In an effort to help meet what it expects to be quickly increasing consumer demand for new types of payment technology, one of the nation’s largest credit card issuers is now rolling out a new type of point of sale terminal.
Chase Paymentech, a subsidiary of JPMorgan Chase, recently unveiled its new Future Proof point of sale terminal which it says will help businesses and consumers to more quickly adopt newer, more secure types of transactions, the company announced. Future Proof is a single device that can handle transaction types as wide-ranging as traditional swipes and EMV-enabled cards, as well as mobile wallets and other types of contactless payments.
Each of the new types of purchases are said to be more secured than traditional credit card transactions because of the way in which they store data, the report said. For instance, EMV cards use a microchip embedded in the card, rather than a simple magnetic strip, to save payment data, and studies have shown that it is therefore far less susceptible to fraud, and nearly impossible to counterfeit. Further, mobile wallet technology uses both similar microchips and other forms of security to further ensure that transactions are safer.
Experts also believe that mobile wallet transactions can be a boon to businesses as well as consumers because of the technological capabilities smartphones carry inherently, the report said. For instance, through mobile wallet apps which allow the phone to use its embedded near-field communications technology to make credit card purchases, consumers may be able to link their payments to store loyalty and similar accounts. This is generally believed to be one of the best ways businesses can encourage shoppers to adopt mobile wallet technology for the first time.
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It’s generally believed that there are two hurdles to widespread adoption of mobile wallet technology: fears over security and lack of available technology. The latter issue will likely be resolved with the next generation of smartphones, which should come out by the end of the year, but the former is a bit trickier to overcome. Experts say the only way to assuage consumer worries over security of their transactions is over time, by demonstrating that they are less likely to be hit by fraud when using this purchasing method. However, they also note that businesses could do more to incentivize early adoption.