The key market forces that are expected to drive EMV adoption include near field communication (NFC) technology and the potential to incorporate mobile technology to reduce card-not-present (CNP) fraud, the same report by Javelin Strategy & Research indicates.
Globally, an estimated 76 percent of terminals and 45 percent of cards are EMV-enabled, yet the US has lagged behind with only 10 percent of terminals deployed and less than 1 percent EMV card adoption, the study has found. The development of mobile payments technologies has provided the impetus to drive EMV. The potential of mobile payments based on NFC provides a powerful justification for merchants to invest in dual-interface EMV terminals that support contactless NFC transactions and NFC-based mobile wallets, the research also indicates.
The potential to reduce the fraud associated with card transactions is the other significant driver for EMV conversion, Javelin has found, but one that has left the US - with its relatively low fraud rates - less interested in supporting the expense of EMV conversion.
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