Nexo / IFSF Working together towards next generation standards

Régis Massicard

Technical Steering Committee co-chair, nexo

European Payments Strategic Director, Ingenico

nexo is a global open standardization association,

whose headquarters is in Brussels. Its mission is to

unite the players of the card-based payment industry

on the definition and enhancement of payment

acceptance solution implementation specifications. To

ensure the interoperability between card acceptance

and acquiring solutions on the one hand and

integrated retail and terminal management systems

on the other, nexo drives the development, delivery

and maintenance of a new generation of universal

card payment standards, protocols and

implementation specifications.

ABOUT US

NEXO

International non-profit organization

(AISBL) based in Brussels, BELGIUM

Born in 2014 out of the merger of three historical standards

and card payment specifications contributors -- EPASOrg,

the OSCar consortium and the CIR SEPA-Fast technical

working group -- nexo is a leader in card payment

standardization. nexo is at the origin of the entire ISO 20022

standardization process for card payments.

ISO 20022

AND RELATED

PROTOCOLS

SEPA-FAST

PAYMENT APPLICATION

IMPLEMENTATION

SPECIFICATIONS

BASED ON EPAS PROTOCOLS

NEXO, WHERE WE CAME FROM

PROVIDING THE BUILDING BLOCKS FOR CARD PAYMENT STANDARDIZATION

ISO20022 PROTOCOLS

(ACQUIRER, RETAILER,

TMS, ATM)

CARD ACCEPTANCE

APPLICATION SOLUTION

SPECIFICATIONS

TEST CASES

IMPLEMENTATION

SPECIFICATIONS

+ +

Promote the interoperability of card payment transactions, through • Design and development of common card

payment protocols

• Interoperability of components and

systems through standardized protocol

interfaces

• Adoption of a universal ISO procedure.

INTEROPERABILITY

NEXO GOALS & VALUES

Ensure the development, evolution and use of common standards, through • Involvement of all actors of the card

payment value chain

• adherence of a high level of security,

notably through a universal ISO security

syntax.

INNOVATION

Ensure an appropriate level of partnership and lobbying actions • Vis-à-vis partners of the card payment

industry and related entities involved in

similar or complimentary standardization

activities

PARTNERSHIP

Strengthen the commitment to open, common and universal standards, through • Adoption of ISO 20022 as the preferred

universal way of developing global

standards

• Formal declaration made to ISO 20022

that all NEXO standards will be made

available open and royalty free of charge

to anyone

UNIVERSALITY

NEXO COMMITMENTS

DESIGN AND

MAINTAIN

common card

acceptance

standards

protocols and

specifications

based on

universal ISO

accreditation

DELIVER

common

implementation

guidelines to

ensure full

interoperability

PROVIDE

test cases and

tools helping

implementers to

evaluate their

compliance with

specifications

VALIDATE

implementation

thereby ensuring

faster approval

and deployment to

market PROMOTE

the universal use of

NEXO standards

and specifications

SUPPORT

users

implementin

g nexo

standards

and

specification

s

ORGANISATION, MEMBERS & PRODUCTS

NEXO MEMBERS CATEGORIES

PAYMENT SERVICE PROVIDERS

PROCESSORS

CARD SCHEMES VENDORS ACCEPTORS

PRINCIPAL MEMBERS BY CATEGORY

PAYMENT SERVICE PROVIDERS PROCESSORS CARD SCHEMES VENDORS ACCEPTORS

NEXO STANDARDS AT A GLANCE

NEXO RETAILER PROTOCOL

NEXO ACQUIRER PROTOCOL

NEXO TMS PROTOCOL

XML

XML

XML

Tele-management system

Nexo FAST PAYMENT APPLICATION

NEXO FOCUS

ACQUIRER PROTOCOL

The interface between a card payment terminal and a buyer. Defines a clear separation between the protocols and software or application.

RETAILER PROTOCOL

The interface between a card payment application and a retail POS system. Defines a clear separation between the functions of sale and payment.

TERMINAL MANAGEMENT

The interface between card payment terminals and systems used to manage them remotely. Allow download settings, electronic keys and software upgrades.

PROTOCOLS FOR PAYMENT

PROTOCOLS RELATING TO THE WITHDRAWAL

ACQUIRER PROTOCOL

the interface between the device and the ATM* banking systems

* Automated Teller Machine

NEXO ORGANIZATIONAL CHART

Régis Massicard INGENICO

BOARD OF DIRECTORS

TECHNICAL STEERING COMITTEE

MEMBERS

MARCOM Normand Provost

Desjardins

OPCOM Arnaud Crouzet

Groupe Auchan

LIAISONS Normand Provost

Desjardins

FINANCIAL APPLICATION SPEC. ACQUIRER PROTOCOL RETAILER

PROTOCOL IMPLEMENTATION SPECIFICATIONS

IFX-ATM PROTOCOL

TMS PROTOCOL

Brigitte Nebelung, SRC_GMBH

David Mousty Verifone

Martin Provost Desjardins

Dolorès Mimran GIE-CB

A.Foster KAL Software

Philippe Cece Ingenico

CHAIRMAN Claude Brun

CM-CIC

GENERAL SECRETARY Arnaud Crouzet

Groupe Auchan

TREASURER Kust Gjesten

Pan Nordic Card Ass

GENERAL ASSEMBLy

CHAIRMAN TBD

KEY SUCCESS FACTORS

SECURITY Ensure security is embedded into the standard

PARTNERSHIPS Partner with other third-party organizations to accelerate time-to-market

MULTI-ACQUIRING Enable cross-border multi-acquiring

STAKEHOLDERS Meet the needs of all stakeholders in the market

SUPPORT Develop and provide test cases and tools to guarantee the compliance

SERVICES Support new value-added payment services (mobile, NFC, P2P, Web…)

WHAT WE REPRESENT

A WORLDWIDE INITIATIVE BEYOND THE SEPA REGION A SPECIFICATIONS

PROVIDER (IMPLEMENTATIONS CERTIFICATION AND COMPLIANCE TO ENSURE

INTEROPERABILITY)

MOST OF THE PAYMENT VALUE

CHAIN

Nexo / IFSF partnership

IFSF Initial Considerations of ISO 20022

• IFSF has developed its card payment standards based on ISO 8583 that is becoming more and more limited in respect of the payment innovations popping-up every day

• In December 2012, IFSF started the process of preparing their move towards ISO 20022 with an initial analysis o to assess the degree of change required in the IFSF standards for this move, o to propose a methodology for developing the amended standards, o to comment on possible limitations on interoperability, o and to express recommendations on the optimum time for initiating this work and to conduct any later phases.

• The IFSF study concluded in March 2013 that : o The move would be quite complex due to non objective correspondence of the Data Elements between the two standards generating

interoperability concerns. o The maturity of ISO 20022 and further more the implementation would not come up before some years. o Many petroleum companies running their own FEP would face major investments and complications to migrate (business case issue).

ISO 20022 including oil industry specific

• In 2014, within the IFSF EFT work group, some participants were concerned about the ISO 20022 improvements where the petroleum specifics were not yet taken into account.

• In July 2015, an agreement between Conexxus, IFSF and nexo was ratified to provide the expertise to enhance the ISO 20022 standards to meet the needs of the petroleum retail and convenience store industries.

• A following six hands work started and introduced a change request in March 2016 to ISO : the ISO 20022 CAPE messages were officially updated introducing “Oil Industry Corporate Data”.

*: Conexxus is a non-profit, member-driven technology organization dedicated to the development and implementation of standards, technologies innovation and advocacy for the convenience store and petroleum market.

Current status of the three party agreement

• The nexo MUG will be enriched by the end of 2016 with the oil industry specific already introduced in March 2016 to ISO 20022.

• Conexxus and IFSF are about to produce their first MIG for the oil industry specific based on the new coming MUG.

• The loyalty and mobile specific to the oil industry will be also studied and will generate potentially nexo change requests to ISO 20022.

CONCLUSION

• Thanks to the joint work of Conexxus, IFSF and nexo, the oil industry is getting prepared for the adoption of a new standard where each association will bring its business expertise for the interest of all the actors of the payment chain.

nexo 2016 Annual Conference

QUESTIONS ?

Spare Slides

PARTNERSHIPS

OBJECTIVES

• Leverage the expertise of major industry players to deliver common standards

• Accelerate time-to-market leveraging ISO 20022 developments

• Ensure consistency with other ISO 20022-based messages (similar components)

• Type: US-based non-profit organization • Expertise: design and development of financial messages •Objectives : joint development of ISO 20022 ATM withdrawal, management and security messages, development of card-based ISO 20022 messages

• Type: Forums of international petroleum retailers •Objectives : standards development agreement to enhance existing NEXO card payment standards (ISO 20022 and others) with added-value information related to the retail petroleum and convenience store industries. Submit jointly further ISO 20022 candidate change requests to messages pertaining to the petroleum and convenience store industries.

IMPLEMENTATIONS

•Deployment type: SEPA POI standalone payment solution, OSCar 3.2 certified

•Area: Canada (Quebec), France (Strasbourg)

•More than 20 merchants and POI deployed: 36,000 transactions processed for 700,000$Can without issues

•Objectives: International deployment

DESJARDINS AND CRÉDIT MUTUEL-CIC

•Deployment type: SEPA POI payment solution

•Area: France, Portugal, Spain

•Objectives: International deployment

GROUPE AUCHAN, CRÉDIT MUTUEL-CIC AND INGENICO

IMPLEMENTATIONS

•Deployment type: SEPA POI payment solution

•Area: France

•Objectives: boosting the pan-European payment systems acquisition; deployment within the SEPA area

CARREFOUR BANQUE, CRÉDIT MUTUEL-CIC AND INGENICO

•Deployment type: EPAS Acquirer Protocol Conversion Gateway <> CB2A

• Being deployed

•Area: France (initially)

• Europe (Total S.A.)

TOTAL , SER2S (CARTES BANCAIRES SUBSIDIAIRES) AND BANKING PARTNER