Aug 18The Pace That Launched 575 Million Chips
By the End of 2015, U.S. Payment Cards with EMV Chips to Top 575 Million
Visa and MasterCard say rollouts of the new EMV-Chip payment cards are on pace to reach 575 million by the end of next year. According to a piece by Evan Schuman (link to article), that number is “partially based on EMV shipment plans from nine key card issuers: Bank of America, Capital One, Chase, Citi, Discover, Independent Community Bankers of America (representing issuing members), Navy Federal Credit Union, US Bank and Wells Fargo & Company.” Visa Vice President Ryan McInerney observed that by aggressively pushing EMV, “one in two of [these companies’] U.S. payment cards will be chip-enabled” by the end of 2015.
Getting consumers to buy in
Shuman writes that “the next two EMV U.S. hurdles are retailer equipment upgrades and training… plus getting consumers to not only use their new EMV cards, but to specifically insert for chip rather than just use the comfortable magstripe. Consumer training and perhaps some incentives will be needed to close this loop and to get these cards to actually be used in meaningful numbers.”
Next on the agenda
Visa and MasterCard also noted that they are in the process of “identifying an actionable, long-term roadmap [for delivering] a consistent level of security for payments in the digital and physical environments. Part of this [would] include providing clarity around enhanced security like tokenization and point-to-point encryption.”
Payment processor, First Data Corporation’s president, Guy Chiarello urged all institutions to “launch their EMV plans immediately, and not wait for the October 2015 liability shift [because] issuing EMV now [would] benefit consumers by making the most secure payment card available sooner, while reducing fraud losses and enhancing payments system security for all.”