Two issues with Coin. One is this has been done before, exact same approach, and it did not work out because the card issuers didn't buy in (a credit card is also part of the issuing bank's brand). Maybe that's changed in the past few years, but I am skeptical.
The second issue is it's solving a problem that isn't really a problem. I use two cards on a regular basis. I have others but rarely need to carry them with me. So I can reduce two slots in my wallet to one. Doesn't seem like enough of a benefit to me.
Lastly, I can see all sorts of issues with merchants not knowing what these are, and being wary of accepting them due to perceived fraud risk. Something that reprograms its mag stripe practically yells "FRAUD!".
So I appreciate the technical innovation behind this, but I think they're likely to get dashed upon the rocks. It's a tough space. I thought Google Wallet with Android NFC would be super convenient. It wasn't. I went back to the old fashioned swipe. So its hard to see this catching on with ordinary consumers.
> One is this has been done before, exact same approach, and it did not work out because the card issuers didn't buy in
The card issuers don't have to buy in to anything. You program the Coin yourself using your existing cards.
> I use two cards on a regular basis. I have others but rarely need to carry them with me. So I can reduce two slots in my wallet to one. Doesn't seem like enough of a benefit to me.
Ah, the old "It's of no use to me, so what's the point?" argument. You're not the person the Coin is targeting. It's for people who have more cards than they can comfortably carry in their wallet.
> Lastly, I can see all sorts of issues with merchants not knowing what these are, and being wary of accepting them due to perceived fraud risk.
I'll admit that I don't shop in many brick and mortar stores, but when I have, the cashiers have never so much as glanced at my cards. Most of the time, the scanner is out of their view anyway. I can see it possibly being a problem if they have to scan it for you (like at a restaurant or something), but I'd be willing to bet that most people just aren't going to care enough to make a fuss about it.
>cashiers have never so much as glanced at my cards
Depends on where you shop. Some stores (particularly big box stores -- Best Buy comes to mind) always ask to see the card and ID. If they do, it's a showstopper for it to not be real. There's NO WAY a store with that policy would let you buy something with an anonymous black "card".
Not only does this scream "FRAUD!", it almost certainly WILL be used for fraud, almost immediately on release. Think of how easy it would be to allow a server at a restaurant to "steal" someone's card -- photo and a swipe, and POOF, you can use their card the next time you go somewhere that doesn't look at the card. How long will it be before stores that DIDN'T ask to see it before start asking, and specifically disallowing the use of these fraud-enabling devices?
Regardless, there's no way I'd risk getting to the point of purchase somewhere and finding out at that point they won't accept my card. And I AM part of their target market: I probably have 8 cards in my wallet, maybe 10. It's complicated, but they all have a unique need that makes me carry them.
I'd love to have something like this that "just worked," but I doubt this would be it without orders of magnitude more education and many layers of security protection to prevent fraud -- probably enough layers to be an impediment to people actually signing up to use it (receiving physical mail being required to register a new card comes to mind).
> Some stores (particularly big box stores -- Best Buy comes to mind) always ask to see the card and ID
It seems odd that big stores would require this, since this is explicitly forbidden in the merchant agreements. Also, I've never experienced this myself in the US.
Wow, I had no idea this rule existed. I've been to plenty of stores that require ID for every purchase, especially here in NYC. I've even seen signs, "All credit card purchases require ID, no exceptions."
"solely" being the key word here that allows them to get away with pretty much whatever they want by claiming the reason they insisted on id was that that something else caused suspicion.
> Ah, the old "It's of no use to me, so what's the point?" argument. You're not the person the Coin is targeting. It's for people who have more cards than they can comfortably carry in their wallet.
The thing is, a lot of the people who don't originally see the use to something can wind up using it later on because they have a need for it (DropBox, etc). This has a built-in usefulness limitation in that it is only of use to people with lots of cards that need to carry them all. Sure, I have 6 credit/debit cards, but I only ever carry 2 in my slim front-pocket wallet. I only know 2 people that Coin would apply to for their use-case scenario and neither of them would carry this device instead of their cards.
> I'll admit that I don't shop in many brick and mortar stores, but when I have, the cashiers have never so much as glanced at my cards. Most of the time, the scanner is out of their view anyway. I can see it possibly being a problem if they have to scan it for you (like at a restaurant or something), but I'd be willing to bet that most people just aren't going to care enough to make a fuss about it.
I'd wager that at least 25% of the merchants here in NY would refuse to accept this. Easily at least that many. While many cashiers don't look at your cards when you use them, that's because it still fits the profile of a credit card: thin plastic, bank logo, Visa/MC/Amex logo, magnetic stripe, raised numbers, etc. Giving them something that fits none of these criteria will instantly set off some alarm bells.
Strictly speaking that's been one of the card rules for a long time - you were supposed to swipe your own card in stores and absolutely never let a waiter wander off with it.
Locally (in some stores around here), cashiers were required to swipe cards for Visa (because they also have to check your signature, etc.).
Nowadays in Canada though, no one uses swipe cards anymore, it's all chip-and-PIN. The only time anyone swipes my card is when I go down to Seattle, and it's really unnerving when they do so.
Another point. If they opt to let consumers copy their own cards without the issuing bank's permission, I'd be very surprised if copying the mag strip is not a very big violation of TOS. If they go the guerrilla route, they'll basically be asking for legal trouble. I don't like to be critical, it's innovative, but I think they'll have a tough time.
The second issue is it's solving a problem that isn't really a problem. I use two cards on a regular basis. I have others but rarely need to carry them with me. So I can reduce two slots in my wallet to one. Doesn't seem like enough of a benefit to me.
Lastly, I can see all sorts of issues with merchants not knowing what these are, and being wary of accepting them due to perceived fraud risk. Something that reprograms its mag stripe practically yells "FRAUD!".
So I appreciate the technical innovation behind this, but I think they're likely to get dashed upon the rocks. It's a tough space. I thought Google Wallet with Android NFC would be super convenient. It wasn't. I went back to the old fashioned swipe. So its hard to see this catching on with ordinary consumers.