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Project Hermes: The Swiss Mobile Payment Initiative


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Project Hermes: The Swiss Mobile Payment Initiative

  1. 1. Swiss Mobile Payment Initiative October 6, 2008 Dennis Flad, Vice President Banking Products Projects Credit Suisse SA Presentation at the Mobile Monday École Polytechnique Fédéral de Lausanne CREDIT SUISSE PRIVATE BANKING Date: July 2008 Slide 1
  2. 2. NFC-based payments target to replace low value cash transactions Cash versus cashless payments Cash is still the main Cashless payment method for low 20% value payments 14% 86% Value >€15 Solutions to replacement of low value payments 80% have to be: Value <€15 Fast Cash Simple Convenient Cheap All POS payments Cash payments Source: European Payments Council (EPC), 2004. Date: July 2008 Slide 2
  3. 3. A new user experience + = EMV Technology RFID Technology Contactless Payments with phones and cards New limits and PIN New transmission New experiences handling methods methods Date: July 2008 Slide 3
  4. 4. We should actually never forget, what we are really selling in payments! Date: July 2008 Slide 4
  5. 5. Walls to break-through Awareness Trusted Easy to purchase Broadly accepted Self- Pay with explaining me! Convenient Cheap! Date: July 2008 Slide 5
  6. 6. Date: July 2008 Slide 6
  7. 7. Date: July 2008 Slide 7
  8. 8. Contactless payment experiences Contactless card payment Contactless mobile phone based payment 1. Amount presented on terminal. 1. Amount presented on terminal. 2. Client takes contactless 2. Client activates Visa PayWave card out of wallet. application on handset (can be done anytime before check-out). 3. Below CHF 40.-: Client waves 3. Below CHF 40.-: Client waves his card over contactless reader. his phone over contactless Transaction is completed. reader. Transaction is completed. Over CHF 40.-: Regular credit Over CHF 40.-: Client autho- card transaction with authori- rizes transaction with PIN entry zation by PIN on handset and waves a second time over reader. 4. Terminal prints receipt. 4. Terminal prints receipt and handset application shows transaction a confirmation too. Date: July 2008 Slide 8
  9. 9. Roadmap an e-Ticketing/e-Payment roundtable in October 2005 Ticket purchase Payment Load Ticket Control ticket Solution field By internet Credit Cards Printing at the PC Visual 1 2006 By phone through Call Invoice / Direct Debit MMS on handset Control handheld SBB Center Stored on a server Other Scanner 2007 EMV-Credit- / Debit- / Value Card Application Solution field Data transmission 2008 At the Point-of-Sale through ISO 7816 Chip with various Software-Updates for 2 (Face-to-Face / S-POS- Ticketing Applications** existing control Vending machines.) Data transmission mainly handhelds through NFC 2009 Data transmission POS terminals with through NFC possible NFC interface 2010 Solution field On the phone in SIM-Chip with card data Load via mobile network on commu-nication with Handset as terminal NFC chip 3 NFC Chip replacement Data transmission with NFC Data transmission at POS with NFC Date: July 2008 Slide 9
  10. 10. Thank you very much. Date: July 2008 Slide 10
  11. 11. Backup Date: July 2008 Slide 11
  12. 12. Potential timeline Internal Preparation Phase 2: Preparation Review Review [Go] pilot Phase 2 Field test* 2008 2009 2010 ff. * The exact design of the field test still needs to be defined. Date: July 2008 Slide 12
  13. 13. Potential point-of-sales for cash replacement BACKUP Cash penetration (e.g. Austria, 2005) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Conclusions Gastronomy, Hotels Cash is still the main Public Transportation payment instrument, especially in typical low Supermarket value point-of-sales Books & Stationary Especially Point-of-sales Department Stores like public transportation, supermarkets and shops CD, DVD Shops (e.g. bookstores, home Home electronic electronic, CD/DVD) still hold a potential for cash Petrol replacement Juwelery Cloths & Shoes Potential for cash Flight tickets, travel replacement is still given in the "fast-check-out" point-of-sales Source: Survey of the Austrian National Bank (OeNB), 2005; Date: July 2008 Slide 13