Payments

Trends in EMV Adoption in the US, According to CardFlight

CardFlight, a top mobile point-of-sale (POS) technology provider, has come up with a new report titled "CardFlight EMV Migration Tracker," which shows an analysis of EMV chip cards being used in the United States since the October 1 liability shift.

EMV, short for Europay, MasterCard and Visa, is a global technical standard for smart cards. A microchip (instead of magnetic stripes) is embedded in the smart cards to store data. The chip generates a unique, one-time authentication code that cannot be used again, making duplication impossible. After numerous data theft incidents in recent years, the outcry for better security was finally intensified to call for the US market to adopt EMV chip cards.

After the EMV liability shift, card issuers are only liable for the fraudulent charges when customers use chip cards to transact and merchants are EMV-compliant. For the merchants who do not upgrade their payment system to be EMV-ready, if fraudulent charges occur, they will have to absorb the charges. It is important to know that chip cards do not prevent data breach. But the microchips make it extremely difficult to duplicate data, making criminals less incentivized to commit fraud.

While EMV chip card technology has been implemented in Europe for more than a decade, EMV is actively rolling out in the US and changing the usual swipe-and-go experience. The most visible milestone in this rollout came earlier this year with the October 1 liability shift. The Payments Security Task Force predicts that 98% of US credit and debit cards will contain EMV chips by the end of 2017.

"Much has been written in the press about EMV chip cards, many US cardholders have received cards with EMV chips on them, and many merchants have deployed EMV- ready payment terminals," said Derek Webster, Founder and CEO of CardFlight. "Very little hard data has been published about the real-world use of EMV chip card technology. In the US, most published statistics rely on surveys, individual anecdotes or forecasts rather than real transactional data."

The analysis relies on data from actual cards in use, the so-called "top of the wallet cards," and not plastics that are issued and never used. Data comes from hundreds of thousands of transactions processed through the CardFlight gateway by merchants in all 50 US states, making it representative of the cards in use in the United States.

The CardFlight EMV Migration Tracker shows new data and insights, including:

1. Over 50% of all cards in use now have EMV chips on them. From October to November, this figure grew by 5% as banks and card issuers accelerated their rollout of new chip cards.

2. Over 83% of American Express cards have EMV chips while Discover lags at 40%

3. Over 63% of the cards used in Hawaii have EMV chips compared to Mississippi’s 11%

About CardFlight:

CardFlight is a leading provider of tools and technology to help merchants accept in-person credit card payments on iOS and Android devices. They offer developer tools and software developer kits that allow retailers and vertical solution providers to easily build their own custom POS software. Additionally, they offer SwipeSimple, a turnkey mobile application that helps merchant service providers, banks and other financial institutions offer a mobile point-of-sale solution to their customers, without having to build their own technology from scratch. CardFlight’s technology platform also includes encrypted card readers and a PCI Level 1-compliant payment gateway that supports over 20 different processors, to provide clients with complete mobile payments and mobile POS (mPOS) solutions.

CardFlight is one of the first payments technology providers to bring EMV chip card acceptance to smartphones and tablets in the US market. The company received its first EMV approvals and certifications prior to the October 1 liability shift and is helping lead the way in the migration to EMV chip card technology in the United States. For more information on CardFlight, visit https://cardflight.com.

Priti Thakur

Priti has keen interest in digital money and fintech startups . She completed her B-School education this year and likes to write about innovation with respect to digital payments.

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