MasterCard Introduces Chip Card Plan
MasterCard has become the second major card brand to announce the intent to move payments from cards which supply consumer data on magnetic stripes to cards which encode such information on embedded computer chips.
Visa announced its plans for a similar move to the EMV chip technology in August 2011.
MasterCard referred to its plan as a roadmap and said the plan would include the embedded chips; would work with merchant acquirers to have needed infrastructure in place by 2013; and involve consumers more in fraud prevention.
"We're moving toward a world beyond plastic, where consumers will shop and pay in a way that best fits their needs and lifestyles with a simple tap, click or touch in-store, online or on a mobile device," said Chris McWilton, president, U.S. Markets, MasterCard. "Our roadmap represents a transformational shift in the approach to payments and is not simply about EMV, chip and PIN. We're focused on readying the ecosystem to drive future innovation and provide new consumer experiences to enhance the value of electronic payments.”
He added, "Customers from across the payments ecosystem have been asking for a roadmap. We believe we've provided issuers and merchants with a vision to 'future proof' their businesses and the flexibility to manage their technology decisions to best meet their goals and priorities."