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Despite certification slowdowns, US EMV migration moves forward

July 22, 2016

New research from Mercator Advisory Group examines progress made by credit card issuers, merchants, and card networks since the Oct. 1 U.S. EMV liability shift.

The report offers an updated outlook on the U.S. EMV migration, including estimates for the issuance of chip credit cards and the distribution and activation of chip-accepting point-of-sale terminals.

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One of seven exhibits in the report

Mercator reports progress in EMV implementation in the United States, but says chip card issuance gains are partially offset by a delay in POS activations due to certification hang-ups.

"Consumers have grown much more comfortable with chip cards over the last 12 months," said Alex Johnson, director of Mercator's credit advisory service and author of the report. "This has thrown the ongoing challenges in activating merchant POS terminals into sharper relief. How merchants, acquirers, and the card networks resolve these challenges will shape the next 12 months of the U.S. EMV migration."

Highlights of the report include:

• projections for issuance of EMV credit cards and distribution and activation of EMV-capable POS terminals;
• estimates for the volume of EMV-compliant credit card payments in the U.S. over the next five years;
• an exploration of issues hampering the certification and activation of EMV-capable POS terminals, and an overview of changes announced by the card networks to address these issues; and
• A review of policy shifts, product changes, and legal maneuvers used by merchants and card networks to resolve key disagreements arising from U.S. EMV migration.