MONTREAL, Quebec—The U.S migration to EMV is gaining momentum, according to one payments expert, thanks in part to one surprising category of merchant readiness.
Jan McGrath, business leader, U.S. product delivery for MasterCard Worldwide, told attendees at NAFCU’s annual meeting here that the latest forecast calls for 63% of U.S. cards to be chip enabled by end of 2015, along with 47% of merchant terminals EMV capable by the end of December.
Some of the recent movement, too, is coming from a retailer segment that is likely surprising many experts with their attention to EMV—small businesses.
“We have found that the small mom-and-pop shops are actually winning the (merchant EMV) race now,” said McGrath, noting their nimbleness, as well as a lack of infrastructure to get in the way of conversion.
That finding runs counter to what many experts have been predicting—that the smallest retailers will be the last to convert their POS. McGrath said that overall, there are now 272,750 chip-active merchant locations stateside.
What may be helping move migration forward is growing consumer awareness and interest in EMV. According to MasterCard survey data through March, 69% of consumers know of EMV now, compared with 50% in 2013. The report also found 33% of consumers now say they will switch FIs if they are not offered a chip card, compared with 9% in 2013.
Sixty-two percent of consumers now say EMV plastic will be easy to use, compared with 47% in 2014; 39% say they want a chip card today.
But consumers still have questions about EMV. McGrath said the top two are:
- Where can I use my chip card now?
- Why do I need a PIN for my credit card?
“Consumer education is an important part of this migration,” said McGrath. “The level of consumer knowledge is increasing, in general, they are not asking what a chip card is anymore.”