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August 16, 2016

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CardFlight Partners with BluePay

Payments firm CardFlight will partner with U.S. processor BluePay to offer BluePay merchants EMV-enabled mobile point-of-sale (mPOS) readers.

CardFlight will provide BluePay’s merchants with an out-of-the-box solution that will allow interested retailers the ability to quickly begin accepting chip cards and reaping the associated fraud benefits.

It’s likely that interest in terminal upgrades is growing among BluePay merchants as more consumers receive chip cards. The number of consumers with chip cards is growing quickly — 58% of Visa-branded US credit cards and 37% of debit cards have chips, up from 43% and 21% in December 2015. As a result, smaller merchants — a key demographic for mPOS firms — that had previously been hesitant to upgrade to EMV-enabled devices might become more willing to do so.

That’s because as more chip cards reach consumers’ hands, the likelihood that a transaction will be processed as chip-on-chip will rise. As such, the fraud benefits that chip-on-chip transactions bring – Visa merchants that take chip cards reported a 35% year-over-year (YoY) decrease in fraud — feel more attainable, which could push merchants to upgrade. This could help CardFlight grow:

  • The partnership will expand CardFlight’s merchant base. BluePay serves over 42,000 businesses and processes $11 billion in total payment volume annually, according to the firm. Bringing some of these merchants into the CardFlight ecosystem will grow the volume processed through CardFlight’s readers, which could give the firm some additional fee revenue. In addition, merchants view EMV as a premium that they’re willing to pay for, CardFlight CEO Derek Webster told BI Intelligence, which means that selling the readers to BluePay to distribute to its merchants could help gain the firm’s hardware segment as well.
  • The firm could benefit from BluePay’s omnichannel business. BluePay processes in-store, online, and mobile transaction. As more merchants go omnichannel, it’s becoming common for software providers to move into the hardware space so that their digital merchants can sell in-store. Partnering to attract this group could give CardFlight a good entry into the digital space through which it can sell its other services.

Fraud cost U.S. retailers approximately $32 billion in 2014, up from $23 billion just one year earlier. To solve the card fraud problem across in-store, online, and mobile payments, payment companies and merchants are implementing new payment protocols that could finally help mitigate fraud.

John Heggestuen, senior research analyst for BI Intelligence, Business Insider’s premium research service, has compiled a detailed report on payment security that looks at how the dynamics of fraud are shifting across in-store and online channels and explains the top new types of security that are gaining traction across each of these channels, including on Apple Pay.

This article first appeared on Business Insider. Read it here.

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