The Credit Card App | Personal BALC #75
Over 170 million people in the U.S. have credit cards, and the average card holder has 3.5 of them – not counting debit cards. In spite of the promise of mobile payments, plastic cards are not going away any time soon. We’re at the early stages of a massive wave of innovation in the payment industry, and developers are currently experimenting with adding new capabilities to credit/debit cards by programming the payment network to link online applications to specific payment events. More plainly, we’re predicted to see a spending and payment system specific to each individual person.
Online commerce is a $200 billion industry, and 70% of consumer spending is influenced by Web and mobile research. But, over 90% of actual transactions are still conducted in the physical world. Can you picture a credit card app? Visualize this… getting rid of all your paper statements, printed Groupon deals, store loyalty cards, and individual gift cards. In their place we’ll find a new, simplified credit/payment/reward/loyalty/promotions process – all electronic and able to store unbelievable amounts of data.
The promotional offers and advertisements we receive today via the Web and mobile are mostly blind to how we’re actually spending money in the physical world. As all these databases are more intelligently connected, the offers we receive will become significantly more relevant because they will be based on where we spend our time and money.
Our new “cloud-connected” credit card will also deliver a stream of valuable intelligence based on our purchasing behavior. How much fast food do we eat? How many times do we visit the gym? How caffeinated are we? Perhaps our new card can also deliver informed insights on our spending activities so that we can make decisions to be our best self. We’ll see…
A note to innovators: it’s critical that these programs are introduced in a way that protects consumer privacy and retains consumer trust. Upon initial review of what’s to come, it seems our privacy is moving further afield as all of our behaviors will be tracked for the world to see.
(Check out the entire original article on Forbes.com)