NFC TIMES Exclusive Insight – There is more evidence that U.S. banks will be moving a substantial portion of their card base to contactless over the next few years, as they reissue their basic EMV cards with a contactless interface, giving American consumers more opportunities to tap to pay than ever before.
Long lagging behind other developed markets in contactless payments, U.S. issuers are preparing to support more expensive dual-interface EMV cards in a significant way starting this year. U.S.-based Auriemma Consulting Group said last week that new data shows that 67% of U.S. card issuers plan to introduce contactless cards within the next few years. That compares with only 22% of credit card issuers offering contactless cards in the market, “mostly in select portfolios.”
The consulting firm’s prediction jibes with a recent statement from the head of Mastercard. President and CEO Ajay Banga said during the network’s fourth quarter earnings call Jan. 31 that the brand has gotten commitments from issuers representing around two-thirds of total U.S. consumer volume to issue contactless cards within the next two years. This includes cards from Citi, Capital One and KeyBanc.
