After reaching its crowdfunding campaign goal in only 40 minutes, the team behind Coin continues to take preorders and addresses its most-pressing criticisms. November 20, 2013 12:00 PM PST (Credit: Coin) The makers of Coin -- a device that can be programmed to act as a credit, debit, gift, and rewards card rolled into one -- were not expecting their .84mm-thin device to become a Silicon Valley sensation. Sure, their promotional video and Web site were well produced, but the team of seven set its crowdfunding goal at a modest $50,000. The startup hit that goal in only 40 minutes. Meanwhile its YouTube video has attracted more than 5.5 million views. CEO Kanishk Parashar is keeping under wraps just how many devices Coin has sold since launching this past Thursday. But the company will continue taking preorders for its all-in-one credit card. It also will bake in three new features that address some of its most-pressing criticisms. Many critics of Coin were quick to point out the obvious security issues with a programmable -- hence, hackable -- device that contains heaps of personal financial data. The company is remaining steadfast in its reliance on 128- and 256-bit encryption that spans its servers, its mobile app, and the device itself. But it's now addressing the fraud concern by building in an alarm that keeps track of how many times the card is swiped. The device will alert you via your smartphone if the card potentially has been used fraudulently, as in a waiter trying to swipe the device multiple times or attempting to toggle to a different card on the Coin device. Coin is also making it possible for users to turn on and off the communication between their Coin cards and smartphones via Bluetooth Low Energy. That caveat was built in because when the Coin isn't connected to a mobile app for a user-designated amount of time, it disables itself and the card cannot be used. Critics said this feature inadvertently could cause inconveniences if users forget to take their phones with them, run out of battery life while away from their chargers, or have their phones in airplane mode. The evolution of Coin, the all-in-one credit card (pictures) 1-2 of 8 Scroll Left Scroll Right Users now will be able to unlock their cards from their smartphones, but it must be done using the mobile app -- meaning if your phone is on its way to zero battery life, you'll need to take the preemptive measure and unlock it before you lose the chance. The last feature addresses the concern over whether a merchant could toggle to the wrong card when you're paying a bill. Coin now will have a lock feature that you can set. While pulling up an app just to ensure you can pay your bill correctly is a bit cumbersome, the fact that our current generation of smartphone users have to physically stop themselves from using their phones during dinner should mean that it's not too much of a hassle to do so to lock your Coin. In an extensive FAQ on its Web site, the company has also outlined some key features that skeptics may be overlooking. For instance, Coin will in fact work in an ATM, has your signature on the back, and will down the line integrate the technology behind EMV, or the Euorpay, Mastercard, and Visa standard. The last of those is especially important given that the US's move to integrated circuit cards is inevitable over the course of the next few years, while EMV is quickly eclipsing magnetic strips in places like Canada and Europe. For 23 more days, Coin is selling its card at a discounted price of $50. After that, it jumps to $100, which may be too big a cost for those that have argued that, despite its cool factor, Coin is still an expensive convenience given that its battery lasts only two years.
After reaching its crowdfunding campaign goal in only 40 minutes, the team behind Coin continues to take preorders and addresses its most-pressing criticisms.
(Credit: Coin)
The makers of Coin -- a device that can be programmed to act as a credit, debit, gift, and rewards card rolled into one -- were not expecting their .84mm-thin device to become a Silicon Valley sensation. Sure, their promotional video and Web site were well produced, but the team of seven set its crowdfunding goal at a modest $50,000. The startup hit that goal in only 40 minutes. Meanwhile its YouTube video has attracted more than 5.5 million views.
CEO Kanishk Parashar is keeping under wraps just how many devices Coin has sold since launching this past Thursday. But the company will continue taking preorders for its all-in-one credit card. It also will bake in three new features that address some of its most-pressing criticisms.
Many critics of Coin were quick to point out the obvious security issues with a programmable -- hence, hackable -- device that contains heaps of personal financial data.
The company is remaining steadfast in its reliance on 128- and 256-bit encryption that spans its servers, its mobile app, and the device itself. But it's now addressing the fraud concern by building in an alarm that keeps track of how many times the card is swiped. The device will alert you via your smartphone if the card potentially has been used fraudulently, as in a waiter trying to swipe the device multiple times or attempting to toggle to a different card on the Coin device.
Coin is also making it possible for users to turn on and off the communication between their Coin cards and smartphones via Bluetooth Low Energy. That caveat was built in because when the Coin isn't connected to a mobile app for a user-designated amount of time, it disables itself and the card cannot be used. Critics said this feature inadvertently could cause inconveniences if users forget to take their phones with them, run out of battery life while away from their chargers, or have their phones in airplane mode.
Users now will be able to unlock their cards from their smartphones, but it must be done using the mobile app -- meaning if your phone is on its way to zero battery life, you'll need to take the preemptive measure and unlock it before you lose the chance.
The last feature addresses the concern over whether a merchant could toggle to the wrong card when you're paying a bill. Coin now will have a lock feature that you can set. While pulling up an app just to ensure you can pay your bill correctly is a bit cumbersome, the fact that our current generation of smartphone users have to physically stop themselves from using their phones during dinner should mean that it's not too much of a hassle to do so to lock your Coin.
In an extensive FAQ on its Web site, the company has also outlined some key features that skeptics may be overlooking. For instance, Coin will in fact work in an ATM, has your signature on the back, and will down the line integrate the technology behind EMV, or the Euorpay, Mastercard, and Visa standard. The last of those is especially important given that the US's move to integrated circuit cards is inevitable over the course of the next few years, while EMV is quickly eclipsing magnetic strips in places like Canada and Europe.
For 23 more days, Coin is selling its card at a discounted price of $50. After that, it jumps to $100, which may be too big a cost for those that have argued that, despite its cool factor, Coin is still an expensive convenience given that its battery lasts only two years.
