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©2014 MasterCard. Proprietary
MasterCard Digital Enablement Service
Tarusov Andrey
©2014 MasterCard. Proprietary
• The changing payments ecosystem
• Tokenization and Digitization
• The MasterCard Digital Enablement Service
- Program
- Benefits
- Players
• Cardholder experience
• Issuer onboarding and resources
• Appendix
PRODUCT
KNOWLEDGE
Contents
September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing
©2014 MasterCard. Proprietary
Where is the payments ecosystem going?
September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing
©2014 MasterCard. Proprietary
The changing ecosystem: connected devices blur the lines between physical and digital commerce
More Devices Consumers are browsing, shopping and transacting with all their connected devices – from mobile phones to wearables.
More Mobile These devices enable consumers to shop in-store, online, in-app and on-the-go.
More Secure Digital payments allow for more safe and secure payments for consumers.
The industry must keep pace with consumer expectations September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies»,
Beijing
©2014 MasterCard. Proprietary
Our point of view is that…
Consumer card account numbers will only be visible
on a physical card, and will shortly be replaced
everywhere else by “payment tokens”
In the Cloud On a Mobile Device Stored Online
September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing
©2014 MasterCard. Proprietary
Digital payments make the industry more secure
Credential Creation
Credential Storage
Credential Usage
Today: • 16-digit PAN
Emerging: • Personalized token
Today: • EMV • Mag stripe
Emerging: • Token on a mobile
device • Tokenized COF
Today: • Swipe • Dip • Tap (plastic)
Emerging: • Tap (device) • QR • Other…
September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing
©2014 MasterCard. Proprietary
How do we enable digital payments to enhance the security of the ecosystem?
September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing
©2014 MasterCard. Proprietary
and
Tokenization Digitization
By embedding card payment credentials directly into mobile
devices for simpler, more secure payment experiences in store, online and in-app
This is done through:
©2014 MasterCard. Proprietary
The process of replacing a card’s primary account number (PAN) with an alternate
card number, or “token”
Tokenization
Original Card Data Traditional 16-digit
card number and data
Token Standard account number
format, Dynamic data
Tokens are mapped to the funding account, leveraging the existing payments infrastructure and messaging formats for authorization and processing. The standard is managed by EMVCo
5XXX XXXX XXXX XXXX 5XXX XXXX XXXX XXXX
Tokenization standards leverage existing infrastructure
September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing
©2014 MasterCard. Proprietary
The process of delivering tokenized card details and associated data onto a mobile
device and/or cloud
Digitization
©2014 MasterCard. Proprietary
What are Tokenization use cases?
September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing
©2014 MasterCard. Proprietary
Enabled devices can transact in-store, in-app or online
Contactless Consumer taps a mobile device with tokenized credentials in-store at Contactless terminals
In-App or Digital Secure Remote Payments (DSRP) Consumer uses secure token stored on mobile device for in-app payments
Card on File (coming in 2015) Consumer card information stored on a merchant site or in a Digital Wallet replaced with a token
September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing
©2014 MasterCard. Proprietary
What are the benefits of Tokenization?
September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing
©2014 MasterCard. Proprietary
Tokenization reduces fraud for the entire digital payments ecosystem
For Merchants For Issuers For Consumers
• Reduced chargeback risk
• Faster checkout
• More secure
• More payment options
• More ways to sell
• Opportunity to extend existing card business
• More secure transactions using EMV-like cryptography
• Fewer chargebacks
• New ways to pay from every device
• Better user experience
• Added peace of mind due to fewer fraudulent transactions
September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing
©2014 MasterCard. Proprietary
So, what is MasterCard doing to enable tokenization?
MasterCard Digital Enablement Service
September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing
©2014 MasterCard. Proprietary
Tokenization & Digitization services
Transactional services
Transactions
MDES is a new MasterCard platform that enables end-to-end tokenization and
digitization services “on-behalf-of” Issuers
©2014 MasterCard. Proprietary
MDES Business Services
Mobile Device Configuration
Card Configuration
Card Availability
Identification and
Verification
Card Image Creation Service
Digital Card Generation
Transaction Mapping
Customer Interface
Transaction Detail
September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing
©2014 MasterCard. Proprietary
Why should Issuers use MDES to tokenize their card
portfolios?
September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing
©2014 MasterCard. Proprietary
Scalable
MasterCard provides
end-to-end OBO services for Customers
Centralized
Provides a centralized
token generation
and management
platform
Secure
Two factor authentication
and EMV-like crypto-validation
Access
Allows Issuers to connect to a
multitude of Digital Wallet
partners
MDES is a centralized platform that allows Issuers to digitize their MasterCard portfolios via a single point of management
September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing
©2014 MasterCard. Proprietary
Who else will be interested in using MDES services?
September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing
©2014 MasterCard. Proprietary
Traditional Card Issuers
Digital Wallet Operators (DWOs) • Mobile device original equipment manufacturers
(OEMs) • Device operating system providers • Other third parties providing digital wallets to
customers • E.g. MasterPass
Merchants
September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing
©2014 MasterCard. Proprietary
What is the consumer digitization experience?
September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing
©2014 MasterCard. Proprietary
1. Issuer enables ranges of eligible cards in the service
For Illustrative Purposes Only
©2014 MasterCard. Proprietary
2. Cardholder installs wallet app
The cardholder enters their card details into the mobile wallet and requests to digitize their card
For Illustrative Purposes Only
©2014 MasterCard. Proprietary
3a. MDES checks card eligibility
The mobile wallet confirms card is available for digitization
For Illustrative Purposes Only
©2014 MasterCard. Proprietary
3b. MDES checks card eligibility
The mobile wallet confirms that the card is declined for digitization. The cardholder must contact the issuer.
For Illustrative Purposes Only
©2014 MasterCard. Proprietary
4. Cardholder enters security code
The cardholder enters her card security code to initiate digitization
For Illustrative Purposes Only
©2014 MasterCard. Proprietary
5. MasterCard validates card details
MasterCard sends an Tokenization Eligibility Request to the issuer to validate card details
and initiate digitization
For Illustrative Purposes Only
©2014 MasterCard. Proprietary
6. Cardholder accepts T&Cs
The cardholder accepts the issuer terms and conditions and the digital “card” is delivered to her mobile device
For Illustrative Purposes Only
©2014 MasterCard. Proprietary
7a. Issuer sends activation code (if required)
Where required, the issuer sends the activation code to the cardholder’s email address, card statement or phone by
text, push message or call
For Illustrative Purposes Only
Yellow Rule
©2014 MasterCard. Proprietary
7b. Cardholder enters activation code (if required)
The cardholder enters the activation code sent by the issuer into their digital wallet
For Illustrative Purposes Only
Yellow Rule
©2014 MasterCard. Proprietary
7c. Cardholder activates card (if required)
The cardholder enters their chosen PIN and confirms to verify and activate their digital card
For Illustrative Purposes Only
Yellow Rule
©2014 MasterCard. Proprietary
8. Device is successfully digitized
The cardholder can now use her device to shop in-store and in-app
For Illustrative Purposes Only
©2014 MasterCard. Proprietary
How will a consumer use their device to shop?
©2014 MasterCard. Proprietary
1. Cardholder enters store
The cardholder chooses to buy a product or service
For Illustrative Purposes Only
©2014 MasterCard. Proprietary
2a. Contactless payment
The cardholder taps her mobile device on the merchant's terminal to pay for a good or service
For Illustrative Purposes Only
©2014 MasterCard. Proprietary
2b. In-app payment
The cardholder chooses to buy a good or service in a merchant app. She selects a card from her digital wallet,
checks the transaction amount and enters the PIN associated with the card
For Illustrative Purposes Only
©2014 MasterCard. Proprietary
3. Authorization response
The acquirer/merchant sends the authorization response to the cardholder’s mobile device
For Illustrative Purposes Only
©2014 MasterCard. Proprietary
4. Transaction complete
The Digital Wallet displays the transaction details on the cardholder’s mobile device
For Illustrative Purposes Only
©2014 MasterCard. Proprietary
How does an MDES transaction work?
(behind the scenes view)
September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing
©2014 MasterCard. Proprietary
Transaction overview slide
For Illustrative Purposes Only
Wallet
September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing
©2014 MasterCard. Proprietary
How will Issuers make portfolios eligible for
digitization?
September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing
©2014 MasterCard. Proprietary
Immediate considerations for Issuers looking to implement MDES
• Define Identification & Verification (ID&V) strategy (Green, Yellow, Red Rules)
• Which interface for Customer Support tools: Build API or use MasterCard Connect
• Define CVM priorities
• Define reporting requirements and options
• Define Fraud Rules
• BIN ranges that will be eligible for tokenization
• Digital card images • T&C’s for cardholder
acceptance • Requests for employee
access to MasterCard Connect portals - Onboarding - Customer Service - PA Reports
• Work with processor to confirm support of MDES network messages
• Train internal fraud chargeback team on MDES implications
• Enable internal employee workstations to access API or MC Connect tools
• Train internal customer service teams
• Define marketing and consumer education strategy
Decisions Submit to MasterCard Internal Prep
September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing
©2014 MasterCard. Proprietary
MasterCard Connect
Issuers access and enable MDES via MasterCard Connect at www.mastercardconnect.com
©2014 MasterCard. Proprietary
Required information
The issuer inputs required to enable MDES include:
Contact information for the issuer personnel
enabling MDES
Billing ICA number
Issuing country
Billing currency
September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing
©2014 MasterCard. Proprietary
Estimated issuer enablement completion time: 30 minutes
Issuer Enablement flow
©2014 MasterCard. Proprietary
What Customer Service tools will be available?
September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing
©2014 MasterCard. Proprietary
Customer Service Portal and API
The Customer Service Portal allows issuers and WPs to:
• Investigate and resolve cardholder issues
• Perform specific actions for cardholders, such as initiate re-provisioning, suspend tokens, etc.
Issuers register for the Customer Service Portal via MC Connect
The Customer Service API allows Issuers and WPs to:
• Integrate their own environment with MDES
The API is exposed through the MasterCard Developer Zone
September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing
Thanks !