Optimization and implementation of the EMV

Visa, in their monthly update on EMV, announced that merchants using EMV, chip enabled terminals account for 46{1e9709ef5f3333ae7d8fe6a31af5d3933317716445c13c35f37bf4f9d8e83538} of all the companies in-store payment volume.
Visa also announced that their year over year increase in chip-on-chip transactions was up 359{1e9709ef5f3333ae7d8fe6a31af5d3933317716445c13c35f37bf4f9d8e83538} this last November.
These numbers all point to a much greater penetration of EMV compliance across the US, and because Visa is the largest card network in the US, these numbers could serve as a benchmark for the progression of the US EMV migration across the industry.
As these numbers rise, they point to a growing acceptance from both consumers and merchants.
• Consumers: Visa’s 400 million chip cards issued in the US represents a 105{1e9709ef5f3333ae7d8fe6a31af5d3933317716445c13c35f37bf4f9d8e83538} year to date increase. This represents a 47{1e9709ef5f3333ae7d8fe6a31af5d3933317716445c13c35f37bf4f9d8e83538} of Visa’s total US cards. Consumers also seem to be adjusting to the dipping and not swiping change with less confusion. Visa also conducted a separate survey of consumers that found 35{1e9709ef5f3333ae7d8fe6a31af5d3933317716445c13c35f37bf4f9d8e83538} of consumers believe that chip cards are now the safest way to pay.
• Merchants: Merchant adoption continues to increase. Up 110,000 merchants over the previous quarter and up 1 million since November 2015. With 1.75 million merchants now converted to Visa EMV platform, it is still just a 38{1e9709ef5f3333ae7d8fe6a31af5d3933317716445c13c35f37bf4f9d8e83538} saturation of the US storefronts. More small businesses are warming to the idea of converting to EMV because of the fraud protections benefits they can reap, so this number will steadily increase. This migration has been delayed for gas stations, an area with high fraud for three years. This will continue to impact merchant upgrades.

The US EMV migration continues to be slow going as the transformations are only raising 7{1e9709ef5f3333ae7d8fe6a31af5d3933317716445c13c35f37bf4f9d8e83538} a quarter. And even though it is likely we will see steady growth in overall EMV penetration throughout 2017, there will most certainly be a reductions of credit card counterfeiting and fraud as these numbers rise.

In 2014 fraud cost US retailers approximately 32 billion dollars. That figure is up from 23 billion just one year earlier. The new payment protocols that were implemented in October of 2015 are meant to solve the fraud problems across in store, online, and mobile payments.

• EMV cards are the most secure form of card payment processes available. Embedded with a microchip for added security, the chip carries real-time risk assessment and generate dynamic cryptogram when the card is used to stop fraudulent activity.
• Tokenization schemes assign a random value for mobile and internet payment making it effectively impossible for hackers to access any sensitive data from the token.
You will see more optimization and implementation of the EMV technology with both consumers and merchants over the next 4 years. Full implementation of EMV technology across US merchants should be completed by the end of 2021.