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Mobile payments and greater payment security around the corner

March 29, 2012

Major credit card brands MasterCard, Visa and Discover have aligned their goals for EMV-chip technology adoption, which could spur merchant adoption and provide consumers with secure mobile credit card payment processing sooner.

Major credit card brands MasterCard, Visa and Discover have aligned their goals for EMV-chip technology adoption, which could spur merchant adoption and provide consumers with secure mobile credit card payment processing sooner.

EMV-chip and near field communication (NFC) technology go hand in hand, according to Bank Tech. Both innovative payment methods can be accepted with the same credit card terminal, Aite’s Conroy McNelly told the source. Businesses investing in the devices to meet deadlines set forth by the card companies will be speeding up the adoption of mobile payments. Card issuers have pushed EMV cards for enhanced security.

“We still have to live with the legacy security challenges that exist in the U.S. payments market for another few years, while we move the market forward with more security-enabled chip technology,” Randy Vanderhoof, a member of the Smart Card Alliance, told the source. “It’s not going to happen overnight, but the use of mobile is going to speed the process.”

Transitioning away from current payment methods will require retailers to overhaul the way they process transactions. When businesses implement the new systems, they have an opportunity to address security weaknesses within the infrastructure right away, says Vanderhoof. This would prevent them from having to go back and make changes to existing systems to meet PCI standards. 

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