[pbreit]

Because it's a massive investment in replacing all POS hardware and cards for almost no gain (in fact, the customer experience is decidedly worse).

[skeletonjelly]

Worse? It's one extra step. Besides here in Australia the chip is already old tech. RFID is the new hotness. So much in fact it's killing the association that manages debit cards (EFTPOS)

[amatix]

In New Zealand it's certainly been worse - chip transactions consistently take 30+ seconds longer than swipe ones (ie. at least twice as long as the old way, just waiting around for the damn card reader)

Though the new Visa PayWave/MC PayPass tap-and-go stuff is really quick and super-easy, but not many merchants have it installed yet.