[September 13, 2011] Visa and ViVotech: modernizing US card payments Tweet Sep 13, 2011 (Datamonitor via COMTEX) -- California-based ViVotech is launching a new generation of point-of-sale terminal in an attempt to entice US merchants into embracing EMV and contactless transactions. Combined with Visa's plans to introduce its TIP to the US, there is now both the technology and commercial encouragement required to finally modernize American card payments. The US is about to undergo a transformation in the way that consumers interact with merchants and pay for their products. A new generation of market-leading card payment terminal, the ViVopay 8100, offers merchants the capability to handle the full range of EMV, contactless, and near-field communication (NFC) transactions, as well as traditional swipe and sign. Such is the range of services on offer that ViVotech has tentatively coined the terminal a "point of interaction," rather than the traditional point of sale. This style of payment flexibility will help merchants appease those customers who are reluctant to change while meeting all the requirements for the Visa Technology Innovation Program (TIP), due to be rolled out in the US on October 1, 2012. For merchants who use chip-enabled terminals for at least 75% of their Visa transactions, the TIP will remove the requirement for them to validate their Payment Card Industry Data Security Standard compliance, with $2bn of potential market-wide annual savings. The combination of a financial incentive to adopt the new technology with a consumer-friendly format will hand a significant competitive edge to those businesses which make the leap to 21st century card payments. There is good reason for Visa to be confident that the time is right to roll out the TIP in the US, having already secured the support of a number of major retailers, including global foodservice giant McDonald's. With Visa cards accounting for more than half of all the 82 billion card transactions that occurred in the US during 2010, the company's actions will have a major impact upon the entire market. Datamonitor's Matthew Heaslip adds: "Given the increasing interest among US retailers in modern payment methods, the incentives on offer, and the flexibility of the latest generation of payment terminals, the shift away from swipe and sign will now begin to gain momentum." For more information on the US card payment market, why not consult Datamonitor's Global Payment Card Analyzer? http://www.datamonitor.com Republication or redistribution, including by framing or similar means, is expressly prohibited without prior written consent. Datamonitor shall not be liable for errors or delays in the content, or for any actions taken in reliance thereon [ Back To TMCnet.com's Homepage ]