News

Most consumers unaware of EMV shift

Lower-income survey respondents were less likely to know about EMV cards than those in higher income brackets, according to merchant services provider Habortouch.

September 15, 2015

A survey of some 18,000 U.S. adults conducted in late August found that 56 percent of consumers are unaware of what an EMV or 'chip' credit card is, according to point-of-sale and merchant services provider Habortouch.

Lower income respondents were more likely to lack knowledge of EMV cards than those in higher income brackets, according to the results. Nearly 60 percent of consumers with an income of $25,000-$49,999 were unaware of EMV cards. However, only 26 percent of the highest income cohort ($150,000+) lacked knowledge of EMV credit cards. Harbortouch said in a press release that the results point to the need for more consumer education on the transition from traditional 'swipe' credit cards to EMV or 'chip' cards, which will take place nationwide in just two weeks.

The recent Harbortouch survey also investigated a variety of EMV usage trends among U.S. consumers who did report awareness of the 'chip' cards. Highlights include:

• Card replacements slow to arrive – The majority (53.6 percent) of consumers said they had not yet received replacement EMV or chip cards from all of their credit card providers.
• Rural residents lead urban dwellers in EMV card usage – 76 percent of respondents living in rural areas reported using 'chip' credit cards when paying for goods, compared to only 64 percent of respondents residing in urban areas.
• Gen Z reports lowest EMV usage, but ranks highest in mobile payment adoption – Respondents between the ages of 18-24, also known as Gen Z, were the least likely to use EMV credit cards (20.5 percent). However, Gen Z reported the highest usage of mobile payments (42.1 percent).
• Only half of consumers believe 'chip' cards will make them more secure – While payment networks believe in the security benefits of EMV, only 50.8 percent of consumers feel the technology will make them more secure. More men (58.8 percent) than women (41.4 percent) feel chip-enabled cards will make them more secure.    

"The findings of this study indicate that EMV could pose serious challenges for credit card companies and retailers as the busy holiday season approaches," said Jared Isaacman, founder and CEO of Harbortouch "Varying rates of adoption and opinions on the benefits of 'chip' cards means more can be done by all parties to ensure a smooth transition on Oct. 1st and beyond."