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Emerging Technologies
Mobile Technology
Mobile Technology
Wikipedia:Mobile payment, also referred to as mobile money, mobile
money transfer, and mobile wallet generally refer to payment services operated under financial regulation and performed from or via a mobile device. Instead of paying with cash, check, or credit cards, a consumer can use a mobile phone to pay for a wide range of services and digital or hard goods.
Mobile TechnologyThe mobile customer is “Always On”
54% of US Consumers check their phones while
lying in bed (before sleeping, during the night,
upon waking)
Source: Lookout “Mobile Mindset Study” of U.S. consumers, 2012 /MasterCard-The Evolution of Digital Commerce and Mobile Payments”, 2014
Mobile TechnologyDigital Payments are accelerating across different
devices and channels…
Source: MasterCard-Keeping the Retail Checking Account Relevant via Digital Commerce; March .
Mobile Technology
Source: 2013 ICBA Community Bank Payments Survey
Which of the following consumer payments products does your bank currently offer or plan to offer?
Under $100 million
$101-$250 million
$251-$500 million
$501 million or more
0% 10% 20% 30% 40% 50% 60%
21%
30%
46%
54%
45%
43%
43%
41%
Plan to offer before 2015 Currently offer
Mobile Payments
Mobile Technology
Source: 2013 ICBA Community Bank Payments Survey
What type of mobile payments channels does your bank support? (Check all that apply.)
Mobile app
Mobile web payments
SMS based/text message payments
Near Field Communication (NFC) chip
Other
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
95%
64%
36%
2%
1%
85%
40%
0%
4%
2011 2013
It’s your physical wallet today but deployed (housed) online, on a mobile device or table/PC. It will house your Payments, Loyalty and other Cards/Products.
Source: MasterCard-Keeping the Retail Checking Account Relevant via Digital Commerce; March .
What is a Digital Wallet?
Digital Wallets
You Should! … Disintermediation!These companies and many other do…
Disintermediation: enabling or allowing companies who have NO stake in your Bank’s success; but, want access to your customers and will reach them via a Digital Wallet. Once they have your customer in a Digital Wallet they can market products and services directly to them (DDA, Cards, Savings, Loans, Investments etc.
Source: MasterCard-Keeping the Retail Checking Account Relevant via Digital Commerce; March .
Who Cares about a Digital Wallet?
Digital Wallets
Visa’s payment strategy is to provide consumers a consistent payment experience across channels
Cross Channel Payment Solution
Digital Wallets - V.me by Visa
Empowers your customers to shop with confidence
Digital Wallets
123 First Lane
09/99
- Loyalty
Digital Wallets - MasterPassTM
Digital WalletsPhysical and Digital Worlds are Converging
OpportunityThe checking account (DDA) is the Center of the financial relationship…all other products should revolve around it…
Source: MasterCard-Keeping the Retail Checking Account Relevant via Digital Commerce; March
EMV (Chip Cards)
EMV stands for Europay, MasterCard and Visa, the payment networks that originally developed the specifications
EMV is the global standard for inter-operation and governance of chip cards at POS terminals and ATM’s for authenticating credit and debit card transactions
EMV creates a stable foundation for chip-based payments across many payment methods (contact/contactless/mobile)
What is EMV?
Why EMV?
Fraud Reduction(Card Present)Worldwide Interoperability
Movement to NFC & Mobile
EMV
Source: CPI Card Group
The party that hasn’t upgraded to chip technology will be liable for card-present fraud (counterfeit) that could’ve been prevented by the use of chip technology.
EMV Liability Shift
Source: Shazam , “EMV- Where Are We Now?”, 2014 Forum
EMV Key DatesFraud Liability Shift Policy Definition: transfer liability for certain types of fraudulent transactions away from the party that has the most secure form of EMV technology.
ATM POINT OF SALE (POS) Automated Fuel Dispense
October 2017 October 2015 October 2017
April 2013Specific to cross boarder
Maestro transactions where the issuer is non-
US at a US ATM.
October 2015 October 2017
October 2016All transactions on any MasterCard network.
Discover and American Express published dates not represented here.
Target Breach – November 2013
Judge Leon – March 2014
These events have accelerated the movement of EMV issuance for both credit and debit in the US.
EMV Recent Impacts
Common AID
Licensing Agreements
EMV New Developments
Socialize & Educate EMV at your bank–Key operational areas–EMV migration team–Attend Bancard webinars
Perform analysis–International transactions–Fraud–System/processor capabilities
Determine desired capability –Signature authentication–PIN authentication–Offline capabilities
EMV What to Do
Source: Fred Csaky, CSCIP/P: EMV 101: What all Banks need to know NOW!, March 2013
Define initial and long-term issuance plans–Review/redesign plastic–Employee / traveler/ ATM pilot–Mass / Accelerated / normal reissue / selective–Pricing: Replacement card fees
Outline training & communication plans–Internal–Clients–Cardholders
Develop Budget–ATM hardware/software and testing–Plastics & internal hardware (instant issue)–Education and training–Brand & Processor implementation fees
EMV What to Do
Source: Fred Csaky, CSCIP/P: EMV 101: What all Banks need to know NOW!, March 2013
OpportunityEMV Cards provide security and gives you the ability to compete with the national issuers.
Made possible by our generous sponsors
Questions?
Julie HansonVice President Card & Payment Products
ICBA Bancard and TCM Bank, [email protected]
Thank You
