According to a recent report, global smart card shipments will soon overtake mag-stripe cards.
Smart card shipments, including contact-less payment cards, EMV and non-EMV payment cards, are expected to reach one billion during 2011, an ABI Research report has revealed, according to ATMMarketplace.com. ABI Research is a market intelligence company that specializes in global connectivity and emerging technology.
As part of the change to smart cards, SBI Cards, a joint venture between State Bank of India and GE Capital, will migrate to the EMV platform for the majority of its new customers and cards, making it the first credit card company in India to make the switch.
“The launch of the EMV chip-based cards for over 85 percent of our new cards will help our customers with greater security features and also help us launch more relevant offers for our customers," Kadambi Narahari, the CEO of SBI Cards, said, according to ATMMarketplace.com. "We will move to EMV for 100 percent of all new customers and cards within a few weeks."
The push for smart cards is even greater in developing countries due to the enhanced security and widespread adoption. China will need to replace billions of payment cards currently in circulation with smart cards in an effort to undergo a complete transition to smart cards by 2015. The technology has already taken hold in Saudi Arabia, Bulgaria and Romania.
CSF International's Bejan Nouri said that the United States has been slow to adopt EMV because of the high costs associated with implementation, ATMMarketplace.com reports.
In order to support the technology, all devices, from retail POS systems to ATM card readers, would have to be upgraded, as would any issuing software.
A few large U.S. banks, including U.S. Bank, JPMorgan Chase & Co. and Wells Fargo, have used EMV technology to target wealthier customers and customers who frequently travel internationally.