NEW YORK (8/14/14)--A group of electronic payment industry organizations have predicted more than 575 million chip-enabled credit and debit cards will be issued by the end of 2015.
The Payments Security Task Force (PST), made up of more than a dozen companies and organizations including the Credit Union National Association, announced this forecast Wednesday.
"The shift to EMV cards clearly has big momentum now within the financial community," said Eric Richard, CUNA general counsel/executive vice president for regulatory affairs. "There is still an issue about whether the merchant community will be prepared to facilitate the change on a full and timely basis. And both sides will need to continue working on other security strategies to counteract the growing problem of data breaches."
Nine of the country's largest payment card issuers who participate in the task force developed the current forecast. The PST is focused on continuing the momentum of payment cards with Europay- MasterCard-Visa (EMV) technology.
EMV is a global standard that uses chips embedded within the card to authenticate purchases, similar to the current magnetic strip on payment cards. EMV cards are considered more secure against fraud with authentication provided by the use of a PIN and cryptographic algorithms.
In October 2015, parties that deploy EMV cards will be protected from financial liability from card-present counterfeit fraud losses.
The task force plans to update the issuer forecast regularly and expand it to include acquirer and merchant perspectives on EMV chip terminalization. Javelin Strategy and Research estimates that 52% of point-of-sale terminals will be EMV-enabled by the end of 2015.
Priorities include identifying a long-term roadmap to deliver a consistent level of security for payments in the digital and physical environments.