For nearly 18 months, the transition of the American payments ecosystem to being largely based on EMV transactions has gone along somewhat successfully. That trend is expected to continue throughout the remainder of the winter, especially as more companies get onboard with accepting these types of purchases.
The latest industry data shows that the vast majority of consumers use EMV cards on a regular basis and a growing number of retail locations accept them, and more companies are now starting to focus on the future of the payments ecosystem, according to WRAL Tech Wire. In all likelihood, that will include both chip cards and mobile payments, especially as more is done to make EMV transactions as quick and convenient as possible. Right now, mobile transactions represent a relatively small fraction of all card-based purchases in the U.S., but that number is growing quickly.
To that end, it’s vital for merchants of all sizes to adopt modern point-of-sale devices that can handle both EMV (to meet industry standards for secure transactions) and mobile purchases, as a means to accommodate any emerging consumer preference in the months and years ahead, the report said. The more that can be done on both fronts will likely help to ensure a safer payments environment in which consumers are able to make the choice that works best for them.
The good news is that the global market for EMV point-of-sale devices is expected to grow sharply over the next five years or so, according to research from 360 Market Updates. From the start of this year through the end of 2021, this market is projected to reach a compound annual growth rate of about 9.9 percent. But because much of the world already relies upon EMV – and has for years – it’s likely that a lot of this growth will be because of the U.S. push in particular.
A Perfect Example Of Adoption
One thing that has become common in several big-name stores across the U.S. in recent months is the fact that merchants have brand new EMV-capable POS devices installed, but do not yet accept these transactions, according to Payments Source. That’s certainly the case at the bulk discount retailer Costco, which recently announced it will soon start accepting EMV purchases through its co-branded Costco Anywhere Visa card.
Though the card launched several months ago, the company hasn’t yet enabled the ability to actually use the chip component on the plastic itself, the report said. In the meantime, it likely faced more difficulties as a result of fraud liability that would have shifted onto the company itself.
For smaller merchants, that liability isn’t likely to arrive on their doorstep quite yet, but the more they can do to get out in front of the issue, the better off they’ll be. The certification process is quicker than it used to be, but can still take months in some cases, and the sooner they adopt new POS devices, the more quickly they’ll be able to meet changing consumer expectations.Back To Blog