Impacts of EMV Migration, Wallets, and Innovation on the Future of Mobile Payments
The Federal Reserve Banks of Boston and Atlanta convened a meeting of the Mobile Payments Industry Workgroup (MPIW) in May 2016 to discuss the impacts of EMV chip migration, mobile wallets, and financial innovation on the future of mobile payments. EMV chip migration in the U.S. has created challenges and complexities for payment industry stakeholders, including merchants, processors, and financial institutions. The simultaneous introduction of NFC contactless mobile wallet solutions has also had significant impacts coupled with the rapid growth of fintech companies driving the ecosystem to focus on innovation. Although EMV chip migration continues to pose challenges to industry stakeholders, it is moving forward while stakeholders simultaneously focus on strategies to address the anticipated shift to card not present fraud (both online and mobile). Stakeholders also continue to evaluate the mobile wallet options available in the market as part of their digital strategies, and recognize the value of innovation to drive differentiation.