3. Credit unions, merchants and credit union members face a multitude
of choices, many of them competing
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4. Many ways to pay
Mag Stripe EMV Offsite Remote “Cloud” Proximity
Card-based Chip-based eCommerce or A token or proxy Sending payment
transaction at payment device mCommerce number is information directly
existing terminal or that generates (mobile web or provided to the from payment
mobile card reader one-time use data mobile app) POS. The token is device to reader
& authenticates exchanged for
card & user traditional card QR Code
data in the cloud
Contact
NFC
Contactless
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Source: Market Platform Dynamics 4
5. Profusion of choices
? ? ?
Members Merchants Credit Unions
• Which shopping channels? • What POS? • Which data storage location?
–Store? –Traditional? –Merchant?
–Online? –Portable? –Third party?
–Mobile web? –Customer-based mobile? –Device?
–App? –Cloud?
• What form factor?
• What device? –Mag stripe card?
–Samsung Nexus S 4G? –EMV?
–BlackBerry 9900? –NFC?
–iPhone? –Barcode?
–Empty hand?
• How to identify myself?
–Card?
–PIN?
–Phone #?
–Fingerprint?
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6. Building a Mobile Commerce Strategy
Cloud (software-based)
• M-Web /Offsite
Remote
• QR/Bar • Boku
Code
• Contactless
Stickers
• Mobile
Offers
Issuer-
Centric Carrier-
• NFC • Google
Wallet Centric
Accessories
• Isis
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7. Strategy, continued
• Simplicity • Price • Profitability
Needs: • Relevance • Standardization • Security
Collaborate with partners Build your own solution
Promote contextually-appropriate payments
8. Base your emerging payments strategy on your assessment of
market direction, your own strengths and weaknesses, and what is
relevant to your members
Your mobile payments strategy should not be a mere placement of
today’s plastic card and paper coupons in a digital wallet.
Which products will best resonate with your credit union members?
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9. Due to recent U.S. payment network announcements, any
emerging payments strategy must account for EMV
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11. Anatomy of a traditional EMV transaction
Contact Chip
Options:
Chip Contains:
•Card validates offline
•Account data
data (prevent
•D-PAS applet &
counterfeiting)
Application ID# (AID)
•Determine
• Unique encryption
Cardholder
key for each card
Verification Method
• Offline PIN (optional)
(CVM)
• Record of last few
- PIN validated
transactions ($, MCC)
locally (not by issuer)
• Est. available credit
- Signature
line
- None (low $)
1. Insert contact Using Issuer*-driven rules,
EMV card in EMV card determines:
terminal •What is the $ amount of
Contact Card Slot purchase?
2. Validate D- • MCC high or low risk?
PAS AID present • Last time card authed
in card and online?
terminal • Nearing credit limit? Options:
• Is this a domestic or • Validate cryptogram
3. Initiate D-PAS international transaction? • Return a cryptogram to
Terminal Contains:
card applet and the card
• Generic EMV kernal
read terminal • Determine Cardholder
(V/MC/Amex/D)
data Verification Method
• D-PAS AID
(CVM)
• D-PAS Public Key
- PIN
• D-PAS Terminal Parameters * Issuer must comply w/ Payment Network and/or
local regulators’ EMV mandates - Signature
- None
14. EMV Summary
EMV is coming to the U.S.
Acquirers are the first to be impacted – October 2013
Incentives for merchants and issuers to comply continue to grow
Continuing debate on online vs. offline transactions and the use of PIN
for credit card transactions
15. Final Thoughts
Today’s payments ecosystem is about to undergo a dramatic evolution.
The way consumers will conduct commerce will drastically change
within the next 5 years.
– EMV
– Mobile
– Increased security (dynamic data, PINs, biometrics)
How well you navigate these waters and deliver meaningful,
contextually-relevant, and easy-to-use products will differentiate you
from the competition.
How will you help your credit union navigate this sea of change?