Learn what is driving a shift in the traditional payments architecture and how a secure, semi-integrated approach can help: ease EMV migration, improve security, reduce PCI scope and gain flexibility. Watch the full webinar here - http://hubs.ly/H01XXv80

1. Semi-Integrated Payments /
A Simplified Approach to EMV & PCI
AUGUST 28, 2015

2. 1 Welcome

3. Agenda
 Introduction & objective
 About Ingenico Group
 Traditional payments architecture
 Semi-Integrated architecture
 Overview of Ingenico Group’s Telium Semi-Integrated solution
 Q&A

4. 4
Speaker Introduction
Dr. Robert Martin
VP of Security Solutions
Ingenico Group / North America
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015
Rhonda Boardman
VP of Strategic Development
Ingenico Group / North America

5. 5
Objective
Ease EMV
migration &
reduce
certification
bottleneck
Improve
security by
eliminating
sensitive card
data from the
POSReduce PCI
scope, saving
valuable time,
money, and
resources
Gain flexibility
with the ability
to choose
preferred
processor or
gateway
Learn what is driving a shift in the traditional payments architecture and
how a secure, semi-integrated approach can help:
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015

6. 6
Poll
What is your primary concern or challenge with EMV migration?
A) Cost of migration
B) Timeline of migration
C) Complexity of integration
D) Other
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015

7. About
Ingenico
Group2

8. 8
Global footprint / multi-local solutions
$1.8B
in 2015
88
sites across
the world
35
years of
payment
expertise
global reach
170
countries
78
nationalities
5.5K
employees
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015

9. 9
• 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
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015

10. 10
Trusted partner / from small merchants
to global brands
Network of
1,000+
financial
institutions
Partner with
70%
of the Top 30
leading retail
brands
250K+
merchants
connected to our
platforms
Accepting
300+
payment methods
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015

11. 3
Traditional
Payments
Architecture

12. 12
Evolving U.S. payments market / key drivers
The EMV migration is forcing the U.S. market to reconsider its approach to
payments
 EMV and smartcard shipments overtake magstripe card shipments in 2015
The costs of cardholder data security and PCI compliance continue to increase
as attackers get more sophisticated and PCI standards increase in complexity.
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
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015

13. 13
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
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015

14. 14
Challenges with the traditional model
Migrating to EMV involves upgrading much more than just the payment
terminal:
 POS/ECR
 Back office infrastructure
EMV certification involves all merchant systems in the payment flow.
The same systems are part of the cardholder data environment:
 Systems need to be protected against determined criminal attackers
 PCI compliance costs throughout the retail locations and back-office
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015

15. 15
Challenges with the traditional model
• Current EMV certification bottleneck as everyone is
rushing to get their solutions certified
• 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 / A Semi-Integrated Approach to EMV - 8/28/2015

16. 16
Keep components that benefit merchants and consumers:
 Consumer interaction, signature capture
 Flexible payment flows
Reduce or eliminate challenges with:
 EMV certification
 Cardholder data security
 PCI compliance
The ultimate challenge
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015

17. Semi-
Integrated
Architecture
A seamless way to meet the
challenges of EMV and PCI
4

18. 18
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
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015

19. 19
Key benefits of a Semi-Integrated architecture
Simplify EMV
Migration
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 - 8/28/2015

20. 5
Telium
Semi-
Integrated

21. 21
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 range of
countertop terminals, PIN pads, and signature
capture multi-lane retail devices
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015

22. 22
TSI / simplifies integrating value-added
services
By maintaining a direct connection to the
host and bypassing retailers’ systems, the
integration of additional services is
simplified because fewer system
components are affected:
 P2PE and Tokenization – eliminates the
need to upgrade systems to route new data
formats
 Estate Management – software updates can
be managed directly via IngEstate or local
downloading through the ECR
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015

23. 23
TSI / summary of benefits
TSI
A semi-integrated architecture
can help by:
 Simplifying EMV migration
 Reducing PCI scope
 Improving security
 Avoiding the EMV certification bottleneck
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015

24. Questions?
www.ingenico.us

25. Thank You