ti- I/A Table of Contents Paper Cash, Checks, & Money Orders Electronic Preauthorized & Remote Payments Card Credit. Debit, & Prepaid 30% of U.S. purchases are made with paper payments (Percentage of U.S. Consumer Purchase Volume, 2O13) $4.9T $2.7T $7.6T $10.0T 2005 2013 2018 2023 The transition to card payments is occurring rapidly (U.S. Card Payment Volume & Percentage of Consumer Purchase Volume) The rapid growth of mobile devices and associated app stores has provided freedom and accessibility to sellers and buyers, who can now engage in commerce anywhere. An estimated 438 million mobile devices in the United States accessed the internet in 2013, and this is expected to grow to over 690 million devices in 2018. The Shift to Authenticated Payments Technologies Creates Opportunities for Disruption The shift to both EMV and contactless payments creates an opportunity for providers of more modern and lower cost POS solutions to displace legacy systems, as sellers upgrade to take advantage of increased security, lower financial loss, and an improved buyer experience. U.S. credit card companies set October 1, 2015, as the date for the national adoption of EMV or chip cards. While this technology is not new globally, and in fact is widely used in most countries, the United States is currently in the process of migrating to EMV technology. Businesses that cannot process chip cards are now held financially responsible for certain fraudulent transactions previously covered by the cardholder's issuing bank, effectively shifting the liability to sellers. In order to mitigate this liability shift, sellers must upgrade their payment card terminals to EMV compliant hardware. According to the Congressional Research Service 2015 report, as of July 1, 2015, the EMV Migration Forum estimated that only 25% of retailers will be in compliance with the October 1, 2015. transition deadline. Another developing technology shift is the growing popu