1. Future Proofing your Payments
Unleashing the power of smart payment through contactless
channels
RBTE, London, 13th March 2013
future proofing your payments

2. Who we are
The Smart Payment Association addresses the challenges of today’s evolving
payment ecosystem. We offer leadership and expert guidance to help
members and their financial institution customers realize the opportunities of
smart, secure and personalized payment systems and services - both now
and in the future.
Since 2004
Members:
2 shaping the future of payment technology

3. What we do
 The SPA works in partnership with global standards bodies, its own vendor
community, and an expanding ecosystem of established and emerging
brands; offering an ever-growing portfolio of advisory and support services.
Non
Traditional
Ecosystem Expert Advisor Services
Help shape the future of payments
Customers
Members Customers Services
Bring Value to Financial Institutions
Fig 1
Members Services Extending advisory and
Trade Organization support across the evolving
community, the SPA is
addressing today’s challenges
and shaping the future
direction of payment
technologies, standards and
Traditional/ Smart Card Technologies Advanced/ New business models.
3 shaping the future of payment technology

4. 898 Mio. Smart Payment Card Shipped in
2011 by SPA Members*
*includes all chip payment cards – EMV represents more than 90% of SPA shipments
4 April 2012 shaping the future of payment technology

5. Payments Technology Darwinian Look
 Main Drivers:
 Convenience
 Security
5 shaping the future of payment technology

6. TAM > 1 Billion in 2011*
EUROPE
TAM: 367M NORTH ASIA
TAM: 153M
CISMEA**
NORTH AMERICA
TAM: 88M TAM: 129M
SOUTH EAST ASIA
SOUTH AMERICA
TAM: 87M
TAM: 213M
EMV cards deployed or
in advanced deployment
EMV cards in deployment
* 2011 Estimated Total Available Market (1037 M)
Magnetic Stripe by Geographies in Millions – Includes all chip payment cards
** Includes Turkey
6 April 2012 shaping the future of payment technology

7. Are EMV Cards Protecting You?
 Most of EMV Cards deployed in West Europe + other
specific areas
5.2Bn Payment Cards
shipped in 2011  EMV deployment is pushing Fake Magnetic Stripe Cards
out of Europe, but Fraud bounces back-in
29%  Good implementation of EMV proven to significantly
reduce fraud
 25% are Private label cards:
Retail, Airlines, Petrol, Transport,..
0.69B
71% Intl.Schemes
Private Label
Chip & PIN
Others
Mag Stripe 3.21B
1.33B
7 Sources: EMVCo & Nilson Report shaping the future of payment technology

8. Alternate Payments to Cards
 Checks  QR-code
 Less and less  Appealing: (almost) no
 Small checks replaced infrastructure needed
by Debit Cards  Optical reading:
 Large checks replaced  not-fast, light ambience
by money transfer dependant
 No standard, dependent on issuers
 Apps dependent
 Cash
 Security: genuine codes are
 Still most convenient for small checked inside phone apps.
payment amounts
 User recurring costs (SMS)
 Legal Value Money
 Slowing down NFC deployment
 It is there to stay
 Cash virtualization could happen
 Pre-loaded mobile
 Cloud based currencies
8 March 2013 shaping the future of payment technology

9. Internet Payments
 Card-not-present Problem  Back in the 50’s
 3D-Secure bringing some
improvement
 EMV card enable:
 Dynamic card generation
 One-time-passwords
(e-Banking)
 SPA supports & promotes EMV
utilization of technology with
stakeholders
 Use of EMV card with a personal
terminal device
 Scalable, secure
 Interoperable
9 shaping the future of payment technology

10. Contactless Technology
The Opportunity / Challenge
2-3cm
 Bundling several services
 Payments
 Loyalty, Identification,
 Other 3rd party application
 Not just for fast transaction
Freedom of form factors
 ISO Cards or NFC Mobile
10 shaping the future of payment technology

11. 130+ Mio Contactless Payment Cards
delivered by SPA Members in 2011
 Contactless technology = 15% share of smart payment card
shipments.
 Dual-interface = 80 % Y-to-Y growth (represents more than 80%
share of contactless shipments)
11 April 2012 shaping the future of payment technology

12. NFC Revolution is Happening
12
Consumer electronics
Tags & Cards
Transport Payment Smart Poster
12 12 shaping the future of payment technology

13. The NFC Deployment
 NFC technology based on Secure Element
 NFC Contactless technology is not just for mobile payments
 NFC deployment is happening behind Mobile Handlsets and
NFC POS.
 Many devices will be NFC capable
 NFC transactions
 Not just payments
 Co-locating with other services
 Get ready to exploit NFC pervasiveness
Transport  Strong Standardization effort : ISO, EMVCo, NFC-Forum
13 March 2013 shaping the future of payment technology

14. Latest Publications & Contribution
 SPA contributing to:
 EMV standard
 Technical Associate and Board Member,
Card Representative
 EMVCo 2.0 Next Generation Taskforce
PIN by SMS
 SEPA standard
 Innovative Payment WG at EPC (Chair)
Private Label
 SCCMB Preparatory Committee Member
Payment
 Security and Conformity WGs Member Systems
 Upcoming Papers
Security for Mobile
 Software Fallback Chip Solution
Payments
 Biometric for Payments
 Mobile Payment Platform Security
Certification
Business Continuity
Management in the
Payment Card Industry
14 shaping the future of payment technology

15. www.smartpaymentassociation.com
Contact: info@smartpaymentassociation.com
15 March 2013 shaping the future of payment technology

16. Thank You
www.smartpaymentassociation.com
future proofing your payments