mastercard smart card strategy
DESCRIPTION
MasterCard Smart Card Strategy. MasterCard International Payment Brands. Martyn Cooper Global Platform Symposium - August 2002. MasterCard A Global Smart Card Leader. . At Q2 2002, 125 million MasterCard -, Maestro-, Mondex-, and Clip -branded cards had been issued worldwide. - PowerPoint PPT PresentationTRANSCRIPT
MasterCard International Payment Brands
MasterCard Smart Card Strategy
Martyn CooperGlobal Platform Symposium - August 2002
Global Platform Symposium 2
At Q2 2002, 125 million MasterCard-, Maestro-, Mondex-, and Clip -branded cards had been issued worldwide
Already 1/10 of total MasterCardcard base
98 members in 32 countries Over 50% carried value-added
applications
MasterCard A Global Smart Card Leader
Global Platform Symposium 3
Total Number of Banking Smart Cards
Source: Celent, October 2001: Smart Cards in US Banking: Is the Chip Hip?
+59%
222195.72
55.5
11.6525.911.65
66.6
13.98
370
233
0
50
100
150
200
250
300
350
400
2001 2004
Bank
ing
Smar
t C
ards
(in
mill
ions
)
Europe Asia Pacific US Other Regions Total
Global Platform Symposium 4
Smart Card Migrations
EMV Migrating/In Progress
EMV Committed/Planned
EMV Analyzing
France
UK
Belgium
Por
tuga
l
Switzerland
Israël
Spain
Italy
Czech Rep.
Slovakia
Germany
Austria Hungary
Poland
Sweden
Finland
Denmark
Lux.
GreeceTurkey
RussiaIreland
Netherlands
Norway
Estonian
Latvia
Europe 2001/2002
CroatiaSlovenia
Littuania
Ukraine
Iceland
Indicates few banks / processors implementing EMV, not entire country
7PROPRIETARY & CONFIDENTIAL
EMV Migrating/In Progress
EMV Committed/Planned
EMV Analyzing
Global Platform Symposium 6
Asia Pacific 2001/2002
China
India
Australia
IndonesiaIndonesia
Thai.
HK
SKor
Thai.
Jp
Mal.
Phil.
SL
Tai.
NZ
VNam
Sing.Sing.
EMV Migrating/In Progress
EMV Committed/Planned
EMV Analyzing
Global Platform Symposium 7
Middle East/Africa 2001/2002
SAr.
Kuw.
Nga.
Leb.
Egypt
SAfr.
Moz.
Zim.
Gha.Gha.
EMV Migrating/In Progress
EMV Committed/Planned
EMV Analyzing
Global Platform Symposium 8
Latin America 2001/2002
Chile
Brazil
EcuadorCol.
Ven.
Peru
Bol.
Arg.
Uruguay
Par.
Mex.
Costa Rica
EMV Migrating/In Progress
EMV Committed/Planned
EMV Analyzing
Global Platform Symposium 9
North America 2001/2002
EMV Migrating/In Progress
EMV Committed/PlannedEMV Analyzing
Key Members are both issuing and planning to issue EMV smart cards, though no national migration is planned.
Global Platform Symposium 10
OneSMART MasterCard•Highly flexible umbrella strategy for helping
members introduce smart cards in cooperation with MasterCard
– Based on extensive consumer research
– Reflects MasterCard’s approach of providing comprehensive support and flexibility to members
– Members can choose application set, platform, security strategy, chip size, and card designs
Global Platform Symposium 11
OneSMART MasterCard
• Assist members in end-to-end implementation– Opportunity identification– Business requirements
• Process requirements• Support
– Program development– Program launch
• Work with industry to improve the state of the art– Standards and specifications
• Maintain alliances/relationships with best in class vendors
MasterCard Role
Global Platform Symposium 12
Value-Added Applications
• Data Storage• Ticketing• Couponing• Loyalty• Authentication (non-payment)
Key To A Positive Business Case In Many Markets
Enable issuer differentiation and enhanced functionality
Global Platform Symposium 13
Value-Added Applications
•Grow GDV by– Improving acquisition, usage, retention
• Increase the account’s lifetime value•Add new fee services•Leverage non-payment opportunities
– Partner business process improvement– Reduced inefficiencies or fraud
The Business Case
Global Platform Symposium 14
Value-Added Applications
•MasterCard has developed a business case tool to model:
– Specific opportunities– Multi-application programs– Multi-party programs
•This model works in concert with the MasterCard chip payment models developed by EPI
– These models will be merged
Developing The Business Case
Global Platform Symposium 15
Platform Flexibility
•MasterCard is only payments association to actively support all major chip platforms
•MasterCard M/Chip™ available on MULTOS, JavaCard, and proprietary platforms
Global Platform Symposium 16
Platform Flexibility
•MasterCard is a member of both MAOSCO and Global Platform
•Committed to creating a universal platform/ infrastructure that will make it easier for members to issue multi-application cards
JavaCard
Global Platform Symposium 17
Flexible Issuance Options• Via ‘MULTOS Issuance Partner’
– Indirect relationship with MULTOS key management authority (KMA) via MIP
– MIP interacts with MULTOS KMA on card issuer’s behalf
– May upgrade to direct relationship if required
• ‘Standard’ card issuer– Direct relationship with the MULTOS KMA operated by MXI and within the ‘Global’
MULTOS Domain
• Co-located MULTOS KMA– Managed by MXI KMA on card issuer’s behalf
• Private domain MULTOS KMA– Licensed by MXI (complete software/hardware solution)
– Operated by card issuer themselves or trusted 3rd party
Global Platform Symposium 18
MasterCard/Global Platform
•MasterCard staff assigned to Global Platform Standing Committees and relevant working groups
•Candidate nominated to chair re-launched Business Requirements Working Group
•Facilitated Card and Application Management System (CAMS) contribution
•Evaluating additional security contributions
Global Platform Symposium 19
MasterCard Objective
• In particular, aspects of MasterCard’s MULTOS experience
•But not necessarily prescriptive MULTOS, rather a class of solutions of which MULTOS is one
– There could be others
Broaden Global Platform (GP) scope to embrace all open, industry technologies, including asymmetric approaches
Global Platform Symposium 20
MULTOS O/S
MULTOS API
MULTOSCard Manager
Proprietary O/S
Java Card API
Open PlatformCard Manager
Microsoft O/S
Microsoft API
Open PlatformCard Manager
MULTOS O/S
MULTOS API
Extended Global PlatformCard Manager
Proprietary O/S
Java Card API
Microsoft O/S
Microsoft API
Today
Future
Possible/Desirable Outcome
Global Platform Symposium 21
Java-tisation of MULTOS - The Goal
applet
Load mechanism
Card specificloader
Card specificloader
Same Terminal Functionality
Global Platform Symposium 22
Our Contribution Context•Meaningful contribution on viable terms:
– Intent for IPR terms to be normal GP practice, if at all possible
– Minimal pre-conditions or constraints
– At scope and level appropriate to GP
•CAMS terminology will be adopted• ‘GP’ style technical authoring style to aid and speed
review and debate in working groups•Timed to fit with next iteration of specifications