There's no getting around it: EMV is slow.
Though the new platform offers added security, it also increases transactions times.
An analyst for Morgan Stanley recently told LowCards.com that, since the implementation deadline of this past Oct 1, transactions times for the new platform are around 15 seconds. Older, magnetic strip cards are done in just two.
Adding to these times is the fact that, despite the recently passed deadline, many consumers are still in the process of receiving their new cards. This means that there are still a large number of consumers who have yet to make a purchase using an EMV credit card, which helps keep those times longer.
Though 15 minutes doesn't, initially, seem like a lot of time, it's an eternity compared to what customers are used to with older, magnetic strip cards. This is causing many to become frustrated with the new platform, and many are flocking to mobile payment applications to help speed up transaction times.
Mobile payment applications, like Apply Pay, Android Pay and Samsung Pay, are becoming increasingly popular with consumers. The prevalence of smartphones in recent years means more and more consumers have access to a mobile payment compatible device. Also, as many retailers upgrade to EMV, most of the new hardware is also compatible with mobile payment technology, so a great number of stores are also accepting the new technology.
More importantly, though, is that mobile payment applications drastically improve on transaction times. The Morgan Stanley analyst Lowcards.com spoke to said that these transactions take place in just "micro-seconds," causing more and more people to flock to the platform.
"Watch for mobile payments to take off as retailers turn on NFC [near field communication, the technology behind mobile payments] to enable mobile wallet payments and encourage you to use your phone to pay," the analyst said.
Though, according to a recent Placeable study, 90 percent of consumers have not used mobile payment options when available, many experts are predicting big things from the burgeoning platform.
A study published last year by Strategy Analytics predicted mobile payments will account for $130 billion worldwide by 2020. According to their calculations, that translated to 254 million mobile users making five payments per month at a per transaction average of just below $9.
The key, according to Wireless Media Strategies director Nitesh Patel, was Apple's entry into the field last year with Apple Pay.
"The launch of Apple Pay is significant because it means all major smartphone vendors support NFC-based mobile payments, but it also provides a credibility boost for the NFC payments sector as a whole," Patel wrote.
And he couldn't have been more right. Since the launch of Apple Pay, major smartphone players like Google, Samsung and LG have all launched or announced proprietary mobile payment applications. In addition, credit card companies, like American Express and Visa, and banks, like Chase, have announced their applications, adding more competition to the field. In fact, Visa is so confident in the platform that they expect it to become the payment standard by 2020 in a recent post.
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