OMAHA, Neb.--(BUSINESS WIRE)--The Strawhecker Group (TSG) released survey results today showing only 34 percent of US merchants will be EMV-ready by the October 2015 deadline, and just 53 percent of merchants are expected to be fully compliant by 2017 – more than 15 months after the deadline. EMV, or “Europay, MasterCard, and Visa,” is a globally accepted card standard that uses an embedded microchip to provide unique data protection when the card is inserted into a chip-card reader. Most card accepting US merchants may be liable for fraudulent transactions if they are not “EMV compliant” by October 1, 2015.
TSG, a management consulting company focused on the global payments industry, found that the three biggest hurdles slowing EMV implementation were: tokenization and encryption application readiness, gateway readiness, and processor readiness. The results were based on a sample of 33 merchant acquirers.
“The marketplace has reached a critical point,” says Ken Oros, Senior Associate at TSG. “Many merchants lack awareness of the EMV mandate or may be hoping to avoid future liabilities. While hurdles are indeed present, merchants can no longer avoid having specific security measures in the face of the rising number of data breaches.”
With such a low compliance rate expected for October, some wonder if the deadline will be pushed back into 2016.
“I know several of the merchant acquirers surveyed left comments hoping for a delay,” said Oros. “It will be interesting to see what happens as the industry approaches October.”
TSG’s sample included 33 merchant acquirers that process payments for 2.16 million merchants, or approximately 25 percent of the U.S. market. TSG will be releasing an EMV-related infographic next week during Electronic Transaction Association’s TRANSACT 15 in San Francisco, the industry’s premier expo that connects payments, technology, and innovation.
The Strawhecker Group (TSG) specializes in providing financial institutions, merchant acquirers, card associations, ISOs, processing companies, large merchants, and the investment community with advisory services to maximize their growth and profitability. TSG is also a resource for consumer spending data, industry research, benchmark studies, and developing trends. For more information please visit www.TheStrawGroup.com.