Contactless Payment
What is Contactless payment? <ul><li>The latest implementation of wireless payment </li></ul><ul><ul><li>A device with a t...
How DO They Work? <ul><li>Tap and Go technology </li></ul><ul><ul><li>Customer must hold the device in front of a sensor, ...
Companies Using Them <ul><li>First issued by Exxon Mobile in 1997 </li></ul><ul><ul><li>“ Speedpass” is used at gas pumps ...
Growth <ul><li>Since 2005, millions of contactless payment devices have been distributed  </li></ul><ul><ul><li>The rate o...
What are the Benefits? <ul><li>Issuer </li></ul><ul><ul><li>American Express, MasterCard, Visa </li></ul></ul><ul><li>Cons...
Issuer Benefits <ul><li>Issuer  </li></ul><ul><ul><li>Contactless payments have: </li></ul></ul><ul><ul><ul><li>Increased ...
Consumer Benefits <ul><li>Consumer  </li></ul><ul><ul><li>Faster check out times and less waiting in line </li></ul></ul><...
Merchant Benefits <ul><li>Merchant  </li></ul><ul><ul><li>Increased customer loyalty and satisfaction with the store exper...
Availability <ul><li>Over 35,000 merchant locations are enabling their POS systems to accept contactless payment </li></ul...
New Technology <ul><li>New York City  </li></ul><ul><ul><li>Using contactless payment for direct access on the NYC transit...
Future Predictions? <ul><li>How will contactless payment or other technologies advance in the years to come? </li></ul><ul...
Safety <ul><li>Contactless payment as implemented by American Express, Master Card and Visa is secure </li></ul><ul><ul><l...
Safety <ul><li>American Express, MasterCard and Visa contactless payment devices include: </li></ul><ul><ul><li>Unique cod...
Safety <ul><ul><li>Some payment devices do not include the cardholder’s account number </li></ul></ul><ul><ul><ul><li>They...
Protecting one’s Identity <ul><li>As with all forms of electronic payment, it is important to following the following safe...
Protecting one’s identity <ul><ul><li>If a contactless payment device is lost or stolen, report it to the sponsoring finan...
Summary <ul><li>Contactless payment – new payment method </li></ul><ul><li>Benefits for issuers, consumers and merchants <...
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Contactless Payment Pp

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Contactless Payment Pp

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

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