Banksys “Pay2Me” Project - AK ePayment · - Pay2you: P2P-Contents purchases (logos/ringtones, tunes, Java games, news,…)-Parking, transport, vending-Retail shops-m-Reload (prepaid,

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Banksys “Pay2Me” ProjectAK ePayment 26th April 2007

Jean-Michel Dasnoy

An Atos Origin CompanyAn Atos Origin Company

Agenda

Banksys and BCC - history, products & key figures

Mobile Banxafe - Pay2Me• Market analysis & strategy• Business requirements

The project


1977

1978

1980

1981

1984

1986

1989

Generale Bank, Gemeentekrediet

ASLK, BBL, KB

2007

1975

1988

Compatibilty

1982

History of electronic payments in Belgium

1978

1980

1981

1984


Reliability, security, availability


First mover in card technology and access devices

ProtonProton

1995Creation of Proton

e-purse system

2000Banxafe:

innovating payment concept

for secure internet payments

1997Consolidationof Proton and

BC/MC on Bank cards, using a chip

Proton

2002First Java-based

unattended terminal:

C-ZAM/SPIN

Proton

SIS-kaartSIS-kaart

1997Software to read SIS-card on our

terminals

2000First Java-based

desktop terminal: C-ZAM/SMASH

SIS-kaart

2003m-commerceReload SIM

SIS-kaart

2004EMV standard &

New generation of payment terminals:

C-ZAM/XENTA

2005ADSL payment

terminals

Products & Technology

2007Mobile

Payments“Pay2Me”


Banksys impact on society and economy

• Number of transactions: 1 billion

• Total amount: € 55 billion

• Total number of cards: 14 million

• BC/MC Tx record: 4 Mio Trx/day 8.000 Trx/minute

• Number of POS terminals: 163.000 in Belgium400.000 in world

Key Figures 2006

606.5 651.7 701.1 751.9 823.8 881.8 945.0

81.7 81.785.4

92.096.4

102.3108.9

139.0 124.0124.0

118.8115.6

109.9104.4

851.6 882.8935.8

986.31,055.9

1,110.31,175.8

0

200

400

600

800

1,000

1,200

1,400

2002 2003 2004 2005 2006B 2007F 2008F

num

ber o

f tra

nsac

tions

(m)

otherpursecreditdebitSeries4


“Pay2Me”


Market context & driver for the business case

Lot of new initiatives around payment surfaced during the “Internet bubble”:

• New entrants – des-intermediation• Micro payment• Paypal, Paybox, Crandy,…

Strategic study on new technologies initiated with the banks in 2000-2001:

• How could existing payments solutions be improved, extended?• Mandate from Belgian banks (Banksys shareholders by then) to develop a mobile

payment solution and to negotiate with the Belgian Telecom sector• High level of top management sponsorship and involvement• Market survey


Low amount

High amount

- Content purchases (logos/ring-tones, tunes, Java games, news,…)

- Retail shops (fast-food, newspaper,..)

- Parking, transport, vending machines

- Internet payments

- Mobile banking: bill

- Mobile shopping/ticketing

- GSM Prepaid reload

- Merchants without POS

- Person to person

Increasing risk

Decreasing fees

<10€

>10€

Virtual world Physical world

Mobile payments: plenty of business opportunities


The business requirements

Which opportunities do we want to address ?

Which level of security do we need ?

What are the available technologies on which we can build our solution ?

How to make the solution the most user-friendly for the end-user ?At level of registration, usage for the different business ?

Are there already some international standards available ?

How can we build a positive business case ? Which application should be launched first, what is the product roadmap ? What should we obtain from the Telco's ?

Which types of tools and processes do we need to support the solution ?


m-banxafe positioning and evolution

<10€

>10€

- Pay2me: professionals, merchants without POS

- Pay2you: P2P

-Contents purchases (logos/ringtones, tunes, Java games, news,…)

-Parking, transport, vending

-Retail shops

-m-Reload (prepaid, wallet)-Internet Payments -Mobile banking-Mobile shopping (ticketing)

Near Field C

omm

unication

REMOTE Payments Contact less

Payment

Low amount

High amount

Increasing risk

Decreasing feesVirtual world Physical world

Technologies that meet business requirements


Open architecture for remote mobile payments adressing multiple opportunities and shopping experiences

Same security as bank cards

Maximum user convenience

Technology is based on

• Signature JAVA applet on SIM cards

• Wallet server

• Transport via SMS (classe 0,1,2)

• Signature with m-banxafe PIN Code

• End to end security (authentication, encryption)

• Multi keys for multi applications

Specifications


Solution open to multi shopping channels !

ACQ

Authenticationprocessing

client Merchant

FinancialprocessingISS

Secu

red lin

k

Multi-shopping channelsface to face, voice,

SMS, WAP, Internet,..

Wallet Server POS server

XML protocol, SMS, …

ACQ

Multi-card schemes-

Issuer bank Acquirer bank

+


Mobile payment applications

M-banxafeWith <Telco>Continue?

OK

M-Reload

M-Consult

Reload prepaid

account

Consult last tx

Pay2mePayment between

2 GSM

M-BALCheck Bank

Balance


SIM

registration

RWS -wallet

GSM-nrM-banxafe refBC/MC

PIN

Leave the process in the hands of the end-user POS or ATM

Two steps approach in the hand of the customer:

• M-banxafe BPIN selection via STK menu

• Creation of the link on ATM, POS terminal

Single activation valid for all m-banxafe services

M-banxafe activation

based on webbanking credentialsIn development

M-banxafe activation


Reload your prepaid account via GSM = real business case for Mobile operators and banks in Belgium

Anywhere / anytime

Already 25% of all reloadsfor Mobistar after 3 years(6 millions Tx in 2006)

The first application based on m-banxafe technology

Payment guarantee Cheapest solution

M-Reload


« Pay2Me » new challenge for 2007

Target = all people without POS who need to receive payments regularly (3,5 billion cash tx in Belgium)• Freelances and professionals:

Plumbers, electicians, nannies,….Doctors, dentists, nurses,…

• Mobile merchants:Parcels services, taxis, market shops,…

• Sectors that don’t massively use POS:Restaurants, pubs, sport centers, hairdressers...

TARGET: 200.000 merchants in Belgium

Face to face payments• Between two mobile phones• Merchant needs to be registered to receive money on

Internet fast and free

• Customer must be m-banxafe• Payment between bank accounts• Cost of payment invoiced by Telcos (SMS premium)


How does it work ?

PaymentReloadBank balance

Select

Merchant initiates the transaction from his STK menu

Buyer

Merchant


“Pay2Me” Transaction

Merchant

Enter GSMNumber payer(or m-banxafereference)

OK BACK

The application requests the number of his customer.

0495596896

Buyer


Enter amount to receive

OK BACK

Then the amount he wants to receive.

50,12Merchant


Buyer


You will receive by SMS the PAY2MEResult

In both cases, this generates a request to the payment server.

Merchant


Buyer


m-banxafe with Proximus, Continue ?

Validate Stop

The buyer receives a signature request.

Buyer

m-banxafetransaction

ongoing, please Wait

OK

Merchant



Pay 50.12 Eur.to B. LhermitteWith your FortisBancontact

Validate StopThe applet displays the data to be approved.

Buyer



OK

Merchant



Enter yourm-banxafe codefor validation

****

Valider Retour

The buyer types his m-banxafe PIN code and waits for the notification.

Buyer



OK

Merchant



MessageReceived

OPEN MESSAGE

Both Parties receive a notification message via standard SMS.

Buyer

MessageReceived

OPEN MESSAGE

Merchant



In box- from 3851- Missed call

OK

They open the received SMS.

Buyer

In box- from 3851- Missed call

OK

Merchant



Payment 50.12 Eur.successfulTID 987654Trans. 12-01-0608: 01

Buyer

Payment 50.12 Eur.Successful to B. Lhermitte

Trans. 12-01-0608: 01

Mutual confirmation.

Merchant



Key success factors

User convenience• Security perception• Ease of use (same signature process in 3 screens)• Activation in the hands of users• One activation for all services (including proximity in future)

Business model • Telco companies

SIM deployment follows normal life cycleCheap and convenient reload solution (ARPU ++) New revenues generated by m-banxafe services

• BanksLimited investments: m-banxafe relies on existing card payment infrastructureSame fees as card transactionsBut business opportunity to capture new transactionsSecurity ready for mBanking

Standardization at level of a country


THANK YOU

Jean-Michel Dasnoy

Head of Marketing & External Communications

[email protected]

Documents

Banksys “Pay2Me” Project - AK ePayment · - Pay2you: P2P-Contents purchases (logos/ringtones, tunes, Java games, news,…)-Parking, transport, vending-Retail shops-m-Reload (prepaid,