contactless payments beyond the u.s. – the canadian …contactless payments beyond the u.s. –...
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May 14, 2009
MasterCard Proprietary & Confidential
Contactless Payments Beyond the U.S. – The Canadian Experience
Oliver Manahan, MasterCard Canada
MasterCard Proprietary & Confidential
May 14, 2009 2MasterCard Proprietary & Confidential
Agenda
• Canadian Landscape
• High-level Timeline
• The Strategy
• Success to Date
• What’s Next
May 14, 2009 3MasterCard Proprietary & Confidential
Canadian Landscape
• ~10 million km2 (3.8 million square miles)
• 33 million people
May 14, 2009 4MasterCard Proprietary & Confidential
Canadian Landscape
• > 80 million payment cards
• > 700,000 POS devices; > 55,000 ABMs
• Historically non-dual for credit
• National debit scheme (Interac)
• All major payment brands have announced a migration to EMV chip
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High-Level Timeline20
04
2005
2006
2007
2008
2009
2010
2011
2012
MasterCard®
PayPass™Introduced
ChipAnnounced
MasterCard®
PayPass™Rollout
KW ChipTrialCommences
ChipRollout
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MasterCard® PayPass™ :A New Contactless Payment System
• A tap is all it takes
• Faster than cash
• Great for record keeping
• Useful, integrated formats like cell phones
• Will work anywhere PayPass™ is accepted
May 14, 2009 7MasterCard Proprietary & Confidential
The Strategy
• Classic “chicken and egg” scenario
• Build out the acceptance side first, with leaders in targeted verticals
• Work with issuers on their long-term plan, starting with magnetic stripe PayPass™, with a migration to M/Chip PayPass™
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Success to Date
• Merchants accepting PayPass™:– Petroleum: Petro Canada, Mohawk, Pioneer
– Grocery: Loblaws, No Frills, Provigo, Rabba Fine Foods, Fortinos
– QSR: Tim Hortons, McDonald’s
– Cinema: Cineplex
– Vending: Coke
• Announced: Staples, and more on the way…
May 14, 2009 9MasterCard Proprietary & Confidential
Success to Date
• Canadian Issuers with PayPass™ on their cards:– Citi Cards Canada– President’s Choice Financial– Canadian Tire– Bank of Montreal (BMO)– Chase Card Services– MBNA– Capital One– National Bank of Canada (NBC)– Alberta Treasury Branch (ATB)
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What’s Next–The Convergence with Contact ChipThe M/Chip PayPass ™ Card
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What’s Next – The Convergence
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Lessons Learned
• The consumer experience is paramount:– Swipe & sign
– Swipe & go
– Tap & go
– Tap & sign
– Insert & PIN
– Insert & sign
– Insert & go
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Lessons Learned
• Cards become more complex– Just because a card is chip-approved, doesn’t mean
adding an antenna is easy
– Ensure enough lead-time to get the appropriate approvals
– Ensure sufficient quantities of product are available
– Personalization also becomes more complex
• Test, test, then test some more
May 14, 2009 14MasterCard Proprietary & Confidential
Lessons Learned
• Devices also become more complex– Various parts are configurable (e.g. EMV vs. Mag
Stripe)
– Ensure settings are aligned
– Modular is the way
– Test various cards and devices
– Test non-payment cards
May 14, 2009 15MasterCard Proprietary & Confidential
The Future of Payments:Near Field Communications (NFC)
SubwayFare
ContactlessPayments
Mobile Website
• Conduct Online Purchases
• Complete Transaction at P.O.S.
DataTransfer
• New MarketingOpportunities
• Rebates deducted atthe P.O.S.
May 14, 2009
MasterCard Proprietary & Confidential
Questions?
