National Australia Bank (NAB) has reported successfully completing a pilot program of its chip card program and will now initiate regular transaction services for the technology, according to trade press reports.
While many other regions across the world have already established chip card programs, Australasian banks have, until now, opted not to take up the new payment technology, Finextra reports.
However, with so many overseas cardholders using the new chip card services, NAB has taken the decision to incorporate the technology to cater to this user group.
The major Australasian bank initially set up a trial to establish the new service and now says it will start to process up to 20,000 chip card transactions daily, the report says.
Initially we expect the majority of these transactions will be for visitors who have their smart cards issued by overseas institutions, said Peter Roeleven, general manager for acquiring at NAB.
According to Finextra, NAB also plans to issue its own chip cards in the near future, while investing in complementary EMV compliant merchant terminals.
The development comes in the wake of Australian political authorities calling for domestic banks to introduce chip and PIN technology to bring Australian payment security in-line with the rest of the world.