Payment fraud has surged globally since 2011 and industry projections unfortunately indicate that this trend will continue to escalate.

Despite the proliferation of alternative payment methods, card payments remain a primary target for fraudsters due to their widespread usage and susceptibility to exploitation. Some common card fraud methods involve thieves obtaining card information, like the card number and CVV code, through illicit means such as the dark web, data breaches, or card skimming on compromised terminals or ATMs.

According to Thales, around 3 billion cards are issued every year and the total number of cards in use exceeds seven billion.

For decades, bank cards followed a largely uniform design, typically featuring the account holder’s name, a lengthy card number, expiration dates, and security codes. Today, across major economies globally, there has been a surge in the adoption of cutting-edge payment card technologies by banking and fintech companies. These innovations include virtual cards, biometric cards, and numberless cards. Each of these advancements offers varying levels of security and simplicity in financial transactions.

Numberless cards are gaining traction among card issuers as a more secure alternative to traditional cards. Curve, a UK-based payments company, was the pioneer in introducing the concept of a numberless card in 2020.

Unlike traditional cards, which prominently display sensitive information on their surface, numberless cards feature a minimalist design with the cardholder’s name and no visible numbers or codes on the front. Instead, the sensitive information like the PAN and along with the card verification value (CVC2) are securely stored within the card’s chip or accessed digitally through the card issuer’s mobile app, hence further strengthening privacy and security standards.

Since Curve introduced the concept, other major banks and issuers have adopted the numberless card trend. This includes Barclaycard, NatWest, HSBC, first direct and others.

Before Neobanks, the physical card issuance was a prerequisite for subsequent digital card issuance. Their digital-first approach created a direct, instantaneous digital channel, independent from the physical card issuance process.

Some may view the shift of card numbers, either to the back of the card or their elimination altogether, as merely an aesthetic choice made by banks. However, given the growing prevalence of smartphones, it is undeniable that numberless cards are creating a secure environment that blends the advantages of virtual cards with the tangible nature of physical cards.

#paymentsexperts, any insights or perspectives to add🎤?

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