On Friday, MasterCard announced that it would open up some of the company’s proprietary technology to other American debit networks as part of an effort to support EMV transactions.
The EMV standard, named for Europay, MasterCard and Visa, is a global standard for credit and debit cards based on chip card, or smart card, technology. The technology provides enhanced security features that are not available with traditional magnetic stripe cards.
“We felt it was important to take this step for the greater good of the future of U.S. payments,” MasterCard North America President Chris McWilton said. “By making our EMV solution available today, debit networks, merchants, acquirers and processors can take advantage of a market-ready solution currently in place. This will allow financial institutions to begin issuing EMV cards across their portfolios immediately, rather than waiting for a new solution to be developed.
MasterCard’s decision to open up its technology is the latest in a series of moves by the company to advance electronic payments in the U.S. With the technology issuers will be able to simplify the implementation of EMV and enable chip entry at a lower cost.
EMV chips secure payment information, provides enhanced authentication methods to prevent counterfeit, adds cardholder verification processes and offers online or offline authorization.
Since the technology’s original implementation in 1996, EMV has become a global standard for card payment 80 developed countries outside of the U.S.