Do You Support Contactless Payments Already? [New Mandates]
Millions of shops around the globe accept contactless payments nowadays. Tap with your card or smartphone, use your watch, ring, wristband, or convenient device - you name it. The seamless payment experience combined with the security of EMV attracts more and more consumers every year and will only drive those numbers further up.
Enabling contactless payments have always been priority by the payment schemes: issuers, merchants and acquirers have always been encouraged to adopt contactless technology. This push however is now getting in the spotlight as new mandates are kicking in.
A Push From The Schemes
Beginning of 2018 Mastercard shared their 5-year roadmap for EMV and contactless migration adding the following dates in the calendar of global schemes:
In Europe contactless payments are already accepted in most locations and is the default for new deployments since 2016. In Asia-Pacific, Latin America, Europe, the Middle East and Africa the migration dates mandated by Mastercard are set to 12 October 2018 for new terminal deployments, and 12 April 2019 for new card issuance.
Note that these dates are tailored to the local markets demands. In the Middle East and Africa, 2017 already showed significant growth in number of contactless transactions. In contrast , some other countries are only migrating from cash/mag-stripe towards EMV and cashless payments. For all the (latest) details on these mandates specifically for your situation, feel free to contact UL directly.
In general, contactless payments are coming. Therefore, if you are still having (some) contact-only products in your portfolio you will have to migrate, rather sooner than later!
Migration, What’s Important To Know?
- The first step is to contact your payment scheme(s) to start an implementation project
- Contactless migration affects many systems:
- Issuance: new chip profile & hardware (including graphical design), issuer host, clearing-and-settlement systems, personalization systems, network interfaces, authorization keys, fraud & risk management systems, customer support channels, etc.
- Acquiring: new terminal profile & hardware, acquiring host, clearing-and-settlement systems, network interfaces, merchant support channels, etc.
- For some of the mentioned systems (re-)certifications are required
- To make the deadlines and avoid delays, plan in advance, such implementation projects may take over a year, depending e.g. on your readiness, experience and dependencies
- Knowledge gaps and lack of preparation is the number one reason for missing live dates
Are you ready for those mandates, do you have the right resources available?
If you would like to discuss further with one of UL experts, please contact us.
Disclaimer: for the latest accurate information on mandates, please contact your scheme representatives or UL directly.