Smart Credit Card is an Apple Pay/ Android Pay Alternative

Smart Credit Card is an Apple Pay/ Android Pay Alternative

Smart Credit Card aims to replace your wallet full of debit and credit cards with just one card. It is a card that is an alternative to mobile payment when you feel that you can’t be that secured with Apple Pay and Android Pay.

This is because unlike these services that uses your phone, SmartCards has it in a familiar setting – a plastic card. Smart credit cards offer convenience as well as maintaining security. So, instead of carrying dozens of credit cards, debit cards, reward and gift cards it is all tidied up in one card.

Smart Credit Card

How Smart Credit Card Works

Since not all merchants accept contactless payments like Apple Pay and Android Wallet, Smart Card is a way to consolidate this until all merchants adapt to mobile payments.

Smart Credit Card is similar to your credit and debit card but the difference is it is equipped with Bluetooth. The Bluetooth connection is the one responsible for switching from one card to the other.

What is great about a smart credit card is convenience. Instead of having too many credit cards, debit cards, rewards, gift and club cards in your wallet, you have one that represents them all.

When you bought a smart credit card, it comes with a magstripe reader that looks like a Square credit card reader. Use the magstripe reader to your cards then through the app, the Bluetooth connection will transfer these information to your credit card.

An induction coil within the smart credit card is reprogrammed whenever you use a card for purchases. Using the induction coil, the smart card will reprogram the coil to reflect to the store you’ve made your purchase.

A smart credit card has a microprocessor built in itself. This acts as a form of cryptography where the cards are masked with secret codes to prevent any unauthorized access to it.  Cryptography in smart credit cards are essential and it functions in several ways, like:

When a user make a purchase, he or she must confirm his identity. This is similar to inputting a PIN to an ATM.

The card reader and the card will execute a sequence of encrypted exchanges to verify that the dealing is legitimate.

Once the deal is set, the transaction is carried out in an encrypted method to prevent anyone from eavesdropping on the exchange.

These cards can be updated via over-the-air updates. Expect that smart credit cards will have more features in the future.


Swyp is an example of a smart credit card. It looks just like a credit card but it can store up to 25 of your credit, debit cards, as well as your gift and loyalty cards. In front of Swyp is a display that shows the card you are using.

Use the buttons next to it to cycle through stored cards. What is great about Swyp is that unlike mobile payments, it uses the same device we use to swipe our cards. It is expected to work anywhere credit or debit cards are accepted.

The card is powered by a battery that could last for up to two years. It also comes with plenty of security features to protect your cards. When the Swyp is 6 feet away from your phone, it will lock up your card. You’ll have to enter a PIN to unlock it.

Swyp can learn your patterns based on the location and time you use the card. When you return to a store where you have used Swyp before, the card automatically sets it to the last card used on that store. This is excellent for gift cards as it automatically presents you with the Starbucks gift card if you are in Starbucks for example.

Swyp isn’t the only product in the market to offer smart credit cards. Coin, Platc, Stratos and Wocket also have the same concept but with a slightly different device and usage scenario than Swyp.

Smart Credit Cards over Apple Pay/Android Pay

At the time of this writing, smart credit cards are still in their prototype stage. Some manufacturers have the cards available for pre-order, some are still under development. Compared to Android/Apple Pay smart credit cards will work with similarly to how your card works. 

On the other hand, to use Apple/Android Pay you’ll have to tap it to a special device to work. A merchant will have to adapt to this new device while smart credit cards work the way your credit cards work.

Although both have similar features, the question is how fast are they able to give updates to users? How do these cards deal with the card expiration dates? If Apple and Android Pay already have the solution to that, then smart credit cards have already ended before it even began.

In the future, more and more merchants will update their credit card terminals to accept the new card. These new terminals are likely to work with contactless payment systems like Apple and Android Pay. If that is the  case, contactless payments will be the future. So what will happen to smart cards if credit cards get replaced?

Between the two, we contactless payment systems will be the future. However, if smart cards are able to cope up with the future trends then we will have a choice between these two in the future.

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