Cartes & Identification -- Reducing payments fraud is the top driver for issuers and acquirers to adopt EMV/chip in Brazil and Mexico, according to a new study from the Smart Card Alliance Latin America (SCALA), produced in participation with Visa Inc., available for sale today. Other important findings: respondents are also driven to adopt EMV/chip cards in order to position themselves as innovators and technology leaders, and they all expect to have 100 percent of their credit and debit card portfolios migrated to EMV/chip within one to five years.
SCALA and Visa commissioned First Annapolis Consulting to survey issuers and acquirers in Brazil and Mexico on the current state of EMV migration and the long-term growth of the EMV market. The resulting report, "EMV Migration Study and Market Analysis on Mexico and Brazil," is available for purchase by both Smart Card Alliance members and non-members by visiting http://www.smartcardalliance.org/pages/publications-scala-emv-market-study.
The organizations will host English, Portuguese and Spanish language webinars on the study findings. The English language webinar will take place on December 1st at 11:00 A.M. eastern standard time, while the Portuguese and Spanish webinars will take place on December 8th at 11:00 A.M. eastern standard time and 12:00 P.M. eastern standard time, respectively. Registration for the webinars is available at http://www.smartcardalliance.org/pages/publications-scala-emv-market-study.
"With the global payments industry migrating to chip technology for credit and debit cards, it's important to understand the drivers and best practices for implementation. Mexico and Brazil are ideal markets to study, as they are well on their way to full migration," said Edgar Betts, associate director, Smart Card Alliance Latin America. "The number of respondents that said fraud reduction is the main driver for adoption was overwhelming; almost all survey respondents claim a marked reduction in overall fraud rates, particularly with domestic counterfeit fraud. We also found it exciting that the respondents see contactless, loyalty programs, and multiple applications as a natural evolution for the cards."
In addition to the detailed review of the adoption drivers, the report also reviews implementation considerations, migration strategies, business impact and evolution for Brazilian and Mexican issuers and acquirers. The study forecasts the size of the EMV/chip market in Brazil and Mexico through 2015, including chip cards, point-of-sale terminals and transactions.
"Visa has been spearheading the migration to EMV/chip worldwide as a solution to prevent fraud, especially card skimming, but also as a great platform for added services," said Jurgen Wassmann, head of emerging products and channels for Visa Latin America and the Caribbean. "In the markets where issuers, acquirers, merchants, brand networks, industry groups and the government collaborate, EMV/chip adoption efforts have accelerated the fastest."
The study reports results from surveys and interviews with 13 issuers and acquirers in Mexico and Brazil, which captured perspectives from a wide variety of organizations that had direct experience with implementing EMV/chip cards. The study addresses these questions and more:
-- What were the key factors influencing the adoption of EMV/chip cards and EMV-compliant merchant terminals for issuers and acquirers in Mexico and Brazil? -- What challenges were encountered during the EMV/chip migration process? -- How are organizations leveraging EMV/chip technology to improve performance, introduce new products and services, and capture new market opportunities? -- What is the "next wave" in the evolution of the EMV market? -- What is the business impact of EMV/chip adoption for issuers and acquirers? -- What is the EMV/chip market size in Mexico and Brazil through 2015?
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