Coin bids to replace cards with a card

San Francisco-based start-up Coin is bidding to slim wallets with a new payment card-sized device which can store all the details of users' credit, debit, gift and membership cards within its memory and be used in their place.

  8 8 comments

Coin bids to replace cards with a card

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

The Coin device has a battery which lasts for two years and a dynamic magnetic strip that can be changed instantaneously to mimic any of the cards in its memory. Users scroll through the options by pressing a button, with the details of each card shown on a small screen.

Once a card has been selected, it can be used as normal to make payments at the point of sale and for ATM withdrawals.

To add cards, users download an app to their Android or iOS devices and attach an accompanying dongle through which they swipe the cards. The card data is then automatically uploaded to Coin via Bluetooth Low Energy (BLE). BLE is also used to alert a user, through the app, if they stray too far from their Coin.



The start-up says that it enforces 128-bit encryption across its servers, apps and in the device itself and is "in the process" of earning PCI DSS certification. Designed for the US market, the device does not support chip and PIN although - with EMV finally set to arrive in the States in 2015 - future generations will get the improved security standard.

The Coin team opened its site yesterday for pre-orders as part of a crowdfunding campaign to raise $50,000, and according to TechCrunch, reached its goal in 40 minutes. The firm aims to ship devices in summer 2014 for $100, or $50 for crowdfunding backers.

Sponsored [On-Demand Webinar] 2025 Fraud Trends: Synthetic Identity, AI and Incoming Mandates

Comments: (8)

A Finextra member 

Very, very cool!

Well done.

A Finextra member 

why not use a multi app EMV card? 

Stephen Wilson

Stephen Wilson Managing Director at Lockstep Consulting

I'm not sure how it's possible for this concept to be applied to a chip card. The magnetic stripe Coin card is able to clone all necessary card holder information that ordinarily is encoded (in plaintext) in the stripe.  But with EMV (technically, with DDA 'dynamic data authentication' EMV chips), the whole point is that the cardholder's details are authenticated via private keys that are created at the time the card is personalised and which subsequently never leave the chip memory.  The chip is used to digitally sign transactions on the user's behalf; ths signature cannot be replicated without having access to the private keys.  An EMV version of Coin would have to obtain copies of the cardholders' private keys. And that can't be done.

A Finextra member 

Exactly. A great idea for the 1980's but doesn't actually work in the modern world.

A Finextra member 

This was innovative and applicable 30 years ago, at best 10 years ago. To top that off at $100 per pop it's no more than gimmick value now, and expensive at that. And I don't see "any" security. If it's stolen or lost, it is not just one card that goes, it's a bundle.

EMV is going to struggle in the near future in any event with other technologies in the wings so I'm afraid to say that magtripe for payments at least is drawing it's last breath.

A Finextra member 

I don't think the first car had anti-lock brakes at the start.

These technologies need time to grow and develope.

A Finextra member 

John - Anti Lock brakes  hadn't been invented. A better solution for this has been invented is widely deployed and is even making its way to the US finally. Why 'invent' a mag stripe product when EMV is here? 

Ketharaman Swaminathan

Ketharaman Swaminathan Founder and CEO at GTM360 Marketing Solutions

At first, mobile wallets were supposed to render credit cards obsolete. Then came the realization that they could at best hope to render the plastic form factor of credit cards obsolete. The current debate about magstripe versus chip seems adequate testimony that even plastic is here to stay.

[Webinar] Trusted Transactions: The Future of Risk-Based AuthenticationFinextra Promoted[Webinar] Trusted Transactions: The Future of Risk-Based Authentication