U.S. Merchant Acquiring and EMV Readiness
Report Summary
U.S. Merchant Acquiring and EMV Readiness
ISOs and acquirers that are prepared to meet the EMV mandate will reap the benefits while mitigating their exposure to the inherent risks of change.
Boston, April 25, 2012 – A new report from Aite Group examines the benefits and risks of the U.S. EMV mandate, instituted by major card networks, which requires that U.S. acquirers support merchant acceptance of EMV chip transactions by April 1, 2013. Based on March 2012 Aite Group interviews with 20 independent sales organizations (ISOs) and merchant acquirers, the report provides insight into how merchant acquirers will shape their strategies and tactics to meet this deadline.
Given that only 3% of the POS terminals in the United States are currently EMV-ready, the merchant acquiring industry is looking at the EMV mandate with trepidation. With change comes threat of service disruption, attrition, and more. The mandate also presents the industry with a massive opportunity, including upgrading 97% of the POS terminals, garnering market share from the competition, and decreasing fraud. Processing ISOs and acquirers that are prepared to meet the EMV mandate will reap the benefits while mitigating their exposure to the inherent risks of change.
“For merchant acquirers, the EMV mandate provides abundant opportunities,” says Adil Moussa, senior analyst with Aite Group and author of this report. “Still, given the risk of business disruption and potential attrition, ISOs and acquirers would be well advised to implement a contingency plan that will protect them from unforeseen events.”
This 19-page Impact Note contains 10 figures and one table. It is available for download to clients of Aite Group’s Retail Banking service.