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

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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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