Shares to Watch - Citibank's Revolutionary New Credit Card
Citibank is planning to to begin testing a new credit card labeled Card 2.0, or 2G, on consumers. The new credit card is fitted with an LED display, buttons, and encryption technology all on an ordinary sized credit card. The aim is for the Citi card to revolutionize the credit card industry.
Jeff Mullen CEO of Dynamics Inc. designers of the card, said “We are trying to be the innovation arm of an industry that has never had one.”
Citi intends starting tests next month, with the aim of launching the credit cards in mid-2011. They hope the new innovative product will attract customers who may otherwise have taken their credit card business elsewhere.
Holders of the new credit card will be able to pay with rewards points at the register. Terry O'Neil Executive VP of Citi Cards said “We’ve developed a proprietary technology that will allow Citi to do the conversion [of rewards points to dollars] when the transaction comes through.”
The new card has another new and potentially more interesting feature - its s fraud protection technology. The technology used in the new credit card, which may one day combine credit and debit accounts, allows the card issuer to deactivate the card remotely, by rewriting its magnetic strip and making it useless. The hope is that 2G will drastically lower the amount of card theft, and thus the number of fraudulent charges.
The new credit card could be a winner for Citibank it will be interesting to see the results of the consumer tests.
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