We are all aware of the magnetic strip on our credit / debit card. However, with advancement in technology, new smart-chips are embedded into the credit /debit card so that data is stored in an encrypted format and is more secure than your magnetic strip card.
For transitioning all card holders to this new format is a big hassle and also expensive. The transition will involve changing all merchant terminals and also issuing new cards to customers. However, a new format has been setup by Euro-Master-Visa which supports interoperability between smart chip payment cards and terminals.
In India many banks are still talking to agencies such as DEI which prepare consumer credit cards on behalf of the banks. DEI has provided approximately 80,000 merchant terminals in India.
According a survey by Nielsen, 84% of the online shoppers in India preferred the convenience of credit cards. India shared third spot after Turkey and Ireland where 91% and 86% online shoppers used credit cards.
The survey further said that,
Shopping on the Internet with the ease of a credit card is especially appealing to consumers in emerging markets who simply cannot find or buy items they want in their retail trade. The Internet has opened up a whole new world of shopping for these consumers.
Who knows, Indians may just embrace m-commerce and dump credit cards all together 🙂