Mobile chip-and-PIN terminals, or PIN on Glass, could spur more retailers to ditch the chip-and-signature card payment processing.
Recently unveiled card-reading technology connects to merchants’ mobile phones via Bluetooth to turn their handsets into point-of-sale terminals. After reading a customer’s card through the Bluetooth connected device, the shopper then enters their PIN on the merchant’s mobile phone screen.
As of December 2017, chip-and-signature cards accounted for 96% of US card payments, according to Visa, while the more secure chip-and-PIN card functionality never really gained traction.
However, from April, US credit card issuers will begin phasing out signatures, and PIN on Glass offers a more affordable way for small retailers to upgrade to chip-and-PIN.
“This is a major win for retail merchants,” said Michael Moeser, Director of Payments at Javelin Strategy and Research. “It drastically lowers the cost threshold for card acceptance; merchants will no longer be forced to buy expensive, dedicated point-of-sale terminals and PIN pads to accept cards.”
As well benefitting smaller retailers, PIN on Glass could also allow large stores to become more flexible, providing pop-up payment kiosks away from the main checkout areas.
“Smaller merchants benefit from being able to start accepting electronic payments using their existing mobile device, and there are certainly benefits to other merchants involved with mobile point of sale solutions who may find the entry of PIN on the application as a compelling user experience,” said Bruce Rutherford, Senior Vice president of Security Standards and Solutions at Mastercard.