Transcript Response to e-Money Program

Enhanced Payments using
EMV
MasterCard’s solutions
April 11
Agenda
• What do the EMV specifications bring to the market
place?
• Overview of MasterCard’s OneSmart Solutions
• Applicability to Local Councils
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© MasterCard International
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What is EMV ?
AID
AID
Network
TERMINAL
AID
DIALOGUE
Structure for Multi Applications on Cards
AID
AID
AID
AID
© MasterCard International
AID
?
?
?
?
?
Payment
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AID
C
A
R
D
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What does it bring?
• Standard Infra Structure and Flexibility
–
The terminals can have the identifiers implemented for the
products the service provider want to offer
–
The Card and Brand can be personalised for
– Acceptance in all or some channels (ATM/POS/Inernet..)
– Restricted to some Service Providers
– Behave as a Credit, Debit and/or Pre-Paid card
– Separate funding for special purposes
– Additional functionality such as loyalty or other
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What is OneSmart?
• MasterCard OneSMART is a range of solutions which uses
the chip as a platform to deliver value-add business
• Each of these solutions is targeted at extending the card
business into the following areas
–
Cardholders – different profiles
–
Service Provider locations – POS, Internet, ATMs, other
–
Transaction types – Credit, Debit or combination
• The existing suite of OneSMART solutions provides a solid
base on which to build range of payment and non-payment
solutions for local authority programs
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Suite of OneSMART Solutions
• OneSMART Authentication – remote authentication
–
Security & confidence generate more remote transactions
• OneSMART Web – personal data storage & form filling
–
‘Top of wallet’ behaviour leading to increased share
• OneSMART Retail – loyalty & stored preferences at POS
–
Increased loyalty leading to increased volume and share
• OneSMART Pre-Authorised – zero overdraft risk cards
–
New cardholders and new acceptance locations
• OneSMART PayPass – combining EMV with contactless
–
Quick & easy contactless payments that can displace cash
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2 Factor Authentication
You Have it already !
« I have my card »
« I trust my card »
« I know my PIN »
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Use it for all Remote Services !
Channels & Services
Mail Order, Telephone
Order,
e-banking,
e-commerce,
Tomorrow’s Services
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OneSmart Authentication in
Europe
Iceland
Finland
Norway
Sweden
Estonia
Denmark
Ireland
UK
Russia
Latvia
Lithuania
Nederland
Belarus
Khazakhstan
Belgium
Poland
Germany
Luxembourg
Czech Rep.
Ukraine
Slovakia
Switzerland.
France
Hungary
Austria
Slovenia
Romania
Croatia
Portugal
Georgia
Spain
Azerbaidjan
Italy
Bulgaria
Greece
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Turkey
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Israël
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OneSMART Web
• Security, convenience and automation in one package
Web Services
Account information
Security & Automation! . . .
Life is good!
Billing & shipping data
Internet/
Intranet
Logons, favorites,
contacts, etc.
Coupons
Credit cards,
personal ID, etc.
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Passwords & notes
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OneSMART Retail
Bank
Payment
Information
1- Card issued with Personal
Preferences or Hobbies stored in
MODS application
2- Card used for
Payment, Loyalty and ‘On-the-Spot’
Offers
3- Information Printed on Receipt
New Opportunities for Customized Offers
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© MasterCard International
Cardholder
Preference &
Loyalty Points
Balance
Customized
Offer
according to
Preference
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OneSMART Pre-Authorized
• Funds set aside for fully controlled off-line spending
• Can be set up so the card holder perceives it as a
“Purse”
• Automatic or manual top-up
• Fully supported by the standard EMV infrastructure
• Perfect for Low Value Payments
• Perfect for Contact Less Payments
• Brings banking to the unbanked
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OneSMART PayPass overview
• MasterCard’s contactless payment
solution
• Extends market for MasterCard
payments
• Combines power of chip with
convenience of contactless
• Designed for rapid, convenient
proximity payments (eg fast food; mass
transit; tollways)
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OneSMART PayPass overview
• Uses the EMV chip infrastructure
• Contact and contactless payment
functionality can be combined on single
card
• Focus is on low value payments
• Cash replacement
• Successful trials in US although not
EMV based today
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OneSMART Transit overview
MasterCard’s open solution for transport ticketing applications
• Combines:
OneSmart PayPass for fast, convenient contactless payments
– OneSmart Pre-Authorised for safe, low cost, mass market issuance
– A ticketing application which can either be:
–
– MasterCard EMV application, or
– Proprietary application such as MiFare
• Extends market to previously cash-based transport applications
• Uses the EMV chip infrastructure
• Can be configured to support all common transport payment and ticketing
requirements
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OneSmart Acceptance Infrastructure
Bus/Ticket validator
(Contactless)
Top Up at POS
(Contact EMV)
Payment at
POS
(Contact/Contactless)
Cash
Also potential for:
•Branch network
•Internet Home PC
•Kiosk
•Local authority facilities
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Key Requirements for e-Money
• Provide multiple application, card based
prepaid/stored value products
• Reach all segments of a population
• Conventional payments – POS and ATMs;
• Local authority service and benefits.
• Interoperable “e-purse” scheme
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Key Requirements for e-Money cont….
• Load by individuals; service providers, banks, local
authorities, etc.
• Load and reload monetary value or benefits
remotely or through other means
• Broad and uniform acceptance – at merchants,
ATMs, transit, and all local authority facilities
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MasterCard’s approach to e-Money
Solution
• Make use of the EMV infra structure and OneSmart
facilities
–
Retail Purchases at POS
–
ATM withdrawals
–
Storing and using local authority specifics
–
Transportation ticketing
–
Restrictions (age, profile, merchants or other)
And / Or
–
Universal acceptance
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Potential Prepaid Applications for e-Money
•Luncheon
•Transportation tickets
• Local Authority Rewards
•Housing benefits
•Job seeker allowance
Restricted
acceptance (1)
•Pension
•Child tax credit
•Payroll
•Travel
•Money transfer
•Per diem
•Insurance
Broader
Acceptance (2)
•
Restricted acceptance by geography, product type, group of merchants, type of terminals
(e.g. POS only, internet only)
•
Broader Acceptance = international acceptance and inter-operability
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Components of e-Money Solution
Component
MCI
Notes
Cards

EMV technology. MasterCard or
Terminals

EMV technology. MasterCard or
Card applications

EMV credit or debit payment plus
packages
Network

MasterCard global network
Clearing and settlement

MasterCard services, eg Maestro
Business models

Scheme rules, modified as necessary
Business partners

MasterCard bank members
Implementation

As required
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For further questions
[email protected]
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