U.S. EMV chip adoption is poised for exponential growth in the next year resulting from an estimated 17–20 million EMV chip cards and millions of EMV-capable ATMs and POS terminals, the EMV Migration Forum announced at its March meeting.
The forum also provided briefings on progress made in addressing technical challenges related to EMV debit implementation, resulting in an industry stakeholder-supported debit technical solution framework, according to forum director Randy Vanderhoof.
In the last few months we have seen a dramatic shift in the interest and understanding of the benefits that EMV chip cards provide, particularly in helping to lessen the impacts of payment data breaches and to prevent counterfeit card fraud. As a result, the U.S. migration is accelerating and there is a refreshed urgency in resolving issues and moving forward as quickly as possible. Given the commitment and work of our membership and the recent progress in resolving debit challenges, I think in the next year we could see a hundred million or more chip cards issued and more than double the number of installed terminals.
EMV Migration Forum working committees, also reported on progress they'd made as a result of cross-industry cooperation. Following are selected updates:
Debit working committee and debit technical work group
The work group has developed a technical framework for a U.S. EMV debit solution. The framework follows the EMV specification and addresses current debit routing regulatory requirements and potential future requirements that could call for at least two debit routing choices for each transaction.
The forum has completed a review of the framework, with members agreeing that it addresses key challenges. Adoption of the framework and technical solutions ultimately will depend on the independent business decisions of industry stakeholders.
The forum expects to publish an industry white paper on the framework in April.
ATM working committee
The committee is finalizing "Implementing EMV at the ATM," a comprehensive guide for ATM acquirers, processors and vendors.
Testing and certification working committee
The white paper, "Current U.S. Payment Brand Requirements for the Acquiring Community," is available now for industry-wide use. The committee is moving forward with an assessment of the current testing and certification processes to determine whether they can be streamlined.
Communication and education working committee
The committee is building a new online resource center intended to serve as a one-stop source for EMV migration-related documents. The committee has published an updated "Standardization of Terminology" document as an industry resource for educational and marketing communications.