Target to deploy EMV chip cards

In the payment processing landscape, the Target securing breach helped spread up the conversation of chip-and-PIN technology, or EMV. This is where a microchip is added to a credit card so users can tap it at the cash register to start a payment and requires the PIN to be entered for verification.

According to a recent article from CNN Money, Target will be revamping its REDcards, and the newer models will incorporate the payment technology. This is on top of replacing the payment terminals in all 1,797 stores by September. In total it will be a $100 million investment to better secure its stores.

"Target and MasterCard are taking an important step forward in providing consumers with a secure shopping experience," MasterCard executive Chris McWilton said in a statement.

With this move, Target is now the first major retailer in the United States to invest in a more advanced form of credit card processing. This technology is already widespread outside the U.S., but this would seem like a major move.

However, some argue that this will not be a major catalyst. Jason Oxman, the CEO of the Electronic Transactions Association, told the news source that the Target REDcard is essentially in a silo, meaning it cannot be used in any other location. This means other retailers do not need invest solely because Target did. It is comparable to how Starbucks incorporated smartphone payments, but it did not catch-on in other locations.

Regardless, the credit card payment processor landscape is changing and retailers are going to need to start upgrading their systems whether they want to or not.

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