White Paper | January 14, 2013

The Emergence & Implications Of EMV

Source: Cayan

This white paper by Marc Castrechini, Director of Software Development at Merchant Warehouse takes a look at EMV – an acronym for Europay, MasterCard, and Visa – a chip-based standard for consumer payment systems. Chip-based payments have been discussed in the U.S. for nearly 20 years, but only recently has a push been made to create and implement a standard. This push has caused some confusion among payment solution providers and consumers who are beginning to wonder how EMV works and what value it provides. At present, the U.S. government has not set standards or provided guidance in the implantation of EMV.

What is EMV?

EMV was introduced nearly 20 years ago as a standard for smart chip electronic payment systems. It began as a joint venture between Europay, MasterCard, and Visa called EMVCo, which is now owned by MasterCard, Visa, American Express, and JCB. This paper notes that, “According to EMVCo, nearly 1.5 billion smart chip payment cards are used at over 21.9 million terminals throughout the world. The largest exception to the widespread use of smart chip cards is the United States, which also happens to be the largest market for payment cards in the world.”

EMV is certainly bound for the United States market, but analysts disagree on the timeframe for adoption to occur. The push for EMV adoption was jump-started by Visa on August 9, 2011 as it published a release stating it will accelerate efforts to migrate to EMV for PIN-based and signature-based payments.

To learn more about EMV and EMV adoption in the United States, download this white paper below.