Which Will Make a Bigger Splash in 2012, Mobile Wallet or EMV?

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During the latter half of the past decade, a heated battle has been fought around the world to determine which payment method will take center stage in the coming years. Many believe mobile payment will leapfrog what is known as EMV, which stands for Euro MC/Visa, or chip and PIN credit card technology, and that soon enough chip and PIN technology will go the way of the magnetic striped credit card.

Certainly, there are many major companies that have wagered heavily on the presumed success of their chosen technology, and these companies have a vested interest in the failure of their rivals. Personally, I think there is more than enough room for both Mobile Wallet and EMV.

Google recently introduced Google Wallet, a mobile app that turns your phone into a wallet by securely storing your credit cards on your phone, as well as promotional offers. When you make a purchase from a brick-and-mortar store that accepts Google Wallet, you can pay and redeem offers quickly by simply tapping your phone at the point of sale.

Google Wallet facilitates online shopping by securely storing your credit cards for use on the Internet as well. Paying is quick, easy, and safe when you make a purchase from an online merchant that accepts Google Wallet.

Meanwhile, Visa has announced plans to “accelerate the migration to EMV contact and contactless chip technology in the United States.” The company intends to encourage investments in infrastructure necessary to accept and process both new forms of payment technology. Jim McCarthy, Visa’s global head of product, explains, “We will speed up the adoption of mobile payments as well as improve international interoperability and security. As NFC mobile payments and other chip-based emerging technologies are poised to take off in the coming years, we are taking steps today to create a commercial framework that will support growth opportunities and create value for all participants in the payment chain.”

The fact that Visa has opted to recognize and support the development of both mobile payment and EMV affirms the likelihood of both technologies’ success.

Robert Siciliano, personal security expert contributor to Just Ask Gemalto. Disclosures