Despite being slower and different, consumers are finally started to accept using EMV-compliant chip cards for their daily transactions. A new study by Fiserv shows that almost a quarter of users perceive them to be faster while 36% of the population prefer them over non-chip cards. Chipped cards, of course, are now mandatory for many banks and merchants. As a result, consumers were forced to the new cards and now have forgotten about their old stripped cards.
The Change In Behavior
A swiped card was easy and fast. Now you have to put your card in the slot and wait. While safer, the new cards were much slower. Back in 2016, it was common for both the merchant and the consumer to complain to each other during a transaction. In other surveys, few users understood the safety benefits from chipped cards.
Now, with a little more than a year of use, there is more positive sentiment than negative.
By the end of this year, EMV-enabled cards are likely to be the top payment method. As the Quick Chip and m/Chip become more prevalent, processing times, and convenience, will increase further helping satisfaction and preferences.
What About The Mobile Wallet?
While many large banks rolled out their mobile wallet back in 2014 and 2015, adoption has been slow despite being more secure than even EMV-enabled cards. Just 6% of consumers prefer their mobile wallet as a primary payment method, and only 25% of banking customers even use their mobile wallet.
One take away here is that since consumers were forced to adopt the EMV chipped cards, they switched over and got used to it. For mobile wallets, consumers had a choice and found it easier to pull plastic out of their wallet or purse. One day, the card companies, banks or consumers will tire of dealing with plastic and migrate to the bio-authenticated, tokenized card on the mobile wallet. That day is not today and not for the foreseeable future but it will happen.
Submitted by Chris Nichols on May 20, 2018