The SI Perspective

Martin.Reilly@hitachi-eu.com

Senior ConsultantSeptember 200301628 585754

www.hitachi-eu/egov

e-Purse Business Case Types of Scheme Standards SI Perspective Future Questions…

Agenda

e-Purse

Argentina , Australia , Austria , Bahrain , Belarus, Belgium, Brazil, Bulgaria, Canada, Chile, China, Colombia, Costa Rica, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Finland, France, Germany, Ghana, Greece, Guatemala, Honduras, Hong Kong, Iceland, India, Ireland, Israel, Italy, Ivory Coast, Japan, Kazachstan, Kenya, Kyrgyzstan, Latvia, Lithuania, Luxembourg, Malaysia, Mali, Malta, Mexico, New Zealand, Nigeria, Norway, Philippines, Poland, Portugal, Puerto Rico, Romania, Russia, Singapore, Slovakia, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, Tunisia, Turkey, Ukraine, United Kingdom, United States, Uruguay, Venezuela, the Netherlands

A-Cash, American Express, Avant, Balcard, CAFÉ, CASH (Switzerland), Cartao Inteligente, Cash (Sweden), CashCard (Singapore), Chipknip, Chipper, Clip (Europay), Danmønt, ECard, ESCA, Easy Card, Edy, Electronic Cash Bradesco, Electronic Cents Purse, Euro 6000, Exact, Futura 3000, GeldKarte, Hi-Purse, K-Cash, KLINK, MEP (Multibanco), MEPS Cash, MINIpay, MasterCard Cash, MicroCash, MiniCASH, Modeus, Mondex, Monedero 4B, Moneo, Monicash, Mybi - Digital Pusan Card, Octopus, Proton, Quick, Quicklink (now ECard), SMArt Rupee System (SMARS), Suica, SuperCash, TIBC, Thai Smart Card, Ultimus, ValuCard, Visa Cash, Visa Roskart, beenz, iButton

e-Purse

Electronic Purse

Electronic Cash

Prepaid Value

Stored Value

Magnetic Stripe Cards

Smart Cards

Other Physical Tokens

Entirely Virtual

e-Purse Business Case Types of Scheme Standards SI Perspective Future Questions…

Agenda

Business Case

MarketingOppertunities

Par

tner

ship

s Custom

ers

RevenueSources

Where will revenue come from?How will we leverage it?How much will it cost?

Business Case

Cost of Handling Cash

Interest on Float

Unredeemed Value

No Cash Infrastructure

Faster than Cash

Ease of Use

Security

Electronic Services

ATMs Point of Sale Card Readers Revalue Machines Transaction Hub Txn Clearance Cost Charges Lease or OwnBusiness Case

e-Purse Business Case Types of Scheme Standards SI Perspective Future Questions…

Agenda

Scheme Types - Closed

Closed

Value Circulates

Single Organisation

Partner Organisations

Issuing Value

Redeeming Value

Vouchers not Currency

Private Infrastructure

Scheme Types - Closed

Closed - Example

Positive Futures

Leisure Centres

Youth Workers

Issued for Behaviour

Redeem for Sports

1 point 1p

Closed Points Cycle

All Transactions Logged

Scheme Types - Open

Open

Electronic Cash

Cash Alternative

Issued by a Bank

Merchants Accept

Consumers Use

Issuer Honours Value

Central Bank Rules

FSA in UK

Scheme Types - Open

Open - Example

Ghana

Two Banks

Poor Quality Paper Money

No network of ATMs

Limited Landlines

Security in Bush

Utility Payments

Few Bank Accounts

Scheme Types - Accounted

Fully Accounted

Pre-Authorised Debit

Shadow Account on Chip

Central Hub

Transaction Charges

Not Anonymous

Proprietary Solutions

EMV

Attractive to Banks

Scheme Types - Offline

Offline

Reduce Telecom Costs

Scales Better

Robust and Reliable

Lower Cost

Secure Chip Required

Scheme Types - Online

Online

All Transactions Centrally Cleared

Potential Single Point of Failure

Security in Servers and Terminals

Cheaper Cards

Centralised Settlement

Scheme Types - Transport

Transport

Generally Closed

Speedy Transactions

Usually Prepay

Contactless

Low Cost Cards Used

Interoperability Required

Commercially Successful Schemes

Transaction Fees Fund Infrastructure

Scheme Types - Transport

Transport - Example

SUICA

Japan Rail East

5 Million+ Cardholders

20 M Daily Transactions

500 Stations

Multi-Operator

Season Tickets

Stored Value

Vending & Retail

e-Purse Business Case Types of Scheme Standards SI Perspective Future Questions…

Agenda

ITSO UK Transport Legacy Schemes Getting Started

Standards - ITSO

Standards - CEPS

Common European Purse Specifications

Secure Electronic Transactions

Standard being Adopted

Evolution from EMV

Face to Face

International

Multi-Currency

Standards - EMV

EMV

2005 Roll Out

International Standard

UK Wide Infrastructure

MasterCard and Visa

Preauthorised Debit

ATM, POST & Cards

PIN at POS

e-Purse Business Case Types of Scheme Standards SI Perspective Future Questions…

Agenda

SI Perspective

Smart Cards act as a catalyst

for Technical Integration

and Stakeholder Cooperation

SI Perspective

Cardholder Take up

Social Exclusion

Organisational

Security Worries

Technology

Standards

Plans to Scale

Sustainability

21st Century Government

and others…

Consulting Stakeholders

Community Involvement

Legal

Marketing

Financing

Implementing

Operating

Managing

SI Perspective

e-Purse Business Case Types of Scheme Standards SI Perspective FutureQuestions…

Agenda

Future

Contactless Transport Cards are Popular with the Public unlike Bank e-Purse Schemes

Future

Preauthorised Debit

e-Cash Alternative

Proprietary Solutions

India

Russia

EMV

MasterCard

Visa

EMV Widely Deployed

Future

Many Closed Schemes

Low Cost

Local

School Meals

Loyalty

Social Inclusion Projects

Staff Canteens

µ-Chip met the challenge to make a chip small enough for bank notes.

Low Cost High Volume High Security Fast Simple

Future

Questions

e-Purse Business Case Types of Scheme Standards Future SI Perspective Questions…

The SI Perspective

Martin.Reilly@hitachi-eu.com

01628 585754

Senior ConsultantSeptember 2003

www.hitachi-eu/egov