It isn't the merchants dragging their feet. Chip and Pin has not been available to merchants in the US. The thing most people don't realize is that credit card fraud is a profit center for Visa/Mastercard/etc. Do you think Visa is eating the cost of a fraudulent transaction to cover the "$0 Fraud Liability" they offer to their customers? Of course not. It goes right back on the merchant. Now the merchant is out their merchandise, out the money they would have received from the sale, and they are hit with a fee (that goes to Visa) for the chargeback. Have a massive breach like Target? Now there are big fines to pay to the card companies on top of it all.
The entire security of the credit card system is based on keeping a 16 digit number secret. That same 16 digit number you have to share with everyone you give money to. Making it TONS more secure would be cheap and easy, and most merchants are already set up to handle it... A simple rotating PIN that is only valid for a length of time is all it would take. Have merchants run all transactions as Debit, and give the customer an app on their phone (or even a periodic SMS with a new PIN.) The card companies could use the fraud liability as an incentive to use the system. No rotating pin? $1000 fraud liability. Monthly? $500. Weekly? $100. Daily? $25. Rotating PIN app or new SMS after each transaction? $0. This would also secure online purchases as well.
Every time I see a story relating to credit card security, I laugh to myself over how much more secure my World of Warcraft account is than my credit card accounts.