spa futureproofing your payments at rbte 2013 in london this week
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future proofing your payments
Future Proofing your Payments Unleashing the power of smart payment through contactless channels
RBTE, London, 13th March 2013
shaping the future of payment technology 2
Who we are
The Smart Payment Association addresses the challenges of today’s evolving payment ecosystem. We offer leadership and expert guidance to help members and their financial institution customers realize the opportunities of smart, secure and personalized payment systems and services - both now and in the future.
Since 2004
Members:
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What we do
The SPA works in partnership with global standards bodies, its own vendor community, and an expanding ecosystem of established and emerging brands; offering an ever-growing portfolio of advisory and support services.
Fig 1 Extending advisory and support across the evolving community, the SPA is addressing today’s challenges and shaping the future direction of payment technologies, standards and business models.
Ecosystem Expert Advisor Services Help shape the future of payments
Members Customers Services
Bring Value to Financial Institutions
Members Services Trade Organization
Non Traditional
Traditional/ Smart Card Advanced/ New
Customers
Technologies
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898 Mio. Smart Payment Card Shipped in 2011 by SPA Members*
*includes all chip payment cards – EMV represents more than 90% of SPA shipments
April 2012
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Payments Technology Darwinian Look
Main Drivers:
Convenience
Security
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TAM > 1 Billion in 2011*
EMV cards deployed or in advanced deployment EMV cards in deployment Magnetic Stripe
* 2011 Estimated Total Available Market (1037 M) by Geographies in Millions – Includes all chip payment cards ** Includes Turkey
NORTH AMERICA
TAM: 88M
SOUTH AMERICA
TAM: 213M
SOUTH EAST ASIA
TAM: 87M
CISMEA**
TAM: 129M
NORTH ASIA
TAM: 153M
EUROPE
TAM: 367M
April 2012
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Are EMV Cards Protecting You?
Most of EMV Cards deployed in West Europe + other specific areas
EMV deployment is pushing Fake Magnetic Stripe Cards out of Europe, but Fraud bounces back-in
Good implementation of EMV proven to significantly reduce fraud
25% are Private label cards: Retail, Airlines, Petrol, Transport,..
29%
71%
Chip & PIN
Mag Stripe
5.2Bn Payment Cards shipped in 2011
3.21B
1.33B
0.69B
Intl.Schemes
Private Label
Others
Sources: EMVCo & Nilson Report
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Alternate Payments to Cards
Checks
Less and less
Small checks replaced by Debit Cards
Large checks replaced by money transfer
Cash
Still most convenient for small payment amounts
Legal Value Money
It is there to stay
Cash virtualization could happen
Pre-loaded mobile
Cloud based currencies
March 2013
QR-code
Appealing: (almost) no infrastructure needed
Optical reading:
not-fast, light ambience dependant
No standard, dependent on issuers
Apps dependent
Security: genuine codes are checked inside phone apps.
User recurring costs (SMS)
Slowing down NFC deployment
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Internet Payments
Back in the 50’s Card-not-present Problem
3D-Secure bringing some improvement
EMV card enable:
Dynamic card generation
One-time-passwords (e-Banking)
SPA supports & promotes EMV utilization of technology with stakeholders
Use of EMV card with a personal terminal device
Scalable, secure
Interoperable
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Contactless Technology
Bundling several services
Payments
Loyalty, Identification,
Other 3rd party application
Not just for fast transaction
Freedom of form factors
ISO Cards or NFC Mobile
2-3cm
The Opportunity / Challenge
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130+ Mio Contactless Payment Cards delivered by SPA Members in 2011
Contactless technology = 15% share of smart payment card shipments.
Dual-interface = 80 % Y-to-Y growth (represents more than 80% share of contactless shipments)
April 2012
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NFC Revolution is Happening
12
Payment Transport Smart Poster Tags & Cards
Consumer electronics
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The NFC Deployment
NFC technology based on Secure Element
NFC Contactless technology is not just for mobile payments
NFC deployment is happening behind Mobile Handlsets and NFC POS.
Many devices will be NFC capable
NFC transactions
Not just payments
Co-locating with other services
Get ready to exploit NFC pervasiveness
Strong Standardization effort : ISO, EMVCo, NFC-Forum
March 2013
Transport
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Latest Publications & Contribution
PIN by SMS
Security for Mobile Payments
Private Label Payment Systems
Business Continuity Management in the
Payment Card Industry
SPA contributing to:
EMV standard
Technical Associate and Board Member, Card Representative
EMVCo 2.0 Next Generation Taskforce
SEPA standard
Innovative Payment WG at EPC (Chair)
SCCMB Preparatory Committee Member
Security and Conformity WGs Member
Upcoming Papers
Software Fallback Chip Solution
Biometric for Payments
Mobile Payment Platform Security Certification
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www.smartpaymentassociation.com
March 2013
Contact: [email protected]
future proofing your payments
Thank You www.smartpaymentassociation.com