NXP Semiconductors has announced the results of its ‘Security Matters: Americans on EMV Chip Cards’ survey.
To gain further understanding of how confident Americans are in the security of EMV chip card technology and debit/credit card purchases in general, NXP polled more than 1,000 American adults on credit card usage, behavioural trends and consumer sentiment toward the electronic and cashless movement.
Attitudes towards Breaches and Retail Hacks
Overall sentiment reveals that while consumer confidence in credit card technologies remains high, Americans continue to demand better solutions that protect identity, personal information and financial data. With recent reports of compromises in security at Target, Neiman Marcus, PF Chang’s and other retailers, Americans are more likely to pay in cash following a security breach at large retailers, with 37% of the millennial age group (18 to 34 years of age) being the most likely to convert to cash. For example, 80% of Americans are confident in their financial institution and the security of their financial accounts, as well as the security and protection of their credit/debit cards (73%).
However, once a security breach at a major store occurs, consumers automatically turn to less convenient forms of payment (64%) – such as cash – to complete a purchase.
Credit Card Protection Technology
Respondents were asked a number of questions pertaining to security, confidence in financial institutions and credit cards, purchasing habits, geographic location, gender and general understanding of current magnetic strip and EMV technology. When asked specifically about the underlying technologies of a credit or debit card, Americans responded favourably, with 69% stating that EMV chip cards are making their debit and credit card transactions more secure, with only 5% feeling chip cards make their transactions less secure. When asked about the tap and pay feature available on some EMV chip cards, the most common concern expressed was an increased risk of theft (61%), followed by 37% expressing concerns about being charged incorrectly for purchases.
Security and Personal Information
- 69% of Americans feel EMV chip cards make their debit or credit card transactions more secure
- 28% believe they are much more secure
- 31% of men believe they are much more secure compared to 24% of women
Security of finances
- 73% of Americans are confident in the security of their credit/debit cards or their financial accounts (80%) with their primary financial institution
- 33% are very confident in the security of their accounts, compared to 26% feeling very confident in the security of their credit/debit cards
- 64% of Americans say they are more likely to pay in cash after hearing about security breaches at large retailers
- 36% say they are not more likely to pay in cash
- 37% of 18 to 34 year olds say they are much more likely compared to 27% of 35 to 54 year olds and 23% of those 55+
- 5% believe chip cards make their transactions less secure
From this survey, we see a high consumer awareness of EMV chip card security and readiness to adopt secure technologies that protect credit and debit card purchases,” said Brintha Koether, Director Payments at NXP Semiconductors. “We recognize the sensitivity and loss of trust consumers immediately feel after learning of a major security breach. We have seen how secure chip technology employed outside the U.S. drastically reduces fraud as well as builds consumer confidence in card transactions, financial institutions and retailers
For full NXP Retail Hacks survey click NXP Study.