MWC Barcelone 2019 Wearable Payment Summit slides · watches then wrist watches. Our portfolio has...
Transcript of MWC Barcelone 2019 Wearable Payment Summit slides · watches then wrist watches. Our portfolio has...
Wearable Token Service Provider (WTSP)
Keynote By Wayne Leung
CEO of Tappy
The $20 billion industry that IoT couldn’t account for.
Over 1 Billion Traditional Watches are sold every year
Traditional Watch Industry
“Prestigious design is the number one motivator driving consumer
purchases”
Design restrictions
Vs
Multiple SKU’s means more choices
Guess Payment Watch Collection Payment Enabled Fitbit Ionic
“Functionality is the number two motivator driving consumer purchases”
Smart Watches
Hybrid Watches
Digital Payments Are Mainstream
EDC – Every Day Carry
New Standards
Universal Passive Provision Unit
Second Factor Authentication
Thank You
Wearable Payment and Data Insights
Robert Morgan, Business Development,
Barclays UK
2 | Mobile Payments MBR
Two-Thirds of All eligible transactions in the UK are now made using contactless
Restricted - Internal
• Over two-thirds of Brits now Tap to Pay on a
daily basis
• Millennial shoppers (aged 18-35) have
embraced contactless payments even more
enthusiastically, with 76% making daily
purchases with their contactless cards
• The total number of contactless cards now
stands at 123.5 million, an annual increase of
3.9%
• There are now over 535k contactless terminals
in the UK
• 2 in 3 UK terminals are contactless
£2.32 £7.74
£25.21
£52.37
£69.03
2014 2015 2016 2017 2018
Source: Dec 2018 Contactless Payment Report
UK Contactless Spend (£bn)
3 | Mobile Payments MBR
Other markets are even more advanced or at the start of their journey
4 | Mobile Payments MBR
Wearables payments are a growing trend, as the market matures
5 | Mobile Payments MBR
Our solution – bPay
What is bPay?
• bPay is an innovative contactless payment solution supported by a digital ecosystem that launched in July 2015
• Our original products included a wristband, fob, sticker and loop, and has grown to include: jewelry, fitness watches, luxury watches,
keychains, and coffee cups
• At the heart of bPay is a pre paid account that works with any Visa ™ or MasterCard™ credit or debit card, registered to a UK address
• You must be 13 years or over to register for a bPay account
• bPay can be used for spend up to £30; wherever you see the contactless symbol – in the UK or when traveling
• You can track spending and top up using the dedicated bPay app or online at bpay.co.uk
• Allows you to add up to 10 wallets (bpay devices) to your bPay account, and control/view your spend
benefits• Speed and ease of use
• No charging required
• Avoid the risk of carrying cash, especially on the London Underground TFL
• Family friendly, as you can register up to 10 wallets
• No charges when using abroad
• Water Resistant
6 | Mobile Payments MBR
Change your account settings
via the bPay app or at
bpay.co.uk including personal
details and marketing
preferences.
bPay customer journey
You can have up to 10 devices
registered per account.
To register a bPay account
customers can download the
bPay app or go to
www.bpay.co.uk and follow
the instructions.
It’s quick and easy to follow.
Registration involves linking the
bPay account to any Visa or
MasterCard credit or debit card
registered to a UK address.
The card does NOT have to be
Barclays/Barclaycard.
register link to credit or debit card
up to 10 devices
Loading money onto a bPay
account can be done through
individual top ups, or auto top
up, via the free bPay app or
through bpay.co.uk
loading money
With the auto top up feature,
whenever a bPay balance
drops below a set amount,
we’ll automatically top it up.
auto top up
change account settings
You can immediately report
your bPay device lost or
stolen using the bPay app.
lost & stolen
7 | Mobile Payments MBR
20172015 2016 2018
Our physical product journey – move from proprietary to partner
2012
Festival access Own range Partner products (enabled by smaller flexible chip)
8 | Mobile Payments MBR
Press coverage
9 | Mobile Payments MBR
Convergence of Wearables and Data
Wearables can be used by partners to understand their customers in more
detail:
- Spend data for campus type environments
- Spend behaviours for loyalty schemes
- Customer profiling
Enriched with other data sets, wearable customer data can help brands
understand:
- Customer spend geographies
- Competitor benchmarking
- Customer demographics
10 | Mobile Payments MBR
Insight into real customer spending
and market performance
Tailored Insightsunique to
No one else has such powerful insights into transactional customer data
Our data and models are based upon fact, driven from our relationships with our customersfrom all segments of society. It allows for us to understand consumer behavior across the UK ingreat depth on a timely basis.
ScaleWe have access to the transactions of 17 million customersacross our current account and credit card businesses.
Real DataWe have actual customer geo-demographic and transactionaldata in its truest form.
GranularityWe have the ability to geographically locate 99% of ourtransactions down to a postcode, enabling store level analysis.
TimelyOur insights reflect changing customer behaviour as it hashappened that month: day by day, hour by hour.
Market & Customer Insight: A Wealth Of Real Data
11 | Mobile Payments MBR
Barclays customers account for between 20% - 25% of Consumer UKcard spendBarclays, being one of the largest retail banks in the UK, has significant coverage of thepopulation’s expenditure. We see a considerable proportion of expenditure, and the scaleand depth of our data allows us to provide with accurate and actionable insights.
Protecting our customers’ privacy is important to us, we always applyanonymization rules to our data.
1. Minimum of 50 customers in any aggregate data.2. Minimum of 5 companies in an aggregated competitor set.3. No one company can have more than 50% market share in the
aggregated competitor set.
Total Unique Customers67
thousand
30 Months
of data
Market & Customer Insight: Data Coverage
12 | Mobile Payments MBR
Looking to the future – active v passive NFC technology
Passive chips Active chips
• Doesn’t require power
• Less suited to global roll-outs –
requires bank solutions (e.g.
bPay) to be personalised onto
cards
• Can send data only
• Quick to market/testing (could
launch with bPay in weeks)
• Requires power to enable tokens to
be provisioned
• Suitable for global roll-out using Visa
Tokenisation Service (VTS), or
Mastercard Digital Enablement
Service (MDES)
• Requires bank participation in VTS or
MDES
• Can send and receive data
13 | Mobile Payments MBR
Routes for device manufacturers – other considerations
• Pricing – how to price v non payment equivalents
• Product selection – do you retrofit an existing product, or develop a new model
• Customer awareness and engagement – how to grow awareness of a new spend category
and motivate usage
• Bank/scheme partnerships – bank partnerships to help two way promotion of products
• Regulatory requirements – will differ from market to market. In the UK we need to closely
monitor and approve staff training, POS signage etc…
• End to end payments value chain for your market – chip hardware, scheme, issuing bank,
token service provider, token requestor
14 | Mobile Payments MBR
Future developments 2: Access control and payment
Holiday parks
Gyms
Sports clubs
15 | Mobile Payments MBR
Get in touch!
Thank you
The rise of traditional watch brands in digital payments | Wearable trend setter
Our history
October, 2018
• TIMEX GROUP has a long and colorful history.
The company was founded as the Waterbury
Clock Company in Waterbury, Connecticut, USA
in 1854.
• Beginning with clocks, we expanded to pocket
watches then wrist watches. Our portfolio has
grown from basic mechanical movements to
sophisticated analog quartz and category-
defining technology
• With a focus on change and innovation, Timex
continues to draw upon our legacy of watch
making expertise, timeless classic designs and a
commitment to unparalleled quality.
A Rich History Of Innovation
1854
First
Affordable
Clock
1895
First “Yankee”
Dollar Pocket
Watch
1914
First Military-Issue
Watch
1933
Mickey Mouse
Watch at
Chicago Fair
1941
Timers for
Artillery and
Torpedoes
During WWII
1958
“It Takes a
Licking and
Keeps on
Ticking”
1960
First
Affordable
Women’s
Fashion
Watch
1974
First
LCD
Watch
1982
First
Calendar
Watch
1984
First
Affordable
Sports
Watch
1992
First Back-Lit
Watch Face
(Indiglo)
1995
First Wireless
Watch
Connection to a
PC
2004
Introduced
Intelligent Quartz
Movement
2009
Giorgio Galli
Design Lab in
Milan, Italy
2016
Accessible
Smart Analog
Technology
2018
Analogue
bPay launch
Our Brands
Timex is part of Timex Group one of the world’s true watchmakers. Timex Group designs and manufactures
innovative timepieces under well-known global brands. Timex Group sells millions of watches worldwide each year.
8
Why Contactless Payment ?
Context
China – The Cashless Society
USA Is Arguably Behind the Curve – But they are catching up
• Visa expects more than 100 Million Visa Contactless Cards issued
by end 2019
• Chase the #1 credit card issuer is bringing on line millions of Visa
contactless cards in the next few years
• 78 of the top 100 Visa Merchants in the USA already offer Tap and
Pay facilities
Why Would Timex Be Interested in Contactless Payment?
Relevance
Relevance
• Whether it’s a traditional watch or a smart watch, we believe that contactless payment provides a convenience
that people will quickly look to adopt.
• A bridge in some ways towards customers opting to use Time+ features on the wrist
• But also helping to maintain the relevance of traditional watches in the near term
The Start
Thank You
Unlock the NFC power in Wearable Paymentssecuring your digital credentials
Wearable Payment summit
2
Gemalto, always pioneer in payment innovation
With the sponsor of &
1st chip & pin
banking card
2nd generation
Wearables
Gemalto N°1 in market
share of number of
smart payment cards
shipped with 30 million
of cards & modules
produced each month
1990 2000
1st Contactless
payment card
2010
1st generation
Wearables
1st Biometric
payment card pilot
2020
Gemalto is the most
experienced supplier
for contactless
deployments with
more than 550
deployments WW
Gemalto has launched
the highest number of
pilots with Banks WW
with strong usage in
pioneer countries
Source* :
- Payment & Banking Card Technologies / ABIresearch / August 2018
- Number of cards in circulation: IHS - Payment and Banking cards - May 20173
A majority of
Point of Sales
are now equipped
Pay with contactless is the new Norm
Near 50% of cards in
circulation are now
contactless with strong
consumers adoption in
pioneer countries
Creating fantastic opportunities
Payment not
limited to card
format anymore!
Open the door to
imagination and
creativity
And strong growth still
expected in the coming
years following Visa & MC
Mandates.
The infrastructure is in place in many countries and growing quickly in new territories such LATAM or ASIA :
With the sponsor of &
4
1st generation of wearables showed great opportunities to
Boost contactless adoptionAwareness Usage Adoption
Enrich Image and brandingBe seen as innovative
With the sponsor of &
Target specific customersYoungsters, Sportsmen & -women, Kids…
Support Cashless events & environmentsFestivals, stadiums, amusement parks
5
How to extend these wearable opportunities ?
_ _ _ _ _ _ _ _
I want a fashion device
I can wear everyday
everywhere
I love my favorite
« TIMEX » brand, I do not
want another watch
I do not wish another
account or bank than the
one I already have
Payment feature
integration should
remain simple
Payment feature in my
device should be
country-agnostic
With the sponsor of &
Payment feature in my
device should be
bank-agnostic
Bank–driven
deployments
February 2019Making Payment Fun!6
Driver from events &
cashless environments
Boom of
Day-To-Day
Usage
With the sponsor of &
Payment Wearables ecosystem is
now ready for market extension Combining ..
large variety of devices
– fashion oriented
High secured banking
platforms certified through
multiple schemes
Payment schemes
an accessible payment
solution
7
Enabling an accessible payment solution
Tokenization-capable
Current end user banking credentials are securely digitalized in the wearable banking chip.
Banking credentials in the wearable are managed independently from your current card.
With the sponsor of &
oken
8
Field proven banking chip reused for wearables
Adapted for unconnected wearables & for
an easy integration : FlexiTag
For invisible technology in fashion/luxury
devices
Opening the way to various integrations
Adapted SE for events/banks-driven
usecases : MiniTag, MicroTag, Sticker
Manually unplugged and inserted in the
device by end user
Handled by end user OR delivered already
integrated inside low-cost wearable devices
Reliable & fully certified ; up to date java technology.
Will benefit from coming biometry technology on card
Different choices of inlay form factors design
Inheriting from high-runner banking platform
With the sponsor of &
9
A safe & convenient wearable
payment expansion
With the sponsor of &
2nd generation EMV banking chips
_ _ _ _ _ _ _ _
Boom of Day-To-Day
Usage
Tokenization
scheme services
Safe is
your card
…
… Safe will be
your wearable !
Thanks for your attention
Wearable Payment summit
Making Convenience SecureBiometric authentication | Digital Identity, Security & Fraud
Our core technology is at the heart of secure convenienceZwipe’s technology solution enables
battery-less, contactless, ultra-low power,
self-contained biometric authentication
solutions in constrained environments
26 February 2019 Strictly Confidential
The challenge of making Convenience Secure Remove the unnecessary trade-off between security & convenience
Challenge Zwipe innovation solves the challenge:
For consumers Zwipe eradicates the need to use
cash, or enter a PIN
Superior convenience and increased security
For merchants Zwipe reduces cash handling and
increases customer throughput
For the card networks Zwipe strengthens the growth of contactless by improving convenience & security
For the banks Zwipe ensures brand visibility by enhancing
top of wallet effects and reduced fraud
FOR PAYMENT
SCHEMES
Drives
contactless and
cashless
transactions
FOR
BANKS
Fraud reduction
Offers
consumers
peace of mind
Preferred
method of
payment
For consumers Zwipe eradicates the need to use
cash, or enter a PIN
Superior convenience and increased security
For merchants Zwipe reduces cash handling and
increases customer throughput
For the card networks Zwipe strengthens the growth of contactless by improving convenience & security
For the banks Zwipe ensures brand visibility by enhancing
top of wallet effects and reduced fraud
FOR
CONSUMERS
Convenience
Peace of mind
For consumers Zwipe eradicates the need to use
cash, or enter a PIN
Superior convenience and increased security
For merchants Zwipe reduces cash handling and
increases customer throughput
For the card networks Zwipe strengthens the growth of contactless by improving convenience & security
For the banks Zwipe ensures brand visibility by enhancing
top of wallet effects and reduced fraud
FOR
MERCHANTS
Speed
Revenue
For consumers Zwipe eradicates the need to use
cash, or enter a PIN
Superior convenience and increased security
For merchants Zwipe reduces cash handling and
increases customer throughput
For the card networks Zwipe strengthens the growth of contactless by improving convenience & security
For the banks Zwipe ensures brand visibility by enhancing
top of wallet effects and reduced fraud
Strong adoption of contactless cards, but cardholders still have security concerns with contactless…
…and banks introduce transaction limits to limit fraud
Zwipe solves challenges for several groups
Source: Fingerprint Cards Research, 2018 3
Biometric authentication is fast becoming a necessity for all devices
• When looking at banking and payments, fingerprint authentication is moving from mobiles to payment cards to wearables and other devices
The world wants Fingerprint Biometrics
• Major recent market surveys point tothe fact that people in differentregions around the world are tired ofPINs and Passwords
• Those surveyed believe thatbiometrics, fingerprints especially, aremore secure, easier to use and fasterthan PINs and passwords
Biometrics perceived as delivering superior security
6Source: AYTM Market Research, April 2018, among pilot participants
31.9%
66.7%
4.4%
46.4%
15.9%
5.8% 14.5%
14.5%13.0%
40.6%24.6%
4.4%4.4%
49.3%
52.2%
7.3%2.9%
Numeric PINSignature
100.0%
No authentication
1.5%
Biometrics
100.0% 100.0% 100.0%
Very insecure NeutralInsecure Secure Very secure
Customer ratings of perceived security among pilot participants
7
Biometrics could be key to attracting millennial consumer interests
• Biometrics is increasingly being utilized not just for security but for driving convenience
• Millennials have shown preferences to utilize means of authentication that are more convenient
• The use of fingerprint biometrics is increasingly seen as the most convenient means of authenticating yourself
Wearables face challenges to widespread adoption
1. Payment credentials need to be done in a safe and secure manner, from provisioning to usage
2. Availability of contactless EMV POS terminals
3. Customer authentication limits use cases to transactions below transaction limits
826 February 2019 Strictly Confidential
Making wearables more secure through biometrics addresses existing obstacles to widespread adoption
1026 February 2019 Strictly Confidential
Merging our technological strengths can help unlock a massive market opportunity
Find out more about us at zwipe.com