EMV Bank Card Benefits for Card Holders

Transcription

1 EMV Bank Card Benefits for Card Holders Jack Jania May 2009

2 Agenda EMV migration in the world EMV Use Cases Why issuers deploy dual-interface EMV payment cards Card Holder Lessons 2

3 EMV migration in the world

4 Issuers deploy EMV for fraud reduction In m Chip&PIN roll-out Source: APACS Credit and debit card losses on UK-issued cards,

5 Payment fraud is a global concern SPA Shipments of EMV cards Per Quarter (in ku) Source: SPA (Smart Payment Association) New EMV mass deployments in all regions (e.g. Spain, Thailand, Brazil, Canada ) + 41% volume growth in H1 08 vs H1 07* +24% volume growth in 2007* * Source: SPA (Smart Payment Association) 5

6 EMV adoption is global Source: Eurosmart, MasterCard, Gemalto EMV deployed EMV to be deployed (est. in the next 24 months) No EMV 6

7 EMV is changing merchants behavior Acceptance issue: non-emv magstripe cards not accepted anymore at some point of sales (e.g. unattended vending machines, car parks, tolls ) Chip&PIN or cash required, creating convenience issue for magstripe card holders Education issue: Merchants clerks trained to conduct EMV transactions Chip&PIN is now the standard payment means in many countries Clerks not used to magstripe cards at some places (e.g. small shops that do not see foreign cards frequently) Trust issue: increase of fraud of non-emv foreign cards at EMV merchants EMV Merchants not liable for non-emv fraudulent transactions BUT Acquirers increasingly transfer part of the cost (e.g. Asian acquirers now increasingly require merchants to provide a security deposit of US$25,000 to cover the fines they sustain when skimming originates within their merchant base) Might result in low service level or deny of service for magstripe card holders 7

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9 Use cases Why issuers deploy dual-interface EMV payment cards

10 Get EMV and more All the benefits of EMV Fraud reduction in m Credit and debit card fraud losses on UK-issued cards Source: APACS UK f raud Fraud abroad UK fraud includes: UK retailer (face-toface transactions) UK cash machine combined with speed and convenience For payment With interoperability WW Support for both online and offline transactions (DDA/CDA) And more: Support for existing transport scheme Support for access solution EMV/Chip added-value features Support for (complex) loyalty schemes Local applications (e-purse, ATM ) CAP 10

11 Dual-interface adoption gets global, too Mass deployment in 2008 Pre-deployment in 2008 At pilot/small program stage in 2008

12 Barclaycard OnePulse Launched Sep 10, 2007 EMV DDA via contact CAP for on-line authentication and more Visa paywave feature With support of fdda (for offline merchants) Oyster application for public transport in London 12

13 Garanti Bank Bonus Trink Launched October 2008 EMV DDA via contact and more MasterCard PayPass feature Fast payment at retailers / 4000 acceptance points / 20 retailers Bonus Trink loyalty program Instant reward loyalty scheme 350,000 acceptance points / 5,000 merchants Available in contact and contactless Made possible by MPCOS tool box Heavy back-office e-ticketing for public transportation Based on Mifare technology 13

14 Petronas Maybankard Visa Launched Jan 30, 2008 EMV DDA in contact Government mandate treatspoints loyalty program Earn loyalty points at partcipating merchants, with possibility to convert accumated treatpoints to Petrol voucher on-chip e-coupons for instant redeem and discounts at selected merchants Made possible by applet (contact) Light back-office and more Visa paywave feature Zing Touch&Go feature for toll 14

15 Bank Asya DIT Launched July 2008 EMV DDA via contact CAP for on-line authentication Loyalty scheme via contact Based on MPCOS tool box and more MasterCard PayPass feature for retail payment and open-loop transit ticketing GPRS PayPass/payWave terminals in buses DDA for offline transactions KGS Toll payment feature All tolls all over Turkey (>300) Incl. The 2 Bosphorus bridges Based on Mifare technology 15

16 Manchester City Football Club MasterCard Prepaid Season Card, by MBNA EMV in contact Launched March 10, 2008 Prepaid MasterCard Manchester City FC image and more Replaces the standard season ticket currently issued to supporters Provides phyiscal access to Manchester City Stadium via the contactless interface (Mifare) Equipped with PayPass to purchase items at bars and stands in the Stadium areas, without queuing DDA for offline transactions 16

17 ICBC Tianjin city card EMV DDA in contact China Union Pay PBOC application Poney application in contact Driver identification Used for payment of fines All drivers must have an ICBC card with Poney and more Contactless payment feature qpboc application (DDA) Mifare for public transportation 17

18 Card Holder Lessons US international travelers see their cards declined in some environments in EMV countries Unattended merchants Small merchants where clerk is confused DDA required to support off-line transactions Card Holder adoption driver is dual-interface EMV cards Transit and co-branding (with loyalty) drive card holder acceptance and usage 18

19 Thank You

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