Both EMV and near field communication (NFC) technologies serve the payments industry in different ways. EMV is widely accepted as the universal secure chip payment standard, while NFC is a global communication technology that allows data to be exchanged between devices that are in close proximity. Combined, these technologies will have a significant impact on the way payments are made worldwide.
NFC Dependent on EMV
The successful roll out of NFC payments in any market is fully dependent on the existence of an established EMV infrastructure. Yet in the US, there is a common belief that issuers have to make a choice; whether to deploy EMV or NFC technology. This misconception has led to many issuers delaying an investment in either EMV or NFC programs, as they ‘wait and see’ which technology the industry favors. The fear that one technology may surpass the other is completely unfounded, especially now that EMV has been mandated by the four major payment systems in the US and that secure-chip technology is required to form the basis of any NFC deployment.
EMV and NFC Infrastructure
The U.S. has a unique opportunity to create an innovative and secure EMV infrastructure that not only supports payment-related mobile contactless transactions, but also payment enabling services, such as the redemption of coupons. The ability to deliver such value added services will offer real customer convenience and drive the next generation of payment technology. To help drive forward this initiative, the EMV Migration Forum – an independent, cross-industry organization started by the Smart Card Alliance – has been launched.
EMV Migration Forum
The forum’s aim is to facilitate important discussions and work groups that will ensure consistent, clear and educated decisions can be made by industry stakeholders across the country. Bell ID recently joined the forum to help progress the implementation of EMV in the U.S. With our knowledge gained in the payments, smart card and mobile sectors, we are ideally placed to support the U.S in provisioning and managing payment services via chip-based technologies on an NFC-enabled token.
We expect that the EMV Migration Forum will play a central role in the U.S. payments market and we look forward to being a part of these developments. One thing that is for certain – it is not a question of EMV or NFC.
Check out our latest video on implementing EMV and NFC initiatives.