payfair - the new payment scheme a sepa alternative brand designed to boost your electronic payments...

PayFair - The New Payment Scheme

A SEPA alternative brand designed to boost your electronic payments

BPC Client Conference 2010Singaporewww.payfair.eu

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Contents

− Who is PayFair?

− What is PayFair ?

− Why PayFair?

− PayFair Status:− Issuing− Acceptance

− PayFair’s Product Roadmap

− Q&A

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• A highly visible initiative:– Supported by the highest officials at ECB– Supported by Commissioners at EC

(DG Comp and DG Markt)

• A well funded initiative:– Investor: Janivo Holding (NL), known as

founding investor of TeleAtlas (sold to TomTom in 2008)

– A clear company structure:

Who is PayFair?

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PayFair Holding B.V.(Holding Company)

PayFair International(Scheme Company)

European Payment Solution(Operating Company)

What is PayFair?

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The FairEuropeansolution

A new Innovative SEPA Scheme

• Key differentiators:– Enhanced consumer convenience:

• Example: PayFair@Internet

– Reduced access cost to payment for merchants:• Example: PayFair Mobile

– Improved security and trust:• PayFair PAN number is worth 0 EUR for hackers!• No charge-backs on internet (unless service not rendered

imposed by law – not the case in continental Europe)

– Transparency on pricing, interchange, open governance:

• Merchants do like PayFair for that reason

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What is PayFair?

Why PayFair?

• The market is looking for an SEPA compliant alternative that is:– Fair– Providing open governance– Transparency

While being as efficient and as fast as the best existing national schemes

• PayFair is meeting the above requirements and as such is a “safeguard” alternative for moving away from current duopoly and introduce a true alternative.

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PayFair Status• Scheme is registered (BIN range, AID,…) and under oversight of

EuroSystem

• Infrastructure is up and running (first pilot in Oct. 2009):– Switching– Clearing & Settlement– But also…. Acquiring processing to enable the brand in the market at the

start.

• Card programs issued:– Colruyt Card (largest Belgian Retailer – co-branding program)– E-Luncheon Voucher card (November 2010 – Belgium)

• PayFair Acquiring– PayFair performs acquiring processing (terminal driving based on CTAP and

Merchant settlement)

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PayFair Status: Processing

•System production partner: Unisys.

•One unique European platform:–Best of breed components

• Distra Switching*• BPC Scheme mgmt*

–Interfaces to issuers, acquirers and clearing & settlement systems

Ready for Deployment

SSL

&

Firewalls

CA, HSM Keys

Clearing & Settlement

SWITCH (DISTRA)

Scheme Risk Mgmt

EPS PayFair Infrastructure

ISO8583/ISO20022

Issuing Banks

Ac

qu

ire

rA

cq

uir

er

Ac

qu

ire

r

Scheme

* listed by Gartner June 2009 among the top best card platforms

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PayFair roll-out with Issuing Banks

• Western Europe:– Cards is still a very “political” subject. Some banks think they should be in

control if a new scheme emerges (French, part of German banks) while most other banks want to have a market focused solution (hence not subject to inter-banking politics and slowness….)

– PayFair is focusing on innovative solution and footprint projects (such as the ones in Belgium)

• Eastern Europe:– Focus on 10 countries in CEE/CIS region:

• No “political” dependencies, no national schemes• Eagerness to have an alternative next to Visa and MasterCard• Appetite for innovative solutions leveraging mobile

– Banks in Hungary, Croatia and Romania are looking to issue PayFair

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PayFair roll-out on the Acceptance side

• To date, the following parties are committed to support PayFair in the market:

– CCV (acquiring network)– Monext (PSP)– Verifone (terminals)– AWL (terminals)– EPS (processing subsidiary of PayFair providing PayFair acquiring

processing services)– EasyCash (from Germany – part of Ingenico group)– ….and some more in the pipeline

• The following merchants are already rolling out PayFair with EPS as acquirer (others to follow):

– Carrefour, Colruyt, Lidl, Makro, Lunch Garden, Quick, Trafic, …

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Q3 2011

PayFair Product Roadmap

Q 4 2009 Q 1 2010 Q2 2010

PayFair EMV

Q3 2010 Q4 2010

PayFair @ Internet

MyPayFair

Q1 2011 Q2 2011

PayFair Low Value Payment

PayFair Contactless

PayFair Full Mobile(NFC, SMS,…)

Q4 2011

PayFair Mobile

...

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PayFair Security ensures convenience for all users

PayFair’s objective:Card data is worthless for hackers!

Today:

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Growing concerns regarding e-commerce/e-payments:• 50% of total card fraud is due to CNP (card not present) internet transactions• 60% increase of this type of fraud in only one year (2008 vs 2009)• 70% of interruptions of e-commerce transactions occur at moment of payment

Solution: PayFair@Internet • No longer oblige consumers to provide their sensitive financial data via internet• only 1 trusted payment method (not a choice between 3D-Secure or “3D-UnSecure”)• Dual authentication (PC + Mobile)

for consumers: added value because “simple, fast & safe” for merchants: added value because increase of e-commerce transactions for banks: - additional revenue stream - drastically reduction of fraud damages

PayFair’s view on fraud

PayFair @ Internet

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Sound Authentication*

(*) works with any PC, with or without speakers (using the internal sound system in that later case)

PayFair Mobile & Contactless

• New disruptive technology to equip small shops (with or without ‘normal’ terminal)

• Compatible with 100% of the existing mobile park in the field (no NFC needed)

• Catalyst to reduce cash

• Also for more electronic LVP’s (Low Value Payments)

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PayFair Low Value Payment

• PayFair contactless will be offered on both cards and mobiles:– Compatible on existing contactless network in the market– Product will also be on-line no specific risk management for

banks– Contactless can be in the card or on a separate contactless

“sticker” ( depending on marketing strategy and packaging, also from a pricing point of view)

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Instant enrolment for immediate consumer experience

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Prepaid/debitPlatform

Web Portal

Instant Registration

Instant Logon-on

• Balance and transactions• P2P Transfer• Loyalty• Viral deployment

Contact +Contacless

Sound

Sound

SMS remittance

+

Sound

• Reload txn• Sales txn

• No skimming

• No fraud

EMV only,No magstripe

• Reload txn• Sales txn

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®

Thank you for your attention, interest and support !

PayFairAtrium Park, Koloniënstraat 11, 1000 Brussels (Belgium)

www.payfair.eu Dominique Buysschaert Pierre Orbandominique.buysschaert@payfair.eu pierre.orban@payfair.eu

mobile: +32 475 61 61 43 +32 473 78 51 76

Q & A

6064 5312 3456 7890 1234 0 Europa Schuman ABCD EFGH IJKLM EXP: 12-2012

6064 5312 3456 7890 1234 0 Europa Schuman ABCD EFGH IJKLM EXP: 12-2012

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“MyPayFair” ®

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