We had the opportunity to evaluate the inventory of an EMV chip migration company that both implements the security chips, as well as produces the traditional credit and debit card units. EMV, as used in the payments industry, refers to the small silver chip usually found on the front of recently issued credit and debit cards that provides a greater degree of security. The small metallic chip that makes contact with a store terminal’s reader contains an embedded microprocessor – a small computer that provides stronger security features and other capabilities that are not found in the traditional magnetic stripes on the back of your card.
In 2015, the global card industry produced 13 billion smart cards, only 37% of the total units issued, which leaves an enormous conversion opportunity for the remaining 63%. Since the initial implementation of EMV chips in consumer purchasing cards, approximately 120 million Americans’ credit and debit cards have been updated with this technology; of which 80% of issued credit cards are from Visa, according to a 2015 report by Smart Card Alliance. With so much potential for growth, multiple companies are tirelessly seeking ways they can contribute to molding how consumers can pay faster, easier, and with maximum security in place.