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Asia Adoption of EMV

Dr. Jack Pan

Watchdata Technologies Feb. 9, 2012

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CONTENTS

Innovations in EMV Migration

State of Asia’s EMV Migration

Company Introduction

Lessons Learnt in Asia

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v 1994  –  company  established  

v 5  -­‐  Top  5  smart  card  vendor  worldwide  

v 4  -­‐  Ranked  #4  in  (U)SIM  card  producCon  (as  per  Oct.  2011  Nilson  Report)  

v Singapore  -­‐  InternaConal  Sales,  Product  &  R&D  headquarter  

About Watchdata

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©  2010  WATCHDATA    TECHNOLOGIES  PTE  LTD   4  

Telecom  

ü SIM,  USIM,  UIM  ü OTA  Pla:orm  ü SIManagement™  

1   Financial  and  Retail  ü EMV  ü Internet  banking  token  ü Reader  

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Government  and  ID  

ü Social  Security  ü Driver’s  License  ü Personal  ID  ü E-­‐Government  ü TaxaOon  ü SCOSTA  ü Access  Control  

4  SoluOons  

ü SIMpass™  ü SDpass™  ü M2M  ü SIMpartner  

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TransportaOon  

ü Public  TransportaOon:  CEPAS,  CALYPSO  

ü Combi  cards  ü Expressway  Toll  CollecOon  

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Product Portfolio

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Business Presence

©  2010  WATCHDATA    TECHNOLOGIES  PTE  LTD   5  

Home  Market  

Current  International  Markets    

China  

India  

Indonesia  

Thailand  Vietnam  

Pakistan  

Dubai  

Philippines  

Congo  

Nigeria  

Tanzania  

Italy    

Malaysia  

Nepal  

Korea  

Singapore

Mexico  Venezuela

Colombia

Uruguay  

Ecuador  Panama  

Madagascar  

Liberia  

Turkey  

England  

France  

Russia  

Namibia  

Belgium  

Taiwan  

Zambia  

Guinea  

Benin  

Spain  

Ethiopia  

Somalia  

Bangladesh  

South  Africa  

Brazil  

Australia  

Latvia  

Sweden  

Denmark  

Ukraine  

Poland  

Serbia  

Kenya  

Niger  

Egypt  

Chad  

Watchdata  Offices  

U.S.A.  

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710.5  million1  Contact  cards  issued  in  130  countries  

1 As of Jun, 2011. As reported by member financial institutions globally and therefore may be subject to change. 2 Visa Europe is the exclusive licensee of Visa Inc. in the territory covered by the European Union.

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LAC 133.7m contact cards

CEMEA 32.8m contact cards

AP 178.0m contact cards

VE 2 339.7m contact cards

Visa Inc. –428.3m Contact cards issued1

Visa Europe –339.7m Contact chip cards issued2

North America 26.3m contact cards

EMV Migration Status On Cards (courtesy of Visa AP)

* 25.6% of card base in AP are chip enabled – per EMVCo Q3, 2011 summary report

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Percentage  of  internaOonal  card-­‐present  transacOons  that  originate  from  chip  terminals  during  2nd  Quarter  2011  (Apr  –  Jun)  

LAC POS 25.9% ATM 0.3% CEMEA

POS 77.0% ATM 79.6%

AP POS 67.5% ATM 3.7%

Visa Europe 1 POS 86.5 % ATM 96.7%

As of Jun, 2011. Source VisaNet clearing & settlement counts. 1 Visa Europe is the exclusive licensee of Visa Inc. in the territory covered by the European Union.

Visa Inc. – POS 33.0% ATM 28.5% Visa World-Wide – POS 60.5% ATM 61.6%

CANADA POS 56.3% ATM 85.6%

USA POS 4.1%

ATM 0.02 %

EMV Migration Status On Terminals (courtesy of Visa AP)

* 49.5% of POS deployment in AP are chip capable – per EMVCo Q3, 2011 summary report

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China’s EMV Migration Ø Plan:    To  convert  all  payment  cards  in  China  to  smart  cards  by  2015  Ø CerOficaOon:    Managed  &  coordinated  through  China  Union  Pay  (CUP)  

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ATM  MigraOon  

POS  MigraOon  

Card  issuing  MigraOon  

No.  of  banks  Completed  

2010 2011 2012 (Projected) Source: Banking market research in China in 2011

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Lessons Learnt in Asia

v Progress  of  POS  migraCon  ahead  of  card  deployment  

v POS  deployment  at  high  traffic  /  tourist  locaCons  first  

v Card  personalizaCon  key  to  the  success  of  card  issuance  programs  (be  it  SDA,  DDA  or  Dual-­‐interface)  

v Value-­‐added  applicaCons  can  help  differenCate,  ex.,  chip  based  loyalty,  co-­‐brand  with  transportaCon,  new  form  factor  or  NFC  capabiliCes,  etc.  

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v DBS  Bank,  Singapore  ü Winner  of  the  2010  Cartes  Asia  Sesame  Award  in  H.K.  

ü “3-­‐in-­‐1  card”  with  Visa  contact  (DDA),  contactless  (payWave)  &  CEPAS  (transportaCon)    

©  2010  WATCHDATA    TECHNOLOGIES  PTE  LTD   10  

EMV & Transportation Co-brands

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More Possibilities in EMV

UOB Visa direct debit card

Citi SMRT credit card

OCBC Visa debit card

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Innovation through New Form Factors

Visa payWave sticker NETS FlashPay (CEPAS) for micropayment

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©  2010  WATCHDATA    TECHNOLOGIES  PTE  LTD   13

A  SIM  based  NFC  assessory  solution for mobile payment  

EMV Innovation in NFC : SIMpass™

What  is  SIMpass™?  

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First  priority:  Public  transit  Secondary  priority:  Super  markets  &  shopping  malls  Third  priority:  Food  &  drinks

SIMpass™ Feedback (5m+ deployment in China)

Source: China Telecom market research in 2010

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©  2010  WATCHDATA    TECHNOLOGIES  PTE  LTD   15  

SDpass™ - A micro-SD based NFC Solution

hgp://www.nfcnews.com/2010/12/17/bank-­‐asya-­‐watchdata-­‐launch-­‐microsd-­‐payment-­‐soluCon-­‐in-­‐turkey

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Monthly Ticket

Coupons  

Membership  card

Tickets

URpass™ USB  Key

Credit  Card

Cash    replace

URpass™ - Physical and Logical Use in One

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