THE NEXT GENERATION OF PAYMENTS COMES TO THE UNITED STATES
Payments technology is changing, transforming the consumer purchasing experience worldwide. The next generation of payment products and services build on the current safe, simple and smart ways to pay while bringing greater security and new capabilities to every transaction. This transformation is about more than just a specific device. It's about creating a holistic purchasing experience supported by greater security and control.
THE MASTERCARD ROADMAP
MasterCard, in consultation with merchants, issuers, acquirers and processors, has developed a roadmap focused on advancing the U.S. electronic payments system, while providing each customer the flexibility to manage technology implementation that advances their business goals.
CATALYST FOR FUTURE GROWTH
The EMV standard serves as the backbone for future payment technologies that will drive continued growth and innovation in face-to-face, mobile and online payments.
YOUR BEST BUSINESS PARTNER FOR EMV ADOPTION
For 15 years, MasterCard has played a leading role in the creation, management, and continued development of the EMV standard. We offer a unique set of EMV solutions – known as M/Chip™ – to help issuers and merchants implement new payment solutions quickly.
THE NEXT GENERATION OF PAYMENTS. HERE. NOW.
The payments business is rapidly evolving. Today's tech-savvy consumers are quickly adapting to their digital devices and turning them into a new generation of powerful payment vehicles. There is also great demand from issuers, acquirers, merchants and consumers for stronger safeguards to secure card transactions.
An upgrade to the EMV standard enables safer, smarter and more secure transactions across cards, contactless, mobile, and remote payment channels. It also enables us to offer consumers the next generation of digital payment innovations.
AN OUTLINE OF THE MASTERCARD ROADMAP
Elements of the MasterCard roadmap include:
- EMV – Solidifying EMV as the foundation of the next generation of payments
- Immediate Focus on Infrastructure – Working with acquirers to ensure infrastructure readiness by April 2013
- Flexibility for Customer Business Decisions – Creating flexibility to respect and accommodate issuer and merchant business decisions regarding the technology that best supports their needs
- Encourage Greater Security and Cardholder Verification – Providing consumers with greater control and to reduce fraudulent transactions
- Provide Benefits for Merchant Terminalization – Providing true financial benefits for merchants as they implement EMV-compatible terminals
- Consistent Consumer Purchasing Experience – Ensuring a consistent consumer purchasing experience, regardless of how or where they shop
- Cover ALL Channels – Addressing all touch points where consumers will interact with MasterCard, including ATMs, the physical point-of-sale, online and mobile commerce
- "Future Proof" Network Rules for Growth – Aligning network rules to recognize the value and enable the adoption of new technologies
- Maximize Technology Innovation – Ensuring that MasterCard leverages the technology advancements and investments the company has made over 45 years to benefit the payments ecosystem
- Commitment to Collaboration – Fostering industry collaboration to deliver the next generation of payments into the U.S. marketplace
In implementing the roadmap, MasterCard will maximize the technology advancements and investments the company has made over 45 years to benefit the payments ecosystem.
MASTERCARD: YOUR COMMITTED EMV & M/CHIP SOLUTIONS PARTNER
MasterCard has led EMV deployment in more than 130 countries. Today, 633 million of the 1.2 billion EMV chip-enabled payment cards in circulation around the world are MasterCard or Maestro-branded cards that utilize our proprietary M/Chip solutions.*
We have an unparalleled team of business, technology, and security experts with the knowledge and resources to support issuers, acquirers and merchants in all aspects of EMV adoption. In 2010 alone, MasterCard completed more than 4,200 EMV projects worldwide.
As your payments partner, MasterCard offers a wealth of experience. We can provide solutions, tools, services, and expertise to help you evaluate your options and determine the right strategy and course of action for your business—along with end-to-end support for your EMV upgrade.
These same standards also serve as the foundation for contactless, mobile, and remote payment authentication in those markets that have already migrated to EMV.
* MasterCard data, as of Q2 2011
HOW M/CHIP IS TRANSFORMING THE WAY CONSUMERS PAY
We live in a quickly-evolving payments environment, one in which every digital device can become a powerful vehicle for commerce. Leveraging the EMV platform, MasterCard's M/Chip™ solutions deliver a range of consumer-driven innovations giving individuals the freedom to pay in ways that best fit their needs and lifestyles - all with a simple tap, click, or touch whether they're shopping in-store, online or with a mobile phone.
For consumers, M/Chip provides:
- Greatly enhanced security
- A consistent point-of-sale experience anywhere in the world
- The potential for added functionality, convenience, and personalization
But the best part is that from a usage standpoint, U.S. consumers will experience only minor differences when making M/Chip transactions compared to the way they currently pay. Instead of swiping the card at the terminal, the consumer inserts his or her card into the terminal or ATM, or taps their phone or clicks and pays online. That's it. Safer, simpler and smarter.
EMV: WHAT IS IT?
EMV is a standard for globally interoperable, secure payments. The key element of EMV involves including dynamic digital data in every transaction. This makes these types of transactions extremely secure and reduces the risk of fraud.
When a consumer uses an EMV-enabled device to pay at an EMV terminal, it can be instantly identified as an authentic, approved payment instrument belonging to that consumer through a process called dynamic authentication. When used with a PIN (Personal Identification Number), the chip verifies that the consumer is indeed holding his or her own device.
The EMV standard was developed by Europay (which subsequently merged with MasterCard), MasterCard and Visa, to ensure global interoperability for chip-based payment transactions. In fact, the 'M' in EMV stands for 'MasterCard.'
HISTORY OF EMV AND MASTERCARD
EMV technology was first introduced to the payments industry nearly two decades ago, as a way to fight fraud. Today, EMV is the "de facto" standard for secure payments around the world.
1996 – The global EMV standard is jointly developed by Europay, MasterCard and Visa
2006 – The UK fully deploys EMV, dramatically reducing fraud on lost and stolen cards
2010 – More than half of the 1.2 billion EMV-enabled cards in circulation worldwide (633 million*) are MasterCard or Maestro-branded cards
*MasterCard data, as of Q2 2011
DYNAMIC AUTHENTICATION: BUILT INTO EVERY EMV TRANSACTION
In the digital world, payment transactions are getting smarter. And at the heart of these smarter transactions is dynamic authentication which incorporates unique information in each transaction making it virtually impossible to replicate. This dynamic authentication greatly reduces the risk of fraud making payments not only smarter but also safer.
As issuers evolve their offering and merchants upgrade their terminals, the payments system will become more secure as this dynamic data is introduced into the payment transaction.
HOW EMV PAYMENTS WORK
The transaction flow with EMV payments is much the same but - with the addition of dynamic authentication and the chip technology - makes EMV transactions more secure:
- Card authentication takes place either online by using dynamic encryption or offline by protecting against counterfeit cards
- Cardholder verification helps ensure that the person making the payment actually owns the card to protect against lost and stolen cards
- Transaction authorization is completed either online with encryption technology or offline by using issuer-determined risk parameters
MasterCard issuers and acquirers: Login for more information about M/Chip™, the MasterCard platform for EMV-compliant MasterCard® and Maestro® branded products.
The MasterCard multi-pronged, layered approach to fraud and risk management integrates cutting-edge technology for highly secure solutions.
PayPass, the world's leading contactless solution, provides a pathway for issuers, acquirers, and merchants to convert cash and check to fast, convenient Tap & Go™ card payments.
MasterCard wires the world for commerce through the MasterCard Worldwide Network—connecting consumers, financial institutions and businesses around the globe.
MasterCard Advisors can provide counsel and strategic support for EMV upgrades.