Why Apple Pay and Other Mobile Wallets Beat Chip Cards – NYT

I’ve wondered if some market networks might begin to accept mobile wallet payments.

Also, the title may be slightly misleading. The article goes on to say:

Stephanie Ericksen, a Visa executive who works on security solutions for new payment technologies, says the sluggishness of the chip is largely a perception issue. The actual transaction time behind a mobile payment and a chip card is the same.

But with the chip, most merchant terminals require you to leave the card inside the reader until the transaction is complete and wait for a screen to tell you that you can remove the card. With the mobile payments, you can just tap the phone, and there is no extra screen telling you to remove the phone, which partly explains why the transaction appears to move along more quickly.

Visa is addressing the perception of sluggish transactions with Quick Chip. It is basically a coming software upgrade that will allow the terminals to instruct the customer to dip the card and remove it right away.

Link to NYT story


1 Comment

  1. The story I want to see is how did the industry start this whole chip implementation without noticing how few factories make the cards?

    We still see a minority of chip cards in our towns. At this rate the “new” machines will be dead before the chip cards are out in force.

    Merchant services folks have not launched all the software needed, but I cannot blame them for not rushing if the cards are trickling into the system.

    We did our first Apple Pay a week ago using the Square reader. I think it can happen with one or both of our regular wireless card readers.

    Square’s new chip reader is much better than last year’s dual device.


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