CHICAGO--(BUSINESS WIRE)--With the October 2015 deadline for conversion to the EMV chip technology system less than a year away, banks and issuers are ratcheting up promotion of EMV enabled cards through enhanced customer communication and a shift in messaging within their credit card acquisition efforts. Chicago-based Competiscan has observed dramatic increases in direct mail acquisition offers promoting microchip-enabled credit cards, known as EMV, since the beginning of 2014, and expects this trend to continue.
The latest intelligence from Competiscan indicates EMV mentions within direct mail acquisition pieces from issuers surged from under 3 percent of all credit card estimated mail volume in the first quarter of 2014 to more than 33 percent in the third quarter. In addition, 7 of the top 10 credit card direct mailers by estimated mail volume have begun promoting cards with EMV via direct mail this year. Since EMV technology has been used in Europe for decades, it is not surprising Competiscan data also found that credit card portfolios tied to travel rewards or targeted to frequent travelers have been among the first to be transitioned to EMV and continue to see the highest mail volumes by issuers.
According to Richard Goldman, CEO & Founder of Competiscan, communications related to the EMV transition for existing cardholders also are increasing as issuers use direct mail, email and social media to promote awareness of EMV and to prepare consumers for the inevitable switch. This coincides with EMV enabled payment terminals increasingly appearing in national retailers like Walmart, which began converting payment terminals during this past summer, and now include placards aside the terminals with visual instructions on making payments using a chip-enabled card.
Additional market data from Competiscan shows banks are taking steps to reissue debit card portfolios. For example, Bank of America was the first major U.S. Bank to announce in late September 2014 that they would begin to rollout chip enabled debit cards on all new and reissued consumer and small business debit cards.
“Unlike conversion to the metric system, complete migration from swipe-and-sign to the EMV chip-and-PIN credit card system will happen in the U.S.,” said Goldman. “The rash of large-scale theft of credit card data is all over the national headlines, and half the world’s credit card fraud happens in America, so banks and issuers are taking this transition very seriously.”
Founded in 2006, Competiscan provides its valued clients insights into the direct marketing strategies of competitors. Competiscan and its powerful web-based search utility monitors direct mail, email, mobile, online banners, print, and social networking communications targeted at consumers, businesses, financial advisors, insurance producers, and providers over time. As the market leader, Competiscan’s clients are better informed leading to more effective communications and marketing with the ultimate goal of staying ahead of the competition. Visit www.competiscan.com.
