The way we use credit cards to pay for purchases in-store is about to change. On October 1, retailers will be required to update their processing systems to accept EMV credit cards, or pay higher processing costs to cover the risks. Already launched several years ago in Europe, EMV credit cards make use of microchip technology over the less secure traditional magnetic stripe found on most cards to date. EMV allows the merchant’s credit card reader to interact with the microchip to link directly to your bank to verify authenticity, providing greater security for consumers and reducing fraud.
This change will also bring an increase in mobile payments. As merchants upgrade their terminals to accept EMV cards, it is likely they will also invest in NFC capable terminals that accept Apple Pay, Android Pay and other NFC based solutions. The incremental costs to include NFC at upgrade is minimal, especially when you consider that EMV changes will already require these retailers to train employees to use the new machines.
As mobile payment opportunities grow, so does the opportunity to build engagement around those transactions through digital wallets, loyalty programs and omni-channel shopping experiences.
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