The problem with chip and pin is that it still isn't impervious to hacking, yet the customer is now responsible for preventing fraud. At least with the US system systemic fraud is a problem for the banks, even if transactional risk is placed on the merchant.
You have to establish where the endpoint of trust is for the user, and where that point is for the merchant. Everything in between is untrusted. One approach is escrow, and the other extreme is mutual authentication and authorization.