contactless payments beyond the u.s. – the canadian …contactless payments beyond the u.s. –...

May 14, 2009

MasterCard Proprietary & Confidential

Contactless Payments Beyond the U.S. – The Canadian Experience

Oliver Manahan, MasterCard Canada

MasterCard Proprietary & Confidential

May 14, 2009 2MasterCard Proprietary & Confidential

Agenda

• Canadian Landscape

• High-level Timeline

• The Strategy

• Success to Date

• What’s Next

May 14, 2009 3MasterCard Proprietary & Confidential

Canadian Landscape

• ~10 million km2 (3.8 million square miles)

• 33 million people

May 14, 2009 4MasterCard Proprietary & Confidential

Canadian Landscape

• > 80 million payment cards

• > 700,000 POS devices; > 55,000 ABMs

• Historically non-dual for credit

• National debit scheme (Interac)

• All major payment brands have announced a migration to EMV chip

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High-Level Timeline20

04

2005

2006

2007

2008

2009

2010

2011

2012

MasterCard®

PayPass™Introduced

ChipAnnounced

MasterCard®

PayPass™Rollout

KW ChipTrialCommences

ChipRollout

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MasterCard® PayPass™ :A New Contactless Payment System

• A tap is all it takes

• Faster than cash

• Great for record keeping

• Useful, integrated formats like cell phones

• Will work anywhere PayPass™ is accepted

May 14, 2009 7MasterCard Proprietary & Confidential

The Strategy

• Classic “chicken and egg” scenario

• Build out the acceptance side first, with leaders in targeted verticals

• Work with issuers on their long-term plan, starting with magnetic stripe PayPass™, with a migration to M/Chip PayPass™

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Success to Date

• Merchants accepting PayPass™:– Petroleum: Petro Canada, Mohawk, Pioneer

– Grocery: Loblaws, No Frills, Provigo, Rabba Fine Foods, Fortinos

– QSR: Tim Hortons, McDonald’s

– Cinema: Cineplex

– Vending: Coke

• Announced: Staples, and more on the way…

May 14, 2009 9MasterCard Proprietary & Confidential

Success to Date

• Canadian Issuers with PayPass™ on their cards:– Citi Cards Canada– President’s Choice Financial– Canadian Tire– Bank of Montreal (BMO)– Chase Card Services– MBNA– Capital One– National Bank of Canada (NBC)– Alberta Treasury Branch (ATB)

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What’s Next–The Convergence with Contact ChipThe M/Chip PayPass ™ Card

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What’s Next – The Convergence

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Lessons Learned

• The consumer experience is paramount:– Swipe & sign

– Swipe & go

– Tap & go

– Tap & sign

– Insert & PIN

– Insert & sign

– Insert & go

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Lessons Learned

• Cards become more complex– Just because a card is chip-approved, doesn’t mean

adding an antenna is easy

– Ensure enough lead-time to get the appropriate approvals

– Ensure sufficient quantities of product are available

– Personalization also becomes more complex

• Test, test, then test some more

May 14, 2009 14MasterCard Proprietary & Confidential

Lessons Learned

• Devices also become more complex– Various parts are configurable (e.g. EMV vs. Mag

Stripe)

– Ensure settings are aligned

– Modular is the way

– Test various cards and devices

– Test non-payment cards

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The Future of Payments:Near Field Communications (NFC)

SubwayFare

ContactlessPayments

Mobile Website

• Conduct Online Purchases

• Complete Transaction at P.O.S.

DataTransfer

• New MarketingOpportunities

• Rebates deducted atthe P.O.S.

May 14, 2009

MasterCard Proprietary & Confidential

Questions?