Is emv the future for payments?
Why so many people think EMV is the standard that will survive?
Is the future going to really be EMV or is it Mobile?
Quick look into what is emv
It has been a while since the EMV hit the market. For those who do not know EMV stands for Europay, Mastercard and Visa, the three companies which have developed this technical standard. Now a days the standard is managed by public corporation EMVCo LLC. JCB. The EMVCo members are MasterCard, Visa, JCB, American Express, China Union Pay and Discover which all have an equal 1/6 hold of share.
Basically EMV is a specification for little chip which is more secure and customisable than classic magnetic stripe on the credit card.
Benefits of emv
Larger capacity. You can store more information to a chip, than to a magnetic stripe. Possibility of playing additional information.
Interactive mini-application. Thanks to more space available on the chip it enables to add mini-application and customise the whole user experience, based not only on the card issuer, but also on the place in which is card used.
Point encryption addition. This is not exactly part of the EMV standard, but it has become a commonplace practice to include this mechanism into all of the new EMV terminal implementations. Consequently, in essence, with EMV comes point-to-point encryption, which does provide better levels of protection, than regular swipers.
Data flow reduction. Previously, with the magnetic stripe the data from the card would often go to the POS application, which then sent it to the gateway for processing. Now, due to EMV standard, everyone is trying to exclude all the intermediary applications from the process. This results in fewer places which can be compromised and fewer ways to steal PAN data.
The most widely known chip card implementations of EMC standard are:
- VSDC - Visa
- M/Chip - MasterCard
- AEIPS - American Express
- J Smart - JCB
- D-PAS - Discover/Diners Club International