Which technology is primarily used in payment systems to ensure secure transaction processing?

EMV chip technology is designed to enhance the security of payment transactions through the use of embedded microchips in payment cards. Unlike traditional magnetic stripe cards, which store unencrypted data, EMV cards generate a unique transaction code for each payment, making it significantly more difficult for fraudsters to reuse card information. This technology not only helps in authenticating the cardholder but also provides encryption and other security features that protect sensitive transaction data during processing.

In the context of payment systems, EMV technology has become a standard due to its effectiveness in combating card fraud, particularly in face-to-face transactions. It is widely adopted globally and has paved the way for other secure payment methods, ensuring that transactions are processed with increased security compared to other options.