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:
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.