EMV Cards To Top 575 Million In U.S. In 2015

credit card emv security feature
7:05 AM EDT August 14th, 2014

More than 575 million U.S. payment cards will include EMV chips by the end of next year, according to a statement issued jointly from Visa and MasterCard on Wednesday (Aug. 13).  That number is partially based on EMV shipment plans from nine key card issuers: Bank of America, Capital One, Chase, Citi, Discover, Independent Community Bankers of America (representing issuing members), Navy Federal Credit Union, US Bank and Wells Fargo & Company.

“The pace of EMV adoption is rapidly accelerating with many institutions already issuing EMV chip cards and even more coming onboard every month,” said a statement attributed to First Data President Guy Chiarello. “First Data is strongly encouraging all institutions to launch their EMV plans immediately, and not wait for the October 2015 liability shift. Issuing EMV now will benefit consumers by making the most secure payment card available sooner, while reducing fraud losses and enhancing payments system security for all.”

These numbers reflect a true aggressive movement to EMV card shipments, with the end-of-2015 shipment promises from those nine issuers reflecting “that one in two of their U.S. payment cards will be chip-enabled, which represents real progress given the scale and complexity of this overall effort,” said Visa President Ryan McInerney.

With the liability shift in position and these kind of issuer shipment numbers—albeit many of them are signature- rather than PIN-based, but these things take time—the next two EMV U.S. hurdles are retailer equipment upgrades and training (two very different things) plus getting consumers to not only use their new EMV cards, but to specifically insert for chip rather than just use the comfortable magstripe. Consumer training and perhaps some incentives will be needed to close this loop and to get these cards to actually be used in meaningful numbers.

The joint statement said that supporting other security features—which will hopefully work in concert with the more secure chip—are also being pursued as the shipments start to ramp. “Among the next priorities for the task force is identifying an actionable, long-term roadmap to deliver a consistent level of security for payments in the digital and physical environments,” Wednesday’s statement said. “Part of this will include providing clarity around enhanced security (options) like tokenization and point-to-point encryption.”

Comments
  • Mirek

    WOW… so what we have here is 500+ million cards with chips which admittedly will not be used until merchants spent several hundred dollars per POS in HW and SW upgrades and staff retraining. Then we will need to “re-educate” the consumers. When all of this is done we will have a Chip&Sign model in place… apparently… because somehow Chip&PIN will not be quite ready. With mag stripe swipe still available… what is a chance of widespread adoption?

    I just came back from a Post Office where I paid with my AX. The branch was sporting a brand new terminal with a chip reader. Well, with my brand new chip-enabled AX in hand, I asked the clerk if I could use the chip instead of the mag stripe? He did not have a clue that the chip reader was there. I stuck the card into the slot… and… nothing happened :-). Apparently the “system” wasn’t ready (nor the staff).

    Hey, but the “comfortable mag-stripe” worked just fine.

    • James

      It’s the post office. Have low if no expectations. Once I was requested to show photo ID because I used my credit card. My picture is on my card. Wasn’t good enough for the idiots.

      • askmrlee

        Because the photo on the credit card could be anyone. Your credit card photo was probably taken at the bank branch. When I had my photo added to my Citi card many years ago this was done via mail.

    • askmrlee

      Keep trying them out. You never know when one will work. Walmart as many have has many of its EMV readers active and people with chip cards who swipe the mag stripe get a message “ICC detected” and then must insert the card in the chip reader slot. When I tried this it failed after 3 attempts then I had to use a mag stripe only card. Others have reported success.

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