The plastic credit card already feels somewhat dated. After all, it is over 50 years old! Credit cards have come a long way since their inception. When you compare today's contactless scanners to the machines of the 1960s, when the cashier had to punch the number into a machine, it's clear just how much the technology has developed. But it seems like the humble credit card we've all grown so accustomed to is reaching the end of its lifespan, soon to be replaced by smart devices and biometrics.
Wearable Items
Chief executive of Barclaycard, Amer Sajed, predicts that plastic credit cards will be replaced with wearable items, such as a ring, bracelet or key chain containing a chip that will be scanned when the shopper walks through a shop door. Amazon are already testing the technology in Seattle. In December 2016 they opened up a checkout-less store where customers simple scan their phones as they enter in order to connect to the Amazon Go application. Sensors installed around the store then tracks what the customers pick up and put back.
Retina Scanning
Eye scanning technology has improved dramatically over the past few years. While it's still yet to be adopted as a widespread identifier -- although Microsoft did try to popularize it with their smart phones -- it could one day become just as common as finger printing. Some predict that cameras of the future will be able to zoom in to the retina and identify shoppers on the fly, adding up the tally as they stroll around the supermarket, and then deducting it from their bank accounts as they exit.
Facial Recognition
A study conducted by Juniper Research concluded that passwords would become obsolete in the very near future as we begin to embrace biometric technology beyond our smart phones. Facial recognition will no doubt become more prevalent as micro-cameras get incorporated into everyday hardware. Most computers, laptops and tablets already have in built webcams, which could be utilized when purchasing online or logging into websites.
Fingerprint Scanning
Juniper Research also believe that fingerprint scanning applications will be widespread by 2019. Touch ID hardware is already very common on the smart phone market, and despite initial skepticism, is now a very trusted form of identification among users. Fundamentally, it's just a matter of time before biometric technology is incorporated into banking systems and shops.
Smart Payment Applications
Apple Pay was the first step towards the widespread implementation of biometrics as a payment processing tool. Most contactless payment units can accommodate the hardware, and if the current data continues trending in the same direction and at the same rate, mobile banking will be the international standard by 2020. Now that giant companies such as McDonald's, Staples and Whole Foods Market are implementing Apple Pay systems in their stores, others will soon follow.
Some are scared by the prospect of this new technology, stating that it could easily cause financial snowballing and lead to irresponsible spending habits. However, it's important to remember that the absence of physical cash was a fear when credit cards first hit the market, and that made little difference. In all likelihood, bank accounts will simply remain the same. In fact, with such a broader scope of accessibility, allowing users to manage their finances on the fly, it could even be beneficial!