The document outlines seven strategies for simplifying EMV (Europay, MasterCard, and Visa) implementation for merchants, focusing on security and efficiency in payment processing. It highlights the importance of outsourcing EMV processing and utilizing semi-integrated architectures to reduce costs and certification bottlenecks. The document also introduces Ingenico's mPOS EMV SDK as an effective tool for facilitating faster EMV transactions and integrating mobile payment solutions.

1. 7 Ways to Make
EMV Easier
HOSTED BY DIGITAL TRANSACTIONS
SPONSORED BY INGENICO GROUP

2. 2
• Security-focused / EMV, NFC, P2PE
• Seamless experience / in-store, out of store and onboard
• Innovative solutions / across industries and use cases
• Trusted partner / unmatched service and support
Ingenico Group U.S. / at a glance
7 Ways to Make EMV Easier / Semi-Integrated Approach to EMV – 6/28/2016

3. INTELLIGENT PAYMENTS
Rick Oglesby
President, AZ Payments Group

4. 2
Why EMV?
Source: AZPG analysis of data from the Nilson Report, issue 1068
Total U.S. fraud
US$7.9 billion
6.3
Counterfeit cards:
US$3.9 billion
(49%)

5. 3
Migration Timeline
August, 2011:
Initial EMV
roadmaps
Normal Device Turnover
12-13 m devices @ ~ 2-2.5m per year = 5-7 years7 years
August, 2018:
Complete
normal turnover
March, 2014:
Durbin Debit
routing
agreement
Hardware turnover
Software turnover
October, 2015:
Liability shift
Source: AZPG

6. 4
Despite the Delay, the Show Must Go On
• 2014 was a banner year for data breaches
• Followed by 780 breaches in 2015 exposing
178m records1
1. Source: Identity Theft Resource Center

7. 5
The Result: Banks are Ahead of
Merchants
• At least 400+ million chip cards in circulation1
• 70% of consumers carry at least 1 EMV card2
• 1.4 million merchants accept EMV (~15%) 3
• Increased chargebacks lead to certification backlog
• Visa, MasterCard, Amex recently moved to alleviate
the problem
– Reduced chargeback liability for merchants
– Simplified certification testing requirements
– Ability to self-certify in some situations
– Providing funding for acquirers and VARs
1: Per Visa, June 2016.
2: Per CreditCards.com survey, April 2016, and MasterCard, June of 2016
3: Per MasteCard, June 2016.

8. 6
Key Challenges For Merchants and
their Service Providers
• Resource conflicts
• Perceived slower transactions
– Software optimization
– Quick Chip
• Complex certification, re-certification,
integrations, and other updates
– Example: Contactless EMV and Quick Chip
• Certification queues at processors

9. Allen Friedman
VICE PRESIDENT OF PAYMENT SOLUTIONS, CSCIP/P
INGENICO GROUP, NORTH AMERICA

10. 4
What Makes EMV
Seem Difficult?

11. 5
What makes EMV seem difficult?
Change is Hard
 Swipe and put it away  changes to insert and leave it
 Where’s the Debit/Credit button?
 Why do cardholders have to answer so many questions?
 What’s all this stuff on the receipt?
Security is Harder
 Signature always used to be enough
 Transactions take longer
 Why all the extra testing?
“In a perfectly secure application no one
would be able to do anything”
7 Ways to Make EMV Easier / Semi-Integrated Approach to EMV – 6/28/2016

12. 6
Outsourcing EMV
Processing

13. 7
Outsourcing EMV Processing
7 Ways to Make EMV Easier / Outsourcing EMV Processing – 6/28/2016

14. 8
Traditional Payments
Architecture

15. 9
Traditional
Substantially altering or breaking the chain to the path of the transaction
= NEW or RECERTIFICATION NEEDED
EMV-
Ready
Card
Reader
Mobile
Application
Processor /
Acquirer
Payment
Network
Card
Issuer
Payment
Gateway
7 Ways to Make EMV Easier / Traditional Payments – 6/28/2016

16. 10
An integrated architecture:
 The point of sale (POS) controls the terminal
 POS builds the payment message and controls the authorization flow
This serves merchants well with innovation in consumer interaction and
payment flow.
Traditional integrated retail environment
7 Ways to Make EMV Easier / Traditional Payments – 6/28/2016

17. 11
Challenges with the traditional model
• Current EMV certification bottleneck as everyone is
rushing to get their solutions certified
• UPDATE: Visa and MasterCard have announced a
reduction in their required test scripts and delegation of
certification requirements and approval to acquirers.
This could significantly reduce certification times.
• Adding security solutions such as point-to-point
encryption (P2PE) and tokenization have an effect on
many system components
• Criminals have mainly attacked sensitive PCI data on the
POS or within the retailer’s internal systems via malware
Semi-Integrated Payments / Traditional Payments - 7/28/2016

18. 12
Semi-Integrated
Architecture
A fast path to EMV

19. 13
Hardware Semi-Integrated architecture
A Semi-Integrated architecture:
 Maintains a connection between the terminal and electronic cash register (ECR)
 Provides an independent connection for transactions to go “around” the ECR,
directly to the host
 Sensitive payment data does not enter the POS
7 Ways to Make EMV Easier / Traditional Payments – 6/28/2016

20. 14
Key benefits of a Semi-Integrated architecture
Fast & Simple
Path to EMV
Leverage
“pre-certified”
solutions
Minimize upgrades
required to POS
& back office
systems
Reduce costs of
EMV migration
PCI Scope
Reduction
Reduce footprint
where sensitive
data passes
through
Opportunity for
PA-DSS removal
Lower cost of PCI
compliance
Increase chance of
audit success
Improvements
to Security
Limit attack surface
Avoid breaches
commonly
occurring in the
POS
Simplify path to add
point-to-point
encryption (P2PE)
& tokenization
Avoid EMV
Certification
Bottleneck
Bypass the backlog
of merchants
simultaneously
looking for
certifications
Skip the long and
expensive process
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 7/28/2016

21. 15
Ingenico Group’s
Telium Semi-Integrated
Solution

22. 16
Telium Semi-Integrated (TSI) architecture
Flexible approach enables merchants and partners
to deploy TSI solutions using Ingenico Smart
Terminals
 Processor and gateway agnostic
 Cross-platform SDK (iOS, Android, Windows, Linux)
 Two product variants to suit unique business needs – TSI
Basic & TSI Enterprise
Leverages the certified applications running on
Ingenico Group’s Telium2 platform
Compatible with Ingenico Group’s wide range of
countertop terminals, PIN pads, and signature
capture multi-lane retail devices
7 Ways to Make EMV Easier / Semi-Integrated Approach to EMV – 6/28/2016

23. Andrew Molloy
ANDREW MOLLOY
DIRECTOR OF PRODUCT MANAGEMENT
INGENICO MOBILE SOLUTIONS

24. 18
mPOS EMV SDK
A the mobile fast path to EMV

25. 19
US:
Operating 70% of enterprise-level
mPOS solutions
International:
Leveraging Ingenico Group’s
strong network to grow
Ingenico Mobile Solutions / global leader in mPOS
New verticals:
QSRs and
Fundraising
Direct Sales
Organizations
ISOs and
Acquirers
New Entrants
The only player
operating in
14 countries
Strong network of
acquirers
New Entrants

26. 20
Growth of EMV adoption / demand for EMV-enabled
mPOS
0
100
200
300
400
500
2013 2014 2015 2016
Card Shipments (millions)
Smart and EMV Card Shipments Mag-stripe Card Shipments
Source: ABI Research
Advancements in payment technologies coupled with the move towards EMV is
expected to fuel market momentum.*
Source: The Strawhecker Group - EMV Readiness Infographic
– September 2015
27%
44% 49%
81%
90%
0%
25%
50%
75%
100%
Oct. '15 Dec '15 Jun '16 Dec '16 2017
March Data
*Source: Credence Research – “Mobile Point Of Sales (mPOS) Terminals Market, Growth, Share, Opportunities And Competitive Analysis 2015 – 2022
7 Ways to Make EMV Easier / mPOS EMV SDK – 6/28/2016

27. 21
mPOS EMV SDK / What is it?
 Complete developer-friendly software
development toolkit (SDK) for mPOS app
development
 Pre-certified connections to top processors
removes developers from EMV scope
 Single integration across Ingenico Mobile
Solutions’ wide range of mobile card
readers and PINpads
 Simplest, fastest and most cost-effective
solution for enabling your mPOS app with
EMV
7 Ways to Make EMV Easier / mPOS EMV SDK – 6/28/2016

28. 22
mPOS EMV SDK / features
Seamless Integration
 Semi-integrated approach helps to
reduce PCI scope and remove the
mobile application from EMV
certification
 One SDK for integration with
mPOS card readers and
transaction management through
the EMV gateway
 Access to several EMV-certified
processors with one single
integration
Developer-Friendly
 Enables you to get to market quickly
with new solutions by reducing the
time and costs of EMV certification
 iOS and Android SDK with access
to sample code, detailed
documentation and sample
applications
 Access your own personal test
account for the development and
testing of your mobile application
Freedom of Choice
 Compatible with the entire range of
mPOS card readers to accept all
payment types including
magstripe, EMV chip & sign, EMV
chip & PIN, and NFC/contactless
 EMV-certified connections to the
leading payment processors for
magstripe and EMV transactions
7 Ways to Make EMV Easier / mPOS EMV SDK – 6/28/2016

29. 23
mPOS EMV SDK / accept payments in hours…not months
• Accept an EMV transaction with a
few lines of code
• Allow the mPOS EMV SDK to
manage the entire transaction
process for you
• Access EMV Gateway data for
inclusion in your application or
backend
Login
Initialize reader
Send
transaction
7 Ways to Make EMV Easier / mPOS EMV SDK – 6/28/2016

30. 24
mPOS EMV SDK / Semi-integrated architecture
EMV end-to-end certification scope
Transaction
Reporting
Security
Management
Transaction
Management
Boarding &
Account
Management
EMV
NFC
EMV Gateway
Global
Payments
Vantiv
First Data
TSYS
Chase
…
Processors
American
Express
MasterCar
d
Visa
Discover
Brands
Readers
PCI
PTS
3rd
Party
App
mPOS
EMV SDK
Mobile Device
7 Ways to Make EMV Easier / mPOS EMV SDK – 6/28/2016

31. 25
mPOS EMV SDK / What’s included?
iOS & Android SDK
SDK documentation
Sample code
Sample/Test application
Dedicated SDK support team
Register at:
https://developer.ingenico.us/
7 Ways to Make EMV Easier / mPOS EMV SDK – 6/28/2016

32. 26
“Speeding up” EMV
Transactions

33. 27
Are EMV transactions slower?
7 Ways to Make EMV Easier / “Speeding Up” EMV Transactions – 6/28/2016
vs

34. 28
“Quick” EMV transactions
Card branded supported solutions
• Designed to improve consumer experience at multi-lane retailers
• Reduces the consumer’s wait time for card removal
• Lowers the frequency of cardholders forgetting to retrieve cards
• Supports U.S. Common Debit AID processing
• Support all cardholder verification methods (offline PIN will slightly extend the time
the card remains in the reader)
7 Ways to Make EMV Easier / “Speeding Up” EMV Transactions – 6/28/2016

35. 29
Speeding up EMV transactions
Optimization
• Remove unnecessary prompts
• Implement contactless
• Streamline and clean up application code
• Check baud rate in card reader/PIN pad
• Use fastest cost effective communication type
• Analyze local network latency
7 Ways to Make EMV Easier / “Speeding Up” EMV Transactions – 6/28/2016

36. 30
EMV Best Practices

37. 31
EMV Best Practices
7 Ways to Make EMV Easier / Best Practices – 6/28/2016
Implement contactless /
mobile wallet solutions
Avoid meaningless
terminal prompts
PIN Acceptance / PIN
Bypass / No CVM

38. 32
Recap / 7 Ways to Make EMV Easier
7 Ways to Make EMV Easier / Best Practices – 6/28/2016
1. Consider outsourcing EMV processing
2. Try a semi-integrated payment solutions for a faster path to EMV
3. Check out Ingenico Group’s mPOS EMV SDK
4. Implement a card branded quick chip solution
5. Obtain the ability to accept mobile wallets, such as Android/Apple Pay
6. Avoid meaningless terminal prompts
7. Be clear on PIN acceptance, PIN Bypass and CVM rules

39. Questions?
www.ingenico.us

40. Thank You