Malaysia and the UK have been the global leaders in the roll-out of smart cards into the consumers’ hands. This roll-out, driven by the growing use of EMV-based credit and debit cards, is gradually being replicated into new markets as these cards replace magnetic stripe cards. Traditionally payments markets around the world have been stand-alone with no common platforms between different countries. This lack of consistency has been a large barrier to multi-national companies and an impediment to new payments companies looking to compete in these markets.
The move to EMV globally will see a standardised payments platform for one interface in the card world. There are pushes in other regions to increase this level of commonality, ie SEPA in Europe, however this initial move will provide a strong driver to increased levels of competition and a lower cost environment for retailers over the longer-term.
Markets currently migrating include much of Europe, Hong Kong, New Zealand and we are even seeing a much wider use of smart cards for payments in countries such as the USA, once considered the last frontier of smart card payments. Any recent visitor to the USA would have seen smart card based contactless payment devices in places such as McDonalds, perfect for low value, high volume transactions. Soon US consumers will see contactless payments accepted in devices such as kiosks as noted by the recent announcement by Coca-Cola to accept contactless payments at 7,500 vending machines in the USA.
The one thing that these countries, and many others, can learn is to ensure that they make the right choice in their investment, particularly for retailers and payment acceptors. Having open systems allows for the seamless addition of new technologies such as contactless and mobile payments. Choosing proven technology from tested EMV markets ensures both lower upfront and on-going costs and allows standardisation across different markets. This is particularly important for multi-national retailers who want a consistent interface regardless of the market they operate in.
STS’ world-leading EMV experience is presently being used by a number of multi-national retailers and large industry partners. Working in over a dozen countries, STS has the capability of consulting and implementing the right solution for individual markets and companies to ensure costs are lowered and higher returns are achieved through the EMV roll-out.