Market News

MasterCard Commits to Chip-Enabled Cards

Chip-enabled payment cards promise to be the wave of the future, if the 12 MasterCard card issuers and five payment processors make good on their recent promise to introduce these sophisticated improvements to our retail existence by 2010. This unprecedented commitment to chip technology means increased security (they require the use of a PIN), convenience and value to consumers and businesses. A chip card contains a microchip akin to a small computer processor with memory, logic and a set of software applications. Chip cards have the capacity to store more information than the current magnetic-strip cards, and therefore the capability to implement sophisticated payment applications and customized programs. For example, businesses can design more flexible reward programs that can be activated instantaneously when a customer chooses to use a certain payment application. Source: Canadian Grocer E-Newsletter, Jan. 6,2006.