EMV systems are capable of three different transaction types: contact, contactless, and mobile. Contact and contactless payments use EMV smart chip cards, while mobile payments use mobile wallet applications on smartphones.
What are EMV mobile payments?
Unlike contact and contactless payments, mobile payments do not use an EMV smart card. Rather, they use a smartphone enabled with a mobile wallet application. Using NFC, the terminal interacts with the phone and application rather than with a smart card’s microprocessor.
Process
To begin a mobile payment, the customer waves his or her smartphone over the terminal. The terminal will verify the wallet through NFC, then authorize the payment.
Potential problems with EMV mobile payments
Experts advise that merchants take steps to educate consumers about mobile EMV payments because they are unlike traditional payment processes. U.S. consumers, who are used to card-based transactions, may need to be reassured that mobile payments are both possible and secure. Recent studies indicate that although people are aware that mobile wallet payment options exist, uptake has been slow because people are reluctant to believe that mobile wallets are secure and convenient.
Interested in accepting EMV mobile payments?
Host Merchant Services offers EMV solutions for business owners. If you’re interested in getting a head start on the rest of the U.S. market, contact an HMS sales representative today and ask about our EMV-compliant equipment and processing options.