White Paper Shows Banks Using EMV to Reduce Cardholder Acquisition Costs and Boost Market Share

Wednesday 28 April 2004 19:56 CET | News

Welcome Real-time has released a white paper titled Profiting from Enhanced EMV, which shows how an EMV infrastructure enhanced with customer-centric features and services can not only reduce fraud, it can also increase revenues and market share.

The white paper is based on Welcome’s unique experience with banks migrating to EMV. Banks worldwide are investing in EMV migration to combat fraud, but in many cases fraud losses are lower than the investment required in cards, terminals and infrastructure. For example, UK banks expect to invest over £1 billion to upgrade their payment systems (an average of £26 per card) while fraud was running at less than half that amount in 2001. Bankers are naturally seeking ways to improve the EMV business case in order to obtain an acceptable return on investment. Profiting from Enhanced EMV shows how some banks are using EMV with customer-centric enhancements to significantly boost revenues and market share without spending much more than for basic EMV. One bank was able to acquire 1 million new cardholders in 8 months, almost twice as many as anticipated, without substantially increasing their advertising and marketing budgets. As the average cost to acquire a new cardholder is often estimated at over US$120, the savings generated on a portfolio of 1 million new cardholders can be valued in the tens of millions of dollars.

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Keywords: ,
Categories: Payments & Commerce | Cards
Countries: World
This article is part of category

Payments & Commerce