multi-application strategy johan ras visa international 21 august 2002 toronto, ontario, canada
TRANSCRIPT
Multi-Application Strategy
Johan RasVisa International
21 August 2002Toronto, Ontario, Canada
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The Future of Universal Commerce – Anytime, Anywhere, Anyway
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Delivering Universal Commerce through Smart Card Technology
Ensuring customer service quality through global chip standards
• EMV, CEPS and GlobalPlatform
Establishing baseline infrastructure by implementing Visa Smart Debit/Credit in national markets
• Support Debit/Credit chip migration to reduce fraud
Enabling development and support of value-added services that drive payment volume and help Members take advantage of business opportunities
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Vision for Multi-application Smart Cards
The multi-application smart card offers a variety of benefits to Visa Members, merchants and cardholders…
Merchant Benefits
• Point of access efficiencies
• Reduced costs
• Foundation for customer loyalty programs
Cardholder Benefits
• Greater utility
• Customized usage
• Convenience
Member Benefits
Improved risk and fraud management
Enhanced cardholder verification
Reduced online authorization costs
Cardholder acquisition and retention programs
Volume increases
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The Challenge and the Goal
Meet the needs of everyone; Issuer, merchant and cardholder…
Credit or Debit Payment
Card Management
Merchant
Loyalty Program
Development
Loyalty Program
Management
Card-holder
Merchant Selection
Personal Information
Management
The approach must enable Issuers to strengthen the relationship with their customers by delivering valuable utility at the lowest level of effort.
Issuer
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Driving Support for Multi-Application Smart Cards
Establishing GlobalPlatform as the preferred multi-application platform for Visa Members
Leveraging GlobalPlatform Java Card technology in the marketplace
Furthering strategic partnerships to improve the business case and speed implementations through Visa Global Smart Partner Program– Cost-effective GlobalPlatform
cards and support systems– Each region working with value
added service vendors for local market needs
Setting standards with industry organizations (e.g. IATA)
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Visa Low Cost Smart Card Program
Max Price (US$) white plastic
Fun
ctio
nalit
y
Java / OP Triple DES 48k ROM 16 E2
Global Platform
OP DES/16
Java / OP Triple DESPublic Key64k ROM16k E2
Global PlatformOP PK/16
Global Platform
Combi cardOP DI/16
Java / OPTriple DES Public Key Contactless 64k ROM16k E2
Single appVSDC DES
SDA DDA
Single appVSDC – PK
$2.70(was $2.89)
$3.37(was $3.56)
$3.91(was $4.67)
$0.99 $1.99
SDASDA
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Most Common Multi-application Smart Card Programs Today
VSDC
• Credit or debit payment product
Issuer Managed Loyalty
• Points
• Discounts
• Coupons
Secure Access
• Proprietary web site
Convenience storage
• URL
• Mailing address
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Multi-app Project Highlights
Key drivers: new business opportunities, multi-application, threats from competitors
ANZ began converting Visa credit card portfolio to chip in November 2001 and introduced Secure Internet shopping
Products: “FIRST” in Australia, “ZED” in New Zealand
Approximately 1 million GlobalPlatform cards and 50k POS devices by end 2002
Australia
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Multi-app Project Highlights
Five credit card issuers co-branding with SK Telecom to offer dual interface cards with VSDC payment and contactless transit
Can also be used in dual-slot mobile phones
Expected to issue approximately 2 million cards in next 12 months
Discussions underway to migrate existing transit cards to the GlobalPlatform dual-interface cards in Seoul and Pusan
Korea
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Multi-app Project Highlights
smart Visa issuance – 10 MM cards issued by end 2001
– Over 12 MM cards projected by end 2002
– 15–20% of all Visa cards by 2006
4 Members issuing cards– Target began issuing in Nov. 2001
– Will begin acceptance by end 2002
Approximately 3-4 more banks expected to implement
Focusing on chip acceptance at POS and developing smart Visa Rewards loyalty program
U.S.
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Projecting 70+ Million Visa EMV Smart Cards by end 2002
LAC850K
CEMEA250K
AP10.5MM
Canada12K
EU50MM
US 12MM
Thank you
Johan RasVisa International