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					Global Technology
Trends: The future of
Payment
 Andrea Gómez
 CarCAAn Sales Manager
International Trends …




    • Key Observations: “The world is smaller than you realize”

    • A Trend created in one market, trickles into another …



         The Worst Example … the Recession
What Started Here ….
Went There …
And There …
International Trends


      1. Global Trends
        – Common Payment Trends across the world
             a.   Security
             b.   Quality \ Value
             c.   Mobile CheckOut
             d.   NFC as CTLS driver


      2. Localized \ Regional Trends
        – Trends unique to particular markets.
             a. Developed Economies
             b. Developing Economies
Global Trends
Value = Quality vs. “Cheap”



     • Budgets are tighter, although starting to open up
     • Buying behavior has permanently shifted
     • Focus on “Value” vs. Cheap
        – Value = Get your money’s worth, make an investment.
        – Cheap = Initially good, but costly long-term
     • Can’t buy on “Speeds & Feeds” anymore
Security !



   • Smart-Cards
     – Globally Momentum, now Canada
     – USA Smart-Card at all time high
          • First USA Smart-Card Issued
   • Key Injection & Management
     – Costly manual upgrade (TDES)
     – Creates push for RKI\RKL
   • High-Profile PCI-DSS
     – Creates E2E, Tokenization, VSP, etc
     – Response is PTS 3.0 SRED Specification
     – Creates “best practices” device Management
Logical Security Protection

    •   Fixing Card Skimming Problem
         –   Global Shift to Chip Cards
         –   USA Hold out weakening
    •   Avoiding Terminal Software Compromises
         –   Application Signing & File Authentication
         –   Security Scripts
    •   Improving & Automating Key Management
         –   TDES DUKPT & TDES Master Session
         –   Multiple DUKPT Engines
         –   TDES Key Injection
         –   +Remote Key Loading
    •   Protecting Data in Transit
         •   IP, SSL, MC-PTS
    •   Fixing the Terminal Swap \ Tamper
         •   VPAS = Advancing Serial Registration
         •   PCI 2.0, 3.0
    •   Protecting Card Holder Data
         •   VeriShield Protect
PCI PED Terminal Timetable
                                                                                  We are Here

2004   2005       2006   2007    2008   2009   2010      2011       2012      2013      2014      2015      2016      2017

               Unapproved Devices                     6/30/2010 Sunset Date


                  Visa PED Devices                                                                 2014 Sunset Date



                                     PCI PED 1 Devices

                                                             PCI PED 2 Devices
   Legend
 OK to Purchase
                                                                               PCI PED 3 Devices
   OK to Use

                                                                                                     PCI PED 4


                                                 Unapproved Devices must
                                                 have been removed by
                                                 7/1/10

                                                                           Liability Shifts to Retailer
Mobile \ NFC

    •   Star-Power! Anything Mobile!
    •   Make e-Payments Ubiquitous
    •   Enable Empower of Alternative Payments
    •   Enablement of 3rd party applications
    •   More Features to the Consumer:
        –   Social Coupons (GroupOn)
        –   Shopping Empowerment (Red-Laser)
        –   Alternative Payments (Bling-Nation\PayPal)
        –   P2P
        –   E-Receipts, etc
Key NFC \ Mobile Events



 •   “Nokia announces NFC in Spring, 2011 Handsets”
 •   “Apple announces rash of NFC Patents”
 •   “Apple hires in house NFC expert”
 •   “Broadcom rumored to purchase NFC company”
 •   “Discover \ Networks joint venture project leaked”

       The NFC Inflection point is upon us, Trails are behind us.
The Mobile Snowball!

                 SMS                                 WAP




                               PDA

   Voice                                                    E-Mail
               Mobile Phone has a long history of market
                disruption, It is a potential opportunity




                                                            Camera
   M-Banking
                Gaming
                                Navigation          Music
The Result…


   • Shift in Market Dynamics
     – Focus on Fundamentals
     – Increased Competition
     – More with Less


   • The Global Importance of Value & Quality
     – The Experienced Buyers shift towards Value
     – The In-Experienced Buyer shifts towards Cheap


   • The Global Rise of Crime = Security as a Cost \ Risk
     – High Profile Costs \ Breaches
     – Improved Coordination \ Sophistication of Attacks
Regional Trends
Can’t use “Regional” Trend Buckets


   Regional Trends are not geographically Based.
   • The old stigma of “Regional” Trends doesn’t hold true
   • Asia doesn’t follow Asian Trends
   • South America doesn’t follow Latin American Trends

   Trends are economically or culturally driven
   • Cost of Labor vs. Cost of Automation
   • Existing Infrastructure vs. No Infrastructure
   • Card & Terminal Penetration
   • Cultural Nuances
      – Full Service Gasoline (Thailand \ Mexico \ UAE)
Developed\Developing Economies - Trends
1. Customer Empowerment & Automation
   –   Mobile Check-Out
   –   Price Checkers
   –   Kiosks
   –   Self-Check Out                                Understanding New Retail Trends



2. Increased POS Interaction (some keep it simple)
   – Transforming Check-Out
   – Point of Sale -> Point of Interaction
   – Bigger Displays, More Information

3. Emergence of Verticals                                                VERIFONE COMPANY CONFIDENTIAL




   –   Payment in Vending
   –   Payment in Pumps
   –   Payment in Taxi Cabs
   –   Payment in Transportation Systems
Developed Economies .. Cont..


 4. More Consumer Loyalty & Intelligence
    –   Loyalty 2.0 (QR Codes)
    –   Enhanced Content
    –   Pre-QR Codes
    –   Social Enablement (Groupons,   Shopkicks)



 5. Improved Device Management
    –   Estate & Asset Management
    –   Diagnostics & Support (update OS)
    –   Security & Auditing (detect & predict fraud)
    –   Dynamic Intelligent Promotions
Developed Economies .. Cont..

6. Drive for Alternative Payments
   –   Bling-Nation, PayPal, BillMeLater


7. Tapping the Micro-Merchant
   –   The “Iceberg” Scenario
   –   Replacing the “Knuckle-Buster”
   –   Ie: Square, PAYware Mobile


8. Innovation Gateways
   –   Making Payment Innovation Less Risky
   –   More Features, Faster, Less Certifications
   –   Robust Experience (GPS), Receipts, Signatures

9. Linux + Web Tools
   –   Faster, Richer, Robust Applications
Developed Nations = Customer Empowerment
Developed Nations = Verticals

                            SPA Imple
                                     mentatio
                                              n




                          SPA                                                     Existing 2
                                                                                             -
                                                                                  wire RS48
                                                                                            5
                                                                                 with
                                                                                 Ethernet




                     43

                                          VERIFONE
                                            43       COMPANY
                                                               CONFIDEN
                                                                          TIAL
Developing Economies

     1. Focus Expanding Infrastructure
        –   Wireless Technologies
        –   Value, Economies of Scale


     2. Targeting the Unbanked
        –   Biometrics
        –   SMS


     3. National Switch's \ National Schemes
        –   Local Transactions, use Local Card Scheme
        –   Large Retailer in Asia (Switching Locally)


     4. E-Payments as a method to establish Taxation
        –   (Example: Mexico – FIMPE)
Spot-Light: = Mobile + Unbanked
Summary & Conclusions

   • World is Small, Someone starts a trend!
     – Its one thing to indentify trends
     – Its another to start them. (ie: iPhone)
     – Creativity is the new currency


   • Security & Value should be on your to-do
     list, only trust the leader in secure
     electronic payments to aid you on your
     quest: VeriFone

   • Developed Nations and USA focus is all about
     Customer Empowerment & Loyalty

   • Watch Mobile\NFC in 2011 & have a game
     plan, it will be a global tsunami
Questions?
Thank you!

				
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posted:8/19/2011
language:English
pages:27