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MasterCard Smart Card Strategy

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Presentation on theme: "MasterCard Smart Card Strategy"— Presentation transcript:

1 MasterCard Smart Card Strategy
MasterCard International Payment Brands Martyn Cooper Global Platform Symposium - August 2002

2 Global Platform Symposium
MasterCard A Global Smart Card Leader At Q2 2002, 125 million MasterCard-, Maestro-, Mondex-, and Clip -branded cards had been issued worldwide  Already 1/10 of total MasterCard card base  98 members in 32 countries  Over 50% carried value-added applications Global Platform Symposium

3 Total Number of Banking Smart Cards
+59% Source: Celent, October 2001: Smart Cards in US Banking: Is the Chip Hip? Global Platform Symposium

4 Global Platform Symposium
Smart Card Migrations EMV Migrating/In Progress EMV Committed/Planned EMV Analyzing Global Platform Symposium

5 Europe 2001/2002 UK EMV Migrating/In Progress EMV Committed/Planned
Iceland EMV Analyzing Norway Finland Sweden Estonian Latvia Denmark Ireland Russia Littuania UK Netherlands Germany Belgium Poland Lux. Czech Rep. Ukraine Slovakia France Switzerland Austria Hungary Slovenia Italy Croatia Portugal Spain Turkey Greece Israël Indicates few banks / processors implementing EMV, not entire country PROPRIETARY & CONFIDENTIAL 7

6 Global Platform Symposium
Asia Pacific 2001/2002 Jp SKor China Tai. India HK Phil. VNam Thai. Thai. Mal. With the improved economic picture, huge populations will perform their day-to-day purchases with EMV cards. MasterCard is working with the key government bodies to ensure that the Multos/MCPA/Mondex capabilities are fully understood. SL Sing. Indonesia Australia EMV Migrating/In Progress NZ EMV Committed/Planned EMV Analyzing Global Platform Symposium

7 Global Platform Symposium
Middle East/Africa 2001/2002 Leb. Kuw. Egypt SAr. Nga. E-cash and EMV are establishing strong bases in Ghana, Zimbabwe and Mozambique based on South African influence. The same phenomenon applies to the Middle East and Gulf States based on initial Egyptian, Israeli, and Saudi Arabian decisions. Gha. Moz. Zim. EMV Migrating/In Progress EMV Committed/Planned SAfr. EMV Analyzing Global Platform Symposium

8 Global Platform Symposium
Latin America 2001/2002 Mex. Costa Rica Ven. Col. Ecuador Latin American adoption of EMV is continent-wide phenomenon that is driven by the same forces that got the Europeans started -- fraud and processing cost reduction. Of particular interest to the Latins is EMV’s inherent “skimming prevention” capability and off-line authorization. Peru Brazil Bol. Par. Chile Arg. EMV Migrating/In Progress Uruguay EMV Committed/Planned EMV Analyzing Global Platform Symposium

9 Global Platform Symposium
North America 2001/2002 Canada The IMV effort is expected to bear fruit with national merchant and issuer adoption of EMV. United States EMV will continue to be a secondary factor in U.S. banks smart card planning and implementation. Key Members are both issuing and planning to issue EMV smart cards, though no national migration is planned. EMV Migrating/In Progress EMV Committed/Planned EMV Analyzing Global Platform Symposium

10 OneSMART MasterCard
Highly flexible umbrella strategy for helping members introduce smart cards in cooperation with MasterCard Based on extensive consumer research Reflects MasterCard’s approach of providing comprehensive support and flexibility to members Members can choose application set, platform, security strategy, chip size, and card designs Global Platform Symposium

11 OneSMART MasterCard
MasterCard Role Assist members in end-to-end implementation Opportunity identification Business requirements Process requirements Support Program development Program launch Work with industry to improve the state of the art Standards and specifications Maintain alliances/relationships with best in class vendors Global Platform Symposium

12 Value-Added Applications
Key To A Positive Business Case In Many Markets Data Storage Ticketing Couponing Loyalty Authentication (non-payment) Enable issuer differentiation and enhanced functionality Global Platform Symposium

13 Value-Added Applications
The Business Case Grow GDV by Improving acquisition, usage, retention Increase the account’s lifetime value Add new fee services Leverage non-payment opportunities Partner business process improvement Reduced inefficiencies or fraud Global Platform Symposium

14 Value-Added Applications
Developing The Business Case MasterCard has developed a business case tool to model: Specific opportunities Multi-application programs Multi-party programs This model works in concert with the MasterCard chip payment models developed by EPI These models will be merged Global Platform Symposium

15 Global Platform Symposium
Platform Flexibility MasterCard is only payments association to actively support all major chip platforms MasterCard M/Chip™ available on MULTOS, JavaCard, and proprietary platforms Global Platform Symposium

16 Global Platform Symposium
Platform Flexibility MasterCard is a member of both MAOSCO and Global Platform Committed to creating a universal platform/ infrastructure that will make it easier for members to issue multi-application cards JavaCard Global Platform Symposium

17 Flexible Issuance Options
Via ‘MULTOS Issuance Partner’ Indirect relationship with MULTOS key management authority (KMA) via MIP MIP interacts with MULTOS KMA on card issuer’s behalf May upgrade to direct relationship if required ‘Standard’ card issuer Direct relationship with the MULTOS KMA operated by MXI and within the ‘Global’ MULTOS Domain Co-located MULTOS KMA Managed by MXI KMA on card issuer’s behalf Private domain MULTOS KMA Licensed by MXI (complete software/hardware solution) Operated by card issuer themselves or trusted 3rd party Global Platform Symposium

18 MasterCard/Global Platform
MasterCard staff assigned to Global Platform Standing Committees and relevant working groups Candidate nominated to chair re-launched Business Requirements Working Group Facilitated Card and Application Management System (CAMS) contribution Evaluating additional security contributions Global Platform Symposium

19 Global Platform Symposium
MasterCard Objective Broaden Global Platform (GP) scope to embrace all open, industry technologies, including asymmetric approaches In particular, aspects of MasterCard’s MULTOS experience But not necessarily prescriptive MULTOS, rather a class of solutions of which MULTOS is one There could be others Global Platform Symposium

20 Possible/Desirable Outcome
MULTOS Card Manager Open Platform Card Manager Open Platform Card Manager Today MULTOS API Java Card API Microsoft API MULTOS O/S Proprietary O/S Microsoft O/S Extended Global Platform Card Manager Future MULTOS API Java Card API Microsoft API MULTOS O/S Proprietary O/S Microsoft O/S Global Platform Symposium

21 Java-tisation of MULTOS - The Goal
applet Load mechanism Card specific loader Card specific loader Same Terminal Functionality Global Platform Symposium

22 Our Contribution Context
Meaningful contribution on viable terms: Intent for IPR terms to be normal GP practice, if at all possible Minimal pre-conditions or constraints At scope and level appropriate to GP CAMS terminology will be adopted ‘GP’ style technical authoring style to aid and speed review and debate in working groups Timed to fit with next iteration of specifications Global Platform Symposium


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