U.S. merchants will upgrade to a new chip-and-PIN credit card standard fairly quickly as they race to meet a 2015 deadline set by MasterCard and Visa. Over half of terminals will accept chip-and-PIN cards by the end of 2015, according to BI Intelligence estimates based on Aite Group data.
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U.S. merchants will upgrade to a new chip-and-PIN credit card standard fairly quickly as they race to meet a 2015 deadline set by MasterCard and Visa. Over half of terminals will accept chip-and-PIN cards by the end of 2015, according to BI Intelligence estimates, based on Aite Group data.
Tech giants Google Inc (NASDAQ:GOOG) and Apple Inc. (NASDAQ:AAPL) have been busy competing with each other to develop and launch mobile payment systems. The two giants have adopted different strategies to make a dent in the technology world by introducing mobile wallets, an opportunity that shall bring huge fortunes for them and will make it easy for consumers to make payments.
In the U.S., most consumers and merchants will soon need to switch over to the 'chip card' standard, otherwise known as EMV. It's a technology, most recognizable as a chip on payment cards, which is designed to make card transactions much more secure.
Upgrading payment terminals to the new, more secure chip-and-PIN standard will cost U.S. merchants $6.2 billion by 2017, according to BI Intelligence estimates. Our estimate accounts for both new hardware and software.
Just about every payments company out there either already has, or is working on, a way for customers to use their smartphones to transact a payment at a payment terminal. This is supposed to be the next big revolution in the payments industry. But at restaurants, at least, the need for payment terminals could be greatly reduced or eliminated in just a few years as other mobile initiatives become popular.