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ROOM 6 - PAYMENT SYSTEMS
MasterCard PayPass
Speaker:
Murdo MunroVice President, Mobile/Wireless, MasterCard International
© MasterCard International Incorporated
Agenda
• Our Vision• MasterCard® PayPass™
• Consumer & Merchant Propositions• Pilot / Trial Results • Technology Evolution • Deployment
© MasterCard International Incorporated
• Consumers with a MasterCard branded payment account will be able to choose where, when and how they transact
• This choice will be determined by simplicity, convenience, security and the consumer’s lifestyle preferences
• Mobile / wireless technology & platforms will be key enablers of this vision
Our Vision
© MasterCard International Incorporated Source: GMAPS, ES Reports, Forrester Research 2002, SPG analysis
61% of consumer payment is still conducted with cash and checks
Driving Cash to Card
© MasterCard International Incorporated
ISO 14443RF Reader/
POS Acquirer
• RF chip in ISO standard card contains account data needed for transactions
• Once account data read by proximity reader, data processed as a normal transaction.
• Alternative form factors, card hybrids, fobs, mobile phones, etc.
1mm to 10 cm
MasterCard PayPass
© MasterCard International Incorporated
• ISO/IEC 14443 Implementation Specifications
• PayPass Technical Specifications• Cards - supply chain enabled• Terminal/Reader - supply chain enabled• Testing (Procedures & Tools) – Full
range• Issuer, Merchant & Acquirer
Implementation Guides & support• MasterCard Marketing support
Complete Solution
© MasterCard International Incorporated
• ISO/IEC 14443 expected to be mature standard
• MasterCard discovered ISO14443 not fully defined
• MasterCard developed implementation spec. including test strategies & tools
• MasterCard now has PayPass ISO/IEC 14443 Implementation Specification
PayPass ISO/IEC 14443 Implementation
© MasterCard International Incorporated
ISO 7810 Magnetic
Stripe Card
Non ISO Magnetic
Stripe Card
ISO 7810 Card
w/ ISO14443 RF chip & antenna
Non-Card form
w/ ISO14443 RF chip and
antenna
ISO 7810 Card w/ EMV & ISO14443RF chip &antenna
The FutureOf
Payments
Evolving The Way We Pay
© MasterCard International Incorporated
• Quick and easy alternative to cash:• No stopping at the ATM• No fumbling with change• Nearly 50% of consumers now carry less
than $20 in their wallet• Faster in and out, and quicker on their
way• Better record keeping than cash• Increased feeling of security• It’s cool to use
“I just ordered and waved my
card--it was that easy!”
“Cash is a thing of the past”
“The card never leaves my hand”“
“I had people behind me saying, oooh, you’re paying with a
phone…cool, how do I get one?”
MasterCard PayPass – Consumer Proposition
© MasterCard International Incorporated
Increased
Profitability
No signaturerequired
10% faster than cash
Full ChargebackRights
PayPassAcceptance
MasterCardAcceptance
MasterCard QPS Program
IncreasedSpend
Tap-N-GoFast Thru-Put
IncreasedAverageTicket
MasterCardPromotionsAdvertising
Less CashLess Risk
Program Results
PayPass OnlyTerminals Less maintenance
New locations
More purchasesLess Cash
Lower cost per unit
BenefitsFeatures
MasterCard PayPass – Merchant Proposition
© MasterCard International Incorporated
Orlando FL (2003)Orlando Metro Area• 11 POS solutions• 15 vendors
Dallas TX (2003)Nokia Campus / McArthur Blvd• 4 POS solutions• 8 vendors
Purchase NY (2002)MasterCard Campuses• 3 POS solutions• 6 vendors
MasterCard PayPass – Tried & Tested
© MasterCard International Incorporated
• Increase in spend• Intuitive consumer interface • Robust and reliable readers (terminals) • Technology works in the “real world”• PayPass can save 8 to 12 seconds at drive-thru• Merchant and Customers perceive PayPass most
significantly faster where no signature required, e.g. QPS merchants and gas pumps
Pilot & Trial Results
© MasterCard International Incorporated
RFID readers• Multiple versions or
interpretations of ISO14443
• Multiple designs• Different consumer
interactions
MasterCard Requirements• Globally accepted and
interoperable• Easy for consumer to:
- use, recognize and understand
The Solution• Unique - not funky• Standardized landing
zone / sweet spot• Visual and audible
indicators
Terminal / Reader Evolution
© MasterCard International Incorporated
PayPass exclusive Multifunctional PayPass terminals
PayPass exclusive - attached
Current Terminal Examples
© MasterCard International Incorporated
PayPass can be implemented as:• Traditional Card with innovative design• Companion key fob or customized Tag• Companion application on a cell-phone
Card / Device Evolution
© MasterCard International Incorporated
NFC• RFID Chip + Reader [ISO 18092]• Functions as ISO 14443 Type A for PayPass• Secure Storage Chip• Multi-app operating system• Secure Over-The-Air download capability• Simple User Interface
MasterCard PayPass on a Phone
© MasterCard International Incorporated
• MasterCard will additionally support merchant private label and stored value programs by licensing the PayPasstechnology, provided:• All locations accept MasterCard PayPass, as well as
merchant’s own PayPass powered product• Merchant’s mark limited to their own acceptance
locations• Consumer devices also contain a “Powered by
MasterCard PayPass indicator
PayPass Licensing
© MasterCard International Incorporated
2003
• Orlando Market Trial with MBNA, Chase, Citibank
• NOKIA handset trial in Dallas
2004
• NYC - Chase Bank Employee launch
• McDonalds US national roll-out
• Orient Corp. Trial in Japan• Motorola Handset Trial• PrePaid PayPass with
Peoples Trust in Canada• MasterCard OneSMART
PayPass• Bank of Philippine Island
PayPass Pilot• MasterCard proffers
contactless symbol to industry
2005
• Sheetz - convenience chain accepts PayPass
• Southern Taiwan Kaohsiung Government transportation project with MasterCard OneSMARTPayPass Combi Card.
• MasterCard PayPass football stadiums
• Baltimore Ravens• Seattle Seahawks• Philadelphia Eagles
MasterCard PayPass Momentum
© MasterCard International Incorporated
• Target cash and quick payment service merchants• Align with planned merchant POS upgrades • Minimize card and back-office costs• Support credit, debit, private label, and proprietary
stored value• Provide multiple MasterCard PayPass form factors• Get cards / devices into consumer’s hands• Get them to use it instead of cash
MasterCard PayPass Deployments
© MasterCard International Incorporated
Contact
Murdo MunroVice President Mobile / WirelessMasterCard InternationalTel: +44 207 557 6809Email: [email protected]
Or
Email: [email protected]