The Move to Chip and Pin Cards Will Not Be Easy
The massive overhaul of the card industry from a magnetic stripe to chip and PIN technology will not be easy.
An estimated 1.2 billion debit and credit cards will have to be reissued. In addition, approximately eight million credit card readers need to be upgraded.
Visa and MasterCard have set a deadline of October 2015, and other companies are beginning to jump on board.
At the moment, we are a long way away from where we need to be.
According to a Javelin Strategy & Research study, only 1.5% of cards have been issued or reissued with chip and PIN features, and only 10% of credit card readers have been upgraded.
The big Target breach certainly put the pressure on the industry to increase security.
“The card in your wallet now is like a cassette tape or maybe an eight-track tape–it’s exactly the same stuff, a magnetic plastic strip,” Nick Holland, the senior payments analyst at Javelin Strategy & Research, told Bloomberg. “Every single credit and debit card, point-of-sale terminal, gas station and ATM is going to have to be transitioned to a new technology.”