ATLANTA, G.A. – JPMorgan Chase & Co. (JPM) is hoping to make credit card use even more convenient. The company's new card, called "blink," makes credit transactions when it is waved in front of a sensor at the point of purchase.
JPMorgan Chase, America's largest credit card company, plans to market "blink" in many of the places consumers already use credit cards. The first "blink" cards have been sent to customers in Georgia for use in movie theaters, convenience stores, specialty shops and drug stores.
"There's no swiping of the card. There's no handing of the card to anyone behind the cash register. There's no fumbling and exchanging of cash. You merely hold that card up to the reader," said Tom O'Donnell, JPMorgan Chase Senior Vice President.
The electronic reader pulls encrypted information from a tiny chip embedded in the card. "Blink" uses Radio Frequency Identification (search) (RFID) — the same technology that's been in use for years with automatic toll readers and building access cards.
Company officials think this technology will take an estimated 20 seconds off a typical shopping trip, which means shorter lines at select retailers.
The stores hope that the "blink" card readers will not only make for an easier checkout, but also increase customer loyalty. Businesses are paying $150 for the RFID readers, but in an industry where seconds count, fast-food restaurants and convenience stores are hoping to cash in.
JPMorgan Chase is still waiting to see if their new product will be accepted and if it will increase customer spending. In the past, credit card innovations have had a direct impact on impulse purchases.
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