SOURCE: The Smart Card Alliance

The Smart Card Alliance

November 17, 2009 02:00 ET

Smart Card Alliance Study on EMV/Chip in Brazil and Mexico Finds That Payments Fraud Reduction Is Top Driver for Adoption

Organizations to Host Webinar to Discuss Findings

VILLEPINTE, FRANCE--(Marketwire - November 17, 2009) - Cartes & Identification -- Reducing payments fraud is the top driver for issuers and acquirers to adopt EMV/chip in Brazil and Mexico, according to a new study from the Smart Card Alliance Latin America (SCALA), produced in participation with Visa Inc., available for sale today. Other important findings: respondents are also driven to adopt EMV/chip cards in order to position themselves as innovators and technology leaders, and they all expect to have 100 percent of their credit and debit card portfolios migrated to EMV/chip within one to five years.

SCALA and Visa commissioned First Annapolis Consulting to survey issuers and acquirers in Brazil and Mexico on the current state of EMV migration and the long-term growth of the EMV market. The resulting report, "EMV Migration Study and Market Analysis on Mexico and Brazil," is available for purchase by both Smart Card Alliance members and non-members by visiting

The organizations will host English, Portuguese and Spanish language webinars on the study findings. The English language webinar will take place on December 1st at 11:00 A.M. eastern standard time, while the Portuguese and Spanish webinars will take place on December 8th at 11:00 A.M. eastern standard time and 12:00 P.M. eastern standard time, respectively. Registration for the webinars is available at

"With the global payments industry migrating to chip technology for credit and debit cards, it's important to understand the drivers and best practices for implementation. Mexico and Brazil are ideal markets to study, as they are well on their way to full migration," said Edgar Betts, associate director, Smart Card Alliance Latin America. "The number of respondents that said fraud reduction is the main driver for adoption was overwhelming; almost all survey respondents claim a marked reduction in overall fraud rates, particularly with domestic counterfeit fraud. We also found it exciting that the respondents see contactless, loyalty programs, and multiple applications as a natural evolution for the cards."

In addition to the detailed review of the adoption drivers, the report also reviews implementation considerations, migration strategies, business impact and evolution for Brazilian and Mexican issuers and acquirers. The study forecasts the size of the EMV/chip market in Brazil and Mexico through 2015, including chip cards, point-of-sale terminals and transactions.

"Visa has been spearheading the migration to EMV/chip worldwide as a solution to prevent fraud, especially card skimming, but also as a great platform for added services," said Jurgen Wassmann, head of emerging products and channels for Visa Latin America and the Caribbean. "In the markets where issuers, acquirers, merchants, brand networks, industry groups and the government collaborate, EMV/chip adoption efforts have accelerated the fastest."

The study reports results from surveys and interviews with 13 issuers and acquirers in Mexico and Brazil, which captured perspectives from a wide variety of organizations that had direct experience with implementing EMV/chip cards. The study addresses these questions and more:

--  What were the key factors influencing the adoption of EMV/chip cards
    and EMV-compliant merchant terminals for issuers and acquirers in Mexico
    and Brazil?
--  What challenges were encountered during the EMV/chip migration
--  How are organizations leveraging EMV/chip technology to improve
    performance, introduce new products and services, and capture new market
--  What is the "next wave" in the evolution of the EMV market?
--  What is the business impact of EMV/chip adoption for issuers and
--  What is the EMV/chip market size in Mexico and Brazil through 2015?

For more information on "EMV Migration Study and Market Analysis on Mexico and Brazil" and webinar from SCALA and Visa, please visit

About the Smart Card Alliance Latin America (SCALA)

The primary mission of the Smart Card Alliance Latin American chapter is in line with the overall goal of the Alliance: to stimulate the understanding, adoption, use and widespread application of smart cards. The Alliance plans to use specific projects such as bilingual education programs, market research, advocacy, industry relations and open forums to keep Latin American chapter organization members connected to industry leaders and innovative thought.

About the Smart Card Alliance

The Smart Card Alliance is a not-for-profit, multi-industry association working to stimulate the understanding, adoption, use and widespread application of smart card technology.

Through specific projects such as education programs, market research, advocacy, industry relations and open forums, the Alliance keeps its members connected to industry leaders and innovative thought. The Alliance is the single industry voice for smart cards, leading industry discussion on the impact and value of smart cards in the U.S. and Latin America. For more information please visit

About Visa Inc.

Visa Inc. operates the world's largest retail electronic payments network providing processing services and payment product platforms. This includes consumer credit, debit, prepaid and commercial payments, which are offered under the Visa, Visa Electron, Interlink and PLUS brands. Visa enjoys unsurpassed acceptance around the world, and Visa/PLUS is one of the world's largest global ATM networks, offering cash access in local currency in more than 200 countries and territories. For more information, visit

About First Annapolis

First Annapolis is a management consulting firm focused on the financial services industry, with specialties in merchant acquiring, electronic commerce, credit card issuing, commercial card and private label card programs, and mortgage banking. With over 50 professionals, First Annapolis specializes in advising clients on strategic and tactical matters across all major payment products and services including credit cards, deposit access products, and commercial payment vehicles. First Annapolis brings an unparalleled level of expertise in traditional and emerging payment market segments. For more information, visit

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