ShopTalk | Shop up. Chip out. (INFOGRAPHIC)
Chip cards are one of the biggest changes to happen to payments in recent history. By enabling EMV transactions, chip cards are designed to improve security by using cryptographic technology that authenticates payments at the point of sale (POS) and virtually eliminates the threat of counterfeit cards. Estimates suggest that 31% of consumers possessed chip cards in 2014 and that number is predicted to reach 100% by the year 2018. This acceleration is largely driven by the merchant liability shift that occurred in October 2015, which made merchants that do not support EMV technology responsible for payments fraud.
As chip cards become more commonplace, it’s natural to ask how they impact consumers and their perception of safety. Vantiv teamed up with Socratic Technologies to ask 500 consumers about chip cards, how they’re using them, and what they perceive as their benefits. Here are the key takeaways.
Among all age groups, chip cards are the most preferred payment method at retail locations
61% of respondents name chip cards as their payment method of choice
Mobile wallets are the least preferred payment method at retail locations
Only 6% of respondents say mobile wallets (Apple Pay, Google Wallet, etc.) are their preferred payment method
Digital payments (PayPal, etc.) are the most preferred method for online transactions
42% of respondents prefer to pay for goods and services online using digital payment methods
Traditional (magnetic stripe) cards are the least preferred online payment method at 41%
This is closely followed by mobile wallets at 40%
Chip cards are most frequently used at grocery stores and supermarkets
84% of respondents use their chip cards at grocery stores and supermarkets
Millennials and Gen Xers use mobile wallets most frequently
Baby Boomers and Retirees are still warming up to mobile wallets
Compared to traditional cards, chip cards are more likely than mobile wallets to be considered secure
76% of respondents consider chip cards to be more secure than traditional credit cards versus 40% when comparing mobile wallets to traditional credit cards
More than half of consumers agree that:
- The extra time needed for chip card transactions is worth the added security
- They have positive experiences using their chip cards at retailers
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