In a keynote speech delivered earlier this week at Money 20/20, Twitter and Square CEO Jack Dorsey conveyed consumers’ dislike for the time it takes for an EMV contact card transaction to execute at the POS. Fortune reported that the Dorsey described the sentiment consumers have as one of “hate”:
During a keynote talk at the Money2020 fintech conference on Monday, Dorsey said the emotion that the next generation payment plastic garners is “one of hate,” despite the technology bolstering payment card security.
“People aren’t happy,” he said. “It’s really, really, really slow.”
That’s some pretty strong language for a payment transaction. Mercator’s own survey data reveals that consumers do notice a time lag or have the perception that transactions take longer with chip cards than they did with magnetic stripe cards. As chip cards and terminals become more prevalent, however, consumers are less and less concerned or bothered.
Square, like other terminal providers, is looking to reduce the transaction times not just through faster contact chip transactions but alternatives like contactless:
Square, which makes point of sale terminals for retailers, has been exploring other technologies such as contactless payment through near field communication, or wireless radio connections. The company also anticipated Apple’s AAPL 0.34% decision to kill off the headphone jack for its next generation of mobile devices with a workaround.
“Faster transaction times so merchants can see more people, that’s what truly matters,” Dorsey said. “Our creativity starts with how to make it faster.”
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
Read the full story here
