EMV in 2016: Breaking Through the Bottleneck

  • ID: 3831974
  • Report
  • Region: Global
  • 22 Pages
  • Mercator Advisory Group
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U.S. EMV Migration Makes Progress Despite Merchant Certification Bottleneck

FEATURED COMPANIES

  • American Express
  • Citi
  • Costco
  • Discover
  • Home Depot
  • Kroger
  • MORE
Significant progress in the issuance of chip credit cards and the education of consumers has been offset by continued challenges in certifying and activating merchants’ dormant point-of-sale terminals to accept EMV transactions. The resulting blowback-lawsuits, product changes, and policy shifts-has come to define the U.S. EMV migration in 2016.

The research report, EMV in 2016: Breaking Through the Bottleneck, provides an updated outlook on the U.S. EMV migration, including estimates for the issuance of chip credit cards and the distribution and activation of chip-accepting point-of-sale (POS) terminals.

"Consumers have grown much more comfortable with chip cards over the last 12 months," comments Alex Johnson, Director of Credit Advisory Service and author of the report. "This has thrown the ongoing challenges in activating merchant POS terminals into sharper relief. How merchants, acquirers, and the card networks resolve these challenges will shape the next 12 months of the U.S. EMV migration."

Highlights of the report include:

- Projections for the issuance of EMV credit cards and the distribution and activation of EMV-capable POS terminals

- Estimates for the volume of EMV-compliant credit card payments in the U.S. over the next five years

- A glimpse into the author's latest proprietary consumer and small business survey results relating to EMV

- An exploration of the issues inhibiting the certification and activation of EMV-capable POS terminals and an overview of the changes announced by the card networks to address those issues

- A review of the policy shifts, product changes, and legal maneuvers that have been employed by merchants and the card networks to resolve key disagreements in the U.S. EMV migration
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FEATURED COMPANIES

  • American Express
  • Citi
  • Costco
  • Discover
  • Home Depot
  • Kroger
  • MORE
1. Executive Summary

2. Introduction

3. EMV Migration Forecasts (Where Are We So Far?)

4. General Purpose Credit Cards

5. Merchant Point-of-Sale Terminals

6. Chip-on-Chip Credit Card Transaction Volume

7. Consumer and Small Business Attitudes about EMV (How Do We Feel?)

8. Consumers

9. Small Businesses

10. Recent Market Developments (Whose Fault Is It?)

11. Certification and Chargebacks

12. A Quicker Chip Experience

13. PIN vs. Signature

14. The Future of the U.S. EMV Migration (Where Are We Going?)

15. Endnotes

List of Figures

Figure 1: More Than 80% of General Purpose Credit Cards in the U.S. Will Contain a Chip by the End of 2016
Figure 2: U.S. Payment Terminals Continue to Lag Behind Credit Card Issuance in EMV Migration
Figure 3: EMV-Compliant Credit Card Volumes in the U.S. Are Projected to Total $890 Billion in 2016
Figure 4: 3 in 5 U.S. Adults Now Own an EMV Payment Card; 45% Report Owning an EMV Credit/Charge Card
Figure 5: Consumers Report Doubling Their Use of EMV Payment Cards in the U.S.
Figure 6: As Consumers Gain Familiarity with EMV, Fewer Find Operator Mistakes or Were Confused by It
Figure 7: A Majority of Small Businesses Claim to Have Enabled EMV Terminals (or Plan to by End of Year)
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- American Express
- Citi
- Costco
- Discover
- Home Depot
- Kroger
- MasterCard
- Target
- Visa
- Walmart
Note: Product cover images may vary from those shown
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