EMV Specifications: Enabling Safe and Convenient Payments

COVID-19 has had an unparalleled impact on all aspects of life globally, including business and across all industries. Payments is no different. In this Q&A post, Brian Byrne, EMVCo Director of Engagement and Operations, provides insight into how the flexibility of the EMV® Specifications and testing infrastructure are enabling safer and more convenient payments in the midst of the global pandemic, and the importance of industry engagement to this process now and looking ahead. COVID-19 has had a huge impact on the way we shop and pay in-store. What role are the EMV Specifications playing? Brian Byrne: Perhaps the most significant trend for face-to-face payments during the pandemic has been the increasing reduction in cash usage. Consumers have shifted from cash to card payments, a method that many retailers prefer during this time. This shift falls in line with guidance from global public health bodies for consumers to use alternatives to cash where possible. In particular, we are seeing a growing preference for payment methods that limit contact to help remove any physical interaction at the point-of-sale. This includes EMV contactless transactions and QR code-based payments. At EMVCo, our role is to provide a common and secure foundation for development and deployment of these and other forms of card-based payments. We anticipate the trend towards payments that limit contact to continue beyond COVID-19, and our focus is to evolve the EMV Specifications to support the future requirements of the payments industry. For example, in response to feedback from our Associates community, we have established a dedicated task force to explore how EMV Specifications can support the use of wireless technology such as Wi-Fi and Wi-Fi direct, Bluetooth Low Energy (BLE) and mobile data. This could enable in-store payments without the payment device (e.g. a smartphone) being in immediate proximity to the payment terminal. You talk about transactions that limit contact, but what about consumers touching terminals to enter a PIN? Do all EMV Chip transactions require a PIN? Brian Byrne: No. Although EMV Chip is often associated only with PIN, the specifications support various types of cardholder verification methods (CVMs). These include online and offline PIN, no verification and signature, as well as multiple biometric verification types including fingerprint (via the cardholder’s own device, e.g. mobile phone), iris, voice and facial recognition. EMV Specifications also support Consumer Device Cardholder Verification Methods (CDCVM), which enable consumers to verify themselves using the authentication capabilities of their own mobile device. For example, the fingerprint reader you use to unlock your phone can also authenticate your payment. Why do the EMV Specifications support so many CVMs? Brian Byrne: The simple answer is that every marketplace is different, so the EMV Specifications need to support global, regional and local requirements. In my native Australia, it has been the case for some time that most card-present transactions are contactless with no cardholder verification method (CVM) required. With COVID-19, we are now seeing this trend reflected across other marketplaces. In the US, there has been a significant uptick in contactless transactions as consumers are understandably cautious about entering their PIN or signing their name. The inherent flexibility of the EMV Specifications supports these changes in consumer behaviour and merchant preference. There has also been a significant increase in card-not-present (CNP) payments due to COVID-19. Are the EMV Specifications only for face-to-face payments? Brian Byrne: No. In recent years, the EMV Specifications have evolved beyond EMV chip and now enable industry participants to develop and use secure and convenient payment methods across face-to-face, e-commerce and digital environments. EMV Specifications for e-commerce and dig