shaping the future of payment technology
SPA Members global smart
payment card shipments 2013
A unique set of data based o...
shaping the future of payment technology2
Exclusive preview
 EMV is a truly established, global secure &
interoperable in...
shaping the future of payment technology
SPA’s role in shaping the future
of payment
01.
shaping the future of payment technology
Who we are
The Smart Payment Association addresses the challenges of today’s evol...
shaping the future of payment technology5
What we do
 The SPA works in partnership with global standards bodies, its own ...
shaping the future of payment technology6
How we do it
 By delivering the market’s most accurate barometer of
payment tre...
shaping the future of payment technology7
Latest SPA’s Publications
 NEW! Tokenization
 NEW! Digital Wallets
 Instant I...
shaping the future of payment technology8
SPA & its members in the US
 Cartes America (http://www.cartes-america.com/ )
...
shaping the future of payment technology
SPA global smart payment card
shipments 2013
03.
shaping the future of payment technology10
TAM > 1.5 Billion units in 2013*
* 2013 Estimated Total Available Market (1546 ...
shaping the future of payment technology11 May 2014
US is the next wave
 EMV migration started in 2013
 Mindshift ignite...
shaping the future of payment technology12
450+ Mio. Acceleration in 2013 of
Contactless Payment Card
Shipments, notably D...
shaping the future of payment technology13
More than half of shipments
are DDA
 DDA Growth in 2013: +50%
 Supported by E...
shaping the future of payment technology14 May 2014
US consumers would benefit
from DDA & Dual Interface
 Ensure a consis...
shaping the future of payment technology
Take away
04.
shaping the future of payment technology
Take away
 EMV is a truly established, global secure & interoperable infrastruct...
shaping the future of payment technology17
One Address:
www.smartpaymentassociation.com
March 2013
Contact: info@smartpaym...
shaping the future of payment technology
Thank You
www.smartpaymentassociation.com
shaping the future of payment technology
Appendix
05.
shaping the future of payment technology
SPA Market Data Monitoring Process
 The figures in this presentation are actual ...
shaping the future of payment technology21
Comparing Market Figures
 Cards in circulation / installed card base:
 Cards ...
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Contactless Card Shipments Jump enabling Shoppers Take Advantage of Everyday Payment Convenience

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Contactless Card Shipments Jump enabling Shoppers Take Advantage of Everyday Payment Convenience
Smart Payment Association releases its annual review of the smart payment card market.

• 450 million contactless cards delivered by Smart Payment Association (SPA) members in 2013 – twice the quantity that was shipped in 2012
• 37% of all payment cards shipped to issuers worldwide in 2013 featured contactless technology
• Contactless growth in all regions: Asia Pacific + 193%, Europe +64%, Americas +45%
• Now present in over 30 countries, contactless payment infrastructure paving the way for contactless mobile payments and bringing NFC to the mass market
• Contactless brings convenience and speed, and multi-application possibility: payment, transit, access control etc.

Munich, 13th May 2014 - Contactless payment card shipments accelerated globally in 2013, according to figures released today by the Smart Payment Association (SPA). at an opening-day session at the CARTES America conference and exhibition in Las Vegas. In its annual review of the smart payment card market, the SPA reports that contactless technologies were present on over one-third (37 percent) of all smart payment cards shipped in 2013.

Full release at www.smartpaymentassociation.com

Published in: Technology, Economy & Finance
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Contactless Card Shipments Jump enabling Shoppers Take Advantage of Everyday Payment Convenience

  1. 1. shaping the future of payment technology SPA Members global smart payment card shipments 2013 A unique set of data based on SPA Members’ actual volume sales March 2014 – V2.7.3
  2. 2. shaping the future of payment technology2 Exclusive preview  EMV is a truly established, global secure & interoperable infrastructure, with Smart payment card shipments exceeding 1.5 billion in 2013.  Contactless technology was present on 37% of all payment cards shipped in 2013  Over 450 million contactless cards delivered by SPA members in 2013 (twice the quantity that was shipped in 2012)  Move towards ever more secure ways to pay: DDA more than half of shipments
  3. 3. shaping the future of payment technology SPA’s role in shaping the future of payment 01.
  4. 4. shaping the future of payment technology Who we are The Smart Payment Association addresses the challenges of today’s evolving payment ecosystem. We offer leadership and expert guidance to help members and their financial institution customers realize the opportunities of smart, secure and personalized payment systems and services - both now and in the future. Since 2004 Members:
  5. 5. shaping the future of payment technology5 What we do  The SPA works in partnership with global standards bodies, its own vendor community, and an expanding ecosystem of established and emerging brands; offering an ever-growing portfolio of advisory and support services. Fig 1 Extending advisory and support across the evolving community, the SPA is addressing today’s challenges and shaping the future direction of payment technologies, standards and business models. Ecosystem Expert Advisor Services Help shape the future of payments Members Customers Services Bring Value to Financial Institutions Members Services TradeOrganization Non Traditional Traditional/ Smart Card Advanced/ New Customers Technologies
  6. 6. shaping the future of payment technology6 How we do it  By delivering the market’s most accurate barometer of payment trends  An annual analysis of payment trends based on actual manufacturer sales data  SPA members 85% of the total smart payments card market  By supporting the creation and adoption of standards and best practice  EMVCo: Technical Associate and Board Advisor for Card Sector  EPC-CSG/SEPA: Card Representative and Vendor Sector Spokeperson, Chair of the EPC-CSG Task Force to specify the SEPA functional and security requirements for emergent & remote payments ( Internet + Mobile), Convenor of the new EPC-CSG Expert Team on Card Innovative Payments, Member of the Preparatory Committee of the SEPA Security Certification Management Body  By extending expert advice and support across the payments ecosystem  An eye-growing library of expert technical resources and thought leadership collaterals to shape the future of payment
  7. 7. shaping the future of payment technology7 Latest SPA’s Publications  NEW! Tokenization  NEW! Digital Wallets  Instant Issuance  Biometrics for EMV Payment Cards  UICC Application Lifecycle Management  Software to Chip Fallback Solution  Security Certification for Mobile Platforms  Security for Mobile Payments  PIN by SMS  Private Label Payment Solutions  Business Continuity in the Payment Card Issuance Industry May 2014 Download at www.smartpaymentassociation.com
  8. 8. shaping the future of payment technology8 SPA & its members in the US  Cartes America (http://www.cartes-america.com/ )  Smart Card Alliance (http://www.smartcardalliance.org/)  EMV Migration Forum (http://www.emv- connection.com/ )  ISO:  Smart cards, electronic authentication, biometrics, middleware / collaboration with NIST(ISO JTC 1)  Mobile payments / collaboration with major US Banks & Federal Reserve (ISO TC 68)  EMVCo Technical Associate & Board Advisor  EMVCo NextGeneration Taskforce  Optimize interoperable processing of contact / contactless and mobile payment cards* *tamper-resistant hardware, personal, portable device to execute payments, i.e. ID-1 card contact or contactless, SE (SIM/UICC)
  9. 9. shaping the future of payment technology SPA global smart payment card shipments 2013 03.
  10. 10. shaping the future of payment technology10 TAM > 1.5 Billion units in 2013* * 2013 Estimated Total Available Market (1546 units) by Geographies in Millions – Includes all chip payment cards ** Includes Turkey NORTH AMERICA TAM: 103M SOUTH AMERICA TAM: 248M SOUTH EAST ASIA TAM: 104M NORTH ASIA TAM: 495M EUROPE TAM: 329M Payment Chip cards deployed or in advanced deployment Chip cards in deployment Chip cards migration initiated No Chip cards CISMEA** & EASTERN EUROPE TAM: 267 M May 2014
  11. 11. shaping the future of payment technology11 May 2014 US is the next wave  EMV migration started in 2013  Mindshift ignited among issuers and consumers, with a sense of ‘urgency’ , boosted by  Data breaches: an EMV enabled ecosystem would have been less attractive for fraudsters  2015 Liability shift: MasterCard and Visa reiterated that they would not push back October 2015 counterfeit liability shift deadlines  Common AID solution facilitating domestic debit networks migration  Fear of competitive disadvantage by turning too late  Translating now into concrete migration plans, and the first mass volume issuance  Expected growth for 2014 above 30% (including Canada)
  12. 12. shaping the future of payment technology12 450+ Mio. Acceleration in 2013 of Contactless Payment Card Shipments, notably Dual-Interface  Contactless technology = 37% share of smart payment card shipments  Dual-interface = 115 % YoY growth (represents 94 % share of contactless shipments)  Driven by Asia and Europe May 2014 Contactless Contact 11% 12% 13% 15% 580 675 798 975 2008 2009 2010 2012 898 2011 Adoption rate contactless cards 1 245 2013 23% 37%
  13. 13. shaping the future of payment technology13 More than half of shipments are DDA  DDA Growth in 2013: +50%  Supported by Europe & Asia 675 798 898 975580 2008 2009 2010 2011 2012 26% 32% 41% 47% 56% 66% DDA ADOPTION 2013 1245 May 2014
  14. 14. shaping the future of payment technology14 May 2014 US consumers would benefit from DDA & Dual Interface  Ensure a consistent consumer experience for the few offline transactions, with the optimal security level  Cardholders traveling abroad and doing transactions in offline environments (vending machines, unattended kiosks…)  For the sake of speed, Retailers may manage transactions in batch with deferred authorizations  Dual Interface  Co-branded programs with Transit operators  Ensure a consistent consumer experience in gesture & speed versus a magstripe transaction
  15. 15. shaping the future of payment technology Take away 04.
  16. 16. shaping the future of payment technology Take away  EMV is a truly established, global secure & interoperable infrastructure, with Smart payment card shipments exceeding 1.5 billion in 2013.  Acceleration of contactless payment penetration (37% in 2013 vs 23% in 2012). Paving the ground for the ®evolving connected world.  Move towards ever more secure ways to pay (DDA more than half of shipments).  These figures should definitely serve US issuers , and inspire them for a wiser migration path, going directly to DDA and Dual Interface
  17. 17. shaping the future of payment technology17 One Address: www.smartpaymentassociation.com March 2013 Contact: info@smartpaymentassociation.com
  18. 18. shaping the future of payment technology Thank You www.smartpaymentassociation.com
  19. 19. shaping the future of payment technology Appendix 05.
  20. 20. shaping the future of payment technology SPA Market Data Monitoring Process  The figures in this presentation are actual shipments published by SPA.  Actual shipments data, segmented by region and by interface, are sent on a quarterly basis by SPA members to an independent third party.  There is no direct exchange of data between SPA members. Consistent with SPA's practices for the exchange of historical data, the third party aggregates and anonymizes the data so that no SPA member is able to identify another SPA member's contribution.  The data is published on an annual basis, at the end of the first quarter of the following year.  Once a year, total market estimates by region are also sent by SPA members to this independent third party to evaluate TAM (Total Available Market).
  21. 21. shaping the future of payment technology21 Comparing Market Figures  Cards in circulation / installed card base:  Cards in circulation means that all cards that have been issued in the current/covered year as well as all previously issued cards that are still valid are taken into account.  Card validity differs across markets, typically between 2 to 5 years.  Total Available Market (TAM):  Only cards issued in the current/covered year are counted (new cards, replacement cards, re-issued cards) – This number is estimated by SPA.  Actual Shipments:  Actual shipments data, segmented by region and by interface, are sent on a quarterly basis by SPA members to an independent third party who aggregates and anonymizes the data so that no SPA member is able to identify another SPA member's contribution.  Differences in card types counted  EMVCo reports on EMV payment cards only  Other reports may include local/domestic schemes and other non EMVCo member payment chip cards. *In million units Source 2010* 2011* 2012* Grow th EMVCo Cards in Circulation 1,083 1,340 1,549 16% SPA Estmated TAM 916 1,036 1,166 13% SPA Actual Shipments 798 898 975 9% March 2013

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