The Payments Security Task Force’s eight financial institutions reported that 30 per cent of their U.S. consumer credit and debit cards contain EMV chips as of June 30. These issuers represent approximately 50 per cent of US payment card volume.
According to the forecast, the number of chip cards in the U.S. from these issuers will to grow to 60 per cent by the end of this year, and expanding to 98 per cent by the end of 2017.
“The latest forecast demonstrates the tremendous progress made to make chip cards a reality in the U.S. Consumers are the winners, as issuers and merchants are both working to deliver greater protections when paying for a purchase,” said Chris McWilton, president, North American Markets, MasterCard.
The report comes just after another study questioned whether the US was really prepared for the liability shift. According to The Strawhecker Group, rather than the 60 per cent figure presented by MasterCard, by December 2015 44 per cent of U.S. merchants are expected to adopt EMV.
However, the Group does present similar statistics for 2017, with EMV-readiness expected to reach a threshold of least 90 per cent until 2017.
“This is a key milestone in a multi-year transition to chip technology in the U.S. The speed at which merchants are installing chip-enabled terminals and financial institutions are issuing chip cards demonstrates the industry’s commitment to investing in technology to protect consumers,” said Ryan McInerney, president of Visa Inc.
A survey of PST acquirers estimates that approximately 40 percent of their terminals will be capable of accepting chip cards by the end of the year.
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Payment terminals have stayed the same over the last 10 years, with steady advances in contactless and mobile wallet transactions. Retailers and brands are making a conscious effort to get closer to consumers.
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