Goodbye, plastic. Hello, virtual bank card.
The cards and payments industry has gone from cashless to contactless in just a few years; today, it is likely on course to go “cardless” as well.
Using a credit card has been a common and convenient form of paying for products and services for several years. But with the penetration of mobile technology and modern customers that now view more plastic in the wallets and purses as more clutter, it looks like all of that is about to change. Virtual cards are altering the way in which businesses and customers pay for products and services. As a substitute to issuing company cards or cash advances, this highly secure and accountable form of payment is quickly proving to be a far more cost-effective method.
What are Virtual Cards?
Virtual cards work much the same way as regular credit cards. The difference is that a virtual card exists digitally rather than physically, therefore, a unique virtual card can be created for every single transaction. Once the card is created, it can be linked to a central account for banking purposes.
Virtual Cards: The Future of Banking
The main benefit of virtual cards is its safety features. The cards can prevent hackers from screen scraping or keylogging sensitive data from merchant websites. Virtual cards also work to protect debit card or bank account information from hackers and other scam merchants because they do not have the system. Although virtual cards do not ensure 100% protection against identity theft, fraud, and so forth, it does offer some peace of mind.
Virtual Cards are yet another innovative step in the future of banking.
The introduction of innovative technology is already transforming the financial world. It’s not just the steps virtual cards are trying to take. Safety features like advanced cryptography and biometrics provide near fool proof protection against bank scams and remote applications access, making it significantly easier than ever to handle banking without visiting a branch.
Then there is EMV—Europay, MasterCard, and Visa—forming a global standard for credit and debit cards based on chip card technology. Payments are made using the cards that contain a microprocessor chip. EMV cards are supported by several companies like Discover, American Express, and UnionPay via an organization called EMVCo.
An EMV card has a microprocessor chip installed inside of it, so it becomes much more difficult for people to steal credit card information while the owner is making a payment. Hence, EMV technology has helped to reduce the crime rate at the point-of-sale.
The future of banking technology holds a lot of promise, through blockchain technology, mobile and digital banking, and upgraded ATMs. Artificial Intelligence has already popped its head into financial institutions, though it will take a few years until the technology starts showing benefits.