A new report by Javelin Strategy and Research predicts an increase in mobile credit card processing will help drive businesses to install EMV terminals. These POS systems are needed in order to process payments made from EMV cards, which contain a small microchip rather than a magnetic stripe, and offer superior fraud protection.
EMV standards are already the norm in most other industrialized countries. In fact, an estimated 76 percent of terminals and 45 percent of cards worldwide are EMV?enabled. However, the U.S. has lagged behind with only 10 percent of terminals deployed and less than 1 percent EMV card adoption.
According to Javelin, the development of mobile payment technologies has provided the impetus to drive EMV. An increase in near-field communication (NFC) mobile payments is believed to provide merchants with a reason to invest in dual?interface EMV terminals that support contactless transactions and NFC-based mobile wallets.
“Javelin believes that NFC will ultimately be the leading technology underlying mobile wallet solutions, and implementing the EMV standards will facilitate that,” said Javelin’s director of payments research, Beth Robertson.