2015 All rights reserved

Transcription

1

2 CONTENTS Blockchain Digital Currencies Digital Identity Omni-channel Contactless Payments Wearable Payments

3 Blockchain What is blockchain? Blockchain is a secure transaction ledger database. The ledger is decentralized, shared by all participants. It is created on top of a distributed network of computers. Blockchain acts as the ledger recording all information related to transactions that occur within its network. The decentralized database maintains a history of every exchange ever made and bases the trust on participants rather than third parties. In its essence, Blockchain is programmable value. How it works Blockchain enables anonymous exchange of digital value. The technology removes the need for a central authority for trust verification and value transfer. Being decentralized, it enables safe, fast, cost effective transactions even though parties may not know who they are dealing with. As entities transact within a Blockchain environment, a public record of all transactions is generated and maintained. Computers verify transactions based on complex algorithms to perform the value transfer and update the ledger history. Blockchain usage examples: Digital currencies Crowd funding Smart agreements (automated agreement execution) Digital identity Decentralized communication Asset ownership

4 Key Concepts Decentralized consensus; The blockchain; Smart contracts; Trusted computing (or trustless transactions): Proof of work (and proof of stake). Read more about each concept here.

5 Digital Currencies Digital, Virtual and Crypto Currencies Digital currencies are created and stored electronically. Virtual currencies are unregulated digital money. They are issued and controlled by its developers and are used by the members of a virtual community. Crypto currencies are a subset of digital currencies, using cryptography as part of their security. The structure of crypto currencies Digital and crypto currencies are structured as a payment network. They are created on top of block chain technology allowing parties to move value digitally, securely and quickly in a decentralized manner. Digital Currency Market Capitalization: Digital currencies Crowd funding What is Bitcoin? Bitcoin is the most known crypto currency, and is a consensus network that enables a new payment system, and a full scheme for digital money. It is the first decentralized peer-to-peer payment network, powered by its users and having no central authority. Bitcoin is considered to become the gold standard for virtual money. To date, it is used as a cash system for Internet financial transactions. Smart agreements (automated agreement execution) Digital identity Decentralized communication Asset ownership

6 How does Bitcoin work? The Bitcoin network is based on the "block chain" technology and uses the public ledger database. Bitcoin ledger contains every transaction ever processed, allowing a user's computer to verify the validity of each transaction. The authenticity of each transaction is protected by digital signatures corresponding to the sending addresses, allowing all users to have full control over sending Bitcoins from their own Bitcoin addresses.

7 Digital Identity What is it? Digital Identity is the data that uniquely describes a person / entity and contains information about the subject s relationship. Technically it is a network used for identification in connections or transactions from digital devices. Trusting the link between a real identity and a digital identity first requires someone to validate the identity, or in other words, to prove you are who you say you are. The more valuable the digital identity, the more work required to validate it and establish secure authentication. Key components The strength level of a digital identity given by: registration and authentication process. Registration is the how an entity becomes known in a domain, while authentication verifies the attributes associated with identity. Digital identity is based on: Identity Verification; Personal Data; Authentication. A strong security process for verifying an identity is based on knowledge (e.g. passwords), possession (e.g. digipass) and/or the person itself (e.g. biometrics). Digital Identity use cases: Retail banking Consumer finance Healthcare B2B Agreements High value commerce

8 Facts More than 900 million consumer records compromised in Verizon's Data Breach Investigations Report shows weak or stolen login credentials account for more than 76% of analyzed breaches.

9 Omni-channel What is Omni-channel? Omni-channel is a synchronized customer communication strategy. All channels are aligned in a single touch point for the customer and present one consistent way of doing business. Omni-channel banking is a consistent cross-channel experience, aiming to provide customers seamless access to financial products and services. 2 Major principles: Centrally manage execution across all channels consistently, reducing cost and time to market; Measure and consolidate data across all channels to determine which combinations of channels and interactions have the biggest attribution to the bottom-line (increasing conversion rates and revenue). Top Omni-channel concepts in finance industry: Specialty branch Virtual banking Infomediary Key Elements of Omni-channel strategy: Consistent services access across all channels; 360 degree view of every customers; Digital management of origination; Reengineer the way you listen: listen everywhere, at once, and respond immediately; Increase understanding of customers with analytics and take data driven decisions.

10 4 Pillars for Omni-channel banking: New branch; Mobile enabled; Social aware; Video connected. Recommended presentation

11 Contactless Payments Definition Contactless payment technology enables payment transactions via a contactless chip embedded in payment cards, tags, key fobs and mobile phones. The chip communicates with a reader device that uses radio frequency or Near Field Communication (NFC) standards. It includes radio frequency identification (RFID) as part of a machine-to-machine communications trend. (Gartner) Technology Near Field Communication (NFC) is a short-range wireless (RF) communication technology for smartphones and similar devices enabling data transfer between the devices. NFC operates for contactless payments in card emulation mode, which enables devices to function as contactless smart cards. Host card emulation (HCE) enables NFC devices to perform contactless transactions in card emulation mode when the payment, other credentials and related card applications are stored somewhere other than on the hardware itself. Top contactless use cases: HORECA Retail Fashion Public transport

12 Facts 150M mobile devices will be contactless in coming years; Worldwide NFC-capable POS terminals installed base is 21.4 million units, reaching 74.9 million by the end of 2019; 9.5 million NFC-capable POS terminals were shipped globally in 2014; MasterCard announced it is establishing contactless acceptance as standard by 2020 for merchants accepting MasterCard and Maestro in Europe.

13 Wearable payments What are wearable devices? Wearable describes electronic devices that can be worn on the body. They can be found today as intelligent fitness bands and smart watches, or glasses, but are being extended into fashion and jewelry as well. How do wearable payments work? Wearables enable contactless payment processes through Near Field Communication (NFC). The wearable device communicates directly to the network through inbuilt connectivity or can use Bluetooth to connect to the user s phone to finalize the payment. Host card emulation (HCE) technology is used when it comes to the wearable device connecting to the mobile for finalizing payment. Wearables can enable biometrics and geo-location as security components in the payment process. Devices can step away from just fingerprints, and enable pulse patterns and build a unique cardiac rhythm for authentication. 3 Use cases for wearable payments: Loyalty schemes Authentication B2B Commerce Key elements of wearable in payments Development platforms: easy integration; Connected: Wi-Fi, 3G/4G, Bluetooth, NFC; Environment aware: GPS, Camera, Microphone; Biometrics sensors.

14 Examples Disney is using MagicBand, a wearable device preprogrammed to hold room numbers and/or payment mechanisms throughout the park. Starbucks makes transactions possible through Microsoft Band, Samsung s Galaxy Gear or even Pebble. Eaze is pushing the idea of Nod to Pay, using two Bitcoin payment systems and planning to integrate fiat currencies. Recommended presentation

15 Maxcode Deliver your next finance or ehealth application. Maxcode is an IT service company building tailor made applications for the European market. We focus on financial and healthcare industries. Maxcode is located in The Netherlands with offices in Romania, and the Republic of Moldova. We are a modern company and a reliable partner for our customers and employees. Koninginnegracht AB Den Haag / The Hague The Netherlands info@maxcode.net Disclaimer The materials in this document may contain inaccuracies or typographical errors. Maxcode does not warrant the accuracy, reliability or completeness of the materials, advices, opinions, statements or any other information displayed or distributed in this document. All information in this document is provided as is and as available, and shall not be binding nor shall it be construed as constituting any obligation, representation or warranty on the part of Maxcode. You acknowledge that any reliance on any information in this document shall be at your sole risk. Maxcode mentions others, their products and ideas as a convenience to you. Those others, products and ideas are not under the control of Maxcode. Accordingly, Maxcode makes no representation or warranty in relation to others, their products, or ideas, other than simply listing them as relevant for your consideration. By listing them, Maxcode is not endorsing or recommending them to you.

16 Sources: Contactless-Terminals_And-Turning-on-NFC Cover image credit: Sebastiaan ter Burg under c.c. 2.0 (modified).