As of third quarter, MasterCard and Europay’s member financial institutions have issued more than 100 million MasterCard®-, Maestro® -, Mondex®-, and Clip-branded cards with integrated circuit chips on them. Cards counted in this total run the gamut from EMV-compliant multiapplication cards carrying M/ChipTM and other value-added applications, to magnetic stripe debit cards carrying an electronic purse function on the chip.
This milestone reflects MasterCard’s focus on providing its members with a comprehensive level of technical support, in addition to marketing programs that provide members with the flexibility to differentiate their smart card programs in the marketplace.
It also demonstrates Europay’s continued leadership in driving chip technology forward.
"Global smart card adoption is now reaching critical mass," said Art Kranzley, chief e-Business officer, MasterCard International. "This growth exemplifies the momentum that can be achieved when innovative technology and value-added services are introduced for the right reasons at the right time."
Europe is the leading region in terms of current smart card issuance. In France today, all MasterCard®-branded cards are smart cards, and the United Kingdom is now converting all general purpose cards in that country to smart cards.
In fact, Europe is now in the midst of a continent-wide migration to the global EMV standard, allowing financial institutions and their cardholders to benefit from globally interoperable cards and terminals.
In Europe, Europay International was the first payment system to develop and implement a comprehensive set of rules for smart cards and chip terminals. Europay also was the first payments association to introduce chip migration incentives (a liability shift policy which takes effect on Jan.1, 2005 governing counterfeit fraud, and a preferred interchange for acquirers investing in EMV-compliant chip terminals).
In the Asia/Pacific region, more than one million MULTOS® multiapplication smart cards have been issued under MasterCard’s $2.99 chip program. Kookmin Card Co. of Korea recently issued 300,000 MasterCard multiapplication smart cards incorporating Mondex®, as part of the TradePass program in Korea.
In May 2001, COSMOSBANK, Taiwan ordered 100,000 smart cards. In collaboration with MasterCard International and Core Pacific City, COSMOSBANK issued the first smart card in Taiwan that complies with the EMV international standard for smart cards.