A new survey finds 29% of U.S. consumers own EMV-enabled chip cards, up from 10% who did in 2014, and 1 in 3 EMV card holders have used them in EMV readers in merchant terminals in the U.S.
The most recent Insight Report from Mercator Advisory Group’s biannual CustomerMonitor Survey Series also finds that although many recognize they must dip the chip card in the checkout terminal rather than swiping itthey and are not bothered by the new process. About 28% of EMV cardholders are bothered by it, consider it confusing, or try to avoid stores that force them to dip their chip card rather than swipe it.
Young adults (52%) and mobile payers (58%) are especially likely to say so, suggesting some consumers may be likely to use mobile payments whenever they can to circumvent EMV cards. Mobile payments may potentially disrupt the credit card process by changing the way consumers choose “top of wallet” payment cards.
Consumers must choose which payment cards to load in their mobile wallet and then choose the payment method for each purchase, a task more time-consuming, though less convenient than stuffing a few cards in a wallet.
Meanwhile, another report from Mercator shows there may be a wider variety of potential disruptors to credit card use for payments and borrowing on credit than just EMV and mobile payments. Marketplace lenders, usually found online, are offering consumers a way to obtain personal loans with faster turnarounds and potentially lower rates than offered by financial institutions by directly connecting investors with borrowers online through peer-to-peer lending sites.
Security issues are a concern among consumers given the frequent occurrence of data breaches. Most consumers appreciate the added security of chip-enabled payment cards. In fact, there is growing interest among consumers who do not yet have an EMV card, but want to obtain one, especially for debit cards, since more consumers have chip-enabled credit cards than debit cards. Enhanced security services such as card controls to reduce fraud are also of growing interest.
For data, background and forecasts on EMV: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
Additional database resources include CardWeb.com’s CardExecs® – comings & goings of payments movers & shakers; CardWeb.com’s CardWatch® – ears & eyes on marketing globally (57K items); and CardWeb.com’s CardPixes® – form & function of card design (7K items).