Issuers believe shift to chip cards will be almost complete by 2017
The Payments Security Task Force has provided an update on financial institutions’ plans to issue chip-enabled credit and debit cards in the U.S., strengthening forecasts originally issued in August 2014.
Eight financial institutions, representing approximately 50 percent of the total U.S. payment card volume, estimate that 63 percent of their credit and debit cards will contain EMV chips by the end of 2015, expanding to 98 percent by the end of 2017.
The forecast reaffirms the ongoing commitment to chip migration as a step toward increasing U.S. payment security across the ecosystem, according to the Task Force.
“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.”
Chip technology protects in-store payments from counterfeit card fraud. A small computer chip in the payment card generates a one-time use code for every transaction, making it virtually impossible to create counterfeit cards.
“Those in the payments ecosystem have a shared responsibility to collaborate on ways to enhance payments security,” said Ryan McInerney, president of Visa. “Through cross-industry collaboration, the Payments Security Task Force has developed tools to support the migration to chip including a program designed to help streamline the EMV testing and certification process and a consumer education website.”
A similar survey of acquirers participating in the Payments Security Task Force reinforces the November 2014 forecast that at least 47 percent of U.S. merchant terminals will be enabled for EMV chip technology by the end of 2015.