$9.5 Billion Being Invested to Make U.S. Smart-er
Posted January 29, 2015
Report Says Smart Card Updates to 1.2M POS Card Readers and 7M Card-Reading Terminals to Cost $9.5B and Won’t Be Completed till 2018
The retail and payment card industries are committed to converting to Chip and PIN Smart Card technology by December 2015. However, a report by Homeland Security Research Corp (HSRC), a non-governmental marketing research firm,forecasts that it will take until 2018 for Chip and PIN to reach 80 percent of the market. In addition to pointing out this dichotomy, a discountedhotelrooms.org story featuring HSRC’s study discusses other key issues in the adoption of Chip and PIN technology in the United States. The following has been excerpted from the discountedhotelrooms.org article and edited to fit our format.
U.S. only G-20 country using magnetic strips
As of January 2014, 95% of U.S. payment cards still use the 1970’s magnetic strip technology. This makes the U.S. the only G-20 country that uses this insecure technology, while more than 100 countries have converted their payment cards to the secure Chip & PIN smartcard technology by 2004.
France proves effectiveness of Chip and PIN
France…has cut face to face and ATM transactions fraud by more than 80% since the introduction of Chip & PIN EMV smartcards
Major retailers committed to December 2015 implementation date
[Retail] chains such as Home Depot, Target, Walgreens and Walmart joined Visa and American Express and committed to replace the magnetic stripe cards and POS readers to the secured Chip & PIN technology by December 2015.
Feds lead in Chip and PIN
Signed on October 10th, 2014, President Obama’s “BuySecure” Executive Order lays out a new policy to secure payments to and from the federal government by applying Chip & PIN technology to newly issued and existing government credit cards, as well as debit cards like Direct Express. Upgrading retail payment card terminals at federal agency facilities to accept chip and PIN-enabled cards.
Fastest growing private sector security market
According to the report, the U.S. Financial Services, Retail & Payment Cybersecurity Market is the largest and fastest growing private sector cybersecurity market.