emv bank card benefits for card holders€¦ · ctst– may 2009 4 issuers deploy emv… for fraud...
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CTST– May 2009 2
Agenda
EMV migration in the world
EMV Use CasesWhy issuers deploy dual-interface EMV payment cards
Card Holder Lessons
CTST– May 2009 4
Issuers deploy EMV… for fraud reduction
Credit and debit card losses on UK-issued cards, 2003-2007
Source: APACS
In m£
Chip&PIN roll-out
CTST– May 2009 5
Payment fraud is a global concern
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*
SPA Shipmentsof EMV cardsPer Quarter
(in ku)
Source: SPA (Smart Payment
Association)
* Source: SPA (Smart Payment
Association)
CTST– May 2009 6
EMV adoption is global
EMV deployedEMV to be deployed (est. in the next 24 months)
Source: Eurosmart, MasterCard, Gemalto No EMV
CTST– May 2009 7
EMV is changing merchants’ behavior
Acceptance issue: non-EMV magstripe cards not accepted anymore at somepoint 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 transactionsChip&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 foreigncards frequently)
Trust issue: increase of fraud of non-EMV foreign cards at EMV merchantsEMV Merchants not liable for non-EMV fraudulent transactions
BUTAcquirers 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
CTST– May 2009 10
All the benefits of EMV…Fraud reduction
EMV/Chip added-value features– Support for (complex) loyalty
schemes– Local applications (e-purse, ATM…)– CAP
0
100
200
300
400
500
2004 2005 2006 2007
UK fraud
Fraud abroad
UK retailer (face-to-face transactions)UK cash machine
in m£ Credit and debit card fraud losses on UK-issued cards
UK fraud includes:
Source: APACS
Get EMV… and more
… 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
CTST– May 2009
Dual-interface adoption gets global, too
Mass deployment in 2008 Pre-deployment in 2008 At pilot/small program stage in 2008
CTST– May 2009 12
Barclaycard OnePulse
EMV DDA via contact
CAP for on-line authentication
… and more
Visa payWave featureWith support of fDDA (for offline merchants)
Oyster application for public transport in London
Launched Sep 10, 2007
CTST– May 2009 13
Garanti Bank Bonus Trink
EMV DDA via contact
… and more
MasterCard PayPass featureFast payment at retailers / 4000 acceptancepoints / 20 retailers
Bonus Trink loyalty programInstant reward loyalty scheme350,000 acceptance points / 5,000 merchantsAvailable in contact and contactlessMade possible by MPCOS tool boxHeavy back-office
e-ticketing for public transportationBased on Mifare technology
Launched October 2008
CTST– May 2009 14
Petronas Maybankard Visa
EMV DDA in contactGovernment mandate
treatsPoints loyalty programEarn loyalty points at partcipatingmerchants, with possibility to convertaccumated treatPoints to Petrol voucheron-chip e-coupons for instant redeem and discounts at selected merchantsMade possible by applet (contact)Light back-office
… and more
Visa payWave feature
Zing Touch&Go feature for toll
Launched Jan 30, 2008
CTST– May 2009 15
Bank Asya DIT
EMV DDA via contact
CAP for on-line authentication
Loyalty scheme via contactBased on MPCOS tool box
… and more
MasterCard PayPass feature for retailpayment and open-loop transit ticketing
GPRS PayPass/payWave terminals in busesDDA for offline transactions
KGS Toll payment featureAll tolls all over Turkey (>300)Incl. The 2 Bosphorus bridgesBased on Mifare technology
Launched July 2008
CTST– May 2009 16
Manchester City Football Club MasterCard Prepaid Season Card, by MBNA
EMV in contact
Prepaid MasterCard
Manchester City FC image
… and more
Replaces the standard season ticket currently issued to supportersProvides 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
Launched March 10, 2008
CTST– May 2009 17
ICBC Tianjin city card
EMV DDA in contactChina Union Pay PBOC application
Poney application in contactDriver identificationUsed for payment of finesAll drivers must have an ICBC card with Poney
… and more
Contactless payment featureqPBOC application (DDA)
Mifare for public transportation
CTST– May 2009
Card Holder Lessons
US international travelers see their cards declined in someenvironments in EMV countries
Unattended merchantsSmall merchants where clerk is confusedDDA required to support off-line transactions
Card Holder adoption driver is dual-interface EMV cardsTransit and co-branding (with loyalty) drive card holder acceptance and usage
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