Reply to post: Re: "but it is going to cost them a lot of money because"

Google Pay heads for the desktop... and, we fear, an inevitable flop

Kristian Walsh

Re: "but it is going to cost them a lot of money because"

There's a fundamental difference between Europe and the USA that you're probably unaware of, which explains why we're up to date and the US isn't.

In Europe, the banks run the entire card payment system chain, including leasing the terminal equipment to retailers as part of their card-payment account. The equipment remains the property of the banks. So, if the banks want everyone on Chip+PIN, they can send their merchant-account holders new terminals, and then after a certain date, they stop accepting signature slips (actually they still accept sigs, but the merchant bears the cost of fraud). Even new entrants like Clover and SumUp are still in this model - merchants don't pay the full price of their terminals.

In the USA, merchants purchase their payment equipment outright, so it belongs to them, not the banks. If the banks wanted everyone on Chip+PIN (and they do - Credit card fraud in the USA is rampant), but the merchants say "no, I'm not spending any more money this year" then there's no way that any rollout will reach critical mass, and so the country's stuck on magstripe and signature.

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