Over the next five years, the point of sale system install base in North America is poised to grow at a rate of about 9% annually.
For the past several years Discover has been in discussions with key participants in the integrated Payments Channel in order to help plan for and accelerate EMV deployment. Discover has conducted EMV engagement discussions with the top ISVs in the channel in order to share information and validate EMV enablement plans.
The growth of data breaches and fraud has been a pressing issue within the payments industry for several years and many are concerned in regards to payment security. It can be difficult to stop a breach or fraud from occurring, but there are solutions that should be implemented for protection. Despite this reality, many ISVs and VARs still aren’t sure about the best ways to reduce their chances of security issues that may arise in the future.
Over the last few years, POS VARs have seen their territory encroached on many different fronts. With revolutionary mobile payment solutions like Square becoming prevalent in the marketplace, selling POS to small businesses has become so competitive that many VARs are walking away altogether and missing out on lucrative opportunities.
What has changed since the October 1 EMV liability shift? For most consumers and merchants, the short answer is, not much. With the exception of some merchants now having liability for fraud involving certain card-present, chip card transactions, the changes promised with regard to EMV will take some time to be fully realized.
Cyber Awareness month just came to a close and it raised awareness about the need to secure one of the most challenging environments — mobile point of-sale (mPOS) systems.
We are now a couple of weeks past the October 1 EMV liability shift, and VARs and ISVs are starting to realize that there is action they have to take. The community is continuing to hear about EMV from the media, and increasingly from payment providers. EMV technology is here to stay, and delays in adopting compatible solutions could result in liability to businesses long term. With EMV in effect, the time is now to implement the necessary solutions and technology to protect your business.
It is easier and far more profitable to retain an existing customer versus trying to convert a new one. Yet the majority of customer related digital marketing dollars are spent on conversion (i.e. sales). Ad-based search revenues have long been the foundation of Googles $450+ billion market cap and Facebook’s mobile ad revenues represent nearly three quarters of total sales and over 90 percent of revenue growth. Whether it’s Trip Advisor, Yelp or Twitter, the underlying business model combines advertising spending from businesses trying to convert prospects with a useful consumer function.
EMV (Europay, Mastercard and Visa), a global standard for chip card technology, has been at the heart of payments news over the past few months. The October 1 liability shift date signified that merchants nationwide will assume liability for fraud if they lack point-of-sale tools that can accept the new chip cards. While there is still a long way to go before EMV becomes America’s new normal, the process of merchant conversion is well under way. Consumers and merchants alike are adapting to the EMV learning curve as the rollout continues.
After a four-year head start, the Oct. 1, 2015 EMV deadline came and went with little fanfare. Only about 30 percent of credit and debit cards are currently EMV (Europay, MasterCard and Visa) enabled, according to eight financial institutions surveyed by the Payments Security Task Force. That number is expected to double by year’s end and increase to 98 percent at the close of 2017, when the liability shift goes in effect for gas stations.