Possibly although the attack surface of this kind of solution is quite a bit bigger than that of a traditional card. Introducing complications like smartphone apps and increased complexity of programming on the card itself, has quite a bit higher potential for exploitable bugs compared to a traditional Chip & PIN card.
Loss of branding is a fair point, but I think this would reduce fraud risk. Automatically deactivating itself when lost or stolen more than makes up for the risk of trusting Plastc.