CES: Personal security concerns spur new credit card products

Las Vegas — Security is moving from the realm of the enterprise to the individual as personal security takes a prominent position at the 2015 International CES.

Products and technologies in the burgeoning product category occupied a dedicated section within the show's South Hall, and it was bustling on Tuesday as attendees jostled to get demonstrations of a variety of new products intended to help individual consumers consolidate and protect credit cards, loyalty memberships and personal information.

And tokenization is at the center of every one.

Each is a mash-up of a physical product with embedded technology. Products from new companies Wocket, LoopPay and HyperKey allow consumers to enter credit card and loyalty card numbers into the device, then select which one will be used at the point of purchase. Plus, they all work with existing POS systems and coming EMV protocols, but in slightly different ways.

Wocket is a solid material wallet that contains a single card. Shoppers' cards are programmed in and the wallet is accessed by PIN number or voice command. The wallet then programs the included card with the selected payment information, displays the last four digits of the card, the three-digit security number and a token. Once used the card is wiped clean and ready to be returned for re-programming and re-use.

LoopPay is a case for a consumer's cell phone that contains programmed card numbers and offers a tap to pay option. It does not universally work with POS systems that require a credit or debit card to be inserted, such as those found at gas stations, so consumers will have to use a physical card in those instances.

HyperKey is a Bluetooth sticker that attaches to the back of a cell phone and integrates with third party mobile wallets. For just $20, shoppers get one year of battery life and a way to tokenize all payments.

While all these solutions will be marketed to consumers later this year, the credit card companies themselves have a new solution in the works.

Dynamics has partnered with MasterCard for what could be the first new type of credit card in years. The card has embedded technology that tokenizes each payment. Shoppers press a button on the card, generating a new DVC2 code for every purchase including those made online. It also incorporates loyalty card information so shoppers can earn points or rewards on applicable purchases.

The number of data breaches and cyberattacks in the past 18 months has raised consumer awareness of data security, despite a new report from IBM that found cyberattacks at retailers actually declined 50 percent in 2014. These new products promise to allow shoppers to take more responsibility for their own information. Retailers and credit card companies have, until now, borne the brunt of the responsibility.

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