With the security concerns surrounding magnetic stripe technology on credit cards that seems to grow louder every day, the European Payments Council submitted a resolution restricting its use on the European continent.
In the US, with the implementation of Near Field Communication (NFC), smart card technology is now gaining momentum. With the advancements in technology like NFC, security concerns surrounding magnetic stripe technology is only contributing to the possibility of a faster exit in the older technology.
Technology giants Google and Apple have developed the required technological support of NFC. Apple is rumored to be integrating NFC chip technology in the latest version of their iPhone, the upcoming iPhone 5 release, but those rumors have been denied by Apple.
Exponential growth of NFC technological operation will benefit America’s smart card industry. Aside from the simple yet fast payment transactions, people can simply leave their cards at home to avoid too much swiping with their cards and more importantly the technology is applicable to areas beyond the payment industry.