US: Credit Market

Next Generation Credit Cards Coming to a Wallet Near You

The New Credit Card

Credit cards are about to undergo some “plastic surgery,” and the operation is being performed by Dynamics, maker of next-generation interactive payment cards.

“There’s a complete computer architecture in each and every one of our cards,” explained Jeffrey Mullen, CEO of Dynamics, as he demonstrated his high-tech credit cards on CNBC Thursday.

“There are over 70 electrical components squeezed into one-tenth of a cubic square inch of volume,” he added.

The new cards are as thin and flexible as a typical credit, scratch resistant and waterproof. One thing they’re not is one-type-fits-all.

“If you’re a convenience-oriented user, let’s give you a convenience-oriented card,” said Mullen, holding up one of his cards. “This card has multiple accounts...In order to select an account, all you do is press a button, and when you press a button it lights up, you rewrite all 1200 bits of data to that magnetic stripe, so you can swipe it in a traditional reader.”

For those most concerned about fraud, there is a card that requires the user to enter a code on the actual card before it can be used.

Dynamics, which was founded by Mullen in 2007, has already seen interest from big banks. The company is currently teaming up with Citigroup to create a 2G card, which will be offered on two of Citi’s existing rewards cards.

Technology "Agnostic"

Mullen says his company is not just trying to reinvent the magnetic stripe on credit cards but also other forms of payment, including European chips, RFIDs and mobile phones.

“We are technology agnostic, which allows us to view payments in an entirely different way,” he explained. “We’re the only company that’s trying to promote all four technologies and innovate all of them.”