Creating Value Added Services Pay Life Ewald Judt

871 views

Published on

Presentation from "The future of Cards and Payments 2008".

Published in: Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
871
On SlideShare
0
From Embeds
0
Number of Embeds
6
Actions
Shares
0
Downloads
16
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Creating Value Added Services Pay Life Ewald Judt

  1. 1. Creating added-value services for card products to promote customer loyalty The Future of Cards and Payments The IEA & Marektforce‘s Inaugural Conference London, 2nd and 3rd July 2008 Ewald Judt PayLife Bank 1
  2. 2. Cards in Austria • Austria is a debit card country due to historic developments. • Credit cards are only taken in addition to the debit card; every credit card holder also has a debit card. • In 1998, the Austrian banks decided to migrate their domestic debit „Bankomat“ scheme to a worldwide accepted PIN scheme. • Maestro was chosen, the only cross-border PIN debit scheme at the time. Ewald Judt PayLife Bank 2
  3. 3. Maestro in Austria • Today Maestro is the most important card-based payment system in Austria. • With 7 million Maestro Bankomat cards in circulation, all Austrians between 18 and 80 have more than one in average. • In contrast to this, there are only 2 million credit cards. • Maestro is not only the cross-border debit brand in Austria, it is also the domestic debit brand. • There is a wide Maestro acceptance throughout the country at 100,000 merchant locations, including all food and petrol chains. Ewald Judt PayLife Bank 3
  4. 4. Basic Debit Functionality • Access to the current account through cashless & cash advances around the world around the clock • Safe access to the current account by using PIN • Easy access to the current account by the same procedure at the POS and ATM as at home • Access to the current account at a good price Ewald Judt PayLife Bank 4
  5. 5. Enhanced Debit Value Proposition with the Migration to the (proprietory) Pay Chip since 1996 • Migration to the „PayChip“ for domestic use (POS and ATM) only • Introduction of chip-based pre-authorized debit transactions • E-purse function on the „PayChip“ – Quick, the Austrian electronic purse • Chip-based loyalty programs on the „PayChip“ Ewald Judt PayLife Bank 5
  6. 6. Enhanced Debit Value Proposition with the Migration to the (proprietory) Pay Chip since 1996 (1) Migration to the „PayChip“ for domestic use (POS and ATM) only • No domestic debit card transactions on magnetic stripe basis anymore • Massive fraud reduction in domestic debit card transactions (> 90 %) • Considerably higher „perceived“ security by the cardholders Ewald Judt PayLife Bank 6
  7. 7. Enhanced Debit Value Proposition with the Migration to the (proprietory) Pay Chip since 1996 (2) Introduction of chip-based pre-authorized debit transactions • Chip allows offline transactions through a pre-authorized amount. • Offline transaction is brought about by dialogue between chip on the card and chip in the terminal. • The offline amount is limited depending on card and week. Ewald Judt PayLife Bank 7
  8. 8. Enhanced Debit Value Proposition with the Migration to the (proprietory) Pay Chip since 1996 (3) E-purse function on the „PayChip“ – Quick, the Austrian electronic purse • Introduction of Quick was a success story. • After Maestro, Quick currently has more domestic transactions than any other card product in Austria. • Precise use for small and minute amounts = coin substitution: Ø ticket value € 5 (Ø ticket value debit € 50, Ø ticket value credit € 100) Ewald Judt PayLife Bank 8
  9. 9. Enhanced Debit Value Proposition with the Migration to the (proprietory) Pay Chip since 1996 (4) Chip-based loyalty programs on the „PayChip“ • Debit card can store a large number of loyalty programs. • After joining the loyalty program, a marker is set on the chip and/or storage space is reserved. • „Friends of Merkur“ is the highest used loyalty program on the chip of the debit card – and the most successful loyalty program in Austria. Ewald Judt PayLife Bank 9
  10. 10. Further enhanced Debit Value Proposition since 2003 • According to international developments migration to EMV chip • Acceptance in the nationwide gateless electronic toll system for trucks at motorways • Loading value on pre-paid cellular phones at ATMs • Secure Code transactions with Maestro Bankomat cards in the virtual world • (Sleeping) Digital signature on the chip • Youth identifier for the usage of tobacco vending machines Ewald Judt PayLife Bank 10
  11. 11. Further enhanced Debit Value Proposition since 2003 (5) According to international developments migration to EMV chip • Since 2003, the EMV application is integrated in the chip in addition to the „PayChip“ application. • All debit cards thus meet the highest international security standards. • High security is thus offered not only domestically, but also in Europe (and to an increasing extent also outside of Europe). Ewald Judt PayLife Bank 11
  12. 12. Further enhanced Debit Value Proposition since 2003 (6) Acceptance in the nationwide gateless electronic toll system for trucks at motorways • Truck and debit card are registered as belonging together. • Toll bill is prepared in a dialogue between the „Go Box“ installed in the truck and the toll portals. • Toll payment is made by means of recurring payments. Ewald Judt PayLife Bank 12
  13. 13. Further enhanced Debit Value Proposition since 2003 (7) Loading value on pre-paid cellular phones at ATMs • „Code & Load“ function allows loading pre-paid cellular phones at ATMs. • Works with all debit cards for all pre-paid cellular phones whose operators are active in Austria. • Confirmation of successful loading occurs by SMS; clearing & settlement occur as in a regular POS transaction. Ewald Judt PayLife Bank 13
  14. 14. Further enhanced Debit Value Proposition since 2003 (8) Secure Code transactions with debit cards in the virtual world • Secure payments in the internet are possible after registration of the debit card for „Maestro Secure Code“. • Registration through www.bankomatkarte.at • Secure payment occurs with unique 16-digit card number and the chosen secure code. Ewald Judt PayLife Bank 14
  15. 15. Further enhanced Debit Value Proposition since 2003 (9) (Sleeping) Digital signature on the chip • Since 2005, all chips of the debit cards have a (sleeping) digital signature „a.sign premium“ of A-Trust GmbH. • Activation is possible by registration at one of the many registration points of A-Trust GmbH. • For using the digital signature, the debit card holder merely requires a chip card reader and can perform e-government, e-banking, e-billing, … Ewald Judt PayLife Bank 15
  16. 16. Further enhanced Debit Value Proposition since 2003 (10) Youth identifier for the usage of tobacco vending machines • Since 2007, all chips of the debit cards have a youth identifier (cardholder < 16 years of age) for unlocking tobacco vending machines • Age check occurs with a Quick module built into the tobacco vending machines • After unlocking the tobacco vending machine, one can pay with Quick (fast) or with coins or banknotes (slow) Ewald Judt PayLife Bank 16
  17. 17. Enhancing the Debit Value Proposition? Do you think that enhancing the functionality makes sense for your debit card base? I‘m interested in your opinions! Thank you. Ewald Judt PayLife Bank 17

×