Transcript Austria Card Executive Presentation

Trend Products 2007
Convenience and Creativity
Handout available: www.austriacard.at/kiev2007
Agenda
 Austria Card - Corporate Profile
of a Leading Supplier
 Trends with Austria Card
 PayPass – Dual interface
Contactless Convenience
 Future Form Factors
Cards and More
 Picture cards
Creative Card Concepts
Handout available: www.austriacard.at/kiev2007
– 2 –
17.07.2015
At a glance '06
Cards produced (2006)
76.708.000
Cards personalised (2006)
26.001.000
Employees
~350
Chip software R&D manpower
> 55
Sales force
> 30
Banking customers
Market presence
> 260
> 36 countries
EMV chip migration projects
~100
Export ratio
78 %
Established
1981
Corporate structure
Limited liability
Stakeholder
OeNB 100%
Headquarter
Vienna, AT
Handout available: www.austriacard.at/kiev2007
– 3 –
17.07.2015
Austria Card
4th largest European payment card manufacturer
Total Payment Card Shipment Ranked by Manufacturer - 2005
Rank
Manufacturer
Headquarter
Mio. Cards
1
Oberthur
France
360.7
2
Giesecke & Devrient
Germany
352.0
3
Perfect Plastic
U.S
336.9
4
Gemplus
France
283.5
5
Versatile Card Tech.
U.S.
261.5
6
CPI Card Group
U.S.
240.6
7
American Banknote
U.S.
208.0
8
Axalto
France
141.8
9
Intelcav Cartoes
Brazil
115.7
10
Didier Printing
U.S.
51.3
11
figure Switzerland
mistakenly counts access cards
Assa AbloyReported
ITG
46.2
12
Austria Card
Austria
42.8
13
Sagem Orga
Germany/France
33.0
14
Jeraisy Group
Saudi Arabia
31.0
15
Arthur Blank
U.S.
27.0
16
Tag Systems
Andorra
26.0
17
Perma Graphics
U.S.
24.2
18
Jing King Tech
Hong Kong
23.2
22
Rosan Finance
Russia
19.5
Source: Nilson report October 2006
Handout available: www.austriacard.at/kiev2007
– 4 –
17.07.2015
Trend product: ACE 2000 PayPass – Dual Interface
Contactless Convenience
Handout available: www.austriacard.at/kiev2007
Contactless Convenience
Consumers
Merchants
 Reduced transaction time by as much
as 25% faster throughput
 Convenience and speed
 No more fumbling for cash
 Purchases no longer limited to cash
on hand
 Psychological effect of using a card
 Reduced card orientation
issues
 Increased frequency of purchases
 Reduced cash handling and operating
costs
 Improved terminal reliability–
particularly for fast food, gas stations,
movie theaters, parking garages, and
vending machines, parking meters…
 Increased customer retention
 Consumer remains in control
of card further extends use of
customer activated payments
 Appeal of new technology
 "it’s quick and easy there"
 Leverages existing acceptance
network
Handout available: www.austriacard.at/kiev2007
– 6 –
17.07.2015
Transaction Improvement
 Time and Motion Study:
 PayPass can save 8 to 12 seconds at drive-thru
 Merchant and Customers perceive PayPass most significantly faster where no
signature required, e.g. QPS merchants and gas pumps
Drive Through
Pump Transactions
PayPass
16
PayPass
24
28
Cash
26
Credit
23
24
25
39
Credit
0
26
10
20
30
40
Seconds
Seconds
Source: MasterCard International, PayPass Time & Motion Study , Orlando trial, 2003
Handout available: www.austriacard.at/kiev2007
– 7 –
17.07.2015
Critical Success Factors
 Contactless card technology is available for more than 10 years
 Lack of standardisation for common and global usage in branded
payment networks
 With existing payment card technology only 15% of cash payments
could be substituted. New ideas and products are necessary to
attack the remaining 85%
 Latest efforts by MasterCard and Visa leverage the existing
acceptance and processing infrastructure
 Hardware upgrade for acceptance of contactless cards necessary
 As per Q1/2007 more than 14 mio. PayPass enabled cards are
globally in circulation and can be used at 55.000 POS terminals
 Avg. transaction value < 18 USD (trend declining), 80% of
transactions < 25 USD. This indicates successful substitution of
cash.
Handout available: www.austriacard.at/kiev2007
– 8 –
17.07.2015
Consumer intentions to use various payment methods
Debit card
Credit card
Definitely use PayPass
Consider PayPass
Cash
100
80
Cash
Consider PayPass
Definitely use PayPass
Credit card
60
40
20
Debit card
Ai
rp
E
or le c
tr
ts
, P on
ub ic S
lic
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re
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an s
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G
s
ar
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s
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ac
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ie
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an rm ns
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ug
M s to
us
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ic es
Bo sto
ok res
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V
nv ide ore
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ie
t
nc ore
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e
Fa Mo
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or
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Fa
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st ood the s
a
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t
.
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.dr e
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in
0
Source: MasterCard International
Handout available: www.austriacard.at/kiev2007
– 9 –
17.07.2015
PayPass Technology
PayPass Magstripe Profile
PayPass - M/Chip Profile
based on magstripe data
based on EMV M/Chip 4
 ISO/IEC 14443 based
 ISO/IEC 14443 based
 Mag. stripe message format
 M/Chip 4 (EMV) message format
 On-line transactions
 On & Off-line transactions
 Card – terminal interaction in
200msec
 No offline PIN
 Optimised Terminal Flow
 Card – terminal interaction in
600msec
 Mag Stripe Infrastructure
 Online Acceptance only
(e.g. USA)
Handout available: www.austriacard.at/kiev2007
 Chip Infrastructure and On/Offline
Acceptance (e.g. Europe,
Asia/Pacific, Latin America)
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ACE 2000 Dual Interface Application Concept
Contact usage
ISO 7816 contact
interface
ISO 7816
Commands
and secure
messaging
M/Chip or
VSDC
EMV DDA
Contactless usage
PayPass ISO 14443
contactless interface
Mifare
emulation
PayPass
M/Chip
Mifare
application
Contactless
VSDC
EMV Personalisation and Card Risk
E²PROM Application Memory
Management Parameters
ACOS Card Operating System
Handout available: www.austriacard.at/kiev2007
– 11 –
17.07.2015
Future Form Factors
Handout available: www.austriacard.at/kiev2007
MasterCard Form Factor Ideas
Regular Card
Key Fob
MasterCard Side Card
Key Tag
Cell Phone
Key Fob with Button
Wristwatch
Source: MasterCard International
Handout available: www.austriacard.at/kiev2007
– 13 –
17.07.2015
New form factors
 The upcoming contactless payment product specifications will
boost new form factors
 Due to the easy "swipeless" card – reader communication, size
and format standards are not necessarily to be applied
 Personalisation still needs to be standardised or guidelines
need to be established
 Key issues are
 Consumer trust
 Consumer experience
 Communication
Handout available: www.austriacard.at/kiev2007
– 14 –
17.07.2015
Latest News
 MasterCard initiates paper-based contactless technology
 MasterCard Worldwide has partnered with a French company to create a
paper-based contactless payment solution for use in transit and other
payment applications
 Until now, MasterCard has issued nearly 13 million of its PayPass
contactless payment cards in use at more than 46,000 merchant locations
worldwide
 MasterCard PayPass is intended for environments where speed is at a
premium. Transit is a perfect example. In a subway environment, limiteduse, paper-based contactless fare tickets could replace standard magstripe fare cards for riders who don't have a PayPass-enabled payment
card
Handout available: www.austriacard.at/kiev2007
– 15 –
17.07.2015
Latest News
 Turkish Garanti Bank to issue PayPass watches
 The watches will be useable at PayPass readers at over 600 merchant
locations in Turkey, including Burger King, Starbucks, Cinebonus, TAV
(Istanbul Atatürk Airport Otopark), and the Istanbul Ferry Corporation
 The PayPass watch allows users to make purchases under 15 euros, with
no signature or PIN required. Larger purchases will still require a signature
 The issuance of watches in Europe follows the launch of the first watch
equipped with PayPass in Asia, in June 2006. That limited edition watch
was created in collaboration with Chinatrust, LAKS and On Track
Innovations and issued in Taiwan as a companion device to MasterCard
credit cards
Handout available: www.austriacard.at/kiev2007
– 16 –
17.07.2015
Trend Products: Picture Cards
Cards with individual card design
Handout available: www.austriacard.at/kiev2007
Cards with individual card design
 Cards are pre-printed, laminated
and (optionally) chip-embedded.
A dedicated area remains blank
for later personalisation with an
individual image
 Cardholder selects or uploads
an individual image
 Optional image enhancements
or modifications can be
performed
 Approval of the image through
the issuer
Handout available: www.austriacard.at/kiev2007
– 18 –
17.07.2015
Cards with individual card design
 Austria Card personalises the
individual image together with all
cardholder data, magstripe and
opt. chip encoding
 Cardholder receives a
customised and unique payment
card, which allows full and
identical usage as compared to
standard designs
0000 1234 5678 7623
Mr. Cardholder
Handout available: www.austriacard.at/kiev2007
– 19 –
17.07.2015
Picture Card Data
Necessary data for picture card production / personalisation
 A normal EMV data record (typically P3)
 An image file (e.g. JPG)
 A link between those two
JPG
TIF
…
1234 5678 9012 3456
Handout available: www.austriacard.at/kiev2007
– 20 –
17.07.2015
Options
There are several possible ways to implement a system for
picture card related data capturing and personalization.
Austria Card highlights two options:
"Ready to personalise data" delivery to Austria Card
Portal service by manufacturer
Handout available: www.austriacard.at/kiev2007
– 21 –
17.07.2015
Option 1
Data delivery to Austria Card
Austria Card
merges the data
sources and
produces the cards
Issuer generates cardholder data
Issuer collects image data
 P3 data is identical to the P3 data which Austria Card receives today. It contains however
additional information about the image to be printed. Data is organised on a "record by
record" basis
 Images are already formatted "ready to be personalised" – no image processing of any kind
will be done by card manufacturer
Handout available: www.austriacard.at/kiev2007
– 22 –
17.07.2015
Option 2
Portal service by manufacturer
Cardholder logs
on to issuer site
Cardholder selects
predefined picture or
uploads own image
Cardholder completes
application form
Cardholder stores
image together
with unique
picture ID #
Issuer
generates
P3 input
file
Issuer processes the
card application
according to own
policy
Redirection to the image portal
incl. unique picture ID #
Image
storage at
manufacture
Redirection
r
back
to issuer's
site
Manufacturer merges
the P3 input file with the
image file stored on the
server
Design
approval
procedure
Card production /
personalisation
Handout available: www.austriacard.at/kiev2007
Archiving of the image
data for later reference
or re-production of the
card
– 23 –
Deletion of
personalisation data for
security reasons
17.07.2015
Challenges
 On-line and real-time check of graphic data:
 Check for a minimum graphic resolution to ensure good quality
 Keep dedicated card surface areas clear of any image data
 e.g. chip area
 space defined for issuer logos
 Every single picture must be checked against illegal content and
approved or declined accordingly by the issuer
 Approvals
 Storage of image data for later reference separately from
personalisation data
Handout available: www.austriacard.at/kiev2007
– 24 –
17.07.2015
Download
The presentation handout
is available at
www.austriacard.at/kiev2007
Handout available: www.austriacard.at/kiev2007
– 25 –
17.07.2015
Perspectives
with a promising future
Austria Card GmbH
Lamezanstrasse 4-8, 1230 Wien
T: +43 (0) 1 610 65.128
F: +43 (0) 1 610 65.701
www.austriacard.at
[email protected]
Handout available: www.austriacard.at/kiev2007