EMV compliance is still a hot topic in the retail and financial services industry. Some organizations have yet to make the transition, and with consumers across the country holding EMV-compliant chip cards, now is the time to adopt this technology.
Some of the most compelling reasons behind EMV involve statistics. Let's take a look at a few important numbers surrounding the transition to EMV today:
9.9 percent CAGR: An expanding market
According to a new report from Market Research Hub, the global EMV point-of-sale terminal market is on track to expand at a compound annual growth rate of 9.9 percent through 2021. This growth is spurred not only by the push toward EMV compliance and adoption of EMV technology, but by contactless payments as well.
"It is well known that today's payment industry is ever-changing and with the increased penetration of contactless payments by consumers, payment gateways and network providers are adopting payment mechanisms involving cards which have become a key trend for market growth," Market Research Hub noted.
600 million chip cards issued
CreditCards.com reported that more than 600 million chip cards have been issued thus far to American consumers. This includes 77 percent of credit cards and 38 percent of debit cards issued by September 2016.
2 million POS terminals
Today, only an approximate 38 percent of retailers are able to process EMV payments with the 2 million EMV-compliant POS terminals currently in place in the U.S. This means that there are still an estimated 15 million terminals in need of an upgrade, according to CreditCards.com.
42 percent of retailers
Surprisingly, there are still some retailers that don't believe in the security benefits of EMV payment process. In fact, Ingram Micro Advisor reported that 42 percent do believe that EMV will make a difference in fraud protection, and the same amount do not.
"Hackers are now having a harder time creating knock-off payment cards."
For those still doubting the advantages of EMV, there are a few crucial things to understand. In addition to the chip itself, customers also enter their PIN for each transaction, further reducing the chances of fraudulent activity. EMV chips are much more secure than magnetic strips, and are much harder for cybercriminals to breach and reproduce. This means that hackers are now having a harder time creating knock-off payment cards with stolen credentials, reducing overall cases of fraud.
60 percent reduction in fraud
Proving the security benefits of EMV is this statistic released from Mastercard. The financial service provider found that fraud has been decreased by 60 percent in terms of dollars among the top five EMV-compliance merchants, PYMNTS reported.
EMV adoption is still underway, and there is no better time to make the switch than now.