Ever since its inception back in the 1920s, with oil companies and hotel chains, credit cards have been a victim of constant identity thefts. Easy as the payments were, equally easy was to lose it, stolen or left behind in a bar/restaurant. I had written sometime back about Digital Identity . While the idea then was about a digital wallet on your smartphones using NFC or Near Field Communications, Coin decided to take it a step further. NFC still in its infant stages, mainly due to the security concerns associated with it, Coin might just be an answer to a fat wallet! In short, coin makes a digital copy of all your credit cards and lets you swipe “the coin” in place of them. And what’s more, it constantly communicates with your smartphone via bluetooth. This ensures that you always have the coin right next to the phone for it to function, with an alert triggered every time it leaves the phone behind by around 7 meters. It then deactivates itself – a simple solution for a lost of stolen card. Sounds wonderful on paper.
Two reasons why adopting such a technology would make me a little skeptical, although I must admit I’m usually always the first to pounce on any new gadget. For one, this is a financial gadget literally having access to every single credit card that you choose to store in there, much like a financial management tool, which gets to have all your financial data. And, although it was announced back in November, this year. The shipments will not start until “summer” of 2014 and you are charged as soon as you preorder. Now the company has a very diplomatic answer to this, stating that this is a way they can help aid, financially, the manufacturing process. I’m sure this is all very credible, with its all expanding media hype and the number of preorders.
Julianne Pepitone, from CNN Money, puts it very nicely on 3 big problems with Coin . I would say, one of the primary problems (in fact two in her article), makes me nervous – its acceptance amongst the retailers and credit card companies. Consumers will accept this readily as long as the usability is widened. It would be harsh if you enter a shop and the retailer does not accept your “coin”. Common man does not usually take security as a huge threat unless there is a gaping hole. If not several of those startups such as mint.com, paypal, or even facebook, wouldn’t have taken off.
Having said all those, I still think Coin has a lot of potential. For one, the concept in itself is interesting. Not having to carry all my credit cards in my wallet just reduced the significance of my traditional wallet entirely. And the card looks great in its design.
So while we wait on its shipments and the user reviews, I’m still on the fence regarding the preorder… Let me leave you with an interesting concept video in the meantime.