EMV card adoption remain behind mobile payments in US

9 August 2016

Insomuch as the US merchants are very hesitant about adopting the new EMV payment technology, the EMV cards are very slowly spread across the nation with only 45 percent of issuers providing EMV cards, while the forecasts expected that figure to be 90% a year ago. The statistics show that among those consumers in America who hold chip debit cards the number of transactions made on such cards amounts only to 11 percent.

The rest of the American card holders prefer to make conventional transactions with magnetic stripe cards at checkouts or shopping on the internet. As for the overall number of card transactions, chip-based cards reached only 4 percent. Meantime, the reports reveal that this figure has increased three times as compared to the previous year. Inconsistent rollout of the chip cards across the country in turn make consumers confused and annoyed.

On the other hand, mobile payments are increasingly getting popular in the United States with Apple Pay leading the industry. Apple Pay’s market share is 3.5% of valid debit cards loaded onto the mobile wallet, while Samsung Pay and Android Pay account for 0.2% each. Still, use by the cardholders for each Samsung Pay and Android Pay exceeds that of Apple Pay, on average accounting for 1.8 and 1.7 transactions per enlisted card monthly, while that figure for Apple Pay stands at 0.7 transactions.

The researchers note that issuers expect the mobile transactions to grow up to 25% or more of the debit card payments within 5 years, making thus mobile payments to be the primary settlement method for shoppers.

Blockchain techs
Mastercard may launch a payment system for fast cryptocurrency transactions
Banking techs
Korea digitizes mortgage and loan documents on a blockchain platform
Writing a White Paper for an ICO: expert recommendations
Show more posts...