If you live in the U.S., you’re hearing more about chips and chip cards. Chip technology has been at the core of consumer peace of mind in more than 150 countries around the world for years. It has reduced both counterfeit and lost/stolen fraud, eliminating the inconvenience of getting new cards for consumers and saving issuers and retailers millions of dollars in losses.
At MasterCard, our fundamental commitment has always been to deliver the most convenient way to pay and be paid, backed by the highest levels of safety and security. That’s what consumers have come to expect from us over the past 50 years.
While today 57 percent of all cards are chip-enabled globally, this technology is new to consumers and merchants in the U.S. Since we introduced our U.S. rollout roadmap more than four years ago, we’ve worked with merchants, banks, credit unions, acquirers, processors and other industry partners to prepare for the introduction of this new innovative way to pay. Together, we have been able to ensure the broadest possible adoption.
Recently, we have seen steady momentum in the adoption of chip technology. Consumers have been the winner, as we have combined the latest in safety and security with the convenience and purchasing power they’ve come to expect everywhere they see our brand.
In fact, more than two-thirds – 67 percent – of U.S.-issued MasterCard-branded consumer credit cards now feature chips. This represents a 51 percent increase in a short window. Consumers can use their chip cards in more places, as 1.2 million U.S. merchant locations – an increase of 121 percent – have turned on their terminals and are accepting chip card payments.
While the growth has been strong, we recognize that checkout times may appear longer to some when using a chip card. We can appreciate that perspective and want to provide our cardholders and merchant partners the best experience.
We have recently developed the capability to help speed the experience, if needed, without compromising security. Our solution, called M/Chip Fast, brings some of the principles successfully implemented for contactless cards and mobile wallets around the world to point-of-sale terminals.
Ultimately, what we all want is that great experience for consumers and merchants. That’s why we don’t believe this is something that can or should be brought to market as a standalone solution.
We’re committed to working with the industry – networks, issuers, acquirers, merchants and terminal manufacturers – to successfully design and implement an improved consumer experience that builds on the significant investment in the upgrade to chip security.