Visa International will begin offering financial incentives this year to issuers and acquirers whose point of sale terminals accept smart cards, a move that analysts said could prove the elusive first step to widespread acceptance of chip technology in U.S. markets.

The interchange incentives, starting in October, will be offered only for interregional transactions, which Visa says account for about 6% of its $1.4 trillion annual volume worldwide. International hubs in the United States such as New York and San Francisco and merchants in the tourism industry will be the first wave of companies targeted for the incentive plan.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.