EMV Becomes a Consumer Reality: Tracking the Increase in Chip-Based Transactions


Navigator Edition: November / December 2016
By: Melissa Fox and Chris Razzano

A year has passed since the EMV fraud liability shift went into effect in the U.S. Adoption among both issuers and merchants is still underway, but as migration on both sides of the payments value chain increases, EMV chip transactions are beginning to represent a meaningful percentage of overall debit transaction volume.

First Annapolis began monitoring issuers’ EMV performance metrics in Q1 2016 as a supplement to our Debit Issuer Benchmarking Study (see Figure 1).

Figure 1: Quarterly EMV Performance Metrics (2016 YTD)

*Active is defined as cards that have been used to perform at least one POS transaction in the past 30 days
Source: First Annapolis Consulting, Debit Issuer Benchmarking Study. Results reflect the unweighted sample average of data provided by 6 issuers, representing 50MM cards.

Among the leading debit issuers tracked by First Annapolis:

  • 63% of issuers’ debit cards are EMV-enabled, on average, as of Q3, up from 52% in Q1;
  • Active EMV-cardholders performed an average of 26.8 debit transactions per month in Q3, of which 6.9 (26%) were chip-based transactions (chip-on-chip), up from 1.5 in Q1; and
  • Chip transactions accounted for 18.1% of participating issuers’ total debit volume, up from 4.2% in Q1.

Our quarterly data show the combined effect of rising adoption levels by both issuers and merchants. While EMV adoption still has a ways to go, particularly on the merchant side, EMV technology is now mainstream, and chip transactions have become an increasingly common consumer experience.

For more information about the Debit Issuer Benchmarking Study, or to become a participant, please contact Melissa Fox, Senior Manager, melissa.fox@firstannapolis.com, or Chris Razzano, Senior Analyst, chris.razzano@firstannapolis.com.

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