The future of smart cards.

1. Natural Evolution of Smart Cards
Patent pending: device, system and method V1.2 March 2019

2. Evolution of the total volume of card fraud issued within
Single Euro Payments Area (SEPA)
left-hand scale: total volume in million transactions
right-hand scale: volume of fraud as share of volume of transactions
Source: Fifth report on card fraud, September 2018, EUROPEAN CENTRAL BANK

3. Card-not-present (CNP) fraud
• In 2016 the total value of CNP fraud increased by 2.1% compared with the
previous year, reaching €1.32 billion.
• CNP fraud accounted 73% of the total value of card fraud in 2016. This
share has been growing since 2008.
• Card-not-present transaction methods includes: online shopping, “Buy”
buttons on websites, subscription billing, electronic invoicing, orders taken
over the phone and manually entered, payment apps on smartphones or
tablets
Frauds committed in CNP transactions can be avoided by
making a hardware upgrades to current smart cards.
This upgrade consists of the following IoT mobile
electronic device.

4. EMV smart cards evolution
Technology Year Comments
1995 First EMV standard (Europay, Mastercard and
Visa)
2005 First NFC standard (Near Field Communication)
(Sony, Philips and Nokia)
2017 Keypad and E-Paper display integrated into the
card
2018 EMV biometric card
2020 EMV smart card with LPWAN communication

5. 1. Low power TFT display with touch screen
2. In-screen fingerprint scanner
3. Speaker
4. USB-C port
5. Biometric authentication camera
6. LED
7. Context-function/programmable key
8. On/Off/Standby key
9. Smart card slot (optional)
10. Dimensions: 90 mm x 60 mm x 8.5 mm (card slot version)
90 mm x 60 mm x 6.0 mm (w/o card slot version)
1 2
5
6
7 8
3 4
9
Device Overview

6. 3D View

7. Technical Specifications
• LPWAN communication using EC-GSM-IoT/LTE-M/NB-IoT technology
with a dedicated Open Banking gateway
• Arm Cortex 32-bit MCU
• SHA-2 and SHA-3 Secure Hash Algorithms
• Biometric authentication
• Dedicated OS and applications (bank control over source codes)
• 512 Mb/1 Gb/2 Gb cryptographic flash memory for user file
transfer/storage
• Integrated GNSS functionality
• One month continuous operation with a single battery charge
• Barcode and QR code scanner
• Reader/Writer NFC
• RTC

8. Advantages
• Natural evolution of smart cards
• Device/Card Always Present in the transaction – DAP
• Biometric authentication
• Self contained device
• No malware
• Multiple bank accounts
• NFC always off
• Files transfer for Trust Service Provider
• Longer distance connection than data communication on current
mobile devices
• Better penetration in urban agglomeration than current mobile
devices
• One month continuous operation with a single battery charge

9. Total investment cost and duration
Target Months Euro Total
Minimum Viable Product
1. Mobile device
- electronics
- engineering
2. IT system
- hardware/software
- engineering
8
20,000
80,000
20,000
120,000 240,000
Performance testing, implementation of
HW/SW observations made during testing
2 20,000 20,000
Final product
1. Introducing the electronic device in production
2. Building the IT system (incl. engineering)
4
85,000
80,000 165,000
Total 14 425,000

10. Revenue model
Two revenue models can be applied to this business:
- revenue model based on subscription
0.6 Eur/month
- direct sales revenue model
149 Eur/device (80 Eur/device production, cost)
One-year simulation
x*(0.6 – 0.3)*12 month + x * (149 – 85) = 425,000 Euro
x = 6287 devices
Two-years simulation
x*(0.6 – 0.3)*24 month + x * (149 – 85) = 425,000 Euro
x = 5969 devices
Four-years simulation based exclusively on subscription
x*(0.6 – 0.3)*48 = 425,000 Euro
x = 29500 devices