By now you should have received a new credit or debit card from your bank that is equipped with the industry’s latest technology: EMV. This embedded chip is a more secure option than the traditional magnetic strips which hold sensitive information on the back of your card. While adoption of this new technology may be slow-going, due to a learning curve as customers use this method to purchase goods and services for the first time, there are some benefits industry experts are expecting to see. This includes an influx in mobile payments.
There are a few contributing factors as to why EMV technology is driving people to pull out their smartphone to make a payment instead of succumbing to the few extra seconds the POS system requires to read the chip. Here are a few reasons EMV chip technology can be directly related to a spike in mobile payments.
A Faster Option
While the additional time a POS System needs to read and accept a payment is really just a few seconds, those few seconds can be a big deal to some consumers. Most, if not all, point-of-sale systems have been adapted with the technology to read these chips, meaning consumers paying with a card will have to use this option – that is, unless, they use mobile payments. People are finding that it is much easier to use their smartphones, which most already have in hand, at checkout instead of waiting for the system to read their cards.
A More Secure Option
While EMV technology was created to provide consumers with a more secure payment option, mobile payments take the level of security one step further. In order to access mobile payments most smartphone users must scan their fingerprint or type in a pin number. These additional credentials increases how secure customers feel using this option, making it a much more attractive route for payment processing.
A Smarter Option
With the introduction of EMV technology comes new hardware and software that is able to read and process the chip’s information. The good thing about this new equipment is most will have contactless payment capabilities. Now, retailers do not have to purchase additional equipment to process a mobile payment because their EMV-capable POS system can already do so.