Report: EMV Readiness Low But Trending Up, Mobile Security Paramount
Jan. 28, 2016
Payment security is a core concern for retailers in every sales channel, according to a new report from payments processor ACI. At the recent National Retail Federation annual event in New York City, ACI polled hundreds of retailers on EMV readiness, what they are focusing on in mobile app and mobile wallet implementation and what digital channels are most important.
The card-not-present world has been waiting for EMV implementation in the U.S. and the possible spike in CNP fraud that could result. That can, however, is being kicked down the road, if only briefly, according to ACI. Only 8.5 percent of executives polled by the Naples, Fla.-based processor said their company is fully EMV-compliant. Nearly half “still have work to do and/or are still evaluating their options for EMV.” One of those options retailers were considering was investing in tokenization and encryption solutions ahead of EMV. Lynn Holland, vice president and product line manager for ACI said, however, retailers are changing their attitudes as chargeback rates have increased since the liability shift.
“Ninety days ago I would have agreed that they were doing that,” Holland told CardNotPresent.com in an interview at the NRF event. “But, [since the liability shift], they’re starting to see their [in-store] chargeback rates go up. They’re finding their actuals are running significantly higher than the numbers they modeled. They are now asking, ‘how fast can I get [EMV compliant]?’.”
Security also topped a list of concerns of retailers engaged in implementing mobile. Seventy-two percent of retailers named security as the top priority they need to address when offering a mobile app. Integrated loyalty (71 percent) and seamless ordering (55 percent) were also concerns. A full three-quarters identified security as the top priority when launching mobile wallet acceptance.