cardless and contactless transactions
TRANSCRIPT
Cardless and contactless transactions Self-Service Banking Europe 2017 | Michal Voldrich |
1967
The first ATM (John Shepherd-Barron)
Now
Contactless
Era
History
1966
Debit card
1969
The first ATM with plastic
card (Donald Wetzel)
2007
First smartphone
NFC
Mobile devices everywhere and everytime
Today banking
Behavior has changed ,,,, What becomes more and more important in today banking? To be close to customer
Increase customer loyalty and convenience
Deliver the right information at the right time to customers
Security
Card-less options
Card
Tap
Code
123456
Mobile
Other methods Biometrics Google Glass
GET
CASH?
„to withdraw money from an ATM without using a card“
Branch
Card-less process
It allows bank users to make a cash withdrawal using a smartphone
Mobile phone as a new security tool
Withdrawal process:
Step 1 – Preparing a transaction
Step 2 – Closing a transaction
Card-less options
NFC
ATM must be equiped by NFC reader
Client has to own NFC smartphone
QR code
ATM must be equiped to read the
QR code (sw) Client has to own smartphone
with QR scan
Person to Person payments
Through an ATM, bank customers can input a payment amount and the recipient’s contact information.
The recipient will receive a code that must to provided at an ATM or branch in order to collect the payment
Contactless Credit, Debit, Prepaid cars
Smartphones
(Mobile Wallets)
Watches & Wristbands
Key Tags & Rings Stickers
Contactless payments options
Mobile Wallet options
Smart-phone + Particular bank customer
Android
MNO
Certified phone
Android
Security element (SE) Host Card Emulation (HCE) White – label mobile wallet
Mobile + debit / credit card + many other services
Smart-phone + Particular bank customer Smart-phone + Bank customer
Pros
Security – based on the EMV smart cards,
which are very difficult to crack Data ownership (Behaviour data)
MNO provides TSM (costs –
maintenance, certification etc.)
MNO carry all the activities regarding
to devices (testing, communication
with manufacturers etc.)
Cons
Dependency on MNOs The process to bring devices to production
(Firmware, testing, communication) Modified SIM requried Registration process very difficult
Comparison
Security element Host Card Emulation (HCE) White – label mobile wallet
Pros
Usually well established Loaylty program Established partner network Maintenance usually coverd by provider Security -> it usually combines both - secure
element and cloud-based technology
Cons No space for differentiation from others Data ownership
Pros
No need of MNO (costs) no need for SIM certification NFC SIM distribution No need of MNO TSM HCE & SE can work in parellel Additional option for NFC payments More Android devices supported Transaction without internet connections Data ownership (Behaviour data)
Con
High security level standards (exceeding common security (e.g. PCI DSS) which can be costly
Benefits
Merchant Issuer Consumer
Quickness no ques Improves customer
experience Enhanced location based
marketing Behaviour data
Increase use of contactless transaction
Good opportunities to issue co-branded cards with special features
Better consumer satisfaction
Loyalty programs -> program differentiation presents a significant hurdle to success => engagement, retention
Behaviour data
Fast service -> just tap/wave your card/device
Innovative solution No need of cash; easy
to use Pay using card/mobile Loyalty program Security / Easy
autorization process -> PIN/fingerprint if crossed the limit -> no card numbers -> no skimming (illegal card data collection)
Challenges and Other methods
Biometrics finger vain Google Glass Other Biometrics (iris camera, face recognition) Keystroke dynamics
Challenges Technology Internet connection SP operation system To get people used to it
Other methods
