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It will be interesting to see some fraud detterent metrics from these commercial pilots: What is the fraud rate of current chip card transactions or NFC cards? And what is the fraud rate for fingerprint cards? 

Why use fingerprint cards when chip / NFC cards can do the same transaction in a secure manner? Is the sales pitch around giving card user the comfort that transaction is more secure using fingerprint? Also since the pandemic, the users prefer to have less physical contact in tranactions. 

This "me too" kind of approach towards mobile payments without a comprehensive customer journey and customer experience will not drive usage. We have seen this happen over and over again, with most of us repeatedly outling the very need for a rewards, coupon, loyalty based mechanism to draw in usage, upsell products, and build deeper relationships with brand. ChasePay will be allowed for use at Walmart - will they have a more comprehensive story to drive usage other than reward points i.e. coupons and recommendations!

In less than a decade death of the plastic! Well that will bode well in Australia and few other markets in Europe, the same cannot hold good for even other developed markets in Europe and US. Contactless usage, consumer subscription, and acceptance in individual markets will triangulate that growth and replacement timeline. 

There is credence in what ANZ cheif is saying specific to Australia. We are seeing that tremendous growth to contactless across Australia, Poland, Sweden, Netherlands, UK.. those are markets that will see consumers transition to mobile phones for payments while snapchatting away! 

@Bo - this seems to be a leap forward of PSD2 directive which will have banks create API's for AISP's and PISP's. Digital identity will be an extension similar to Paypal and Barclays accounts as credentials in UK for govt. websites?

@Ketharaman, A couple of things:

- Gartner analyst quoted with 20 second processing timeline, there is not mention of the 40% converted merchants how big was his/her sample size, # of trxs.

- EMV will be a long journey here in the US both at retailers that have the right to choose and make their own decisions based on level of fraud, savings, impct on CX, timing for bringing change since holiday season starts very soon.

- Panda like any other retailer/merchant/SME has a choice to use EMV or not and they have decided not to do so as a business decision. 

- Amazon has the lowest fraud levels build into their one-click and Amazon payments engine. Their fraud levels are lower than CP transactions at retailers and thus demand a lower interchange fee ... far lower than CNP. 

- As a business the regulartor, unlike in India conforming to RBI 2FA, does not indulge in pushing one solution or the other. And I agree with that approach as EMV is just one of the tools in the larger fraud management toolkit and as you consider biometric, tokenization, 2FA, P2PE, machine learning transaction management; EMV is no silver bullet

In essence, merchants have a right to make a business decision to choose EMV or other tools to manage/deter fraud. CRIND's will have another 2 years for EMV liability shift and ATM providers have another year; the CRIND and ATM's are high prone to counterfiet fraud - it makes more sense for the merchants/ATM providers to move to EMV. 

I have worked with retailers in US and other countries, it is a balancing act between fraud and check-out times. All big retailers have very clear QA and KPI's with the processors, which undertake rigrous stress and latency tests before deploying EMV. Having worked with hign street retailers, customer experience is not negotiable and have been working with processors on EMV to ensure transaction times are withing KPI limits. 

20 seconds is a bit of an exception as have not seen that personally. Most retailers are very sensitive to customer experience(CX) and will not deploy solutions unless certain QA standards are met. Also, not most retailers are not just deploying EMV but also introducing P2PE to avoid Target like issues. We are on the cusp of the mot busy season for retail sales and no retailer in my opinion will jeopardize sales driven by poor customer experience. 

As mentioned earlier there is lots of media and social commentary over the next few months on chip card acceptance and experiences. This unusual experience of 20 seconds is not uncommon, have seen this happen across the globe as EMV has been implemented... as an example UK EMV had similar issues and customers were complaining. 

This is a journey for both card users and check-out associates ... there will be a nice learning curve and will only 40% of retailers using EMV, we have a long way to go! 

Adding a bit more perspective - 24% of global card volume is from U.S and US contributes to 47% of global fraud. In 2014 that number was $6.7Billion with nearly $6billion shared evenly between CNP and counterfiet fraud. I have been working on EMV technology since 2003 and have lead market migrations in Asia; there will be a immediate shift to CNP in large numbers. 

Globally most countries offer Chip and sign and NOT Chip and PIN. US will be adopting with most issuers Chip and sign. EMV is a 12+ year old technology and does not solve for CNP, which is where the growth is occuring as Omni-channel demand and eCommerce grows. Android Pay, Apple Pay, Samsung Pay are mobile retial solutions that use tokenization and P2PE - thus for those transaction EMV does not help much, rather these alternative mobile 'Pay' forms and contactless will drive growth. 

In addition, Millenials are averse to useing cards in US and other developed markets.. add the piece around CHIP and PIN.. you create an additional layer of potential friction for them. 

Summary - Chip and PIN has limited adoption globaly; US moving to Chip and Sign; It has been proven fraud will move to CNP and balloon since CNP / mobile growth is occuring at a rapid pace; EMV 3DES specs and other biometric solutions are needed to curb fraud levels globally; P2PE and tokenization are helping issuers; focus on new age millenial consumers that are now joing the workforce in mainstream numbers and solutions that help adopt card whilst reducting friction at point of sale! 

Just a thought! 

Great to see the chief economist support for state backed crypto-currency, however the only use case presented here is for supporting negative interest rate period and gives the user of crypto-currency no incentive. Hoarding cash averts negative interest rate, so why will the crypto-currency move cash hoaders to digital (during times of negative interest). 

Also, when interest rates rise, what value will it bring its users? In a country where contactless payments are rising at a tremendous pace and digital-wallets seems to be increasing, maybe a govt backed digital currency as an option might hold some value!

Kudos to Bank of England for exploring crypto-currency based use cases and lets keep the consumer benefit in mind to make it a success 

FYI - the Apple Pay fraud was not due to Apple Pay use, but rather by those cards being used on Mag Stripe / Online transactions that did NOT use Apple Pay. I have already given feedback to the author of thsy Blog stating it is wrong and misleading to publicise Apple Pay (for their dual level of security TouchID + Individual transaction token generated from SE) for fraud on that 6% number that occured outside of Apple Pay usage. 

It is like saying... well 6% fraud on Amazon, wherein the hack was at the Google Wallet (as an example) and a legit transactions occured at Amazon. Issuer suffered 6% fraud on its portfolio from other transaction ouside Amazon in this case. 

Douglas - Apple Pay earns 15bps from the issuer and not the network providers. Thus for credit transactions, 15bps as part of the issuer free collected which varies from 1.25% is not a bad deal. Issuer gets to issue tokens for CP transactions. UK is the next market for Apple Pay and there is chatter about China considering international for phones has risen significantly for Apple especially China numbers overtake US. Apple Pay revenues are a pure rounding error in the larger strategy, however they have created a convenient, secure and trusting experience for iPhone6 model. Panera, Whole Food percent numbers look great (from a NIL) base, howeve before Apple there have been other wallets that a user could adopt including Google, PayPal and Samsung !! They have not been able to attract usage by phone users and this is a great breakthrough to dive mobile wallet usage at Retail POS.