The Strawhecker Group has produced an exclusive analysis of EMV terminal activation and contactless terminal activation from a geography standpoint across each U.S. state. In terms of EMV and contactless terminal adoption, the correlation between the two equals .996. Said in another way, the increase of NFC acceptance will continue at the same pace of EMV.
The reasoning behind looking at the EMV and contactless adoption correlation is that many firms across the industry currently assume that contactless adoption and EMV adoption go hand in hand. With this data, we can clearly support that assumption. That is not to say that there a few outliers. For example, Maine is ahead of the curve in EMV terminal activation however in terms of contactless activation, the state is a laggard. It is important to note that EMV and contactless merchant adoption varies by size, industry category and/or by location.
So why is the contactless infrastructure important? Lack of a contactless infrastructure has been one of the primary factors that has held back growth and acceptance of mobile proximity payments (i.e. Apple Pay, Android Pay, etc.). Now that the infrastructure has firmed up, expect more evolution at the physical POS and for mobile wallet players to finally gain some footing.