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EMV's Impact on mPOS

April 12, 2017

"By encouraging investments in EMV contact and contactless chip technology, we will speed up the adoption of mobile payments as well as improve international interoperability and security."

Those ties have only grown stronger as business owners in the United States move through the EMV transition and adopt cutting-edge payment technologies at increasing rates.

For many merchants, upgrading point-of-sale (POS) systems for chip technology has jump-started the conversation about mPOS solutions. When a business owner is ready to install EMV-ready hardware and software, it's just as easy to add on mPOS too.

Most EMV-compliant card readers on the market today incorporate near-field-communication (NFC) technology. That gives consumers the option of paying with a smartphone and reducing the time needed in order to process the transaction.

While the EMV transition and associated liability shift have the primary goal of boosting card-transaction security, they have also become a catalyst for mPOS adoption. Here are just a few examples:

EMV safeguards Apple Pay transactions.

While the fast-growing iOS-compatible mobile wallet features Touch ID biometric authentication as the primary security strategy, behind the scenes is a contactless EMV transaction. That means that customer verification happens within the device, allowing the consumer to complete the payment without a PIN or signature, unless the charge passes across a PIN debit network.

EMV drives increased options for mobile card acceptance.

As more and more EMV cards get into the hands of consumers, mPOS providers are rethinking and revamping these portable card readers. In the run-up to the EMV transition, Square, Inc. began offering merchants an EMV-ready device, similar to the old magnetic-stripe readers. But the company now also offers customers a combo EMV/NFC reader that eliminates the magnetic-stripe swipe option completely.

Increased EMV adoption boosts NFC.

Lack of NFC-capable POS terminals has prevented more widespread adoption of this payment technology. But because most EMV-ready terminals also support NFC, it's likely that rates of consumer adoption will rise.

Using a smartphone in order to "tap and go" shortens the transaction for customers and improves throughput for merchants. Also, mobile payments using tokenization carry a higher-security signature than even card-present chip transactions do. That's because of the additional layer of security utilized for smartphones: generally fingerprint or PIN verification.

EMV advances mPOS adoption in restaurants.

Because EMV transactions require the chip card to stay in the reader while the payment is processed, restaurant card terminals must now come to the customer. That means that many business owners will be looking to mPOS solutions like tablets and smartphone apps in order to facilitate tableside card authorization.

While not every business owner has embraced EMV adoption, the related technology improvements are certainly a boon for the payments industry. The search for improved security, wider payment options for consumers, and more flexibility for merchants will keep driving changes for years to come.

How is EMV affecting the adoption of mPOS technology for you and your clients?

ABOUT THE AUTHOR

Shea.jpgJeremiah Shea leads Ingram Micro’s DC/POS Payments Program and provides support for vendors like Verifone, Ingenico, Magtek, ID Tech, and Equinox. He has been part of the DC/POS division at Ingram Micro now for five years, working with all facets of the business for strategic execution. Jeremiah has also become the subject matter expert on EMV readiness and overall payments strategy. With a technical background and a sound understanding of the business, he is a great resource to tap for any and all questions relating to EMV, but more broadly anything DC/POS related as well. 

Phone: 1-800-456-8000 ext 64810 
Email: Jeremiah.Shea@ingrammicro.com