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Contactless RF Payments
Delivering Merchant and Consumer Benefits
Trevor Pavey
Texas Instruments
Card Industry - Historical Overview
The radio waves are generated by the reader’s antenna.
A tag in the RF field uses energy from the radio waves to respond to the reader’s commands
Contactless Payments – Wave and go…
TI-RFID: 15 Years of Innovation
• RFID provider since 1989• Leading transponder
supplier• Approaching 500 million
tag milestone– 150 million keys for anti-
theft
– 60 million in livestock tracking
– 25 million library books
– >8 million using Exxon/Mobil Speedpass
– >4 million trays tracked by Marks and Spencer
ExxonMobil’s Speedpass
• More than 8 million active members
• More than >8900 locations in the US
• Operational for more than 8 years.
• Keyfob most popular form factor
Source: NACS online, Mar 2005
American Express ExpressPay
• Pilot launched in Phoenix in July 2003
• Nationwide launch June 1, 2005
• Many well-known brands -- Carl's Jr., CVS, Dairy Queen, Kwik Kopy Printing, Quiznos Subs and Schlotzsky's Deli
• Announced CVS Pharmacy as first national merchant
• Results measured: Transaction speeds averaging 12.5 seconds– 63% faster than cash – 53% faster than card
transactions
Consumer Benefits
• Faster than Cash or Credit
• Increased Convenience - Wave and Go
• No Fumbling for Cash
• Reduced Queues
• Automated CRM Promotions
• Improved Satisfaction with More Targeted Offers
• Loyalty Rewards
Merchant Benefits
• Reduced Transaction Time and Queues • Faster than Cards and Cash
• Increase spend on traditional cash transactions
• >40% increase in cafeteria pilots
• Simplifies Reconciliation• Minimizes Cash Shrinkage• Safer, More Secure Transactions• Enables Consumer Identification for CRM
Contactless Payments – How secure is the transaction?
Equipment being installed on front of existing bank
card slot
The equipment as it appears installed over the normal ATM
bank slot.
Magstripe Fraud
The RF Payment Ecosystem
RF(ID) layer
The RF Interface and Security...
Physical 13.56 MHz RF Communications
ISO 14443 – 2 A&B
ISO 14443 – 3 A&B
ISO 14443 – 4 A&B
Security & Application layers
e.g.ExpressPay Paypass
Physical Layer Physical Layer
Data Link Data Link
Application ‘Interface’
Application ‘Interface’
Application ‘library’
Application ‘library’
Session Session
SecurityAccess
SecurityAccess
Application Application
Tag Reader
Contactless Payments Security
The secure IC embedded on the payment token uses dynamic data encryption which changes after every transaction.
The encryption solution uses the worldwide standard 128-bit triple DES algorithm.
< 4cm
Acceptance Is Rapidly Growing
Blue from American Express launched nationally on June 1st
“Blink” launched 1MM cards in Atlanta and Denver with Visa and MasterCard
Launched Philadelphia Eagles co-brand card with MasterCard
Launching nationallyLaunching nationally5,300 store rollout5,400 store rollout11,000 store rollout500 store rollout200 store rollout
Unlimited form factors
Contactless RF Contactless RF PaymentsPayments
Delivering Merchant Delivering Merchant and Consumer and Consumer BenefitsBenefits
Presented By:Presented By:
Trevor PaveyTrevor Pavey
Texas InstrumentsTexas Instruments