Spotlight on Contactless
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Transcript of Spotlight on Contactless
Spotlight on Contactless
Ryan Altern
Product Marketing Manager EMEA
2
Agenda
• Introduction to Contactless
• Contactless Payment
• State of Rollout
• VeriFone Contactless Strategy
• Product Roadmap
• NFC
3
Introduction to Contactless
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Short Range RF Technology
Interaction between two devices, based on RF induction, to exchange data
Main characteristics:
• Short range interaction (from a few centimeters up to a few meters)
• Suitable for transmission of small amount of data
• Interaction generally between an active device (with power source) and a passive device (has no power source of its own, powered by the active device)
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Where is RF Technology is Used?
• Automatic identification of objects or bodies
• A tag containing the coil (antenna) is attached to the object
• Used for: storage control, freight control, anti-theft in shops, animal control
• Generally not secure
RFID
• Used to control entrance by reading the entrant’s card
• Generally not secure
Access Control
• Short range data transfer to distribute information
• Used for: access to content, data exchange (ie. ‘NFC’)
Transfer of Information
Contactless Payment
Is the term ‘RFID’ synonymous to ‘Contactless’ in the payment world? …..NO!
‘Contactless Payment’
is the industry term.
• RFID is associated with non-secure data transfer
• Please Do not refer to Contactless Payment as RFID!
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Contactless Payment
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Definition and Features
Non-cash payment transaction
No physical connection between the consumer payment device
and POS/reader
Using standard payment network infrastructure
• Targeted for small value transactions– Usually the equivalent of up to $25/€15/£10– Targeting cash transactions
• Main benefit: quick transaction– Other conditions for quick transaction:
No PIN and No Signature– Easy to operate, no need to orient card
• Flexible Form Factors:– Contactless smart card– Key Fob– Mobile Device (cellular phone, PDA)
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Market Drivers and Benefits
• Increase card transaction volume and revenue by replacement of cash transactions
• Minimal change to infrastructure
For Card Associations and Issuers
• Fast transaction time, queue shortener
• Greater spend at checkout, no cash shortage
• Less cash handling – less errors and fraud
• Reduced terminal maintenance (higher MTBF)
• Competitive differentiation
For Merchants
• Transaction speed and convenience
• No need to carry cash
• Fraud Reduction through reduced card skimming
For Consumers
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Target Market Segments
• QSR
• Pharmacies & drugstores
• Convenience stores
• Supermarkets
• Deli stores
• Kiosks
• Vending machines
• Sport stadiums
• Parking
• Transit
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Association Contactless Schemes
• Scheme called PayPassSometimes also called OneSmart PayPass
• PayPass MagStripe: MasterCard’s contactless-magstripe application
• PayPass M/Chip: MasterCard’s EMV-like application• Scheme called Visa Contactless
Previously called Visa Wave (remained as Visa AP initiative)
• MSD: Magnetic Stripe Data; Visa’s contactless-magstripe application
• qVSDC: quick Visa Smart Debit/Credit; Visa’s EMV-like application
• Scheme called ExpressPay• Specification differentiates EMV and Non-EMV transactions• EMV specification is a subset of their EMV-chip spec
• Magstripe scheme only• Similar to Visa MSD
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Payment Solution Requirements
Cardholder Indicators
Landing zone:
• Landing zone frame is clearly marked
• Tapping icon in center of landing zone
• Card scheme icons (those the reader is certified for)
LEDs:
• Visa, PayPass and AMEX require 4 single-light (green) LEDs
– Left one lit – ready to accept card, all lit in sequence to indicate card reading
• Visa AP and MC AP adopted a 4 color scheme: Blue – ready to accept card, Yellow – card reading, Green – successful transaction, Red – transaction failed
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Payment Solution Requirements
Cardholder Indicators
Buzzer:
• Audio sequence to indicate card reading
• Failure may also be indicated by a special tone
Display:
• Can be used as an alternative visual indication (4 circles sequentially appear to indicate card reading) instead of LEDs
• Can be used, although not mandatory, to display transaction amount and messages
– Common in EMV-like schemes
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Contactless: State of Rollout
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VeriFone Contactless Strategy
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Contactless Strategy Overview
Step One:OEM with Channel Partner to Market1
2Step Two:Fast-Track to Market with ODM Partnership
3Step Three:Abstract andDe-Risk Revenue
4Step Four:Invest and Develop Intellectual Property
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Contactless Strategy Overview
Step One:OEM with Channel Partner to Market1
2Step Two:Fast-Track to Market with ODM Partnership
3Step Three:Abstract andDe-Risk Revenue
4Step Four:Invest and Develop Intellectual Property
21
OEM Channel Partnership1OEM partnership with ViVOtech allows:
1. Immediate increase in available products– QX110 (Peripherals)
– QX110T (Taxi)
– QX110D (Vending & QSR)
2. VeriFone to recognize revenue now– 8,000+ Shipments to date
3. VeriFone part-numbers streamlines shipments– Standard VFI part-numbers (P153)
ViVOtech’s cross licensing agreement ensures that
OEM sales will not prevent us from developing our
own technology or locking our customers into a 3rd
party interface.
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Contactless Strategy Overview
Step One:OEM with Channel Partner to Market1
3Step Three:Abstract andDe-Risk Revenue
4Step Four:Invest and Develop Intellectual Property
2Step Two:Fast-Track to Market with ODM Partnership
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Fast-Track Contactless to Market2ViVOtech has enabled VeriFone to drastically diminishour time to market and develop products in parallel
• Leverage proven firmware & design resources• Sales Account Support & Documentation• Assisted with antenna design• Provided certification guidance• Provided level 1 debugging at ViVOtech labs• Provided technical support and training• Custom firmware (NETS, NCR, McDonalds)
By partnering with ViVOtech, we are able to accelerate the Cultural Transformation & VeriFone’s Core Competency
ODM Agreement / Reference Designs:
• QX120VFI Peripheral
• MX800 SeriesConsumer Facing
• Vx 810 Programmable PIN pad
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Contactless Strategy Overview
Step One:OEM with Channel Partner to Market1
4Step Four:Invest and Develop Intellectual Property
2Step Two:Fast-Track to Market with ODM Partnership
3Step Three:Abstract andDe-Risk Revenue
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Cross Licensing Agreement
Hardware Abstraction3
• Allows VeriFone the option to migrate towards our own technology when we’re ready, meanwhile retaining benefits gained throughout the ViVOtech relationship
• Ability to emulate ViVOtech protocols on future products
Time
Abstract core technology
Insulate customer from technology / firmware
Perpetual, free, irrevocable licensing of ViVOtech’s API
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Contactless Strategy Overview
Step One:OEM with Channel Partner to Market1
2Step Two:Fast-Track to Market with ODM Partnership
3Step Three:Abstract andDe-Risk Revenue
4Step Four:Invest and Develop Intellectual Property
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VeriFone’s Intellectual Property4• Become increasingly self sufficient and self
sustainable by investing into VeriFone’s contactless technologyPINpad 1000SE Contactless (PIN Entry)Mobile Terminal Vx670 Contactless
• Transitioning to VeriFone’s internal contactless technology is plug and play / seamless due to the cross licensing agreement, hardware abstraction, and cDTK API
• Today's contactless application will work with tomorrow’s internal technology, and will work across our entire product line“One Contactless Platform, Many Contactless Solutions”
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Contactless Product Roadmap
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Peripheral PIN Entry Programmable Multimedia Unattended Wireless
Contactless: Product PortfolioF
eatu
res
QX120
Vx 670
PINpad 1000SE
Vx 810
MX800 Series QX720 QSR(Non-EMV)
OP 4100
SIM 700/ Vx 700
QX110
Vx 810 DUET
Vx 610 with
module
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Contactless RoadmapContactless Roadmap
Qx720Contactless
OP4100Contactless
Qx120
Qx-110Family
Vx670Contactless
PP1000SEContactless
Peripheral
Durable \ Outdoor
Field \ Modular
In Development Available
MX CTLSModule
Vx810 CTLS
Integrated
Vx 7xxContactless
MX760Contactless
MX MSRModule
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Peripherals: QX110
• Being positioned for use with Countertops, ECRs, or other devices with processing capability
EMV Contactless Peripheral
Merchant & Consumer LEDs
Customer & Association Branding
EMV Contactless Capable
Various Stands & Mounts
Available Now
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Peripherals: QX120
1. Supports EMV and MSR applications
2. Can be connected to most host devices
3. Product from the leading POS solutions vendor
3 Key USPs:
Merchant & Consumer LEDs and light bar
128 x 64 DisplayHigh Contrast, White Back-Lit
Buzzer
Overlay Branding
Underneath the Landing Zone is the RF Antenna
LED-Backlit Contactless Symbol
Currently in Beta!
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PIN Entry: PP1000SE
• DVT – Mid Aug
• Beta Start Mid Sep
• SR Late Oct
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Features PP1000se compatibility (cabling, stands, applications) Serial connectivity (USB conversion option) Applications
• Paypass Mstripe and Mchip• Visa MSD and qVSDC• Discover and Amex• Visa AP
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Programmable PIN Entry: Vx810
• Program Schedule • DVT Unit availability – July• Beta Start – August \ September• Product Release – September \ October
• IDV Update• Larger form factor and centered antenna for easier customer use• Larger antenna size for increased performance•Similar installation procedure
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Multi-lane: MX8x0
Positioning • ¼ VGA PCI PED certified
• High-end full screen multi-lane retail offering
• High quality display & touch panel with multimedia capability
Key 3 USP • Display quality and multimedia capability
• Cross-platform software compatibility
• Global platform
Status • Released and available today PayPass, Visa payWave, Discover, AMEX
MX860
MX830
MX850
MX870
Versions/ Variants
• MSR Only
• MSR + RFID
• MSR + Smartcard
Available Now
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Unattended: OP 4100
• PCI and EMV compliant
• Designed for locations such as fuel pumps, kiosks and other self-service locations
• Has an encrypted personal identification number pad
• Color-screen shows transaction and marketing information to consumers
• Integrated contactless
• No qVSDC or Visa-WaveAvailable Now
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Portable: Vx 670 Contactless
Positioning • Integrated contactless support in Vx 670
• High-end offering for transit, loyalty, hospitality
Key 3 USP • PCI PED
• Smallest all-in-one form factor
• Takes a great product and addsIntegrated Contactless
Versions/ Variants
• All Contactless schemes
• GPRS, WiFi, Bluetooth
• 6 or 12 MB memory
• USB support
• 40 MM paper-roll support
Status • In development, target availability Q4 ‘08
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Tools - cDTK
cDTK = Contactless Developers Tool Kit
“One Platform,Many Solutions
Portable across allVeriFone platform
Contents include:
Support all majorreader / protocols
All components versioned for easier certification
• a.k.a. ContactlessCommServer
• Vx Contactless DTK
• MX Contactless DTK• NURIT Contactless DTK
• High level API• TMS agenda• Debugger
• Firmware loader• Configuration
• ViVOtech protocols• VFI proprietary• Others may be added as needed
(OTI, Panasonic)
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cTMS = Terminal Management Systems
Tools - cTMS
Turn Infrastructure from Liability into Asset
• Enable remote management of installed units
• Reduce number of field tech touch points & cost
Infrastructure becomes“living and breathing”
• Update units as card associations standards roll
• Keep install base compatible with new cards
• Upgrade install base to support NFC features
Expand existing solution
• VeriCentre 3.x+ being upgraded
• NURIT Control Center 7.X+ being upgraded
Features • Update reader firmware
• Update reader configuration
• Update applications
• Update key/blocks
• Update misc., future
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Near Field Communications
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Near Field Communication
• Initiated and supported by the NFC forum– Established in 2004 – Sony and Phillips(2002)– Includes over 100 members
• Leading mobile communication, semiconductorand consumer electronics companies such as:Microsoft, Nokia, Philips, Sony, TI, NEC and Samsung
• Short-range wireless connectivity between electronic devices for various applications:– Data exchange: smart poster, peer-to-peer– Device activation: garage doors, parking gates, turnstiles– Payment – using the cellular phone as a “wallet with card”
(card emulation), or as a “reader”
• Based on ISO 18092 and ISO 14443 A/B– Compatible with Payment Association contactless schemes
• Multiple NFC mobile phone payment pilots have been announced or are under way in the U.S., Malaysia, China, France, the Netherlands, Germany, and U.K.