Will the US truly embrace dual interface cards or is our phone the future

When the US decided to migrate to EMV, it took the safe course

When it was time to migrate to EMV here in the USA, both issuers and acquirers focused on addressing the market and the required technology, one step at a time.  They recognized the confusion created by the Durbin Amendment, the reality of the competitive US debit market, the complexity of the merchant environment and the legacy infrastructure underneath the American card payment system.  Unfortunately unlike in other parts of the world the American merchants tended to migration to  EMV in the following order credit & debit, Common AID, contactless (MSD mode), Mobile Pays and finally contactless (EMV mode).  This journey is still a long way from complete with less than 25% of the terminal base contactless enabled, let alone in EMV contactless mode.

The larger and most invested merchants also worried about the impact of sharing data with the likes of Amazon, Google and Apple.  The “honor all card” rule is also the “honor all wallet” requirement.  Wal-Mart, Target and Home Depot were clear, they did not intend to expose the NFC antenna to the various NFC Mobile Wallets.  Instead they are implementing solutions, post MCX, based on their mobile apps using QR codes and often times enabled to support frictionless payment.

We are now looking at the second wave of card issuance and Issuers are wondering what merchants will finally do about enabling contactless.    As the Issuers prepare to issue their cardholders with their second EMV enabled card they must also think about the future of the card in the context of the future of mobile payments.

Are the payment credentials carried in the mobile wallet the companion of the card
o
r
Is the card the companion (fallback) for the payment credential carried in mobile wallet / device

Or
Are we on a journey to a new paradigm

Where facial recognition, loyalty, geolocation
Enabled by the always connected devices

We surround ourselves with
Help merchants to focus on
the shopping experience

And
Turn the Payment into

A frictionless “thank you”

 

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