Between 2001 and 2004, Target and Visa collaborated on a smart card project that ultimately fizzled due to costs and questions about the system’s viability and operational profitability.
It was nearly a decade ago that the retailer canceled the smart card project because the company’s leadership was concerned that it would lose money on the idea, American Banker reported on Jan. 22.
Questions were also raised about Target’s employees being capable of efficiently using the smart card system, as well as fears of slowed transaction times.
Target CEO Greg Steinhafel recently called for an EMV chip standard in the wake of the BlackPOS attack.
“In the United States, we’re using mag-stripe technology, and that’s old technology, and there is a better way and it’s called EMV technology,” Steinhafel told CNBC in an interview. “We think it’s time for America to make that commitment to get to that standard. … We want to lead in that conversation.”
What will the outcome be? Market Platform Dynamics CEO Karen Webster explored the topic in a recent commentary, which can be found by clicking here.
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