Javelin Explores EMV Implications into 2019

San Francisco, CA, November 16, 2016: It has been more than one year since the EMV liability shift for retail stores, where consumers and retailers alike have grappled with learning to use EMV cards and implementing terminals to take them. Unfortunately, the process for both of these stakeholders has not been smooth, with many questioning the logic of how EMV has been implemented and looking for alternatives. Today, Javelin Strategy & Research released U.S. EMV Migration One Year Later: What Lies Ahead in 2019?, which examines the implementation from the perspective of merchants and issuers. 
 
EMV credit card issuance has been surprisingly strong and quick with 74% of credit cards with an EMV chip by year-end 2016, up from 42% in 2015.  But the issuance is only half the puzzle, the installation and adoption of EMV POS terminals is the other half. 

Many merchants were not prepared for the liability shift date, which led to inconsistency for payments at POS. Large and mid-sized retail merchants delayed EMV re-terminalization until shortly after October 1st date or even much later, due to cost, concerns about inconveniencing their customers during holiday shopping time, software integration, completing EMV terminal certification, or simply the desire to wait until enough EMV cards were in the market. With each merchant apparently on its own EMV timeline, adoption has been uneven, leading to inconsistency for consumer payments at POS.

"With EMV disrupting the shopping experience, retailer mobile apps are experiencing the perfect storm. Major retailers are taking advantage of this opportunity to capture consumer attention to move customers to retailer mobile application as alternative to lengthy EMV process. These mobile apps offer stronger customer engagement, leverage loyalty program, and increase sales in real-time” said Michael Moeser, Director of Payments, Javelin Strategy & Research. 

The report, U.S. EMV Migration One Year Later: What Lies Ahead in 2019? Forecasts credit and debit card EMV penetration into 2019, and examines the lessons learned over the past year as retailers and issuers grappled with the October liability shift deadline. 

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About Javelin Strategy & Research
Javelin Strategy & Research, a Greenwich Associates LLC company, is a research-based consulting firm that advises its clients to make smarter business decisions in a digital financial world. Our analysts offer unbiased, actionable insights and unearth opportunities that help financial institutions, government entities, payment companies, merchants, and other technology providers sustainably increase profits.

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