payment-kiosk-emvA new study has found that EMV card distribution does not equate to EMV cardholder awareness. The findings, which were conducted by Javelin Research, show the need to educate consumers.

“EMV has been widely perceived as more stick than carrot, with both issuers and merchants dragging their feet on the October 2015 readiness milestone. However, the actual state of EMV card penetration — and, more important, the extent of cardholder awareness — has been elusive,” said Javelin, adding that its just released “State of EMV Cardholders: Opportunities to Capitalize on the Halo Effect” now provides a “diagnostic snapshot” of the state of cardholder awareness of EMV.

Overwhelmingly, the study found the most common form of customer education about EMV was through printed material sent along with the new card, which is how 47 percent of EMV cardholders said their primary financial institution informed them about what the chip was for.

“Incidentally the least effective channel for cardholder education was printed material,” said Javelin. Other educational channels included online banking, text messaging, mobile banking app, and call center. EMV cardholders have a far better perception of their primary financial institution compared to non-EMV cardholders, the study found.

“Neglecting cardholder education on EMV is a squandered opportunity for financial institutions to shine. The halo effect from EMV will not last long – only a few short years – because of the normalization process of EMV in the public domain,” said Nick Holland, head of payments, Javelin. “For financial institutions to capture consumer attention, they need to proactively educate across a variety of media.”