JAVELIN Identifies Demographics of EMV Cardholders and the Need to Educate Consumers

San Francisco, CA, June 24, 2015: EMV has been widely perceived as more stick than carrot, with both issuers and merchants dragging their feet on the October 2015 readiness milestone. However, the actual state of EMV card penetration — and, more important, the extent of cardholder awareness — has been elusive. Today, JAVELIN released State of EMV Cardholders:  Opportunities to Capitalize on the Halo Effect, which provides a diagnostic snapshot of the state of cardholder awareness of EMV, and looks at the differences (and similarities) between EMV cardholders and non-EMV cardholders.

Overwhelmingly, the most common form of customer education about EMV was through printed material sent along with the new card. 47% of EMV cardholders said this is how their primary bank informed them about what the chip was for. Incidentally the least effective channel for cardholder education was printed material. Other educational channels included online banking, text messaging, mobile banking app, and call center. EMV cardholders have a far better perception of their primary FI compared to non-EMV cardholders.

“Neglecting cardholder education on EMV is a squandered opportunity for banks to shine. The halo effect from EMV will not last long -- only a few short years -- because of the normalization process of EMV in the public domain,” said Nick Holland, Head of Payments, JAVELIN. “For FIs to capture consumer attention, they need to proactively educate across a variety of media.”

Based on an extensive study of more than 8,500 U.S. retail bank customers conducted in November 2014, the report State of EMV Cardholders: Opportunities to Capitalize on the Halo Effect assesses not just the degree of EMV card penetration among major financial institutions (FIs) in the U.S., but the degree of cardholder awareness, education, and methods of education relating to EMV.

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JAVELIN, a Greenwich Associates LLC company, provides strategic insights into customer transactions, increasing sustainable profits for financial institutions, government, payments companies, merchants and other technology providers. Javelin’s independent insights result from a uniquely rigorous three-dimensional research process that assesses customers, providers, and the transactions ecosystem.

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