driving trust Accelerating EMV Personalization: Factors That Make a Difference May 15, 2014

driving trust Accelerating EMV Personalization: Factors That Make a Difference May 15, 2014 1 INVESTORS INSIDE Secure PRESENTATION CARTES America SEPTEMBER 2014 May 2012 15, 2014

DISCLAIMER All forward-looking statements are INSIDE Secure vision and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forwardlooking statements. 2 INVESTORS INSIDE Secure PRESENTATION CARTES America SEPTEMBER 2014 May 2012 15, 2014

EMV migration impacts Acceptance Terminal replacement (Contact and/or contactless) Network update (EMV data) Host system update (EMV Data /CMS) Issuance Card replacement (Contactless / Contactless / Dual interface) Personalization update 3 INVESTORS INSIDE Secure PRESENTATION CARTES America SEPTEMBER 2014 May 2012 15, 2014

Personalization impacts Personalization process update Data preparation (EMV data) Card profile Issuer file format Card Management System Data Preparation Host Secure Module update (keys/ certificate) * CMS Authorisation Server Personalization equipment Machine replacement or update for Contact and/or contactless reader Electrical personalization to create Development costs Operational costs Personalization * Varies with card profiles 4 INVESTORS INSIDE Secure PRESENTATION CARTES America SEPTEMBER 2014 May 2012 15, 2014

EMV Specifications (reminder) EMV standards are a series of specifications and testing procedures for chip payment cards and card accepting devices, such as point of sale (POS) terminals and ATMs to facilitate the global interoperability and compatibility of chip-based payment cards and payment terminals. EMV Specifications covers - Card / Terminal interface for transaction processing - Terminal /host interface EMV 4.x Book 1-4 - Card/ Reader interface for personalization EMV CPS 5 INVESTORS INSIDE Secure PRESENTATION CARTES America SEPTEMBER 2014 May 2012 15, 2014

Brands Specifications VISA, MasterCard, Discover and others brands specifications are compliant with EMV standard for their functional specifications. For personalization, VISA, MasterCard, Discover and others brands recommends the EMV Common Personalization Specifications (CPS) to standardize the personalization process. => All 2.7 and 2.8 VISA Applet series implement EMV CPS 6 INVESTORS INSIDE Secure PRESENTATION CARTES America SEPTEMBER 2014 May 2012 15, 2014

EMV Common Personalization Specifications(CPS) Card personalization is a major cost components in production of EMV cards CPS specification standardizes EMV card personalization process with the objectives in: Reducing personalization cost Allowing common personalization script with only ATR difference Greater choice of supplier (i.e. card and personalization bureau) Faster time to market with EMV cards Enhanced ability to switch suppliers 7 INVESTORS INSIDE Secure PRESENTATION CARTES America SEPTEMBER 2014 May 2012 15, 2014

EMV Common Personalization Specifications The EMV CPS v1.1 (July 2007) standardize personalization process by describing: 1. Data preparation 2. Personalization device set-up and processing 3. IC card Personalization processing 4. Cryptography for Personalization 5. Personalization Data Elements By implementing EMV CPS, Personalization customization is focused on - profile difference - issuers difference -As example integrating a new EMVC CPS complaint chip, it s just an ATR change 8 INVESTORS INSIDE Secure PRESENTATION CARTES America SEPTEMBER 2014 May 2012 15, 2014

EMV Common Personalization Specifications 9 INVESTORS INSIDE Secure PRESENTATION CARTES America SEPTEMBER 2014 May 2012 15, 2014

Personalization Efficiency Personalization is a cost center and its optimization is critical Operation involve interconnected components as Data preparation system Hardware Security Module Card management system Card personalization machine 10 INVESTORS INSIDE Secure PRESENTATION CARTES America SEPTEMBER 2014 May 2012 15, 2014

Electrical Personalization The electrical personalization (EMV data loading) can be done standalone or can be part of a full personalization machine (include embossing, laser engraving, Magstripe encoding,..) The throughput of the machine must be maximized. In that context, the electrical personalization could become the bottleneck, especially in the context of card supporting several applications. EMV CPS can optimize the number of exchange between the reader and the terminal but still with the appropriate security level. 11 INVESTORS INSIDE Secure PRESENTATION CARTES America SEPTEMBER 2014 May 2012 15, 2014

Conclusion EMV is a complex world Standard could simplify it In the EMV migration, EMV CPS is the only way to streamline the effort for the personalization 12 INVESTORS INSIDE Secure PRESENTATION CARTES America SEPTEMBER 2014 May 2012 15, 2014

Questions & Answers 13 INVESTORS INSIDE Secure PRESENTATION CARTES America SEPTEMBER 2014 May 2012 15, 2014

driving trust Thank You! Reid Holmes VP - Business Development / Payment rholmes@insidefr.com 14 INVESTORS INSIDE Secure PRESENTATION CARTES America SEPTEMBER 2014 May 2012 15, 2014 INSIDE Confidential Proprietary Internal Use Only