Transcript Contactless Payment - Verifone Support Portal

Spotlight on Contactless
Ryan Altern
Product Marketing Manager EMEA
Agenda
• Introduction to Contactless
• Contactless Payment
• State of Rollout
• VeriFone Contactless Strategy
• Product Roadmap
• NFC
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Introduction to Contactless
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Short Range RF Technology
Interaction between two devices, based on
RF induction, to exchange data
Main characteristics:
• Short range interaction (from a few centimeters up to a few
meters)
• Suitable for transmission of small amount of data
• Interaction generally between an active device (with power
source) and a passive device (has no power source of its own,
powered by the active device)
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Where is RF Technology is Used?
RFID
• Automatic identification of objects or bodies
• A tag containing the coil (antenna) is attached to the
object
• Used for: storage control, freight control, anti-theft in
shops, animal control
• Generally not secure
Access Control
• Used to control entrance by reading the entrant’s
card
• Generally not secure
Transfer of Information
• Short range data transfer to distribute information
• Used for: access to content, data exchange (ie. ‘NFC’)
Contactless Payment
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Is the term ‘RFID’
synonymous to
‘Contactless’ in
the payment
world? …..NO!
‘Contactless Payment’
is the industry term.
• RFID is associated
with non-secure data
transfer
• Please Do not refer to
Contactless Payment
as RFID!
Contactless Payment
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Definition and Features
Non-cash payment transaction
No physical connection between the consumer payment device
and POS/reader
Using standard payment network infrastructure
• Targeted for small value transactions
– Usually the equivalent of up to $25/€15/£10
– Targeting cash transactions
• Main benefit: quick transaction
– Other conditions for quick transaction:
No PIN and No Signature
– Easy to operate, no need to orient card
• Flexible Form Factors:
– Contactless smart card
– Key Fob
– Mobile Device (cellular phone, PDA)
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Market Drivers and Benefits
For Card Associations and Issuers
• Increase card transaction volume and revenue by replacement of
cash transactions
• Minimal change to infrastructure
For Merchants
• Fast transaction time, queue shortener
• Greater spend at checkout, no cash shortage
• Less cash handling – less errors and fraud
• Reduced terminal maintenance (higher MTBF)
• Competitive differentiation
For Consumers
• Transaction speed and convenience
• No need to carry cash
• Fraud Reduction through reduced card skimming
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Target Market Segments
• QSR
• Pharmacies & drugstores
• Convenience stores
• Supermarkets
• Deli stores
• Kiosks
• Vending machines
• Sport stadiums
• Parking
• Transit
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Association Contactless Schemes
• Scheme called PayPass
Sometimes also called OneSmart PayPass
• PayPass MagStripe: MasterCard’s contactless-magstripe
application
• PayPass M/Chip: MasterCard’s EMV-like application
• Scheme called Visa Contactless
Previously called Visa Wave (remained as Visa AP initiative)
• MSD: Magnetic Stripe Data; Visa’s contactless-magstripe
application
• qVSDC: quick Visa Smart Debit/Credit; Visa’s EMV-like
application
• Scheme called ExpressPay
• Specification differentiates EMV and Non-EMV transactions
• EMV specification is a subset of their EMV-chip spec
• Magstripe scheme only
• Similar to Visa MSD
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Payment Solution Requirements
Cardholder Indicators
Landing zone:
• Landing zone frame is clearly marked
• Tapping icon in center of landing zone
• Card scheme icons (those the reader is certified for)
LEDs:
• Visa, PayPass and AMEX require 4 single-light (green) LEDs
– Left one lit – ready to accept card, all lit in sequence to indicate card
reading
• Visa AP and MC AP adopted a 4 color scheme: Blue – ready to
accept card, Yellow – card reading, Green – successful
transaction, Red – transaction failed
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Payment Solution Requirements
Cardholder Indicators
Buzzer:
• Audio sequence to indicate card reading
• Failure may also be indicated by a special tone
Display:
• Can be used as an alternative visual indication (4 circles
sequentially appear to indicate card reading) instead of LEDs
• Can be used, although not mandatory, to display transaction
amount and messages
– Common in EMV-like schemes
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Contactless: State of Rollout
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VeriFone Contactless Strategy
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Contactless Strategy Overview
1
2
3
4
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Step One:
OEM with Channel Partner to Market
Step Two:
Fast-Track to Market
with ODM Partnership
Step Three:
Abstract and
De-Risk Revenue
Step Four:
Invest and Develop
Intellectual Property
Contactless Strategy Overview
1
2
3
4
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Step One:
OEM with Channel Partner to Market
Step Two:
Fast-Track to Market
with ODM Partnership
Step Three:
Abstract and
De-Risk Revenue
Step Four:
Invest and Develop
Intellectual Property
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OEM Channel Partnership
OEM partnership with ViVOtech allows:
1. Immediate increase in available products
– QX110 (Peripherals)
– QX110T (Taxi)
– QX110D (Vending & QSR)
2. VeriFone to recognize revenue now
– 8,000+ Shipments to date
3. VeriFone part-numbers streamlines shipments
– Standard VFI part-numbers (P153)
ViVOtech’s cross licensing agreement ensures that
OEM sales will not prevent us from developing our
own technology or locking our customers into a 3rd
party interface.
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Contactless Strategy Overview
1
2
3
4
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Step One:
OEM with Channel Partner to Market
Step Two:
Fast-Track to Market
with ODM Partnership
Step Three:
Abstract and
De-Risk Revenue
Step Four:
Invest and Develop
Intellectual Property
2
Fast-Track Contactless to Market
ViVOtech has enabled VeriFone to drastically diminish
our time to market and develop products in parallel
ODM Agreement / Reference Designs:
• Vx 810
• QX120
VFI Peripheral
• MX800 Series
Programmable
PIN pad
Consumer Facing
By partnering with
ViVOtech, we are
able to accelerate
the Cultural
Transformation &
VeriFone’s Core
Competency
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•
•
•
•
•
•
•
Leverage proven firmware & design resources
Sales Account Support & Documentation
Assisted with antenna design
Provided certification guidance
Provided level 1 debugging at ViVOtech labs
Provided technical support and training
Custom firmware (NETS, NCR, McDonalds)
Contactless Strategy Overview
1
2
3
4
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Step One:
OEM with Channel Partner to Market
Step Two:
Fast-Track to Market
with ODM Partnership
Step Three:
Abstract and
De-Risk Revenue
Step Four:
Invest and Develop
Intellectual Property
3
Hardware Abstraction
Cross Licensing Agreement
Abstract core technology
Insulate customer from
technology / firmware
Perpetual, free, irrevocable
licensing of ViVOtech’s API
• Allows VeriFone the option to
migrate towards our own
technology when we’re ready,
meanwhile retaining benefits
gained throughout the ViVOtech
relationship
• Ability to emulate ViVOtech
protocols on future products
Time
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Contactless Strategy Overview
1
2
3
4
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Step One:
OEM with Channel Partner to Market
Step Two:
Fast-Track to Market
with ODM Partnership
Step Three:
Abstract and
De-Risk Revenue
Step Four:
Invest and Develop
Intellectual Property
4
VeriFone’s Intellectual Property
• Become increasingly self sufficient and self
sustainable by investing into VeriFone’s
contactless technology
PINpad 1000SE Contactless (PIN Entry)
Mobile Terminal Vx670 Contactless
• Transitioning to VeriFone’s internal contactless
technology is plug and play / seamless due to the
cross licensing agreement, hardware abstraction,
and cDTK API
• Today's contactless application will work with
tomorrow’s internal technology, and will work
across our entire product line
“One Contactless Platform, Many Contactless Solutions”
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Contactless Product Roadmap
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Contactless: Product Portfolio
OP 4100
Vx 670
Features
Vx 810 DUET
SIM 700/
Vx 700
Vx 810
PINpad 1000SE
MX800 Series
QX120
QX720 QSR
(Non-EMV)
Vx 610
with
module
QX110
Peripheral
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PIN Entry
Programmable
Multimedia
Unattended
Wireless
Contactless Roadmap
Vx670
Contactless
Integrated
PP1000SE
Contactless
Qx720
Contactless
Vx 7xx
Durable \
Outdoor
Contactless
OP4100
MX760
Contactless
MX MSR
Contactless
MX CTLS
Module
Module
Field \
Modular
Vx810
CTLS
Qx120
Peripheral
Qx-110
Family
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In Development
Available
Peripherals: QX110
EMV Contactless Peripheral
Merchant & Consumer LEDs
Customer &
Association Branding
EMV Contactless
Capable
Various Stands
& Mounts
Available Now
• Being positioned for use with Countertops, ECRs,
or other devices with processing capability
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Peripherals: QX120
Merchant & Consumer LEDs and
light bar
128 x 64 Display
High Contrast, White Back-Lit
Buzzer
Overlay Branding
LED-Backlit Contactless Symbol
Underneath the Landing Zone
is the RF Antenna
3 Key USPs: 1. Supports EMV and MSR applications
Currently in Beta!
2. Can be connected to most host devices
3. Product from the leading POS solutions vendor
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PIN Entry: PP1000SE
Features
 PP1000se compatibility (cabling, stands, applications)
 Serial connectivity (USB conversion option)
 Applications
• Paypass Mstripe and Mchip
• Visa MSD and qVSDC
• Discover and Amex
• Visa AP
• DVT – Mid Aug
• Beta Start Mid Sep
• SR Late Oct
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Programmable PIN Entry: Vx810
• Program Schedule
• DVT Unit availability – July
• Beta Start – August \ September
• Product Release – September \ October
• IDV Update
• Larger form factor and centered antenna for easier
customer use
• Larger antenna size for increased performance
•Similar installation procedure
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Multi-lane: MX8x0
Positioning
• ¼ VGA PCI PED certified
• High-end full screen multi-lane retail offering
• High quality display & touch panel with multimedia capability
Key 3 USP
MX870
• Display quality and multimedia capability
• Cross-platform software compatibility
• Global platform
Versions/
Variants
• MSR Only
• MSR + RFID
MX830
MX850
• MSR + Smartcard
MX860
Status
• Released and available today PayPass, Visa payWave,
Discover, AMEX
Available Now
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Unattended: OP 4100
• PCI and EMV compliant
• Designed for locations such
as fuel pumps, kiosks and
other self-service locations
• Has an encrypted personal
identification number pad
• Color-screen shows
transaction and marketing
information to consumers
Available Now
• Integrated contactless
• No qVSDC or Visa-Wave
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Portable: Vx 670 Contactless
Positioning
• Integrated contactless support in Vx 670
• High-end offering for transit, loyalty, hospitality
Key 3 USP
• PCI PED
• Smallest all-in-one form factor
• Takes a great product and adds
Integrated Contactless
Versions/
Variants
• All Contactless schemes
• GPRS, WiFi, Bluetooth
• 6 or 12 MB memory
• USB support
• 40 MM paper-roll support
Status
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• In development, target availability Q4 ‘08
Tools - cDTK
cDTK = Contactless Developers Tool Kit
“One Platform,
Many Solutions
• a.k.a. Contactless
CommServer
Portable across all
VeriFone platform
• Vx Contactless DTK
• MX Contactless DTK
• NURIT Contactless DTK
Contents include:
• High level API
• TMS agenda
• Debugger
Support all major
reader / protocols
• ViVOtech protocols
• VFI proprietary
• Others may be added as needed
(OTI, Panasonic)
• Firmware loader
• Configuration
All components versioned for easier certification
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Tools - cTMS
cTMS = Terminal Management Systems
Turn Infrastructure from
Liability into Asset
• Enable remote management of installed units
Infrastructure becomes
“living and breathing”
• Update units as card associations standards roll
• Reduce number of field tech touch points & cost
• Keep install base compatible with new cards
• Upgrade install base to support NFC features
Expand existing
solution
• VeriCentre 3.x+ being upgraded
Features
• Update reader firmware
• NURIT Control Center 7.X+ being upgraded
• Update reader configuration
• Update applications
• Update key/blocks
• Update misc., future
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Near Field Communications
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Near Field Communication
• Initiated and supported by the NFC forum
– Established in 2004 – Sony and Phillips(2002)
– Includes over 100 members
• Leading mobile communication, semiconductor
and consumer electronics companies such as:
Microsoft, Nokia, Philips, Sony, TI, NEC and Samsung
• Short-range wireless connectivity between
electronic devices for various applications:
– Data exchange: smart poster, peer-to-peer
– Device activation: garage doors, parking gates, turnstiles
– Payment – using the cellular phone as a “wallet with card”
(card emulation), or as a “reader”
• Based on ISO 18092 and ISO 14443 A/B
– Compatible with Payment Association contactless schemes
• Multiple NFC mobile phone payment pilots have been
announced or are under way in the U.S., Malaysia, China,
France, the Netherlands, Germany, and U.K.
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Thank You!
Ryan Altern
Product Marketing Manager EMEA
[email protected]
+44 7775 791 202
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