Ingenico Group Survey Identifies 5 Factors For EMV Migration Success
By Christine Kern, contributing writer
As the U.S. engages in the transition to EMV payments, Ingenico Group has found that there are five key factors that impact a successful deployment of the technology. The company announced the results of its study at the annual Money 20/20 conference in Las Vegas.
Ingenico surveyed more than 1,000 consumers for the study, which concluded there are five key areas in which change is needed:
- Merchant Preparedness: Merchants should be equipped to accept chip cards and to encourage their customers to use them.
- Consumer Preparedness: About 40 percent of consumers do not yet have their chip cards.
- Cardholder Perceptions: Some demographics of consumers prefer magnetic stripe cards to EMV because the transaction seem to be faster.
- Education: Merchants and card issuers need to instruct consumers on the correct way to use an EMV card and what the benefits of chip cards are.
- Habituation: Consumers will need time to get used to using chip cards and to feel comfortable with using them.
The survey findings also reveal there are some opportunities for VARs to provide merchants with the tools and support they need to successfully transition to EMV. Ingenico predicts the U.S. migration, that began on October 1, will take about two years to complete.
Other study findings include the following:
- 60 percent of U.S. cardholders have received EMV cards from their banks/card issuers.
- 48 percent have used their EMV cards by dipping to pay for goods/services; 44 percent still have not.
- Out of the U.S. cardholders who have both EMV and magstripe cards, 54 percent prefer magstripe over EMV.
- 33 percent of cardholders who tried using an EMV chip card at the point of sale were not aware of the correct way to use them, and had to ask a merchant for help.
- Only 27 percent of cardholders who received educational material along with their EMV cards felt that it was helpful.
Download the executive summary of the study here.