MasterCard Introduces U.S. Roadmap to Enable Next Generation of Electronic Payments

Jan. 31, 2012
Framework to deliver enhanced consumer experience in-store, online, at the ATM and with mobile phones.

MasterCard today introduced a comprehensive roadmap focused on advancing the U.S. electronic payments system.

The roadmap, which includes the path for migration from magnetic stripe to EMV technology currently available on "chip" cards, will serve as the foundation for the next generation of products and services developed to enhance the way consumers pay.

As payments continue to evolve to include new devices and new channels, such as mobile and eCommerce, the roadmap takes steps to address how consumers really shop, providing them greater security and control in their payment choices and the potential to seamlessly integrate loyalty programs and offers into the purchasing experience.

"We're moving toward a world beyond plastic, where consumers will shop and pay in a way that best fits their needs and lifestyles with a simple tap, click or touch in-store, online or on a mobile device," said Chris McWilton, president, U.S. Markets, MasterCard. "Our roadmap represents a transformational shift in the approach to payments and is not simply about EMV, chip and PIN. We're focused on readying the ecosystem to drive future innovation and provide new consumer experiences to enhance the value of electronic payments. "

Defining the Framework

Elements of the MasterCard roadmap include:

  • EMV — Solidifying EMV as the foundation of the next generation of payments
  • Immediate focus on acquirer infrastructure — Working with acquirers to ensure infrastructure readiness by April 2013
  • Encouraging greater security and cardholder verification — Providing consumers with greater control and to reduce fraudulent transactions
  • Provide benefits for merchant terminalization — Providing true financial benefits for merchants as they implement EMV-compatible terminals
  • Cover all channels — Addressing all touch points where consumers will interact with MasterCard, including ATMs, the physical point-of-sale, online and mobile commerce
  • Commitment to leadership and collaboration — Fostering industry collaboration to deliver the next generation of payments into the U.S. marketplace

In implementing the roadmap, MasterCard will maximize the technology advancements and investments the company has made over 45 years to benefit the payments ecosystem.

"Customers from across the payments ecosystem have been asking for a roadmap," said McWilton. "We believe we've provided issuers and merchants with a vision to 'future proof' their businesses and the flexibility to manage their technology decisions to best meet their goals and priorities."

Foundation for Growth and Enhanced Security

In the increasingly digital world, transactions will get smarter. At the heart of this is dynamic authentication, where each transaction incorporates unique information, making it virtually impossible to replicate and reducing the risk of fraudulent transactions.

As issuers evolve their offering and merchants upgrade their terminals, the payments system will become more secure as this dynamic data is introduced into the payment transaction. MasterCard's roadmap strongly encourages the adoption of the most secure technologies available.

"Consumers deserve a great experience any time they use MasterCard products," said Ed McLaughlin, chief emerging payments officer, MasterCard. "As the industry invests in the upgrade to EMV in the U.S., we now have the ability to enhance the consumer experience and the security of a payment, regardless of the device — contactless card, mobile, eCommerce and technologies still to come."

Alignment, Collaboration and Leadership for the Road Forward

In its roadmap, MasterCard supports the need for the payments ecosystem to be aligned regarding the implementation of EMV standards in the United States. The company has indicated it will support current industry timelines in an effort to minimize disruption and to maximize investments across the payments ecosystem.

MasterCard was part of the original group that created the EMV standard and has supported the successful migration to EMV-based payments in nearly every major market globally. The company's continued investment in advancing these infrastructure standards has provided insights and expertise to guide the industry in advancing payments security and convenience.

"The shift to dynamic data in the transaction process will help ensure greater consistency, security and functionality between the U.S. region and the rest of the globe," said George Peabody, director, Emerging Technologies Advisory Service, Mercator Advisory Group. "Merchants and issuers need a clear and consistent roadmap for payment card security and innovation. MasterCard's approach, starting with EMV, will benefit consumers and the industry."

Additional detail on the roadmap and implementation activities will be provided to MasterCard customers in the coming weeks and months. In the meantime, initial resources can be obtained at