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Payment Update: Gaining New ROI From Chip Cards
Erica Shea, Partner, Kurt SalmonVibhav Prasad, SVP, Innovation, Global Acceptance & Merchant
Products, Mastercard
Moderator: Adam Blair, Executive Editor, Retail TouchPoints
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§ 1.2 million U.S. merchant locations now allow the useof chip cards
§ 67% of branded MasterCards now have chips, a 51% increase since the Oct. 1, 2015 liability shift
§ 2 billion smart payment cards shipped in 2015, a 34% increase over 2014
§ In the U.S., 570 million smart cards shipped in 2015, a two-‐fold increase over 2014
EMV Shift: The Best of Times?
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§ As EMV has tightened up POS security, online fraud hasrisen by 11%
§ In other markets, online fraud increased by 80% to 100%in the first 3 years following EMV adoption
§ Confusion, miscommunication and slower checkouts at physical points of sale, souring merchants and consumers on EMV’s benefits.
EMV Shift: The Worst of Times?
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Payment Update: Gaining New ROI From Chip Cards
Vib Prasad, SVP, Innovation, Global Acceptance & Merchant Products, Mastercard
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Key Trends around Retail Payments
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§ Internet Usage1
§ 3.2 Bn Internet users in 2015§ 7 fold increase from 2000 to
2015: from 6.5% to 43% of the global population
§ Proliferation of Devices2
§ From 15 Bn connected devices today to 50 Bn by 2020
Consumer connectivity is on the rise
1. International Telecommunications Union, May 20152. Cisco & DHL -‐ Internet of Things in Logistics, 2015
Source: Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2015–2020 One Exabyte = one billion gigabytes
Global Mobile Data Traffic2015 to 2020
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6.5
2014
12.5
11.4
1.1
16.0
2020
Traditional
Digital
22.5
Global (ex-‐China) Card-‐based consumer spend (PV), ($ Trillions)
Digital payments could represent 20-‐30% of consumer payments by 2020
2
In-‐app
Browser
Contactless
Source: BCG
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