Payment Security Task Force Provides EMV Update

by Michael Misasi 0

The PaymentSecurity Task Force (PST) recently updated its forecast for U.S. EMVissuance. It now expects that 575million payment cards will be EMV compliant by the end of 2015. The projectiondraws on feedback from organizations including: Bank of America, Capital One, Chase, Citi, Discover,Independent Community Bankers of America, Navy Federal Credit Union, US Bankand Wells Fargo. The 575 million cards presumably includes a mix credit, debit,and prepaid products.

“These numbers reflect the significantmomentum behind the adoption of EMV chip in the United States,” said RyanMcInerney, president of Visa Inc. “By the end of next year, these issuersestimate that one in two of their U.S. payment cards will be chip-enabled,which represents real progress given the scale and complexity of this overalleffort.”

The PSTestimates are consistent with forecasts Mercator Advisory Group recentlypublished in a note titled, “Preparing for 2015: The Year of theLiability Shift.” Inthat note, Mercator projects that more than 300 million general purpose creditcards (about 58% of all U.S. general purpose credit cards) will be EMV-enabledby the end of 2015. A combination of regulatory and technological hurdles hasprevented debit EMV issuance from accelerating, but most of these issues havenow been resolved. Debit issuance is expected to increase significantly nextyear.

Overview by Michael Misasi, Senior Analyst, Credit Advisory Services

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