On June 27, Chase Paymentech, a subsidiary of JPMorgan Chase & Co. launched a new terminal called Future Proof designed to accept emerging forms of customer payments in a single, streamlined device. In particular, the terminal is intended to help merchants accept the EMV or chip card technology now the standard in Europe.
Mike Duffy, Chase Paymentech president said, in a statement, “As emerging payment options gain adoption in the U.S., merchants are looking to make the customer check-out process as easy and safe as possible. The Future Proof terminal is a one-stop solution for merchants to keep accepting today’s forms of payment and prepare for new customer payment preferences on the horizon.”
A Terminal Prepared for All Transaction Types
The terminal, which will be available through the 5300-bank branch network maintained by Chase, offers a high degree of payment flexibility to a range of merchants including:
- traditional magnetic stripe cards,
- EMV or chip-enabled cards,
- smartphone-based mobile wallet applications,
- contactless payments.
The move to bring EMV technology to consumers in America is part of an industry effort to combat fraud and identity theft and to plug into the near explosion of mobile payment options tied to customer incentives like coupons and loyalty programs.
The Future Proof Terminal in Action
To use an EMV card with the new terminal, the customer inserts the card for verification. The technology generates the necessary authentication for single transactions only. Even if the card were to be lost or stolen, the thieves could not use the data it contains to steal either the user’s identity or funds.
For contactless transactions, the customer simply taps the card against the terminal to make a payment. Near field communication technology embedded in mobile wallet applications installed on smartphones also allows for contactless payment with the new terminal. In these cases the customer waves the phone over the terminal to transmit the necessary transaction data.
Merchants using the Future Proof Terminal have the option to accept traditional debit and credit cards, but are prepared to do business with the new, high-security chip cards, and to remain on the cutting edge of mobile wallet payment transaction acceptance. Customers already perceive credit card transactions to be more secure in terms of managing their money in the event of a complaint or a return.
Card-based transactions result in 1.5 times as many purchases than instances in which the customer uses cash. The faster and more transparent the merchant can make the purchase, the more the customer is likely to spend and the greater their satisfaction level.