EMV migration growth levels slowing down
The growth in worldwide adoption of the EMV interoperability standard between chip cards (IC cards) and IC-capable POS terminals and ATMs has slowed down, a recent report on the state of EMV migration indicates.
According to the research, while EMV benefits continue to be acknowledged particularly in Europe, Latin America and Canada, growth has decreased due to the global economic downturn, which has driven financial services providers to reconsider or postpone migration plans. As far as the outlook of EMV migration beyond 2010 is concerned, market saturation can be expected in Europe, with growth opportunities also expected to spiral downwards.
At the same time, as more countries have adopted EMV, some of the inherent limitations of EMV became exposed, particularly in what regards the standard&;8217;s minimal effect in handling Card-Not-Present (CNP) and counterfeit/overseas frauds (despite its effectiveness in reducing mail-non-receipt and lost-and-stolen card fraud).
The report anticipates that demand for EMV products and services is set to be driven by the SEPA initiative in Western Europe as well as by the development of emerging markets in Latin America, Central and Eastern Europe.
The report was published by independent research and advisory services firm Mercator Advisory Group.
According to the research, while EMV benefits continue to be acknowledged particularly in Europe, Latin America and Canada, growth has decreased due to the global economic downturn, which has driven financial services providers to reconsider or postpone migration plans. As far as the outlook of EMV migration beyond 2010 is concerned, market saturation can be expected in Europe, with growth opportunities also expected to spiral downwards.
At the same time, as more countries have adopted EMV, some of the inherent limitations of EMV became exposed, particularly in what regards the standard&;8217;s minimal effect in handling Card-Not-Present (CNP) and counterfeit/overseas frauds (despite its effectiveness in reducing mail-non-receipt and lost-and-stolen card fraud).
The report anticipates that demand for EMV products and services is set to be driven by the SEPA initiative in Western Europe as well as by the development of emerging markets in Latin America, Central and Eastern Europe.
The report was published by independent research and advisory services firm Mercator Advisory Group.