MasterCard publishes roadmap for moving the US to EMV and NFC
The roadmap will serve as the foundation for the next generation of products and services, says MasterCard, and includes incentives for merchants, support for loyalty programmes and the use of dynamic authentication technologies. The announcement follows the unveiling by Visa in August 2011 of its own plans to move the US to EMV and NFC.
"As payments continue to evolve to include new devices and new channels, such as mobile and e-commerce, the roadmap takes steps to address how consumers really shop, providing them greater security and control in their payment choices and the potential to seamlessly integrate loyalty programs and offers into the purchasing experience," MasterCard explains.
The MasterCard roadmap includes:
- Solidifying EMV as the foundation of the next generation of payments.
- An immediate focus on acquirer infrastructure, working with acquirers to ensure infrastructure readiness by April 2013.
- Encouraging greater security and cardholder verification, providing consumers with greater control and to reduce fraudulent transactions.
- Providing incentives so that merchants get "true financial benefits" when they implement EMV-compatible terminals.
- Covering all channels by addressing all touch points where consumers will interact with MasterCard, including ATMs, the physical point-of-sale, online and mobile commerce.
- A commitment to leadership with the aim of fostering industry collaboration to deliver the next generation of payments into the US marketplace.
"In the increasingly digital world, transactions will get smarter," MasterCard adds. "At the heart of this is dynamic authentication, where each transaction incorporates unique information, making it virtually impossible to replicate and reducing the risk of fraudulent transactions. As issuers evolve their offering and merchants upgrade their terminals, the payments system will become more secure as this dynamic data is introduced into the payment transaction. MasterCard's roadmap strongly encourages the adoption of the most secure technologies available."
"We're moving toward a world beyond plastic, where consumers will shop and pay in a way that best fits their needs and lifestyles with a simple tap, click or touch in-store, online or on a mobile device," says Chris McWilton, MasterCard's president of US markets. "Our roadmap represents a transformational shift in the approach to payments and is not simply about EMV, chip and PIN. We're focused on readying the ecosystem to drive future innovation and provide new consumer experiences to enhance the value of electronic payments."
"Customers from across the payments ecosystem have been asking for a roadmap," McWilton adds. "We believe we've provided issuers and merchants with a vision to 'future proof' their businesses and the flexibility to manage their technology decisions to best meet their goals and priorities."
"Consumers deserve a great experience any time they use MasterCard products," Ed McLaughlin, MasterCard's chief emerging payments officer, explains. "As the industry invests in the upgrade to EMV in the US, we now have the ability to enhance the consumer experience and the security of a payment, regardless of the device — contactless card, mobile, ecommerce and technologies still to come."
Further details on the roadmap and implementation activities will be provided to MasterCard customers "in the coming weeks and months" and initial resources can be obtained on the company's website.