Prioritize Tokenization To Secure The Payment Chain

Is the credit card as US consumers know it dead? With the recent massive credit card data breaches at retailers such as Target and Home Depot, the payment industry is ripe for change. In this report, we extrapolate from a variety of variables, including those large customer data breaches; the payment liability shift that will happen in October 2015; the level of security of mobile and Europay, MasterCard, Visa (EMV) contactless payments; and mobile device adoption in the US topping 72%, to help security and risk (S&R) professionals chart the future course of the US payments market. Forrester expects that more secure, encrypted, and tokenized transactions on digital wallets, mobile-device-based near-field communications (NFC) virtual cards, and EMV contactless payments will prove strong competitors to plastic EMV chip-and-signature and chip-and-PIN payments in the US. Thus, Forrester predicts that plastic EMV won't achieve broad adoption in the US until 2020.