EMV: Short-Term Pain for Long-Term Gain

Nov 16, 2015 — Collin Prior
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There seems to be a sour sentiment in the new EMV era where Americans feel it now takes longer to pay for anything, as outlined in this recent article from PCMag. Canadians went through a similar situation back in 2007 when EMV was introduced but are now enjoying the benefits of contactless credit card payment “tap-and-go” as well as NFC mobile device payments. So it was not only the reduction in credit card fraud that made EMV successful in Canada but also the speed and convenience of making payments.

Technologies such as Apple Pay and Google Wallet really have the ability to transform the way we can pay, as well as greatly increase the security of these payments.

The best thing about EMV, however, is that it gets the necessary infrastructure in place so that we can use our smart devices for payment. While chip-and-pin transactions can take slightly longer than swipe transactions, tap-to-pay is very fast. Once terminals are in place, there are technologies such as Apple Pay and Google Wallet that really have the ability to transform the way we can pay, as well as greatly increase the security of these payments. The US market already has most banks on board with this and just needs the terminals in place with retailers.

The devices are much more secure because they can use onetime-use codes rather than a credit card number and are actually authenticated by a users’ passcode, thumbprint or biometric identity.

Paying with a smart watch or phone can be as simple as holding the device to a reader and tapping a button or using your thumbprint. The devices are much more secure because they can use onetime-use codes rather than a credit card number and are actually authenticated by a users’ passcode, thumbprint or biometric identity. The speed is great and the solutions are very easy to use. While there will be a learning curve for EMV and smart devices, the increased security and transaction speed can be much greater. This can also open the door to connected in-app purchases. Imagine not handing over a card, leaving the table or even requiring the server or sales staff to complete a payment.

Topics: Retail Operations, Customer Experience

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