MasterCard introduced a road map focused on advancing the U.S. electronic payments system. The map, which includes the path for migration from magnetic stripe to EMV technology available on chip cards, will serve as the foundation for the next generation of products and services.
As payments evolve to include new devices and new channels, such as mobile and eCommerce, the road map takes steps to address how consumers shop, providing them greater security and control in their payment choices and the potential to integrate loyalty programs and offers into the purchasing experience.
“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,” said Chris McWilton, president of U.S. Markets at MasterCard. “Our road map 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. “
Elements of the MasterCard road map include:
- EMV: Solidifying EMV as the foundation of the next generation of payments
- 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
- Provide benefits for merchant terminalization: Providing financial benefits for merchants as they implement EMV-compatible terminals
- Cover all channels: Addressing all touch points where consumers will interact with MasterCard, including ATMs, the physical point-of-sale, online and mobile commerce
- Commitment to leadership and collaboration: Fostering industry collaboration to deliver the next generation of payments into the U.S. marketplace
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 road map encourages the adoption of the most secure technologies available.
In its road map, MasterCard supports the need for the payments ecosystem to be aligned regarding the implementation of EMV standards in the U.S. The company has indicated it will support current industry timelines in an effort to minimize disruption and to maximize investments across the payments ecosystem.
Visa USA announced its EMV plans in August and recently announced that the payment technology in the U.S. would not be chip and PIN.
Stephanie Ericksen, head of Authentication Product Integration at Visa USA recently spoke to Regarding ID about the payment technology.