EMV Technology Usage Increases Worldwide And In U.S.

Posted On: 12/15/2016

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TAGS: EMVCo, EMV card usage, EMV standard, EMV compliant, cashless vending, Soumya Chakrabarty, American Express, Discover, JCB, MasterCard, UnionPay, Visa

EMVCo, the privately owned corporation that defines and manages the EMV standard, reported that 42.4% of credit card transactions globally were EMV-compliant between July 2015 and June 2016, compared with 33% during the previous 12-month period.

EMV payments are made with smartcards (also called chip cards or IC cards) that are physically inserted (or "dipped") into a reader, or contactless cards that can be read over a short distance using RFID technology.

"In addition to increased global usage, the most recent data show rapid adoption of EMV technology in regions that have recently implemented EMV chip infrastructures, such as the United States and China," said Soumya Chakrabarty, EMVCo's executive committee chair. "With this continued migration, EMVCo expects these figures to increase in the coming year, which could mean that global EMV transaction volumes would exceed half of all 'card-present' payments."

EMV transactions in the United States, where the liability shift associated with the EuroPay, MasterCard and Visa standard took effect in October 2015, increased from 0.26% to 7.2% for EMVCo's recently reported period. The U.S. still lags way behind Western European nations, where EMV usage is almost 100%. However, the U.S. is a relative newcomer to the technology, while many European nations started using EMV-enabled cards about 10 years ago.

EMVCo is collectively owned by American Express, Discover, JCB, MasterCard, UnionPay and Visa.

EMV usage, EMVco, cashless vending