has had a staggering impact on the payments ecosystem since its introduction
roughly twenty years ago.
migration progressing at different paces globally and the way we transact
continuing to evolve – as wearables and smartphones shake up the ecosystem even
more – EMV sits at the centre of the payments world.
why is EMV so important, what do stakeholders need to know and what are the
next steps? We chatted to FIME’s EMV expert Joe Santana, to give us a global
was EMV introduced?
Joe: EMV chip-based technology was initially introduced to tackle fraud and
increase the security of transactions while creating a globally interoperable
payment framework. It did this through the technical body, EMVCo, which
publishes card and terminal specifications that define how transactions should
be processed and managed by each stakeholder in the payments ecosystem. Today,
the body continues to support an advancing range of payment methods,
technologies and acceptance environments.
on this framework, each payments system also specified its unique testing
requirements to enable stakeholders to process EMV transactions according to
their business rules. There was also a desire to implement additional, more
secure cardholder verification methods (CVM). Magnetic stripe-only cards relied
largely on signatures for validation, but easy manipulation played into the
hands of fraudsters. EMV brings CVM options that each payment system can decide
to implement, such as encrypted PIN, cryptography, online and offline
payment authentication to ensure that the transaction and the cardholder are
What impact has it had on the payments ecosystem?
Joe: Firstly, EMV has been a huge catalyst in reducing payment fraud. Besides
this, though, a few things really stand out for me:
Offline transaction management –
The development of a sophisticated, secure method for authenticating
transactions offline was an important advancement for the payments ecosystem.
It brings big benefits to areas with less connection and reduces communication
Multi-application cards – This is an
area that is being tapped into now, enabling credit and debit, for example, to
be managed on one card. Flexibility for consumers, less plastic in wallets and
less issuance fees for banks.
New business opportunities – EMV has
created a sophisticated payment industry and is enabling other business models.
Tradespeople and market retailers can now accept secure payments with mPOS, and
EMV is the foundation for mobile contactless and wearable payments, in addition
to secure smart ticketing.
What is the status of EMV migration globally?
Joe: So, EMV has been around for a number of years but the process is
ongoing. Even mature markets like Europe are not 100% migrated. Good progress
is being made in Asia-Pacific and the U.S. is extremely interesting, as the
scale and complexity of its migration has brought about initiatives like
QuickChip and M/Chip Fast which help to reduce transaction times and assist
some issuers by reducing certification testing. With this in place, I observed
a lot of demand from banks for testing and training to help them ensure
everything is working correctly prior to launch.
the latest data from EMVCo on card-present EMV transactions globally.
also seeing a strong trend from domestic payment networks to support EMV
transactions within the country or region that they serve. This is something I
think we’re going to see more and more in the coming years.
What should banks take into consideration when assessing EMV or contactless
Joe: EMV is a constant process, with a big impact on infrastructure and
management. New technology, processes, departments, teams. The amount of
information, skills and expertise banks need to get to market and stay there
can be overwhelming. Even the biggest processors don’t have all of this
knowledge and testing with the right partner keeps players ahead of the latest
specifications and updates. I can assure you that this expertise helps them to
ensure an efficient route to market.
What challenges remain for the payments ecosystem?
Joe: Contactless is still a challenge, as each payment system has its own
contactless specification which has caused some headaches for the payment
industry. Going forward, with EMVCo’s help to clearly define universal
specifications and certification processes, the ecosystem should have an
approval process for contactless kernels that is streamlined and more aligned
to the certification of contact kernels.
on this, the move to mobile will also continue to shake up the payments
ecosystem. You can see that banks are increasingly expected to offer mobile
payments to their customers and the infrastructure is working hard to ensure
seamless and secure payments.
What expertise does FIME have in this space?
Joe: As EMV continues to evolve and migration progresses globally, issuers,
acquirers, integrators, processors, schemes, manufacturers and certification
bodies all have a lot to consider. We work with the whole ecosystem, right from
the start of projects to take away the pain with training, consultancy, tools
and certification services.
been working in this space for over 20 years, are involved in EMVCo to support
the development of the EMV Chip Specifications and therefore have the
experience and expertise to get projects completed quickly and successfully.
training helps clients make sense of the constantly shifting payments
landscape. By providing standard and customized training events and workshops,
we equip attendees with the knowledge and skills needed to guarantee a
successful project outcome.
a registered trademark in the U.S. and other countries and an unregistered
trademark elsewhere. The EMV trademark is owned by EMVCo.