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2015 IAD poll reveals jump in EMV readiness, continued concerns about cost

The annual study gauged the top concerns and issues of independent ATM deployers across the United States.

February 26, 2015

While the 2015 US IAD Survey showed that EMV migration costs and interchange are still top concerns for IADs, the annual study also held a few surprises — including a significant uptick in IADs upgrading and replacing ATMs in the field in order to add EMV capability.

The ATM Industry Association and Kahuna ATM Solutions cosponsored the survey and presented their findings in a panel discussion at the 2015 ATMIA US Conference and Expo last week in Las Vegas. Among the survey highlights:

• Fifty percent of respondents named EMV operational expenses as their top concern regarding the health of the ATM industry, closely followed by reductions in interchange (49 percent), and anti-money laundering rules (31 percent).
• Asked about issues specific to the U.S., 41 percent of respondents said they would most like to learn more about the "implications of the EMV liability shift for ATMs," while 33 percent wanted to know more about "costs in upgrading ATMs."
• Seventy-five percent of U.S.-based respondents are purchasing new ATMs with EMV card readers, and 50 percent are already placing ATMs with EMV-capable card readers in the field.
• Thirty-one percent of participants expect to be EMV-ready by the October 2016 MasterCard liability shift, while 50 percent expect to meet the October 2017 date set by Visa.
• Only 12 percent of those surveyed said they are developing contactless or mobile strategies for the ATM, down from 35 percent in 2014. However, only 38 percent gave a solid "no" this year versus 50 percent last year who said they had no plans to develop a contactless strategy.

"The US Independent ATM Deployer Survey plays a strategic role in helping us plan our educational goals and sessions for the coming year," said ATMIA US Executive Director David Tente in a press release. "The response this year was especially encouraging, informative and helpful in helping us move forward with the best possible content for 2015."

"We know there are still a lot of concerns regarding EMV migration and interchange," said Kahuna ATM Solutions Vice President and General Manager Bryan Bauer. "Our clients are asking a lot of questions about EMV requirements and obtaining capital for migration requirements, and looking for alternatives and solutions that will best fit their business.

"This survey made it clear that IADs are still unclear on the true impact of the liability shift for ATMs that are not EMV-ready by October 2016. We have an enormous task as an industry to figure out exactly what that impact is through real, meaningful data, and then educating IADs on those implications of not upgrading. Moreover, we need to educate them in time to successfully meet the deadline as an industry."

The online survey was conducted between Nov. 10 and Dec. 31, 2014, with a total of 109 self-selected IADs participating.