Although bank cards have existed for over a century, their current form was only introduced in the 1950s. But, despite looking the same through the decades, that doesn't mean that the good and old plastic money hasn't learned some new tricks since then.

Nowadays, bank cards can do so much more, which shows in their internals. What used to be simple plastic and a magnetic stripe has since become far more advanced. Read on to find out how your bank card has evolved.

The Basics: Magnetic Stripe

Bank cards are universally known for their size and shape and the single black stripe at their back. This magnetic stripe was added in the 1970s and stores information about the card's owner.

First prototype of a bank card with magnetic stripe, circa 1969
Image credit: Jerome Svigals/Wikimedia Commons

Depending on the issuing bank, the magnetic stripe has 2 or 3 lanes and primarily indicates who that card belongs to. During the early years of its implementation, the stored information was checked against the cardholder's ID. But, more recently, the ATM or POS machine that reads your bank card now validates it using an online database.

Smart Cards for Added Security

Over time, faster and more secure ways were developed to ensure that the card was being used by its rightful owner. This stemmed from "cloning", where legitimate cards were copied to trick POS machines and ATMs.

Smart cards were developed to solve this problem. Along with the printed information and magnetic stripe, banks added a small integrated circuit with encrypted data, called the EMV chip, to store your information. On many modern bank cards, also known as the chip card, the contacts for this chip resemble those used in mobile SIM cards.

Because of this development, credit card and bank fraud have massively dropped. Nevertheless, other types of embezzlement still happen, but it's now mainly related to the credit card number and CVV code used for online purchases.

NFC: Convenience With Contactless Cards

Bank cards with an NFC logo
Image Credit: Jowi Morales

With security concerns for the bank cards now mostly solved, banks now had time to consider user experience. Since magnetic stripes get worn over time, and physical damage, dirt, and humidity can make the EMV chip difficult or impossible to read, they thought about developing something more resilient.

NFC chips weren't new when the idea arrived, with some mobile devices featuring them. Cards using RFID for other functions, like public transport or recording your work attendance, also existed.

In the early 2010s, the first contactless bank cards started being issued to the general public. But before this, testing was already happening in several countries.

Contactless cards work similarly to ones with a regular EMV chip. The difference is the user only needs to tap the card on the POS machine (or ATM). A password is usually required for credit or banking cards, although some banks and credit unions may allow paying low amounts without a password.

To know whether your card has an NFC chip or if a terminal reads NFC cars, you should see a signal or wave logo printed on it—this way, you know exactly where to tap for the fastest and most convenient payment.

What if Your Smartphone Could Be a Card?

Google Pay example

Over the years, with NFC becoming ubiquitous on smartphones, contactless payments also got there. Samsung Wallet, Google Pay, Apple Pay, you name it—every major manufacturer has its own app to bring all your cards inside your mobile.

And then things went even further with wearable technology. Smartwatches and fitness trackers with NFC chips could now connect to your phone and be used as proxies for those payments.

You no longer need to take your card from your wallet, nor does your smartphone need to come out of your pocket. Just tap the POS with your wrist, and you're good.

Premium Materials Made Bank Cards Sexy Again

Apple Card for Jane Doe

The convenience of using smartphones and other wearables for payment went so over the roof that many people didn't even think of using their cards as much. But how will the people around you know you're a MasterVisa Express Platinum Black Diamond Plus customer?

A user's iPhone whose Apple Pay account has enough balance to buy Apple itself looks the same as the iPhone of someone who can barely afford takeout dinner. So, a new craze has begun: premium materials.

These cards usually require investing several million bucks with the issuing bank before you can even be considered for holding them. And when you get one, they're usually made from gold, platinum, titanium, and even jewels.

But even not-so-rich folks wanted to have something exclusive, too! Possibly the best-known example for everyday folk is the Apple Card. Introduced in 2021, it follows typical Apple fashion: a laser-engraved cardholder name, along with the Cupertino company's logo, on a card made of titanium. Other information, like card number, CVV, and expiry date, are shown only in the cardholder's Wallet app.

Credit cards made from F1 car parts
Image credit: Porto Seguro

Another example of premium cards is when an insurance company in Brazil launched a card made from F1 car parts. An Italian bank also offered premium cards made from recycled wood for its customers.

Many card issuers offer stainless steel and other metal models, while other, more environmentally-inclined institutions use recycled plastics for users who want to spend money in a way that's as good for the planet as it's bad for your pockets.

Some companies have even tried making even smarter cards. Usually, their promise is "one card to rule them all", storing several cards into one. An e-ink card and a way to switch between the stored cards' data are often discussed.

Several have already tried and failed to accomplish this. Nevertheless, we keep our fingers crossed; we want to see this tech become a reality in the future.

Bank Cards Can Be Beautiful on the Inside

Are plain, muzzy plastic cards too basic for you? Well, luckily, they're not the only options. Alternatives are available for every taste.

Do you favor looks over anything else? Then premium materials are the way to go. Secure transactions? EMV chips. Not feeling touchy? NFC in cards and phones have you covered.

There are milestones still to be claimed, though. The legendary e-ink multi-card has been sought time and time again but always led to the same result: a bankrupt startup and thousands of angry customers. Perhaps we should settle for NFC payments instead?