Payment Technology Deep Dive. October 13, :00 am 8:50 am

Transcription

1 Payment Technology Deep Dive October 13, :00 am 8:50 am

2 Objectives Navigate the differences between loyalty and payment apps as well as consumer perceptions of both Familiarize with EMV compatible equipment and providers to provide the best solution for your company Evaluate the security risks inherent with new payment platforms and methods

3 Agenda Introduction Approach Payment Trends in Retail Application to Convenience Channel Topics EMV Security Mobile Payments

4 Moderator Terry Mahoney Partner W. Capra Consulting Group Panelists Jenny Bullard CIO The Jones Companies Jim DuBoyce Consultant W. Capra Consulting Group Kara Kazazean Director Payment Services Walmart

5 Payment & Loyalty Technology Trends Survey Surveyed W. Capra clients and contacts Verticals: convenience, QSR, grocery, pharmacy, general and specialty retail Purpose: Provide some insight on what other retailers are thinking Give Convenience retailers opportunities to learn from broader trends in payment technology

6 EMV Payment technology activity and investment in retail is currently dominated by EMV implementation October 2015 Liability Shift Rethinking Contactless Apple Pay Overall Technology Refresh POS Upgrades Terminal Payment Switch Reminder there is an EMV session at 9:05am today!

7 EMV: Components Affected Card EMV Card Indoor Terminal Payment Acquirer Issuer POS / Payment EMV Card Outdoor Terminal App Issuer Loyalty System

8 EMV Survey What % of payment card transactions in US will be chip on chip by end of 2016? 80% 60% C-Store Other Retail 40% 20% 0% < 20% 20% - 40% 40% - 60% 60% - 80% > 80%

9 EMV Survey When will 50% of your locations be able to take EMV cards. Face-to-Face At the Pump Already > 50% 27% Dec-16 14% Dec-15 9% Oct-17 23% Jun-16 27% Dec-16 27% Dec-18 27% 2017 or Later 9% 2019 or Later 36% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%

10 Have you used a chip card in a chip enabled terminal to pay for a purchase in the United States?

11 Loyalty Survey By 2020, more than % of transactions will include some type of loyalty instrument.

12 Payment & Loyalty Panel Discussion

13 Payment & Loyalty Takeaways Plan for EMV thoroughly it takes longer than you think! EMV changes may impact Loyalty processing talk to your loyalty provider now Other Retail verticals will increase consumer Loyalty expectations Prepare for changes - Customer experience and Employee training Branded Retailers Engage with your brand Independent Retailers Engage technology providers (POS, Loyalty, terminal) Engage payment processor

14 Payment & Loyalty Takeaways Technology vendor readiness can make or break timeline Coordinate with all vendors POS changes Terminal changes Seek solutions that are already certified shortens testing and certification process

15 Payment Security Multilayered approach PCI & EMV are not enough Encryption is next layer Think beyond payment to include personal information in security plan Leverage Technology Refresh Implication for branded marketers

16 Payment Security Survey If I am PCI compliant, then my payment environment is secure. Strongly Agree Agree Neutral 0% 6% 13% Disagree Strongly Disagree 38% 44% 0% 20% 40% 60%

17 Payment Security Survey Within the next 5 years the PCI Council will mandate encryption on all communications containing cardholder data? Strongly Agree Agree Neutral Disagree Strongly Disagree 22% 16% 13% 0% 50% 0% 20% 40% 60%

18 Payment Security Survey Does your organization have plans to implement encryption on all payment card traffic? If so, when? Already Implmented Project Underway With EMV Post EMV No Plan 5% 9% 27% 19% 36% 29% 27% 19% 29% Other Retail C-Store 0% 20% 40% 60%

19 Payment Security Survey As other retailers implement EMV, retail petroleum sites will see a significant increase in counterfeit card fraud outside. Strongly Agree 9% Agree Neutral Disagree Strongly Disagree 23% 23% 32% 14% 0% 20% 40% 60%

20 Payment Security Panel Discussion

21 Payment Security Takeaways Remember to put on layers EMV protects against counterfeit card fraud Encryption protects data in motion Tokenization protects data in motion and at rest Expect security requirements to increase over time What is optional today, may be required tomorrow PCI Compensating Controls can be withdrawn at any time

22 Mobile Payment Mobile can include: Phones, wearables NFC or QR based Retailer driven (Flash Foods Go Blue, Starbucks) Open loop (Apple Pay, Samsung Pay) Technology required Scanner (inside, outside) NFC readers (inside, outside) Converging with Loyalty

23 Mobile Payment Survey Mobile payments will account for 20% of all retail (card-based) payment transactions in 2020? Strongly Agree Agree Neutral Disagree Strongly Disagree 0% 19% 16% 26% 39% 0% 20% 40% 60%

24 Mobile Payment Survey In the next 5 years, who is most likely to deliver the long awaited killer app for mobile payments? No Single App Apple Google or Samsung MCX or Retailer based New Entrant 16% 6% 3% 10% 65% 0% 20% 40% 60% 80%

25 Mobile Payment Panel Discussion

26 Have you ever used your phone or watch to pay for a purchase?

27 Mobile Payment Takeaways Mobile payments may finally be at the tipping point Contactless transactions are small today but growing EMV will accelerate contactless terminal deployment Uncertain longer term implications for Acceptance costs Customer data ownership Branded mobile payment offer Must provide value Payment is extension of overall relationship

28 Key Takeaways From Today EMV Develop a Comprehensive Plan / Timeline Engage Vendors, Card Processors, and Fuel Brand Prepare for Significant Change Security Mobile Layered Approach Encryption Ahead Tipping Point Offer More than Payment Retailer Driven

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30 Session Survey Question #1 I would recommend this session to my peers. ( Swipe your rating on your phone or tablet) Please complete the three survey questions if you wish to receive the presentation

31 Session Survey Question #2 I can apply the content from this session in my job. ( Swipe your rating on your phone or tablet) Please complete the three survey questions if you wish to receive the presentation

32 Session Survey Question #3 Please share what you liked most or least about this session as well as future topics for education sessions (Type your response in the text field. The last edit is your final submission) Please complete the three survey questions if you wish to receive the presentation

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