Mobile Ecosystem & TheBestAvise – Interviews, News and more …
Posts tagged emv
MasterCard Introduces U.S. Roadmap to Enable Next Generation of Electronic Payments
Framework to Deliver Enhanced Consumer Experience In-Store, Online, at the ATM and with Mobile Phones
PURCHASE, N.Y., Jan 30, 2012 (BUSINESS WIRE) — MasterCard today introduced a comprehensive roadmap focused on advancing the U.S. electronic payments system.
The roadmap, which includes the path for migration from magnetic stripe to EMV technology currently available on “chip” cards, will serve as the foundation for the next generation of products and services developed to enhance the way consumers pay.
As payments continue to evolve to include new devices and new channels, such as mobile and eCommerce, the roadmap takes steps to address how consumers really shop, providing them greater security and control in their payment choices and the potential to seamlessly integrate loyalty programs and offers into the purchasing experience.
“We’re moving toward a world beyond plastic, where consumers will shop and pay in a way that best fits their needs and lifestyles with a simple tap, click or touch in-store, online or on a mobile device,” said Chris McWilton, President, U.S. Markets, MasterCard. “Our roadmap represents a transformational shift in the approach to payments and is not simply about EMV, chip and PIN. We’re focused on readying the ecosystem to drive future innovation and provide new consumer experiences to enhance the value of electronic payments. ”
Defining the Framework
Elements of the MasterCard roadmap include:
- EMV — Solidifying EMV as the foundation of the next generation of payments
- Immediate focus on acquirer infrastructure — Working with acquirers to ensure infrastructure readiness by April 2013
- Encouraging greater security and cardholder verification — Providing consumers with greater control and to reduce fraudulent transactions
- Provide benefits for merchant terminalization — Providing true financial benefits for merchants as they implement EMV-compatible terminals
- Cover all channels — Addressing all touch points where consumers will interact with MasterCard, including ATMs, the physical point-of-sale, online and mobile commerce
- Commitment to leadership and collaboration — Fostering industry collaboration to deliver the next generation of payments into the U.S. marketplace
In implementing the roadmap, MasterCard will maximize the technology advancements and investments the company has made over 45 years to benefit the payments ecosystem.
“Customers from across the payments ecosystem have been asking for a roadmap,” said McWilton. “We believe we’ve provided issuers and merchants with a vision to ‘future proof’ their businesses and the flexibility to manage their technology decisions to best meet their goals and priorities.”
Foundation for Growth and Enhanced Security
In the increasingly digital world, transactions will get smarter. At the heart of this is dynamic authentication, where each transaction incorporates unique information, making it virtually impossible to replicate and reducing the risk of fraudulent transactions.
As issuers evolve their offering and merchants upgrade their terminals, the payments system will become more secure as this dynamic data is introduced into the payment transaction. MasterCard’s roadmap strongly encourages the adoption of the most secure technologies available.
“Consumers deserve a great experience any time they use MasterCard products,” said Ed McLaughlin, Chief Emerging Payments Officer, MasterCard. “As the industry invests in the upgrade to EMV in the U.S., we now have the ability to enhance the consumer experience and the security of a payment, regardless of the device — contactless card, mobile, eCommerce and technologies still to come.”
Alignment, Collaboration and Leadership for the Road Forward
In its roadmap, MasterCard supports the need for the payments ecosystem to be aligned regarding the implementation of EMV standards in the U.S. The company has indicated it will support current industry timelines in an effort to minimize disruption and to maximize investments across the payments ecosystem.
MasterCard was part of the original group that created the EMV standard and has supported the successful migration to EMV-based payments in nearly every major market globally. The company’s continued investment in advancing these infrastructure standards has provided insights and expertise to guide the industry in advancing payments security and convenience.
“The shift to dynamic data in the transaction process will help ensure greater consistency, security and functionality between the U.S. region and the rest of the globe,” said George Peabody, director, Emerging Technologies Advisory Service, Mercator Advisory Group. “Merchants and issuers need a clear and consistent roadmap for payment card security and innovation. MasterCard’s approach, starting with EMV, will benefit consumers and the industry.”
Additional detail on the roadmap and implementation activities will be provided to MasterCard customers in the coming weeks and months. In the meantime, initial resources can be obtained at www.mastercard.us/mchip-emv.html .
About MasterCard Worldwide
MasterCard MA -0.60% is a global payments and technology company. It operates the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Learn more at www.mastercard.com , follow us on Twitter @mastercardnews or join the conversation on The Heart of Commerce Blog.
SOURCE: MasterCard
MasterCard Worldwide
Seth Eisen, 914-249-3153
seth_eisen@mastercard.com
Contactless design and positioning in the US differ from that elsewhere
2 years ago
by admin
in Mobile Payments
One particularly interesting feature of the rollout of contactless payments in the US is that there are significant differences between this rollout and those in operation and being considered in the Asia Pacific region and Europe.
These differences are in terms of the technology that underpins the basic product, and also in terms of product positioning.
US contactless forms are all based on magnetic stripe technology, necessitating online authorization It is important to note that the technology underpinning the contactless payment programs in the US has a number of fundamental differences to that in Asia Pacific and Europe.
At the heart of this difference is migration to the EMV standard. In both Asia Pacific and Europe, contactless payment programs are built to leverage an EMV compliant card and acquiring infrastructure. In these regions, contactless devices are built around the EMV compliant chip, with the only point of difference between contactless and standard card transactions being the interface with the POS terminal. This means that all EMV-based contactless programs offer the same security standards as a regular card transaction.
Contactless payments allow payment cards to expand into areas traditionally dominated by cash “The card and terminal conduct a standard EMV transaction, but through the contactless mechanism. These transactions are therefore as secure as any standard EMV transaction”
Perhaps of more practical importance, this means that EMV compliant contactless programs can be accepted offline. As a consequence, the time taken for such a transaction is considerably less than an online contactless payment. The time to authorize an online payment is in the region of two seconds, while offline transactions are verifiable within 0.5 seconds.
The US has not progressed well with EMV, and contactless programs are built on magnetic stripe technology
In contrast, the US market has not really progressed with EMV. There are a number of reasons for this, many of which are covered in greater detail in EMV Migration in Europe, November 2005, BFFS0402. As a consequence of this, US contactless programs operate in a different way to those in other markets. Each contactless piece contains an embedded smart card chip (not EMV compliant) with antennae, which is used to transmit Track 2 data (the basic data required to verify a card payment) to the POS terminal.
This is less secure than EMV compliant systems, as it based on magnetic stripe technology. As a result, all US contactless transactions are verified online.
There are also important differences in product positioning between the US and other markets
In addition to the differences in the technology behind the programs, there are also key differences in the way that contactless products are positioned in the US and other markets.
In the US market, contactless is positioned as another way of presenting the card at the POS, with little distinction drawn between contactless and standard card transactions. In contrast, the product positioning in other markets is centred on contactless as a product innovation specifically targeted at low value payments.
As one executive interviewed commented: “In the EMV region, the product is positioned as a new advanced proposition; contactless is not just another technology and is not positioned as such…in the US, contactless is positioned as another way of using the card; there is no distinction in terms of payment values in the US. You present the card as for contactless, and just authorize as required”
CONTACTLESS CARDS MAY PAVE WAY FOR EMV IN THE U.S.
2 years ago
by admin
in Mobile Payments
The growing adoption of contactless payment cards in the United States could open the door to a more fraud-resistant and, until now, expensive, security format that has taken off almost everywhere but in the U.S., reports American Banker, a CardLine sister publication. U.S. card issuers have shown steadfast resistance to the Europay/MasterCard/Visa security standard, which uses debit and credit cards with embedded chips and requires cardholders to enter PINs to authorize transactions at the point of sale.
Though executives generally agree EMV offers improved security over standard magnetic stripe cards, they also say U.S. banks and merchants have little interest in footing the bill to distribute chip cards or installing the necessary readers at the point of sale.
Contactless payment cards, however, could make the anti-EMV argument obsolete, payment executives say. "There’s no reason we can’t support all the cardholder-verification methods we have today," including EMV, using contactless cards, says Simon Pugh, the head of MasterCard Inc.’s worldwide global center of mobile excellence."If you look at the technology, it’s easy.
If you look at the business processes and how you introduce it in a controlled and global fashion, it will require some thought."
The technical specifications of contactless and EMV are closely aligned; both formats define the way a card communicates with a card reader, Pugh says.
For EMV, the readers access data stored on the chips in the cards to verify cardholders are entering the correct PINs.
For contactless cards, the chips transmit the card account number to the reader using wireless technology. Mohammad Khan, founder and president of Vivotech Inc., a provider of contactless payment terminals and software, says as more countries switch to EMV, criminals will shift their energy to the United States, where the mag-stripe infrastructure is easier to circumvent. "The U.S.as a country is open to attack. The fraud people always move toward the weakest point," Khan says. "Every other country in the world has a deadline to move to EMV. I believe the industry needs a deadline inthe U.S. as well."
