Smaller merchants lagging in EMV readiness

Most consumers have at least one chip card but not all merchants are ready for EMV and the devices that are least likely to be upgraded are mPOS.

Most big businesses have upgraded to EMV or are doing so but many smaller merchants are taking longer, according to an Ingenico Group survey. Andrew Molloy, director of product, Ingenico Mobile Solutions, wrote in Mobile Payments Today that across all merchant tiers, it is mPOS that are the least likely to be upgraded.

Many developers, system integrators and independent software vendors (ISVs) have been unable to build EMV-capable versions for mPOS applications. Certifications, in the form of an EMV-certified mobile card reader, by the acquirer/processor and the card brands are necessary. They can take up to a few months and cost $10,000 to $100,000.

The backlog of thousands of applications from ISVs for certifications ahead of the October 1, 2015 liability shift deadline is decreasing, so certifications should be available in the second half of 2016. Despite the extra cost, Ingenico believes that “security concerns and potential liability from card fraud will ultimately drive merchants to leave magstripe behind”.