The United States may have taken its time to introduce “chip and PIN” credit and debit cards but the technology has had a positive effect for banks, retailers and consumers.
With the first anniversary of the mandatory switch to EMV-compliant transactions approaching, data published by MasterCard said that nine out of 10 people now use embedded microchip cards on a regular basis. According to a recent survey of 1,000 American consumers conducted by Braun Research on behalf of MasterCard, there has been a 38% year-on-year increase in the use of chip-enhanced payment cards in the last 12 months. Safety and security cited as significant factors for adoption.
Around 88% of all MasterCard-issued consumer credit cards in the United States now have the embedded chip—a 105% increase since the liability shift came into effect on October 1, 2015. The number of merchants accepting EMV cards has steadily risen, with MasterCard’s network currently registering 2 million chip-active merchants or 33% of all U.S. retailers.
Out of these two million active merchants, 1.3 million are regional or local merchant locations—an increase of 159%, MasterCard said.
“As more U.S. cardholders use their MasterCard chip cards, they are learning the benefits of increased safety and security,” said MasterCard’s senior vice president of product delivery Chiro Aikat, in a press release. “It’s no small undertaking to change the way people pay for things. The only reason to start this big a task is to make people’s lives better. Chips have the potential to do just that.”
The U.S. may have arrived late at the EMV party, but there has been a significant drop in the level of fraud associated with counterfeit cards. At least with physical cards (digital EMV is another story).
Installed terminals at the point of sale talk to the embedded chip in a card that creates a unique code for all purchases. Before the liability switch on October 1, 2015, banks were liable for fraudulent transactions. After October 1 last year, liability switched from banks to merchants that had not yet adopted EMV payments.
See also: How MasterCard Built Digital Enablement And Changed Mobile Payments
In less than a year, the level of fraud has decreased by 54% at U.S. retailers that are EMV-compliant, said MasterCard. Citing year-on-year trends from April 2015 to April 2016, MasterCard’s data said that the costs of counterfeit fraud had increased by 77% among large American retailers that have not made the switch to EMV.
“We need chip cards in wallets and chip terminals at checkout to continue to drive card fraud out of the U.S. This country is one of the most complex markets in the world so we know things won’t change overnight,” said MasterCard’s president of North America Craig Vosburg. “However, we’re encouraged by the significant progress over the last 11 months. With every additional chip transaction we move closer and closer to our collective goal—moving fraud out of the system.”
Source: arc from Applause -- Part of the "The Crossroads of Ecommerce" Series, written by David Bolton
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Amazon, Google, DHL and Walmart are all working on the supply chain of tomorrow, including package handling and delivery. And although the future looks somewhat different to each of them, all four know they want aerial drone technology to be part of it.
Driving their interest in drone package delivery is the possibility of super-fast shipping—as in next half-hour rather than next day—which in turn relates to the growth of e-commerce and consumers’ changing expectations for what constitutes timely delivery.
Online shoppers clearly are interested in getting their purchases as quickly as possible. In a 2016 survey conducted by Walker Sands Communications, 79% of respondents said they would be “very likely” or “somewhat likely” to request drone delivery of their package if it could be delivered within an hour. Of the 1,433 U.S. consumers surveyed, 26% expected to order their first drone-delivered package “in the next two years,” and another 30% said “in the next five years.”
In addition, 73% of Walker Sands’ survey participants said they would pay up to $10 for a drone delivery. Although the economics of drone delivery have not yet been worked out, robust delivery fees could help offset operating costs.
Minimizing the time it takes to get products from a warehouse to consumers is a key benefit of drone delivery for e-commerce companies. Amazon has publicly stated that the goal of its Prime Air service, which will use aerial drones, is to get packages to customers in 30 minutes or less—on-demand delivery, essentially.
Amazon Prime Air has tested drone prototypes designed with, for example, a small cargo bay or an external bin for carrying packages. In all cases, the packages loaded onto Amazon’s drones are on the small side, weighing no more than five pounds; the drones would be able to fly 10 miles or more to make a delivery.
The company reportedly has been testing its drones in Canada, the United Kingdom and the Netherlands. Amazon declined to comment for this article.
Separately, DHL has been testing drones for the delivery of express and emergency items and/or deliveries to difficult-to-reach areas, such as islands and mountaintops. The company completed a three-month test of its Parcelcopter 3.0, a tilt-wing aerial vehicle, in the Bavarian Alps in early 2016.
The test incorporated DHL’s automated Skyport cargo loading and unloading system. Local customers who wished to send a package by drone between the trial program’s two stations simply inserted their package into the Skyport, and the item was loaded onto the drone. Most of the packages contained sporting goods or medicine.
Google, though its Project Wing program, also has been testing drones. One of Google’s delivery models combines aerial drones with rolling, earthbound robots—the aerial vehicles transfer packages to the robots on the ground (also see “Down-to-earth drones tackle the ‘last mile’”). The company previously had tested a drone that lowered packages, on a tether, directly to the ground. Google, which has shied away from publicity about Project Wing, had no comment.
Continue reading at www.packagingdigest.com
Source: Packaging Digest, August 10, 2016 -- Kate Bertrand Connolly
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