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The Evolution Of Credit Card Technology In India – From Magnetic Strips To EMV Chips
Posted on Wednesday, August 30th, 2023 | By IndusInd Bank
Credit cards have become an essential part of our lives, enabling us to make purchases online and offline with ease and convenience. But have you ever wondered how credit card technology has evolved in India over the years? In this blog post, we will look at the history and development of credit card technology in India, from the early days of magnetic strips to the modern era of smart chips.
Credit cards in India were introduced in the late 1980s by foreign banks. These cards were based on magnetic strip technology, which allowed them to store information electronically on a thin black strip at the back of the card. Magnetic strip cards enabled faster and more secure transactions, as merchants could use electronic devices called point-of-sale (POS) terminals to capture the card data and verify the funds availability over the phone or online.
However, magnetic strip cards also had some drawbacks, such as being prone to wear and tear, magnetic interference, and fraud. To overcome these limitations, smart chip-enabled credit cards were developed in the late 1990s by Visa and Mastercard. These cards had a small microchip embedded in them that could store more information and perform cryptographic functions. Smart chip cards were more secure and reliable than magnetic strip cards, as they could generate dynamic codes for each transaction and prevent unauthorized copying or cloning.
In 2012, the National Payment Corporation of India (NPCI) launched RuPay, a domestic card payment network that aimed to reduce the dependency on foreign networks and provide low-cost and secure transactions. RuPay cards also adopted smart chip technology and offered features such as contactless payments, biometric authentication, and mobile wallets.
In 2015, the Reserve Bank of India (RBI) mandated that all new credit and debit cards issued in India should be EMV chip enabled. EMV stands for Europay, Mastercard and Visa, the three companies that developed the global standard for smart chip cards. EMV chip cards offer enhanced security and functionality, such as supporting offline transactions, dynamic data authentication, and tokenization.
As credit card technology continues to evolve, we can expect to see more innovations and improvements in the future. Some of the emerging trends include virtual credit cards, which are generated online and can be used for one-time or recurring payments; biometric credit cards, which use fingerprint or iris recognition to authenticate the cardholder; and metal credit cards, which offer premium features and benefits to high-end customers.
If you are looking for a credit card that offers you the best of both worlds – advanced technology and attractive rewards – then you should consider applying for IndusInd Bank Credit Cards. IndusInd Bank offers a range of credit cards that suit your lifestyle and spending habits. Whether you want cashback, reward points, travel benefits, or entertainment offers, IndusInd Bank has a card for you. IndusInd Bank credit cards are also equipped with EMV chip technology and offer features such as contactless payments, mobile banking, fraud protection, and 24×7 customer service. To learn more about IndusInd Bank credit cards and apply online, click the button below.
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
