Embrace the traditional EMV technology and all of our security woes are solved? Karen Webster fires back at the naysayers, proving that the U.S. is a hotbed of payment innovation.
PYMNTS.com’s tagline What’s Next in Payments is aptly displayed in Karen Webster’s recent article that has Brit FT columnist John Gapper questioning whether the U.S. lags in payment innovation. While Gapper has a few facts up his sleeve, such as U.S. consumer’s fascination with hard copy checks vs. the speedier digital transfer, PYMNTS provides solid truth that the fire of innovation has already been ignited by American payment pioneers.
A great example is U.S. development of tokenization and encryption – near and dear to our heart because of our PCI-validated point-to-point encryption (P2PE) solution. Karen states that:
“Tokenization and end-to-end encryption are all available now, thanks to the efforts of innovators here in the US who have been clued in to the need to protect data when transacting online for nearly two decades – the exact place that fraud travels when EMV is implemented. Increasingly, thanks to mobile devices, online environments now include the use of mobile phones to transact at the physical point of sale. Third party innovators like Braintree and Bluefin are but two of the innovators who are enabling secure online and mobile transacting by rendering data useless to the cybercrooks.“
And while it is true that the U.S. lags in EMV implementation, which Gapper points out, it does not mean that countries with EMV have a superior security solution (like the UK). EMV replaces the card’s traditional magnetic stripe and uses a PIN, making it more difficult for fraudsters to white label cards – although they can still have a fraud field-day online. As Karen points out:
“Sure, it may be the case that the EMV train is barreling its way to the US but not because it’s an innovative way to solve the fraud problem at the in store point of sale. (Not to rain on anyone’s EMV parade here, but it’s probably also worth mentioning that the UK Cards Association released a report that said that card fraud in the UK, overall, is up 7.4 percent for every £100 of spend. Figures released by the UK’s Fraud Financial Institute reflect an increase of 16 percent in counterfeit fraud in the UK between 2011 and 2012 with fraud online up 11 percent and in store retail fraud up 26 percent.)
If we were really committed to delivering innovation at the point of sale, that also delivered a secure solution, then we’d be investing in solutions that leveraged the cloud, the mobile device and new POS technologies to leapfrog plastic cards and EMV completely—delivering a truly innovative way of protecting cardholder data.”
We’re with you, Karen. If you want to learn more about a holistic approach to payment security in the U.S., check out Bluefin’s recent PYMNTS.com webinar on P2PE, EMV and Tokenization.