Visa payWave     SmartCard Forum     19 May 2011     Miloslav Kozler     Visa Europe                                      ...
Agenda• Why Contactless?         • Lessons Learned• Journey through Europe   • Summary• Transit Update                    ...
Why Contactless?  - Contactless is at the heart of Visa Europe Strategy   - Visa Strategy - displace all other means of pa...
How Contactless Works   SHOP                                PAY                                   GO   Merchant enters the...
Journey through Europe• UK• Turkey• France• Italy• Spain                         4
in UK                 2007                      2008                      2009                       2010• London launch  ...
UK contactless rollout strategy•                               Focus on merchants for whom speed is critical              ...
Growth in issuance and transactions in the UK•   Sustained growth in cards will continue as more issuers launch contactles...
Impact of 2012 on contactless• Leveraging Olympic assets in  2011/12• High levels of contactless usage is a  key Visa aim ...
in Turkey      2007               2008              2009                2010Co-branded card   5 banks launch      8 issuer...
Visa payWave programmes                          10
in France                   Visa payWave                      Steering                    Committee                       ...
French co-brand programme• E. Leclerc   - Card available in 400 stores   - (560 stores in France with €30B sales)         ...
in Italy                       2008                               2009                             2010• First V PAY conta...
in Switzerland         and Portugal                 2009                            2010Lugano launch                     ...
Visa payWave Transit Solutions• Transit Specific Solutions   -   Transit MCCs only   -   Contactless Only   -   No Fallbac...
The New Passenger Controlled Payments System                       • Activated by taxi meter                        • Pass...
Summary  - Issuance   - Get ‘contactless ready’ cards in the wallets of cardholders  - Acceptance   - Get contactless acce...
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SmartCard Forum 2011 - Visa PayWave

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SmartCard Forum 2011 - Visa PayWave

  1. 1. Visa payWave SmartCard Forum 19 May 2011 Miloslav Kozler Visa Europe For Visa Internal Use Only This information is not intended, and should not be construed, as an offer to sell, or as a solicitation of an offer to purchase, any securities
  2. 2. Agenda• Why Contactless? • Lessons Learned• Journey through Europe • Summary• Transit Update 1
  3. 3. Why Contactless? - Contactless is at the heart of Visa Europe Strategy - Visa Strategy - displace all other means of payment - 85% of payments below €20 are made with cash - Low Value Payment POS Opportunity is >…€400bn - Competitive proposition is quick, interoperable and secure compared to cash - Contactless is the infrastructure which will later be used to support a move to mobile payments - Visa has a co-operative approach working with all stakeholders to ensure success 2
  4. 4. How Contactless Works SHOP PAY GO Merchant enters the purchase Consumer holds card in front of Purchase is complete amount and the contactless reader reader. In less than a second the prompts the consumer to present terminal display indicates that the their Visa payWave card card has been read 3
  5. 5. Journey through Europe• UK• Turkey• France• Italy• Spain 4
  6. 6. in UK 2007 2008 2009 2010• London launch • Barclays announces • HBOS introduces debit • McDonalds announces• 6 large issuers involved contactless strategy on all contactless card nationwide rollout of• 9 000 terminals rolled out in debit and credit cards contactless acceptance selected high density areas within centre of London 5
  7. 7. UK contactless rollout strategy• Focus on merchants for whom speed is critical Importance of Speed Potential for ATV Uplift Retail Margins Total LV Txn* Speed is Critical Coffee **** *** **** 2.9bn Fast Food Proactive Contactless Focus Sandwich Speed is Important 6.2bn Supermarkets ** ** ** Convenience * * * Short term Prioritisation Personal Care Pubs Speed Neutral CTN 3.7bn Petrol ** ** ** Post Office Reactive Segments (Deloitte Assessment Based on Merchant Interviews) * These totals exclude the major cash segments (vending, transit and parking): an additional 12bn trx 6
  8. 8. Growth in issuance and transactions in the UK• Sustained growth in cards will continue as more issuers launch contactless cards• Contactless POS is accelerating as more Tier 1 and national retailers rollout acceptance UK Cards in Issue (LH axis) UK Contactless POS 10 4 8 Total POS (£m) Total cards (m) 3 6 2 4 2 1 0 0 7
  9. 9. Impact of 2012 on contactless• Leveraging Olympic assets in 2011/12• High levels of contactless usage is a key Visa aim at the 2012 games - all venues will have contactless acceptance onsite including: - New Olympic stadium in Stratford - 02 arena (most successful entertainment arena in Europe) - All merchandise sites within the Olympic venues• Partner opportunities eg Coca Cola contactless vending machines• Opportunities should be considered close to Olympic venues - New Westfield shopping centre, Stratford 8
  10. 10. in Turkey 2007 2008 2009 2010Co-branded card 5 banks launch 8 issuers live, 10 issuers live, with Ferry contactless 11 card programmes 20 card programmes company programmes 850k cards and 1.33M cards and 30k terminals 35.6k terminals 9
  11. 11. Visa payWave programmes 10
  12. 12. in France Visa payWave Steering Committee France2007 2008 … 2009 2010 11
  13. 13. French co-brand programme• E. Leclerc - Card available in 400 stores - (560 stores in France with €30B sales) 12
  14. 14. in Italy 2008 2009 2010• First V PAY contactless card • September : launch of “Carta di • Launch of BPERCard, two V launched in June Ateneo” contactless prepaid card PAY Contactless• Commercial pilot in five cities in dedicated to students and staff of programmes in the area of Valtellina (Northern Italy) major Universities in Milan Modena• 10,000 cardholders upgraded to • Multiple functions supported V PAY contactless + • payment card pagoBancomat • ID badge• 200 terminals in key shopping • contactless card with MIFARE locations with low value access application to enter into average transaction libraries, labs, restricted areas, etc. inside University locations 13
  15. 15. in Switzerland and Portugal 2009 2010Lugano launch Lisbon launch• In July 2009 Contactless was • In January 2010 Contactless was launched in Lugano launched in Lisbon• Several merchants in downtown • 30k cards from 6 Issuers, and 50 were equipped with contactless merchants in and around a main terminals by Acquirer Aduno – shopping centre were equipped bars, cafeterias, chemists, with contactless terminals newspapers kiosks, food retailers 14
  16. 16. Visa payWave Transit Solutions• Transit Specific Solutions - Transit MCCs only - Contactless Only - No Fallback - No Receipt• Known Fare - Flat or Known Fare - 1 Journey = 1 Transaction• Distance Based Fare• Variable Fare• Hosted Application 15
  17. 17. The New Passenger Controlled Payments System • Activated by taxi meter • Passenger chooses payment• Driver has unit in option front of cab • Infomercials run to educate passenger Confidential 16
  18. 18. Summary - Issuance - Get ‘contactless ready’ cards in the wallets of cardholders - Acceptance - Get contactless acceptance integrated into the marketplace - Awareness - Make cardholders aware their card has the contactless feature - Activation - Educate merchants so that consumers have a positive experience at POS - Usage - The contactless Visa card is the ultimate short-cut to everyday things you need 17

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