NEW YORK ( TheStreet) -- JPMorgan Chase ( JPM) said it would convert 70% of its credit and debit cards to chip technology, an upgrade from the the magnetic strips that currently dominate the U.S. market, by the end of 2015.
Chip technology is a common feature in Europe, and there has been growing demand for it in the U.S., with Bank of America (BAC) among the companies that have already begun to add it. Citigroup (C) plans to start converting its debit cards this summer, the Associated Press reported.
Chip cards have an added layer of encryption technology, which makes them less susceptible to hackers, but using them requires upgrades of point-of-sale swipe terminals and ATMs. According to a recent survey commissioned by Chase, 80% of consumers worry about the security of their card transactions but 65% haven't even heard of chip technology.
"Fraud and security threats facing consumer payments today is a complex issue," Gordon Smith, CEO of Chase's consumer and community banking unit, said in a statement. "We're working to employ a variety of approaches to protect our customers -- adopting chip technology is a critical step on this journey."
JPMorgan fell 0.14% on Tuesday to $65.36.
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