Citibank Testing New Credit Card Technology To Replace Magnetic Strip

Posted Oct 23, 2010

Citigroup Inc. (NYSE:C) is testing a new credit card technology that has two buttons and tiny lights. The new credit cards would allow the consumer to decide whether to pay with reward points or credit.

Eventually this technology would replace the black magnetic strip built into credit cards. In Europe, many credit cards require a PIN and uses a chip instead of the magnetic strip.

?It?s a big deal,? stated Auriemma Consulting Group director of research Megan Bramlette in an interview with The New York Times. ?If once a month a consumer can fill up their gas tank for free, and they don?t have to do anything except push a button before they swipe their card, that?s cool. And that is something that I think will resonate with consumers.?

[New York Times]