U.S. Migration to EMV Slows as the October Liability Shift Looms

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Updated Mercator Advisory Group projections indicate a slower than expected transition to EMV due to unanticipated complexities.

The move to EMV is beneficial for the U.S. payments industry, but credit card issuers and merchants are struggling to reach full compliance before the fraud liability shift in October.

With the long-awaited fraud liability shift just around the corner, the entire U.S. payments industry is actively (if not enthusiastically) preparing for the transition to EMV. While that preparation will yield a more robust and secure payments infrastructure in the long run, progress toward EMV compliance has slowed in 2015 as issuers and merchants deal with a range of technical, logistical, and educational challenges.

Mercator Advisory Group’s most recent research note, Migrating to EMV: The (Not So) Final Countdown, provides an updated outlook for EMV credit card issuance and point-of-sale (POS) reterminalization as well as an overview of the trends and challenges currently constraining the U.S. migration to EMV.

“The move to EMV is a beneficial thing for the U.S. payments industry, but credit card issuers and merchants are struggling to reach full compliance before the fraud liability shift in October,” comments Alex Johnson, Senior Analyst at Mercator Advisory Group and the author of the note. “We need to prepare ourselves for a longer and messier transition than many originally anticipated.”

Highlights of this research note include:

  • Updated estimates for the reissuance of credit cards and reterminalization of merchants’ payment systems in support of EMV
  • Analysis of the factors preventing many merchants and issuers from enabling EMV transactions before the October 2015 liability shift
  • Overview of current consumer awareness of and satisfaction with EMV
  • Explanation of the distinctions between different size merchants that influence EMV-enablement strategies
  • Guidance on the long-term implications of the EMV migration on the adoption of mobile payments and point-to-point encryption technologies

This research note contains 11 pages and 4 exhibits.

Companies mentioned in this note include: American Express, Apple, Bank of America, Discover, Google, JPMorgan Chase, MasterCard, Samsung, Target, Visa, Walmart, and Wells Fargo.

Members of Mercator Advisory Group’s Credit Advisory Service have access to this note as well as the upcoming research for the year ahead, presentations, analyst access, and other membership benefits.

For more information and media inquiries, please call Mercator Advisory Group's main line: (781) 419-1700, send email to media(at)mercatoradvisorygroup(dot)com.

For free industry news, opinions, research, company information and more visit us at http://www.PaymentsJournal.com.

Follow us on Twitter @ http://twitter.com/MercatorAdvisor.

About Mercator Advisory Group
Mercator Advisory Group is the leading independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world's largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors. Mercator Advisory Group is also the publisher of the online payments and banking news and information portal PaymentsJournal.com.

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Karen Yetter
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