Gil Mermelstein discusses the impact of the mandatory EMV updgrade on banks.
The subtle shift to mobile wallets such as Apple Pay and the newer Samsung Pay is also working in consumers’ favor, as these wallets employ the EMV framework. As mobile wallet adoption increases, merchants have another reason to shift to EMV-enabled POS systems, as most are set up to accept these forms of payment.
Of course, new technology means that the average American needs to learn a new way to pay. Once banks have issued EMV cards, “the biggest thing they need to do is worry about communication, because from a customer perspective, all of the sudden you’re using a card that works a little bit differently,” says Gil Mermelstein, managing director in the banking practice at West Monroe Partners.
Most consumers that have received chip cards don’t really know why, according to the ACI survey. Sixty-seven percent have not received any information from their financial institution to explain why this card is safer.
Banks don’t have to replace every card in their portfolio this month, or even this year. But delaying implementation will only harm the bank in the long run due to a higher risk of fraud—and the reputational damage that comes along with it.
“I believe [issuers] need to wrap it up, and try to issue quickly. They are exposed to greater targeting of fraud from fraudsters that will migrate from more secure bank cards to ones that are less so,” says Mermelstein.
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