u-commerce & Smart CardsLeading the New World of Payments
Philip Andreae11 June 2003
u-commerce & Smart CardsLeading the New World of Payments
Philip Andreae11 June 2003
VISA CANADA CONFIDENTIAL
anywhere, anytime, any wayanywhere, anytime, any wayanywhere, anytime, any wayanywhere, anytime, any way
VISA CANADA CONFIDENTIAL
How do you
want to pay?
Visa Debit
Visa Credit
u-Commerce and Payments
VISA CANADA CONFIDENTIAL
Bricks & MortarCommerce
Bricks & MortarCommerce
Bricks & Mortar Commerce
Bricks & Mortar Commerce
e-comme-comm
Bricks & Mortar Commerce
Bricks & Mortar Commerce
e-comme-commm-commm-comm
Bricks & Mortar Commerce
Bricks & Mortar Commerce
e-comme-commm-commm-comm
“x”-comm“x”-commu-commerceu-commerce
Bricks & Mortar Commerce
Bricks & Mortar Commerce
e-comme-commm-commm-comm
“x”-comm“x”-comm
The Commerce Universe
VISA CANADA CONFIDENTIAL
Early Indicators
VISA CANADA CONFIDENTIAL
! pervasiveness of technology
! growth of wireless
! increasing bandwidth & connectivity
Market Drivers
VISA CANADA CONFIDENTIAL
How do you
want to pay?
Visa Debit
Visa Credit
The Building Blocks
StandardsSecuritySystems
Simplicity
VISA CANADA CONFIDENTIAL
U-Commerce is enabled by the Chip Card
VISA CANADA CONFIDENTIAL
What Is a Chip Card?
■ A plastic credit card with an embedded computer chip containing a microcomputer
■ Yesterday a Calculator in your Card
■ Today a IBM PC
VISA CANADA CONFIDENTIAL
Background – Visa 1988 – EMV 1993
The international schemes decidedSmart Cards are the way forward
Europay, MasterCard Visa International developed a joint EMV Integrated Circuit Card Specifications for
Payment SystemsFraud ControlFraud Control
Credit Risk Credit Risk ManagementManagement
Cost ReductionCost Reduction
Value Added Value Added ServicesServices
VISA CANADA CONFIDENTIAL
Why Now
■ Increases Security & Privacy –Virtually impossible to copy–Support the evolution of security
techniques
■ Combats Fraud–Rising cost of fraud–The increasing risk of fraud migration–The high cost of Fraud Management
VISA CANADA CONFIDENTIAL
To Assure the Future
CORE:CORE:Credit and Debit Credit and Debit
TelephoneTelephoneTransitTransit
StoredStoredValueValueAuthenticationAuthentication
ElectronicElectronicBankingBanking
AccessAccessControlControl
LoyaltyLoyaltyElectronicElectronicCommerceCommerce
Payment Services:Payment Services:Debit/CreditDebit/Credit
VISA CANADA CONFIDENTIAL
Chip Cards – powerful and versatile
■ Increases Security & Privacy
■ Combats Fraud
■ Increased Utility
■ Greater Efficiency
Preserving Confidence in the Payments System
VISA CANADA CONFIDENTIAL
Broad International AcceptanceCountries that have EMV by March 2003
■ Austria■ Belgium■ Denmark■ France■ Great Britain■ Greece ■ Italy■ Luxembourg■ Netherlands■ Sweden■ Switzerland
■ Australia ■ Brazil■ Canada■ Japan■ Mexico■ New Zealand■ Peru■ South Korea■ Taiwan■ United States■ Venezuela
■ Egypt■ Israel■ Jordan■ Kazakhstan■ Kuwait■ Latvia■ Lebanon■ Palestinian Territories■ Poland■ Romania■ Russian Federation■ Turkey■ United Arab Emirates
VISA CANADA CONFIDENTIAL
Broad International Acceptance
■ Over 100 million Visa chip cards (EMV)
■ Millions more Visa chip cards are issued every month
■ Est. 3.4MM chip devices deployed out of 20MM worldwide (2.9MM during year 2002)
■ VisaNet can process full chip data
■ The VIOR has been modified to Support Chip
Projection: 42% of Visa volume will be chip-based by 2006Projection: 42% of Visa volume will be chip-based by 2006
VISA CANADA CONFIDENTIAL
Visa Chip Cards evolved from Issuer-centric toIssuer-enabled, consumer-centric…
" Preserve existing infrastructure
" Enable Issuers to focus on core business
" Allow parties to maintain control of their current programs and environments
" Easy and convenient for the consumer to use
" Easy to incorporate into existing programs
" Easy for all parties to implement
VISA CANADA CONFIDENTIAL
The Goal - Serve the Unit of One the Cardholder
■ Lifestyle
■ Values
■ Convenience
■ Simplicity
■ Control
VISA CANADA CONFIDENTIAL
u-Commerce drives Visa’s Vision