Chip Card Outlook: Leading Manufacturer OT Offers Six-Month Overview as Demand Grows for EMV in USA
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May 14, 2014 (www.investorideas.com newswire) CARTES America, Las Vegas, NV, May 14, 2014
Oberthur Technologies, the leading global supplier of EMV products and services with more than 1.5 billion chip cards delivered worldwide, announced it has extended its manufacturing and personalization services hours, added new equipment and is hiring to meet the growing demand resulting from the data breaches at major retailers including Target, Neiman Marcus, Michaels and others.
"We are on target to get millions of chip cards into the hands of American consumers in the next six months," said Martin Ferenczi, President, for North America at Oberthur Technologies. "OT has the capacity to produce millions of chip cards in the U.S., meeting the highest security standards set out by banks, credit card companies and the federal government."
Here is an overview of what to expect during the next six months:
Counterfeiters take a hit – Chip cards generate an encrypted, numeric code for each transaction that cannot be reissued or replicated. "It’s impossible for a criminal to make a counterfeit card because if they could get to data it would be an unusable transaction code, not a card number," Ferenczi said. "Counterfeiting will start to decline as EMV replaces current cards."
Less vulnerability when paying at stores – Chip cards are being issued by the millions in the U.S. right now, but most of us still have only cards with magnetic stripes on the back. "Current credit cards leave us vulnerable when we make in-store purchases, and chip cards are changing that," Ferenczi said.
Retailers embrace chip card technology to enhance their brand – The largest retailers have card readers at the register that can be programmed to accept chip cards. For other retailers, they must purchase new card readers with costs starting at just a few hundred dollars and varying based on the size of retailers and number of registers. "For retailers, their brand is tarnished when there’s a data breach. Sales fall because consumers are worried about their private information being stolen. The losses have mounted up significantly in 2014, and retailers are taking notice," Ferenczi said.
Beating the holiday rush...safely – There’s a sense of urgency to get chip cards to consumers before the 2014 holiday shopping season begins. "It’s an economic issue at this point. From manufacturers selling goods, retailers distributing and shoppers buying, the entire chain needs chip card security," Ferenczi said.
OT has three certified manufacturing and service facilities in the U.S. and one certified service center in Canada.
ABOUT OBERTHUR TECHNOLOGIES
OT is a world leader in digital security solutions for the mobility space. OT has always been at the heart of mobility, from the first smart cards to the latest contactless payment technologies which equip millions of smartphones. Present in the Payment, Telecommunications and Identity markets, OT offers end-to-end solutions in the Smart Transactions, Mobile Financial Services, Machine-to-Machine, Digital Identity and Transport & Access Control fields. OT employs over 6,000 employees worldwide, including 600 R&D people. With more than 50 sales offices across 5 continents and 10 facilities, OT’s international network serves clients in 140 countries. For more information: www.oberthur.com.
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