Frictionless Payments: EMV and Beyond

“Frictionless” was the unofficial theme of this year’s Money20/20, and we expect it to become the theme for the entire payments ecosystem as well. Experts at the event discussed how to make payments more secure and more seamless, a challenge as security and convenience are usually tradeoffs.

For the past few years, upgrading credit and debit cards from magnetic-stripe security to EMV chip security has been a pressing priority in the U.S. payments industry. This year alone an estimated 575 million EMV cards are being issued, on top of 185 million issued last year.  That translates into 1.6 million EMV cards issued daily in the United States.

Now that chips are making payment cards harder to counterfeit, fraudsters are going to start looking for the next weakest link in the ecosystem.  Likely, that weak link will be card not-present (CNP) transactions.  However, increased security measures must be frictionless enough not to contribute to already high abandonment rates in ecommerce.

So, what’s next?   What will issuing banks bring to their cardholders beyond EMV security?

Here are 4 ways issuers can set themselves apart in the coming year:

  1. Be proactive about CNP fraud. Recently launched, Dynamic Code Verification (DCV) replaces the static security code with a small screen where the code changes every twenty minutes, making it more difficult for fraudsters to use stolen data. A mobile option is also available as a companion to an existing EMV card. This simple change can also maintain a familiar experience for consumers without compromising security.
  1. Offer contactless payment options. The most talked about trend in payments can give customers the convenience they want combined with the security of EMV.
  1. Updated your card design and artwork. Eye-catching design options like transparent cards, foil accents, metal cards, colored edge cards, are a great way to excite cardholders.
  1. Assess your issuance strategy. Have you considered instant issuance? Modern instant issuance solutions are small, quick, and reliable, and they put activated cards in your cardholders’ hands on-the-spot.  Your cardholders won’t have to wait for a card to arrive in the mail – they can start spending immediately.

Innovation in the payments industry is far from over. In fact, we’re just getting started. You can learn more about our strategies on and download our “EMV and Beyond” guide here.

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