Date: July 2008 Slide 1
Swiss Mobile Payment Initiative
October 6, 2008Dennis Flad, Vice President Banking Products ProjectsCredit Suisse SA
Presentation at the Mobile MondayÉcole Polytechnique Fédéral de Lausanne
CREDIT SUISSE PRIVATE BANKING
Date: July 2008 Slide 2
Cash versus cashless payments
NFC-based payments target to replace low value cash transactions
Source: European Payments Council (EPC), 2004.
Cashless
Cash
14% 86%
80%
20%Value >€15
Value <€15
Cash paymentsAll POS payments
� Cash is still the main payment method for low value payments
� Solutions to replacement of low value payments have to be:
� Fast
� Simple
� Convenient
� Cheap
Date: July 2008 Slide 3
A new user experience
EMV Technology
New limits and PIN handling methods
+
RFID Technology
New transmissionmethods
=
ContactlessPayments with
phones and cards
New experiences
Date: July 2008 Slide 4
We should actually never forget, what weare really selling in payments!
Date: July 2008 Slide 5
Walls to break-through
Pay withme!
Easy to purchase
Broadlyaccepted
Trusted
Awareness
Cheap!
Self-explaining
Convenient
Date: July 2008 Slide 6
Date: July 2008 Slide 7
Date: July 2008 Slide 8
Contactless payment experiences
2. Client activates Visa PayWaveapplication on handset (can be done anytime before check-out).
1. Amount presented on terminal.
3. Below CHF 40.-: Client waves his card over contactless reader. Transaction is completed.
Over CHF 40.-: Regular credit card transaction with authori-zation by PIN
1. Amount presented on terminal.
2. Client takes contactless card out of wallet.
4. Terminal prints receipt.
Contactless card payment
3. Below CHF 40.-: Client waves his phone over contactless reader. Transaction is completed.
Over CHF 40.-: Client autho-rizes transaction with PIN entry on handset and waves a second time over reader.
4. Terminal prints receipt and handset application shows transaction a confirmation too.
Contactless mobile phone based payment
Date: July 2008 Slide 9
Roadmap an e-Ticketing/e-Payment roundtablein October 2005
Ticket purchase Payment Load Ticket Control ticket
2006
2007
2008
2009
2010
� Data transmissionthrough NFC possible
� At the Point-of-Sale(Face-to-Face / S-POS-Vending machines.)
� EMV-Credit- / Debit- / Value Card Application
� Data transmissionthrough ISO 7816 � Chip with various
Ticketing Applications**
� Data transmission mainlythrough NFC
� Software-Updates forexisting controlhandhelds
� On the phone in commu-nication withNFC Chip
� SIM-Chip with card data
� Handset as terminalreplacement
� Data transmission at POS with NFC
� Load via mobile network on NFC chip
� Data transmission with NFC
� By internet
� By phone through CallCenter
� Credit Cards
� Invoice / Direct Debit
� Printing at the PC
� MMS on handset
� Stored on a server
� Visual
� Control handheld SBB
� Other Scanner
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� POS terminals withNFC interface
Date: July 2008 Slide 10
Thank you very much.
Date: July 2008 Slide 11
Backup
Date: July 2008 Slide 12
ReviewPhase 2: Field test*
Preparation Phase 2
Review
Potential timeline
2008 2009 2010 ff.
Internal pilot
Preparation [Go]
* The exact design of the field test still needs to be defined.
Date: July 2008 Slide 13
Potential point-of-sales for cash replacement
Cash penetration (e.g. Austria, 2005)
Conclusions
� Cash is still the main payment instrument, especially in typical low value point-of-sales
� Especially Point-of-sales like public transportation, supermarkets and shops (e.g. bookstores, home electronic, CD/DVD) still hold a potential for cash replacement
Potential for cash replacement is still given in the "fast-check-out"
point-of-sales
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Gastronomy, Hotels
Public Transportation
Supermarket
Books & Stationary
Department Stores
CD, DVD Shops
Home electronic
Petrol
Juwelery
Cloths & Shoes
Flight tickets, travel
Source: Survey of the Austrian National Bank (OeNB), 2005;
BACKUP
