managing the retail petroleum migration to emv · 2016. 4. 4. · the us retail petroleum industry...
Post on 21-Aug-2020
8 Views
Preview:
TRANSCRIPT
Managing the Retail Petroleum Migration to EMV
THE US RETAIL PETROLEUM INDUSTRY
Industry Statistics (1)
• 150,000 retail fueling sites
o 125,000 convenience stores
o 50% branded with a major oil; 50% unbranded fuel; unbranded growing
o Many large C-store chains are multibranded
o 60% single store operations
o 99.5% independently owned and/or operated
• 75% of fuel sales on payment cards
• 12% of US card transaction sales
(1) 2016 NACS Retail Fuels Report, March 2016
US RETAIL PETROLEUM LANDSCAPE
Dispenser Interface
THE US RETAIL PETROLEUM INDUSTRY EMV Challenges for the Retail Petroleum Industry
• Retail Petroleum sites need: o Special purpose POS that can manage fuel, C-store, and site specific offers
o Connection to an acquirer that can handle fleet cards and petro private label
• Petro acquirer and POS vendor readiness
• ~ 1MM outside dispenser card readers o $15-$25K per site for outdoor terminal EMV upgrades
o $80K per site for EMV dispenser replacement
• Site Operators select outdoor terminals o Large number of combinations (Terminal – POS – Acquirers) need to be Tested
and Certified
o Sites need to fund these upgrades from thin margins
W. CAPRA 4Q2015 EMV SURVEY
When will 50% of your C-Store locations be able to take EMV cards?
Inside At the Pump
9%
27%
27%
9%
27%
0% 20% 40% 60% 80% 100%
2017 or Later
Dec-16
Jun-16
Dec-15
Already > 50%
36%
27%
23%
14%
0% 20% 40% 60% 80% 100%
2019 or Later
Dec-18
Oct-17
Dec-16
THE WAY FORWARD
• Major Oil Brands have active projects:
o POS/Payment App, pinpad, and acquirer interfaces have to change
o Funding of hardware upgrades uncertain
• Unbranded sites dependent on their Acquirers and POS vendors
• Testing and Certification of the many combinations still a concern, but some progress has been made at the EMV Migration Forum on clarifying Testing and Certification processes
• Worldwide collapse of oil prices increases funding uncertainty
W. Capra Services Security
Follow up questions? Feel free to reach out:
Terry Mahoney W. Capra Consulting Group tmahoney@wcapra.com 312-873-3302
top related