Data from Black Friday Shows Rise in 'EMV'
Although Black Friday feels like a long time ago, there is a residual impact that retailers across the country are still taking careful note. Even though consumers spend a total of $5 billion in e-commerce on Black Friday, more than 16 million shoppers still, physically went out to stores across the US, making 1 million transactions with (mostly) credit cards. This means that the "in-store" experience has yet to die down for most consumers.
Data from Cyan, which is explained in an article from Business Insider, highlighted some very important trends regarding payment methods from Black Friday, in particular, the rise of 'EMV' transactions. 'EMV' stands for Europay, Mastercard and Visa, and is a global standard for cards equipped with computer chips and the technology used to authenticate chip-card payments. This is a technology that has existed in Europe for years as a means to quell identity theft and make transactions more secure, but the technology has clearly become mainstream in the U.S. this past year.
Following its slow lift in 2015, on Black Friday 2017 about 73% of all credit card transactions were chip-on-chip payments. According to Cyan, this represents a massive increase over just 55% in 2016. This is also good news for retailers because it shows that there is a decline in in-store card fraud thanks to the security provided by chip-card readers.
On the other hand, many expected that mobile payments (paying with your smartphone or tablet) would also be on the rise, but that just was not the case on Black Friday 2017. Mobile payments accounted for about 1.0% of in-store purchases according to Cayan, but compared to the 0.67% of payments made on smartphones in 2016, this represents a 67% increase year-over-year. Even though usage is improving, the result for mobile payments is still insubstantial enough to effect consumer habits.
The chart from Business Insider below shows the breakdown of transactions made on Black Friday by payment type in 2016 compared to 2017. The main takeaway? There ought to be a bigger push to make EMV technology the standard across the industry and not just make it a luxury to those who bank-big. Everyone deserves monetary protection. The companies of Mastercard and Visa will definitely be worth watching in the coming months and years with how far they take this technology.