magnetic strips. One demo card features multiple accounts which the user can toggle with buttons on the card, and another has a display which hides and shows the card’s number behind a secure passcode.
The magnetic strip on the back of the card can be dynamically changed or erased, creating an amazing layer of security at the card level. The buttons, while credit card-thin, actually have tactile feedback and can feature small colored lights. The cards have a lithium polymer battery that can last a hefty 3 years, and have passed industry stress tests for durability, heat and water resistance.
Dynamics has been running stealth pilot test programs with many notable banks, and these cards should start appearing in the hands of customers in the near future.