GOOD MORNING!

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Membership Engagment& Turnover

Driving Questions• How engaged are individuals? • How engaged is your company? • How does engagement compare to last year? • What role is turnover playing in engagement?

Committee Engagement and Membership Turnover4

Membership Engagement Types Individuals

• Inactive – Have a Conexxus Account but do not belong to any Committees or Working Groups

• Passively Active – Belong to Committee or Working Group but do not attend meetings

• Active – Attend less than 50% of meetings for groups with which they are involved

• Hyper Active – Attend 50% or more of meetings for 3 or Committees or Groups

5 Committee Engagement and Membership Turnover

Individual Committee Engagement Committee/Workin

g GroupNumber of

Meetings HeldEngaged Not Engaged

Business Metrics 2 5↑ 0

Mobile Subgroup 2 8 0

Digital Offers 3 5↓ 12

DSSC 7 25↓ 28

DSSC SME 5 8 7

EB2B 1 5↓ 0

EMV Tag 9 11↓ 17

Committee Engagement and Membership Turnover6

Individual Committee Engagement Committee/Workin

g GroupNumber of

Meetings HeldEngaged Not Engaged

EPS 7 5↓ 8

FDC 8 5↓ 16

API Task Force 3 4 1

Mobile 6 11↓ 15

POSBO 6 9* 4

RBR 1 10↓ 0

RFT Parent 2 13↑ 0

Committee Engagement and Membership Turnover7

Individual Committee Engagement Committee/Workin

g GroupNumber of

Meetings HeldEngaged Not Engaged

SQA 1 5↓ 0

TAC 2 8↓ 0

P2PE 3 8 22

Getting Unsecure Data Out of Secure

Environments

4 5 2

Loyalty 3 6 12

Loyalty Subgroup 10 8 1

Committee Engagement and Membership Turnover8

Engagement: Supplier vs. RetailerCommittee/Workin

g GroupSupplier Retailer

Business Metrics 3↑ 2↑

Mobile Subgroup 5 3

Digital Offers 13↑ 5↑

DSSC 29↑ 22↑

DSSC SME 10 5

EB2B 3↓ 3↓

EMV Tag 21↓ 7*

Committee Engagement and Membership Turnover9

Engagement: Supplier vs. RetailerCommittee/Workin

g GroupSupplier Retailer

EPS 9↓ 4↑

FDC 17↓ 4↑

API Task Force 5 0

Mobile 17↓ 9↓

POSBO 11↓ 2↓

RBR 6↓ 4↓

RFT Parent 10↑ 3↑

Committee Engagement and Membership Turnover10

Engagement: Supplier vs. RetailerCommittee/Workin

g GroupSupplier Retailer

SQA 4↓ 1*

TAC 6↓ 1↓

P2PE 22 8

Getting Unsecure Data Out of Secure Environments

4 3

Loyalty 13 5

Loyalty Subgroup 7 2

Committee Engagement and Membership Turnover11

Individual Committee Participation

Committee Engagement and Membership Turnover12

Group Participation by Meeting Attendance

Committee Engagement and Membership Turnover13

0

5

10

15

20

25

30

35

40

45

50

0 2 4 6 8 10 12

Meeting Attendance

Membership Engagement Types Companies

Committee Engagement and Membership Turnover14

Inactive –73

Passively Active - 42

Active – 16 Hyper Active – 5

Influence Curve

-20

0

20

40

60

80

100

120

140

-4 -2 0 2 4 6 8 10 12 14 16 18

Committee Engagement and Membership Turnover15

Effects of Turnover - AcquisitionsYear Number of Companies Acquired

2012 4 (25%)

2013 8 (63%)

2014 4 (50%)

2015 9 (44%)

2016 7 (71%)

2017 13 (69%)

2018 3 (67%)

Committee Engagement and Membership Turnover16

Company Comparison

Committee Engagement and Membership Turnover17

Committee/Working Group

2018 2012

Business Metrics 4 2

Mobile Subgroup 5 N/A

Digital Offers 12 N/a

DSSC 30 10

DSSC SME 9 N/A

EB2B 4 5

EMV Tag 21 N/A

Company ComparisonCommittee/Workin

g Group2018 2012

EPS 9 10FDC 14 9

API Task Force 5 N/AMobile 18 N/APOSBO 11 9

RBR 8 N/ARFT Parent 11 7

Committee Engagement and Membership Turnover18

Company ComparisonCommittee/Workin

g Group2018 2018

SQA 5 5

TAC 6 5

P2PE 21 13

Getting Unsecure Data Out of Secure

Environments

6 N/A

Loyalty 15 19

Loyalty Subgroup 8 N/A

Conexxus: Presentation Title19

Trends• Overall participation is down• Vendor acquisitions both in and out of our membership

skew participation downward• Retailer acquisitions have a net zero effect – more about

the individual

Committee Engagement and Membership Turnover20

Discussion Questions• With industry consolidation, how do we keep standards

universal (less voices, more influence by larger members)?

• What is keeping consolidated vendors from increasing participation? (Bandwidth, budget, work items, etc?)

• How do we convert the participants to greater engagement?

Committee Engagement and Membership Turnover21

External Advocacy

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X9 Financial Services IndustryMission & Purpose• Started 34 years ago to develop US national

standards• Accredited by ANSI• Secretariat for ISO (Technical Committee 68) for

international standards• Covers wholesale banking, retail banking/card

payments, checks, securities, and payment security

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X9 Financial Services IndustryX9A Retail PaymentsX9.134 – Part 1 -- New Working Group to develop US adoption of ISO 12812 – Part 1,

Mobile Payments and Banking, General Framework. Other 4 parts of ISO standard will become US adaptations.

X9.58 -- 5-year review of financial messages for SNAP/EBT (foodstamps) (is being led by FNS).

X9.138 -- Development of dictionary to harmonize terminology between various distributed ledger/blockchain initiatives.

US Mirror Group -- Group handling development of US positions on ATICA (host-to- to toTG1 host) messages that will replace ISO 8583.

TR-48 -- Report on strategies for preventing, detecting, and responding to threats from card-not-present fraud. See recent article:https://cardnotpresent.com/payments-standards-group-publishes-educational-cnp-fraud-report/

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X9 Financial Services IndustryX9 F – Security X9.119 – Part 1 -- 5-year review of P2PE standard, which is the basis for the

Conexxus P2PE Specification.

X9.141 -- Development of standard for protecting both financial and non-financial data and standard for breach notification

TR-50 -- Report on cryptographic and non-cryptographic uses of quantum computers.

Conexxus: Presentation Title27

ISO TC68 Financial Services ISO TC/68 reorganization

TC68/SC9/TG1 – set of financial and administrative messages for card/ATM transactions in xml (and alternative for json is expected). When adopted by payment platforms, will replace ISO 8583, but co-existence will be required for many years. Message Implementation Guides (MIGs) for CAPE (card acceptor-to-acquirer) and ATICA need to be defined in 2019.

Conexxus: Presentation Title28

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• Continuing to move on global standardsFDC

• APIs• Joint work on data dictionaryPOS/BO, Mobile, FDC

• JSON Guidelines• ISO 20022 MIG with

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• Mobile Payments Task Force (Atlanta, Boston – Gray)

• Federal Reserve Bank of Richmond: Business & Consumer Payments Advisory Council (BACPAC)– Baltimore (Linda)– Charlotte (Gray)– Richmond (Chris R. NACS)

Conexxus: Presentation Title32

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• Conexxus = Business Associate/Board of Advisors

• Specifications:- EMV Contact & Contactless (2nd Gen)- Mobile- Tokenization- QR Codes- Secure Remote Commerce- 3D Secure

Conexxus: Presentation Title34

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• Renamed (EMV Migration Forum)• Loss of Focus: Contactless, Mobile, etc.• Petro Working Group• EMV Fleet Tag Work @ Conexxus (Partly

with IFSF)

Conexxus: Presentation Title36

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W3C Web Commerce IG• European Payments (PSD2)• Digital Offers• Merchant uptake of Payment Request API• Blockchains, Contracts, and Applicability to

Credentials

Conexxus: External Advocacy W3C38

W3C Web Payments WG• Payment Request API (CR)

– https://www.w3.org/TR/payment-request/

• Payment Method Identifiers (CR)– https://www.w3.org/TR/2017/CR-payment-method-id-20170914/

• Payment Handler API (WD)– https://www.w3.org/TR/2018/WD-payment-handler-20180108/

• Payment Method Manifest (WD)– https://www.w3.org/TR/2017/WD-payment-method-manifest-20171212/

Conexxus: External Advocacy W3C39

W3C Verifiable Claims WG• Verifiable Claims WG

– Verifiable Credentials Data Model (Editors’ Draft)• https://w3c.github.io/vc-data-model/

– Integration of Web Authentication + DIDs + VCs

• Credentials Community Group Standards Roadmap – Charter for Distributed Identifiers

• https://w3c-ccg.github.io/did-wg-charter/

Conexxus: External Advocacy W3C40

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• NACS Request to Participate• Skimming Issue Raised 1/18 Mid Year• Anti-Skimming Working group created• Additional skimming meetings at Annual

7/18

Conexxus: Presentation Title42

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• Cross membership in the works• MAG Conferences:

– Speaking Opportunities– Petro Merchant SIG

• Big International Retailers Call

Conexxus: Presentation Title44

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BREAK

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Questions or comments?

Robotics

ArtificialIntelligence

Internet ofThings

Big DataAugmented & Artificial

Reality

Autonomous Transport

Shaping the Future of Retail…Four Drivers of Success & Conexxus Indications

1. Build a greater understanding of and a stronger connection to increasingly empowered consumers

• Consumer now drives the agenda, make it easy to “plug in” to our enterprises2. Rapidly adopt game-changing technologies

• Create a relevant and flexible tech roadmap for our industry to build to3. Unlock the power of transformative business models in

physical and digital spaces• ID new disruptors – out on horizon• Increase focus on external advocacy and vision so members control

disruption4. Redefine and build future capabilities

• Challenge every tech process, re-invent to leverage new capabilities

For your topic…• What are the strategic business drivers?• When does the driver “go critical”?• What technical “features” may serve each

driver?• How will it impact IT/organization?

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Exercise looks like this…

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Robotics

Driver

Driver

Time frames:• <3 yr• 3 to 8 yr• Longer term

Critical Tech’s

Critical Tech’s

Critical Tech’s

Critical Tech’s

Impact on IT

Impact on IT

Impact on IT

Impact on IT