Will smart cards drive mobile payment adoption?
June 19, 2013

Credit card processing abilities continue to be vital for small- and medium-sized businesses to generate sales and drive customer satisfaction. While EMV-chip embedded cards, or smart cards, are increasing in prominence in the U.S. retail market, SMBs may see a boost in mobile payments as well. SMBs that already accept credit card payments are set to process smart cards, but without integrated payment solutions, SMBs may see a drop in their revenue stream. 

EMV chips may drive mobile adoption
A new study asked 201 financial information professionals in early June about current and future trends in payment processing. The survey found that while experts believe mobile payments will soon be in widespread use, many said the transaction platform may get a boost from an EMV-chip, which was developed by EuroCard, MasterCard and Visa. While smart cards are in use in Europe, U.S. banks, card issuers and consumers have been slow to embrace the enhanced plastic. 

According to the survey respondents, smart cards represent a step toward an entirely mobile future for payment processing. Twenty-six percent of participants said the migration toward nationwide smart card use will face numerous challenges in the U.S. retail market, as educating consumers about EMV-chip embedded plastic may be a struggle for banks and credit card issuers. 

Banking Technology reported even in the United Kingdom, where EMV cards have been in use for many years, mobile payment adoption is complex. In the U.K., it may be digital wallets, not smart cards, that may drive consumers and SMBs to adopt the purchasing platform. 

While financial experts continue to seek ways to predict what may drive mobile transactions into wide-spread use, the payment method will likely become a vital point-of-sale option for consumers within the next decade.

Nexus: G-WEBCD4