# Discussing EMV with Joe Santana Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-03-31 Category: TECHNOLOGY Category URL: https://financedigest.com/category/technology Meta Title: Top Reasons Why EMV is Crucial in the Payments Industry Meta Description: Discover how EMV chip technology has transformed the payments ecosystem and why it is crucial for stakeholders globally. Insights from FIME's EMV expert, URL: https://financedigest.com/discussing-emv-with-joe-santanahtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/dsc-4232-416-1736844016902-compressed.jpg) _**Joe Santana**, Senior EMV Acquiring Consultant at FIME_ EMV® chip has had a staggering impact on the payments ecosystem since its introduction roughly twenty years ago. With migration progressing at different paces globally and the way we transact continuing to evolve – as wearables and smartphones shake up the ecosystem even more – EMV sits at the centre of the payments world. But why is EMV so important, what do stakeholders [need to know](https://www.financedigest.com/ukraine-and-russia-what-you-need-to-know-right-now.html "Ukraine and Russia: What you need to know right now") and what are the next steps? We chatted to FIME’s EMV expert Joe Santana, to give us a global overview. **Q: Why was EMV introduced?** **Joe:** EMV chip-based technology was initially introduced to [tackle fraud and increase the security of transactions while creating a globally interoperable payment](https://www.financedigest.com/how-biometric-payments-are-tackling-financial-exclusion.html "How Biometric Payments Are Tackling Financial Exclusion") framework. It did this through the technical body, EMVCo, which publishes card and terminal specifications that define how transactions should be processed and managed by each stakeholder in the payments ecosystem. Today, the body continues to support an advancing range of payment methods, technologies and acceptance environments. Building on this framework, each [payments system](https://www.financedigest.com/covid-19-putting-a-spotlight-on-mea-payment-systems.html "COVID-19: Putting a spotlight on MEA payment systems") also specified its unique testing requirements to enable stakeholders to process EMV transactions according to their business rules. There was also a desire to implement additional, more [secure cardholder verification](https://www.financedigest.com/how-digital-identity-verification-will-revolutionize-security-defenses-in-the-financial-services-industry.html "How Digital Identity Verification Will Revolutionize Security Defenses in the Financial Services Industry") methods (CVM). Magnetic stripe-only cards relied largely on signatures for validation, but easy manipulation played into the hands of fraudsters. EMV brings CVM options that each [payment system can decide to implement, such as encrypted PIN, cryptography, online _and_ offline payment authentication](https://www.financedigest.com/the-key-trends-in-payment-authentication.html "The key trends in payment authentication") to ensure that the transaction and the cardholder are legitimate. **Q: What [impact has it had on the payments](https://www.financedigest.com/why-it-pays-to-pay-on-time-the-impact-of-delayed-payments-on-supplier-relationships.html "Why it pays to pay on time: The impact of delayed payments on supplier relationships") ecosystem?** **Joe:** Firstly, EMV has been a huge catalyst in reducing [payment fraud](https://www.financedigest.com/combating-payment-fraud-in-the-era-of-contactless-everything.html "Combating payment fraud in the era of contactless everything"). Besides this, though, a few things really stand out for me: - **Offline transaction management**– The development of a sophisticated, secure method for authenticating transactions offline was an important advancement for the payments ecosystem. It brings [big benefits to areas with less connection and reduces communication costs](https://www.financedigest.com/exclusive-with-eye-on-big-tech-energy-crisis-eu-telcos-call-for-shared-network-costs.html "Exclusive-With eye on Big Tech, energy crisis, EU telcos call for shared network costs"). - **Multi-application cards –** This isan area that is being tapped into now, enabling credit and debit, for example, to be managed on one card. Flexibility for consumers, less plastic in wallets and less issuance fees for banks. - **New business [opportunities](https://www.financedigest.com/thoracic-drainage-devices-market-rising-new-business-opportunities-for-investors.html "Thoracic Drainage Devices Market Rising New Business Opportunities for Investors") –** EMV has created a sophisticated payment industry and is enabling other business models. Tradespeople and market retailers can now accept secure payments with mPOS, and EMV is the foundation for mobile [contactless and wearable payments](https://www.financedigest.com/contactless-payments-spirit-willing-but-is-the-market.html "Contactless Payments: Spirit Willing but is the Market?"), in addition to secure smart ticketing. **Q: What is the status of EMV migration globally?** **Joe:** So, EMV has been around for a number of years but the process is ongoing. Even mature [markets like Europe](https://www.financedigest.com/sales-of-multi-attachment-loaders-in-the-europe-market-is-projected-to-expand-at-2-8-cagr-between-2021-and-2031.html "Sales of multi attachment loaders in the Europe market is projected to expand at 2.8% CAGR between 2021 and 2031") are not 100% migrated. Good [progress is being made](https://www.financedigest.com/sweden-finland-and-turkey-have-made-progress-on-nato-membership-sweden-says.html "Sweden, Finland and Turkey have made progress on NATO membership, Sweden says") in Asia-Pacific and the U.S. is extremely interesting, as the scale and complexity of its migration has brought about initiatives like QuickChip and M/Chip Fast which help to reduce transaction [times](https://www.financedigest.com/just-in-time-jit-and-lean-accounting-streamlining-operations-and-reducing-waste.html "Just-in-time (JIT) and lean accounting: streamlining operations and reducing waste") and assist some issuers by reducing certification testing. With this in place, I observed a lot of demand from [banks for testing and training to help them ensure everything is working correctly](https://www.financedigest.com/markets-could-face-sharp-correction-bank-of-england-warns.html "Markets could face ‘sharp correction’, Bank of England warns") prior to launch. See the latest data from EMVCo on card-present EMV transactions globally. We’re also seeing a [strong trend](https://www.financedigest.com/plastic-caps-screw-caps-closures-in-demand.html "Plastic Caps & Closures Witness Strong Sales in Line with Convenience Packaging Trend; Screw Caps & Closures in Demand") from domestic payment networks to support EMV transactions within the country or region that they serve. This is something I think we’re going to see more and more in the [coming years](https://www.financedigest.com/stocks-hit-two-year-lows-sterling-comes-under-fire.html "Stocks hit two-year lows, sterling comes under fire"). **Q: What should banks take into consideration when assessing EMV or contactless roll out?** **Joe:** EMV is a constant process, with a [big impact on infrastructure and management](https://www.financedigest.com/big-companies-manage-to-pass-on-soaring-costs-to-cash-strapped-consumers.html "Big companies manage to pass on soaring costs to cash-strapped consumers"). New technology, processes, departments, teams. The amount of information, skills and expertise [banks need to get to market](https://www.financedigest.com/the-stem-cell-banking-market-to-keep-up-the-digitized-momentum.html "The Stem Cell Banking Market to keep up the digitized momentum") and stay there can be overwhelming. Even the biggest processors don’t have all of this knowledge inhouse! Training, knowledge and testing with the right partner keeps [players ahead of the latest specifications and updates](https://www.financedigest.com/blood-thawing-systems-market-analysis-growth-opportunities-future-demand-and-leading-players-updates-by-forecast-2030.html "Blood Thawing Systems Market Analysis, Growth Opportunities, Future Demand and Leading Players Updates by Forecast 2030"). I can [assure you that this expertise helps them to ensure an efficient route to market](https://www.financedigest.com/the-neurotrophic-keratitis-treatment-market-to-stand-on-quality-assured-digitization.html "The Neurotrophic Keratitis Treatment Market to stand on quality assured digitization"). **Q: What challenges remain for the payments ecosystem?** **Joe:** Contactless is still a challenge, as each [payment system has its own contactless specification which has caused some headaches for the payment industry](https://www.financedigest.com/end-of-year-overview-of-the-payments-industry.html "End of year overview of the payments industry"). Going forward, with EMVCo’s help to clearly define universal specifications and certification processes, the ecosystem should have an approval process for contactless kernels that is streamlined and more aligned to the certification of contact kernels. Building on this, the [move to mobile](https://www.financedigest.com/the-cleanroom-technology-market-to-be-on-the-mobility-move.html "The Cleanroom Technology Market To Be On The Mobility Move") will also continue to shake up the payments ecosystem. You can see that banks are increasingly expected to offer [mobile](https://www.financedigest.com/the-future-of-mobile-payments-and-e-wallets.html "The Future of Mobile Payments and E-Wallets") payments to their customers and the infrastructure is working hard to ensure seamless and secure payments. **Q: What expertise does FIME have in this space?** **Joe:** As EMV continues to evolve and migration progresses globally, issuers, acquirers, integrators, processors, schemes, [manufacturers and certification bodies](https://www.financedigest.com/uks-top-manufacturing-body-slashes-forecasts-for-2023.html "UK’s top manufacturing body slashes forecasts for 2023") all have a lot to consider. We work with the whole ecosystem, right from the start of projects to take away the pain with training, consultancy, tools and certification services. We’ve been working in this space for over 20 years, are involved in EMVCo to support the [development of the EMV Chip](https://www.financedigest.com/nintendo-says-chip-shortage-hitting-hardware-development.html "Nintendo says chip shortage hitting hardware development") Specifications and therefore have the experience and expertise to get projects completed quickly and successfully. Our [tailored training](https://www.fime.com/training-center.html?utm_source=slider%20training%20center) helps clients make sense of the constantly shifting payments landscape. By providing standard and customized training events and workshops, we [equip attendees with the knowledge and skills needed to guarantee a successful project](https://www.financedigest.com/warewashing-professional-equipment-market-is-projected-to-reach-us-6-94-bn-by-2027.html "Warewashing Professional Equipment Market is Projected to Reach US$ 6.94 Bn by 2027") outcome. \*EMV® is a registered trademark in the U.S. and other countries and an unregistered trademark elsewhere. The EMV trademark is owned by EMVCo. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---