JP Morgan Comments on MasterCard's EMV Announcement

JP Morgan has published a research report on Payment Processing today after MasterCard MA reported last night its EMV (Europay/MasterCard/Visa) strategy in the US designed to enhance security. In the report, JP Morgan writes, "This announcement is clearly a positive for the POS terminal manufacturers, as it gives merchants another reason to upgrade their terminals. We note payment networks have a history of extending security deadlines. Although there is no mandate for the issuer side, we believe the shift to EMV will also provide a mild lift to card processors (e.g. FIS) as cards are reissued to be EMV compliant. The move increases the technological requirements and could shift the financial burden of fraudulent transactions to merchant acquirers, though we see potential for acquirers to charge EMV fees directly to merchants in certain cases." Companies related to this report include: MasterCard MA Overweight Visa V Overweight VeriFone PAY Overweight