Report: Widespread Adoption of EMV Could be Delayed Until 2020
May 4, 2015
In an effort to hasten the migration in the U.S. to the EMV standard for payment card transactions, the major card brands imposed a deadline of Oct. 1, 2015 for retailers, processors and issuers to be prepared to accept and process chip cards at the point of sale or face liability for fraudulent purchases. And, while media reports focus on the readiness of retailers, a new report suggests that organizations looking into other alternatives may delay the full implementation of EMV technology.
Forrester Research said in a recent report it expects “more secure, encrypted, and tokenized transactions on digital wallets, mobile-device-based near-field communications (NFC) virtual cards, and EMV contactless payments will prove strong competitors to plastic EMV chip-and-signature and chip-and-PIN payments in the U.S.” As a result, Forrester predicted broad adoption of EMV at the point of sale will be delayed until 2020.
Companies understand, the report said, that EMV does not protect the compromise of unencrypted data. Retailers, who were hard hit by security breaches in 2014, are heeding the advice of their payment providers and taking steps to protect themselves by encrypting and tokenizing customers’ personal information. Some companies will invest dollars they could have aimed at upgrading to EMV-compliant systems into those other protective technologies.