EFT networks, which have been relied upon for decades to safely and securely manage real-time transaction processing for financial institutions and merchants, are perhaps not known as payment innovators. The Durbin Amendment may be the catalyst that changes all that as EFT network relationships are very much in play for both issuers and merchants. These networks now must be able to appeal to both constituents and the industry is very engaged in figuring out how to unlock the value these organizations can offer the market. This week, Shazaam, the last significant EFT cooperative in the market, is first out of the gate to announce its support of a dual message transaction.
“This support for both single and dual-message PIN products will allow SHAZAM debit cardholders to make PIN-based purchases at more online retailers than ever before. In addition to e-commerce, the dual-message PIN product will be useful at brick-and-mortar merchants that accept signature debit transactions, like restaurants, car rental companies and hotels.
“Our financial institution participants understand the importance of increasing PIN debit transactions in a post-Durbin world,” said Hollinger. “SHAZAM will be enhancing PIN processing though support of EMV chip and PIN technology and the dual-message PIN system technology. This will give debit cardholders more options, more security, and overall, more reasons to choose their SHAZAM card over any in their wallet.”
Appealing to merchants and issuers who like the reduced risk that PIN transactions offer with none of the friction involved in enabling an entirely new payment form, this strategy could be a winning combination.
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