Dynamics' high-tech card picks up bank support in Japan
The interactive payment card market has had a tough time gaining traction, but it's getting a boost as GMO Aozora Net Bank plans to launch Dynamics Inc.’s battery-powered interactive debit and cash card to its customers next year.
The new Visa card features a touch sensitive keypad and digital display as well as magnetic strip, contact and contactless EMV functionality.
When the card is off, only the first four and last four payment card numbers are displayed, providing a higher level of security. When the card is powered, a consumer enters their passcode to activate the card’s display which then shows the full payment card number. The consumer can then also select between debit and cash functionality on a single card.
Companies have tried for years to build a market for interactive cards, with little success. Dynamics is taking a different tack by approaching banks to issue the cards, rather than selling directly to consumers.
"We are very pleased to work with GMO Aozora Net Bank on delivering such a revolutionary payment experience to the Japanese market,” Jeffrey Mullen, Dynamics' CEO, said by email. The card works with the existing payment infrastructure and merchant systems so the card will be able to be used immediately once in cardholders’ hands when issued in 2019.
The response Dynamics has received from Japanese has been strong due to the technology orientation of the card, Mullen said. Japan is a friendly market for new financial innovation, he added.
"Japanese banks were the first to adopt mobile payments and contactless cards," Mullen said. "When we started selling in Japan, the response for our cards was just as positive there as any other country. However, the Japanese banks had the experience of bringing new consumer facing payments technology to the market."