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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
May 14, 2009 5MasterCard Proprietary & Confidential
High-Level Timeline20
04
2005
2006
2007
2008
2009
2010
2011
2012
MasterCard®
PayPass™Introduced
ChipAnnounced
MasterCard®
PayPass™Rollout
KW ChipTrialCommences
ChipRollout
May 14, 2009 6MasterCard Proprietary & Confidential
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™
May 14, 2009 8MasterCard Proprietary & Confidential
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)
May 14, 2009 10MasterCard Proprietary & Confidential
What’s Next–The Convergence with Contact ChipThe M/Chip PayPass ™ Card
May 14, 2009 11MasterCard Proprietary & Confidential
What’s Next – The Convergence
May 14, 2009 12MasterCard Proprietary & Confidential
Lessons Learned
• The consumer experience is paramount:– Swipe & sign
– Swipe & go
– Tap & go
– Tap & sign
– Insert & PIN
– Insert & sign
– Insert & go
May 14, 2009 13MasterCard Proprietary & Confidential
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?