Fighting Security Threats
Payments companies say security breaches are a concern when it comes to crypto-card payments. Many people store crypto in wallets that sit on exchanges or other third-party services that are prone to getting hacked, which means that people’s crypto can vanish. Over the past year, hacks have happened on large crypto exchanges and platforms.
Somerset, N.J.-based CompoSecure Inc., a company that issuers including JPMorgan Chase & Co. and American Express Co. use to develop their cards made of metal (a feature that started out on higher-end rewards cards and has spread to other credit cards), filed a patent last year for a security application for storing and paying with crypto.
Last year, CompoSecure launched “Arculus,” a smartcard that stores the private keys to people’s crypto. Consumers open the app using their fingerprint or face, type in a PIN and tap the card on their phone in order for the transaction to go through. For now, the security measures apply to selling crypto and paying other people with it.
CompoSecure says it’s in discussions with major card issuers and others that are looking at adding the company’s security feature to the chips that are on standard credit and debit cards. It declined to name the companies. People could then be able to tap their cards on their phones and, through a biometric or other secure login process, make crypto payments for NFTs and more.
Read the full article: Cryptocurrency Is Coming to Your Credit Cards
