Magazine article American Banker

In the Mobile Payments Dongle Battle, Does EMV Matter?

Magazine article American Banker

In the Mobile Payments Dongle Battle, Does EMV Matter?

Article excerpt

Byline: John Adams

Dutch payment services company Adyen is taking the grand tour of Europe this week, hitting London, Berlin and Amsterdam to sell a new mobile payments technology that would appear to give it a built-in advantage over competitors in the U.S. such as Square and Bank of America.

Adyen has developed a reader called Shuttle that accepts card payments that are in compliance with the Europay, MasterCard and Visa (EMV) chip-and-PIN standards. As EMV starts to become adopted in the U.S., Adyen's technology would potentially place it ahead of mobile payment players like Square and Bank of America. Square is a startup that's generated lots of buzz with its dongle that attaches to mobile devices as a means to accept card payments; its founder, Jack Dorsey, was recently named American Banker's Innovator of the Year. Bank of America (BAC) recently shook up the payments market with a competing card-swipe device developed in partnership with First Data.

Both Square's and B of A's technologies support traditional magnetic stripe cards. Neither seemed to be itching to develop products to accept EMV-compliant cards as Adyen introduced its new product on Monday.

Bank of America spokesman Joe Rauch said, "As with all major mobile card readers currently available, Bank of America Merchant Services' Mobile Pay does not support chip transaction functionality. We are closely monitoring EMV and mobile payment developments and, as with all of our products and services, will pursue and implement those new technologies that best fit our customers' overall needs and demands." Square also told BTN that at this point, its reader only accepts magnetic stripe and not chip and PIN cards. Another competitor, VeriFone, is selling EMV-compliant mobile readers, though it's primarily targeting overseas markets.

Square and Bank of America did not elaborate on their magnetic stripe card focus, but it's likely due to the fact that most merchants in the U. …

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