It is expected that 20 to 30 per cent of banks in the UAE will comply with the international EMV (Europay, MasterCard, Visa) standard by the end of this year, said a technology provider expert.

By the end of 2005, all banks worldwide are required to comply with this new level of standard in order to enable the complete shift from magnetic strip cards to smart cards, said a Moustafa Samaha, regional managing director, cards and solution, Giesecke and Devrient.

It was agreed by a group of experts, at the Cards Middle East third annual conference and exhibition, that the UAE is about 30 per cent on its way in preparing for the new system.

"The UAE is at the beginning stages on a world scale for EMV technology," said George Ogden, regional market development manager, S2 Systems.

"It will cost hundreds of millions of dollars to EMV-proof the UAE."

According to Richard Crook-ston, head of solutions marketing, ACI, there is a very strong move towards implementing the EMV system within the UAE.

Experts say that EMV presents financial organisations with a range of new opportunities - but it comes at a price.

The transition to EMV is not just about banks giving EMV-enabled cards, but also about making ATMs and the entire IT infrastructure compliant with the new specifications.

"EMV enables banks to move to a more secure chip-based smart card, which will help prevent the ever increasing problem of fraud," said Ogden.

"The very nature of these smart cards means they can be used for a lot more than just payment. Do not be surprised if your traditional bank card is soon also storing loyalty points, personal data, and enabling you to make other transactions."