Brief history of EMV adoption
(EMVCo, LLC, 2014) Chip cards were originally invented in 1977. The first mass deployment of chip cards for payment by the banking industry was in France in 1984, driven by a need to reduce high levels of fraud due to counterfeit and lost/stolen magnetic stripe cards. By 1994 all French banks carried chip cards, deployed using the French specification called B0’, and were able to significantly reduce fraud. Based on this success, there was a spread of chip card adoption throughout various markets in Europe in 1990s. Each of them had specifications tailored to their local market. The inter-operability issues created a need for a global standard. Europay, Mastercard and Visa joined together in 1994 to form EMV, in order to create a global standard and had their first field trial in 1997. With 1.62 billion EMV-compliant payments cards in use worldwide, EMV has certainly transformed the payments landscape.
EMV evolved from its initial three members, into a consortium called EMVco formed in 1999, consisting of Visa, Mastercard, JCB, American Express, China UnionPay, and Discover. It functions as the standards body for EMV specifications and to ensure its global interoperability.
Along with EMVco, there are various stakeholders who are crucial to the successful adoption of EMV. They are namely the merchants (acceptors), acquirers/processors, issuers/banks, payment system integrators and value-added resellers (VAR). While deployments