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Contactless Payment Pp
Contactless Payment Pp
Contactless Payment Pp
Contactless Payment Pp
Contactless Payment Pp
Contactless Payment Pp
Contactless Payment Pp
Contactless Payment Pp
Contactless Payment Pp
Contactless Payment Pp
Contactless Payment Pp
Contactless Payment Pp
Contactless Payment Pp
Contactless Payment Pp
Contactless Payment Pp
Contactless Payment Pp
Contactless Payment Pp
Contactless Payment Pp
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Contactless Payment Pp

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Transcript

  • 1. Contactless Payment
  • 2. What is Contactless payment?
    • The latest implementation of wireless payment
      • A device with a tiny chip and antenna embedded in it
      • Communicates through radio frequencies (RF)
      • Devices include:
        • Plastic cards
        • Watches
        • Key fobs
        • Money clips
        • Cell phones
  • 3. How DO They Work?
    • Tap and Go technology
      • Customer must hold the device in front of a sensor, usually on a Point of Sale (POS) terminal
        • Smart chip and antenna in the device transmits a unique code to the sensor
      • After the transaction is complete, the consumer either hears a beep or sees a flashing light
        • The transaction goes through the sponsoring networks (MasterCard, American Express, Visa) system to be cleared and settled
      • If the purchase more than $25, a signature or PIN may be required
  • 4. Companies Using Them
    • First issued by Exxon Mobile in 1997
      • “ Speedpass” is used at gas pumps
      • Still used today
    • Today
      • American Express – ExpressPay
      • MasterCard – Paypass
      • Visa – Visa Contactless
  • 5. Growth
    • Since 2005, millions of contactless payment devices have been distributed
      • The rate of deployment is the highest ever observed for emerging payment products
  • 6. What are the Benefits?
    • Issuer
      • American Express, MasterCard, Visa
    • Consumer
      • Individual making the purchase
    • Merchant
      • Store
    • Brainstorm two benefits for each group
  • 7. Issuer Benefits
    • Issuer
      • Contactless payments have:
        • Increased credit and debit card transactions
        • Decreased cash transactions
        • Improved customer retention and loyalty
        • Provided co-branding opportunities
        • Provided new service opportunities
  • 8. Consumer Benefits
    • Consumer
      • Faster check out times and less waiting in line
      • Convenience of not carrying cash
      • Easier to use – no PIN or signature required if under $25
      • Improved security – consumer is in control of the device at all times
      • Better record keeping with monthly statements compared to cash
  • 9. Merchant Benefits
    • Merchant
      • Increased customer loyalty and satisfaction with the store experience
      • Reduced time at the cash register
      • Improved operational efficiency – less cash handling
      • Increased revenue from increased consumer spending per transaction
      • Decreases concern of counterfeit money or insufficient fund checks
  • 10. Availability
    • Over 35,000 merchant locations are enabling their POS systems to accept contactless payment
      • 7-Eleven, Inc.
      • Jack in the Box
      • McDonald’s
      • Regal (Theatres) Entertainment Group
      • Walgreens
      • Ritz Camera
      • Subway
      • Cold Stone Creamery
  • 11. New Technology
    • New York City
      • Using contactless payment for direct access on the NYC transit system
    • Giant Stadium
      • In September 2006, the first 5,000 fans to enter the stadium were given wrist bands with $25 electronically loaded on them for use at concession stands
    • Atlanta, GA and Dallas, TX
      • Several companies are teaming up to test contactless payment in cellular phones
  • 12. Future Predictions?
    • How will contactless payment or other technologies advance in the years to come?
    • Brainstorm three possibilities with your group.
    • Share responses.
  • 13. Safety
    • Contactless payment as implemented by American Express, Master Card and Visa is secure
      • Older forms with radio frequency identification (RDIF) do not have the same safety features
      • Devices can be read from a few inches to a few feet away increasing the risk of fraudulent use
  • 14. Safety
    • American Express, MasterCard and Visa contactless payment devices include:
      • Unique codes that change for each transaction
        • Payment networks can detect and reject any attempt to use the same code more than once
        • Therefore, if a fraudster should “read” information from a contactless transaction, the information would be useless
      • The customer’s name is not exchanged between the device and the terminal
        • Some smart chips in the devices do not even hold the customer’s name, therefore ID theft is more difficult
  • 15. Safety
      • Some payment devices do not include the cardholder’s account number
        • They use an alternate number that is not used in any other transactions, therefore ID theft is more difficult
      • Transactions are completed solely by the customer
        • The device is never handed over to a store clerk, therefore personal information is kept more secure
      • Smart chips only send signals a short distance, 2-4 inches
        • The customer needs to make a deliberate effort to initiate the payment transactions
  • 16. Protecting one’s Identity
    • As with all forms of electronic payment, it is important to following the following safety precautions
      • Do not leave contactless payment devices lying around home or school
      • Close unused accounts in writing and by phone, then dispose of the device
      • Check financial institution statements and credit report to ensure all charges are legitimate
  • 17. Protecting one’s identity
      • If a contactless payment device is lost or stolen, report it to the sponsoring financial institution immediately
        • $50 liability
        • Zero Liability
      • Keep financial institution statements and other documents with personal information in a secure location
        • Prevent a thief from securing a contactless payment device under false pretenses
  • 18. Summary
    • Contactless payment – new payment method
    • Benefits for issuers, consumers and merchants
    • Safety features
    • Protecting ones identity

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