Dual interface EMV® cards – payment cards with an embedded chip and antenna enabling both contact transactions (inserted or swiped at payment terminals) and contactless transactions (waved at payment terminals) – will likely play a major role in the growth of contactless payments in the U.S.
For consumers, dual interface cards foster a convenient, fast, frictionless experience at the point of sale. Consumers prefer to pay quickly when making every day, small-dollar purchases, which nicely positions contactless payments to overtake cash transactions. These cards also provide the security of EMV chip technology so consumers can feel secure with their card payments, regardless of whether they insert or wave their card at point-of-sale terminals.
For Issuers, improved transaction speeds via contactless could have positive, incremental impacts on their business. A Mastercard Advisors Study on Contactless Payments showed an average lift of approximately 30% in total spend in the first 12 months, post contactless adoption in the U.S. In Australia, a Canstar survey found that payments made using credit or debit cards outpaced cash for the first time in 2016 – with the sizable adoption of contactless cards considered a major contributing factor.
Merchants accepting contactless payments in the U.S. increased from 200K-250K in 2014 to 750K in 2017, while further infrastructural groundwork is being laid in the U.S. to accept EMV and contactless, according to creditcards.com, the “Contactless 'tap-and-go' cards finally enter US market,” by Carmen Chai. At this time, xPressTap estimates in, “Why is the U.S. so Behind on Contactless Payments”, roughly 3 million out of 12 million merchant terminals and counting are fully EMV and contactless capable.
A perfect storm of factors – increasing U.S. acceptance, advances in technology, Issuer benefits, consumer appeal, and more – make the timing right for dual interface. To learn more about the dual interface momentum, and why you should get ahead of the trend, download CPI’s white paper “Catch the Dual Interface Wave Now.”
CPI is a leader in dual interface manufacturing, producing dual interface cards for over a decade.