Plastc burns backers for $9m as smart credit card is declined

Three years ago the folks at Plastc came together to make a smart credit card – now that dream is over. A note sent to potential users, investors, and everyone in-between, was sent out this week. This note spoke about how not only would Plastc not be dolling out smart credit cards, they'd be filing for Chapter 7 Bankruptcy as well. This means that the money is gone, and the party is over.

Backers will not be getting anything in return for their money and/or emotional distress at not getting anything in return for their money. Whoever is manning the boat at Plastc suggested this week: "We were so incredibly ready for production in order to hit our deadlines but without capital it is impossible for us to move forward and we will not be able to fulfill any pre-orders."

For those that gain some semblance of reprieve from down feelings at the end of this adventure, there's another message in the larger Plastc note. "We are disappointed and emotionally distraught," said a Plastc representative, "and while we know this is extremely disappointing for you, we want our backers to know that we did everything we could to make Plastc Card a reality."

Plastc will cease operations on April 20th, 2017. That's today, for those keeping track. They suggest that they'd expected to get a cool $3.5-million in Series A funding on February 28th, 2017. But they didn't – the principal investment group, they say, postponed their investment, then "a couple of weeks later the round fell apart."

It seemed like such a decent idea at the time. But over the past three years, the larger credit card companies have become a bit more advanced themselves – not quite E-Ink advanced, but still. We'll be waiting for that Chip and Pin mixed with RFID and NFC and Touch ID/fingerprint scanning all in one. Someone needs to step up to the plate, or the established credit card market leaders will continue to keep things level-headed.