As we all know, data theft and security breeches are a huge problem for both large and small retailers (click here, for example). After the spate of recent incidents, retailers and credit card companies in the United States seem ready now to make a push with new technology to address this issue.
Elizabeth A. Harris and David Gelles, in a lengthy article on this topic for the New York Times, report that:
“The most immediate change will occur with EMV, the technology that uses an embedded chip to protect against counterfeit cards and can also require a PIN to keep thieves from using stolen cards. Widely used in Europe and elsewhere, EMV is considered more secure than magnetic strip cards mostly used in the United States. At the end of April 2014, Target said it would speed up its introduction of chip-and-PIN technology on all its branded credit and debit cards and would be fully equipped by early next year.”
“Retailers have higher hopes for savings that might come with mobile payment. In some places, those savings are already a reality. Take Starbucks. There, customers can use their phone to pay for a latte or biscotti by loading money via the company’s app onto a Starbucks rewards card. The app entices customers to return with free drinks, and it keeps the lines moving quickly, all of which is good for business. It also saves Starbucks money, a spokeswoman said. Instead of paying for 10 cups of coffee individually, say at $1.75 each, customers can put $17.50 on their phone just once — which means Starbucks has to pay only one transaction fee, not 10.”
Click the image to read a lot more from Harris and Gelles.