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Apple Pay
Eddy Cue, Apple Senior Vice President of Internet Software and Services, demonstrates the new Apple Pay mobile payment system at a Whole Foods store in Cupertino, California, Friday, Oct. 17, 2014. (AP Photo/Eric Risberg, File)

2015, where tech and credit collide

In CardHub’s annual list of the top 10 credit trend predictions for the year ahead, the intersection of credit and the tech world features prominently.

1. “Apple Pay will gain market share.”

In years past, CardHub didn’t give much credence to attempts by the mobile wallet industry to render your plastic irrelevant. Apple Pay’s debut this fall appears to have changed that, poised to corner a market that before existed on the sidelines of cash and cards.

As the New York Times’ international business editor, Damon Darlin, noted, Forrester Research analysts say annual in-person mobile payments will surge from $3.7 billion this year to $34 billion by decade’s end.

Apple Pay won’t kill the credit card, Darlin writes – they work in sync: Your card information is stored securely, accessed with your thumbprint and a contactless reader. Instead, it’s the wallet that will go the way of the smartphone’s laundry list of victims to date.

Apple Pay hasn’t achieved world domination yet. Apple’s website lists just 42 stores – with another seven planned – that accept the payment in person, and it’s so far compatible only with iPhone 6, 6 Plus and Apple Watch. But it’s expected that more retailers and restaurants will come on board, and with them, more consumers.

2. “Chip cards will make a big splash.”

Credit and debit cards equipped with a microchip come standard in Europe. So-called E.M.V. (Europay, MasterCard and Visa) technology is quickly coming ashore here as an October 2015 deadline looms: Merchants, not banks, will be held accountable for fraudulent card charges if they don’t have chip readers installed by then.

With E.M.V., customers rely on the combination of a computer chip and PIN rather than the standard magnetic stripe. And instead of a uniform card number, each purchase gets its own unique code.

Mark Scott of the New York Times wrote Tuesday that about 70 percent of credit cards and 40 percent of debit cards will have a chip come this time next year; it will take years longer for all checkout systems to catch up, however.

CardHub has reviews for chip-enabled cards here.

3. “Data breaches will continue to wreak havoc.”

The two above innovations come as mass data breaches of major retailers have made headline after headline over the past year and change, starting with Target last holiday season. Staples is the latest big name to join their ranks. Both Apple Pay and E.M.V. are touted as ways to make your day-to-day transactions more secure.

CardHub predicts the spate of breaches will dwindle, but not disappear, calling them “a fact of life in modern commerce, something we must learn to adapt to rather than solve completely.”

About Anna Isaacs