1. Swiss Mobile Payment Initiative
October 6, 2008
Dennis Flad, Vice President Banking Products Projects
Credit Suisse SA
Presentation at the Mobile Monday
École Polytechnique Fédéral de Lausanne
CREDIT SUISSE PRIVATE BANKING
Date: July 2008 Slide 1

2. NFC-based payments target to replace
low value cash transactions
Cash versus cashless payments
Cash is still the main
Cashless payment method for low
20% value payments
14% 86% Value >€15
Solutions to replacement
of low value payments
80% have to be:
Value <€15 Fast
Cash
Simple
Convenient
Cheap
All POS payments Cash payments
Source: European Payments Council (EPC), 2004.
Date: July 2008 Slide 2

3. A new user experience
+ =
EMV Technology RFID Technology Contactless
Payments with
phones and cards
New limits and PIN New transmission New experiences
handling methods methods
Date: July 2008 Slide 3

4. We should actually never forget, what we
are really selling in payments!
Date: July 2008 Slide 4

5. Walls to break-through
Awareness
Trusted
Easy to
purchase
Broadly
accepted
Self- Pay with
explaining me!
Convenient
Cheap!
Date: July 2008 Slide 5

6. Date: July 2008 Slide 6

7. Date: July 2008 Slide 7

8. Contactless payment experiences
Contactless card payment Contactless mobile phone based payment
1. Amount presented on terminal. 1. Amount presented on terminal.
2. Client takes contactless 2. Client activates Visa PayWave
card out of wallet. application on handset (can be
done anytime before check-out).
3. Below CHF 40.-: Client waves 3. Below CHF 40.-: Client waves
his card over contactless reader. his phone over contactless
Transaction is completed. reader. Transaction is completed.
Over CHF 40.-: Regular credit Over CHF 40.-: Client autho-
card transaction with authori- rizes transaction with PIN entry
zation by PIN on handset and waves a second
time over reader.
4. Terminal prints receipt. 4. Terminal prints receipt and
handset application shows
transaction a confirmation too.
Date: July 2008 Slide 8

9. Roadmap an e-Ticketing/e-Payment roundtable
in October 2005
Ticket purchase Payment Load Ticket Control ticket
Solution field
By internet Credit Cards Printing at the PC Visual
1
2006 By phone through Call Invoice / Direct Debit MMS on handset Control handheld SBB
Center Stored on a server Other Scanner
2007
EMV-Credit- / Debit- /
Value Card Application
Solution field
Data transmission
2008 At the Point-of-Sale through ISO 7816 Chip with various Software-Updates for
2
(Face-to-Face / S-POS- Ticketing Applications** existing control
Vending machines.) Data transmission mainly handhelds
through NFC
2009
Data transmission POS terminals with
through NFC possible NFC interface
2010
Solution field
On the phone in SIM-Chip with card data Load via mobile network on
commu-nication with Handset as terminal NFC chip
3
NFC Chip replacement Data transmission with NFC
Data transmission at
POS with NFC
Date: July 2008 Slide 9

10. Thank you very much.
Date: July 2008 Slide 10

11. Backup
Date: July 2008 Slide 11

12. Potential timeline
Internal Preparation Phase 2:
Preparation Review Review [Go]
pilot Phase 2 Field test*
2008 2009 2010 ff.
* The exact design of the field test still needs to be defined.
Date: July 2008 Slide 12

13. Potential point-of-sales for cash replacement
BACKUP
Cash penetration (e.g. Austria, 2005)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Conclusions
Gastronomy, Hotels
Cash is still the main
Public Transportation payment instrument,
especially in typical low
Supermarket
value point-of-sales
Books & Stationary
Especially Point-of-sales
Department Stores like public transportation,
supermarkets and shops
CD, DVD Shops
(e.g. bookstores, home
Home electronic electronic, CD/DVD) still
hold a potential for cash
Petrol
replacement
Juwelery
Cloths & Shoes
Potential for cash
Flight tickets, travel replacement is still given
in the "fast-check-out"
point-of-sales
Source: Survey of the Austrian National Bank (OeNB), 2005;
Date: July 2008 Slide 13