The Card 'Facts'

by Vending Marketing Manager
Vending Marketing Manager
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on 2014-07-21 in Cashless | 0 Comments
Since the NAMA OneShow this year, we've continued to educate in the area of EMV, first through our technology panel recap video, contribution to an article written by Automatic Merchandiser, and then with a series of blog posts on our website.

We read an article on EMV this month in Digital Transactions Magazine that we thought had some interesting content that our blog readers would also find educational. The article highlighted the projections and current statistics around the issuance of EMV chip cards in the USA, along with some additional nuggets of information around EMV.

Surrounding payment cards in the United States, studies and experts have stated:

1.2 billion payment cards are out in the US market

96% of U.S. credit cards will have a chip on them by 2018

100 million EMV cards will be issued by the end of 2014, which is about 10% of cards

450 million cards are predicted to be issued by the end of 2015

Visa has increased their chip card issuance by 72% from December 2013 to March of 2014.

Cost to manufacture a chip card is $3.50/card versus only $.50 for a magnetic swipe card

Despite the high costs to manufacture the chip cards, (It has even been said that adding the contactless EMV capability to the card will cost an additional $1/card. {June edition Digital Transactions}) these numbers suggest that one leg of the stool, the card issuers, is moving at a rather quick clip for transitioning to EMV technology.

Other interesting tidbits, specifically on terminal placements- another leg of the stool - included predictions that:

4.5 million EMV capable terminals will be installed by end of 2014, and that number will be almost doubled by the end of 2015

53% of terminals will accept EMV cards in 2015 vs 24% in 2014. Projections have that percentage at 92% in 2018.

Perhaps the most interesting point from the article was that, "The greatest spur merchants to accept EMV transactions may not necessarily be related to the benefit from the liability shift. Rather, it could be the loss of a sale."- a point that was also highlighted by our experts during our Technology Panel. When 53% of micro-to-small merchants, (likely many of them from the vending industry), don't even know about the EMV migration there is even greater chance of losing that priceless sale.

So as all the legs of the stool steady themselves, operators should continue stay educated on the pace of the transition and make the proper investment decisions when the time is right for their business.

*Statistics from the July 2014 edition of Digital Transactions Magazine

Find our other EMV related blog posts at the links below.

PCI and EMV: What's the difference?

EMV Hardware: Compliant versus Capable

Prepare for your EMV Liability Shift with Alien Abduction Insurance

Your Debit Card and the EMV Chip

There's a Chip on My Card

The Future Of Cashless With EMV

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