EMV Groups Update Readiness Projections, Debit Technical Framework
May 7, 2015
Despite a recent report that predicts widespread adoption of EMV technology by retailers and payment providers will not occur until 2020, it won’t be the fault of major issuers, according to a report this week from the Payments Security Task Force (PST). The PST, a cross-industry group made up of card networks, issuers, acquirers, processors and retailers, said nearly all (98 percent) of the cards issued by the eight largest card issuers—accounting for about half of U.S. payment card volume—will contain EMV chips by the end of 2017. By the end of this year, the eight banks said 63 percent of their credit and debit cards would carry the chips. The Task Force did not comment on issuers’ readiness outside of the eight largest banks.
While EMV technology has been criticized by some for its exclusion of protection for card-not-present transactions and because many mistakenly believe the technology protects against data security breaches, the PST is continuing on its course of shepherding the migration to the EMV standard.
“The industry is delivering on its commitment to continue to provide a secure and convenient way to pay,” said Chris McWilton, president, North America Markets, MasterCard. “These numbers show real movement from plans to action as issuers, merchants and others in the payments system engage collaboratively to bring chip cards to the U.S.”
In addition to the task force update, the EMV Migration Forum yesterday issued technical guidance on contactless debit acceptance. The addendum to its technical debit framework addresses compliance, CVM processing and common AID selection, in addition to guidelines on contactless acceptance.