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OneTap Commerce HOST CARD EMULATION FOR ISSUERS September, 2014

One Tap Commerce Host Card Emulation Don's updates 10-11-2014

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Page 1: One Tap Commerce Host Card Emulation Don's updates 10-11-2014

OneTap CommerceHOST CARD EMULATION FOR ISSUERS

September, 2014

Page 2: One Tap Commerce Host Card Emulation Don's updates 10-11-2014

2OneTap Commerce © 2014

Contents

What is HCE and why is it such a hot topic now?

Our HCE deployment kit

Helping issuers use HCE to build mobile solutions

Page 3: One Tap Commerce Host Card Emulation Don's updates 10-11-2014

So what is Host Card Emulation (HCE)?

3OneTap Commerce © 2014

Is the presentation of a virtual smart card using software only

Provides the ability to develop mobile carrier agnostic mobile payment to market

• Removes fees charged by MNO for SE SIM Card usage

• Removes issues on multiple MNO interfaces

Improves Security

• Card Holder data is not stored in Smart Phone

• C/H account information is encrypted using tokens so nothing to skim or steal

• If phone is stolen “Kill Switch” deletes payment functions

Does not require any changes to existing Contactless Terminal Installed

Returns control to Issuer to management payments and security

Supports real-time distribution of payment cards

http://visatechmatters.tumblr.com/post/91391026885/infographic-host-card-emulations-hce-kitkat

Page 4: One Tap Commerce Host Card Emulation Don's updates 10-11-2014

So what is Host Card Emulation (HCE)?

What it does:

HCE enables a mobile device to emulate a plastic payment card to make Near Field Communications (NFC) payments

Why it matters:

Enables issuers to provide instant “Mobile & Contactless Payments”, MUCH less expensively than other methods and FAR more simply, which changes everything!

4OneTap Commerce © 2014

Page 5: One Tap Commerce Host Card Emulation Don's updates 10-11-2014

Instant mobile & contactless payments sound great, but what would really drive issuers to do this?

Issuers can jumpstart NFC payments very easily – mobile devices have NFC capability already built in

Instant issuance & much faster card deployment – customer can use account instantly and electronic deployment of accounts to millions of customer is also instant

Much cheaper than plastic –no need for separate plastic card – very inexpensive to electronically issue / reissue cards

Portfolio ‘remote control’ –remote card management for issuers means cards can be ‘push-button’ deleted when they expire, need reissuing, enabling one-time use accounts, etc.

5OneTap Commerce © 2014

Encrypted – data stored on the terminal is encrypted, tokenization of PAN means no account access if phone is lost

New opportunities for Issuers: Not only limited to payment cards but could be used for any other private/loyalty or gift cards – less cards in a consumer’s wallet

No dependency – independent of Mobile Network Operators & their deployment of Secure Elements or Terminals

Super convenient for customers – no need to carry a separate plastic card, can make contactless payments right away, loyalty cards can be tied in to purchases automatically, and lots of other conveniences

Page 6: One Tap Commerce Host Card Emulation Don's updates 10-11-2014

Why has HCE become such a hot topic all of a sudden?

Several recent, significant catalysts are accelerating the adoption of HCE…

Until recently, mobile network operators controlled which apps could make NFC payments from a phone (via the SIM)

HCE breaks this ‘monopoly’ by placing control back with the issuer

With Google’s Android recently embedding HCE, and its 81% share of global smart phones… everyone’s paying attention now

Payments can now be integrated, in real-time with loyalty programmes, & promotions for MUCH better customer & merchant experiences. This was never possible with plastic cards.

6OneTap Commerce © 2014

Press Release: Mobile Payments to

Reach $1.3tn Annually by 2017, as

NFC and Physical Goods Sales

Accelerate

How MasterCard and

Visa Just Made

Banks the Next Big

Players in Mobile

PaymentsFebruary 19, 2014, 5:30 AM PST

By Jason Del Reyhttp://recode.net/2014/02/19/how-your-banks-app-may-

someday-replace-your-wallet-thanks-to-mastercard-and-visa/

Page 7: One Tap Commerce Host Card Emulation Don's updates 10-11-2014

Knowledge Network International © 2014 7

With the advent of HCE and other mobile commerce developments, issuers can now play a MUCH more value-add role in the customer’s payment life

Guide customers to stores, using real-time offers, based on geo-fencing and real-time offers?

Cross sell / Up sell? Dynamic credit decisions? Etc.

Faster, more convenient, smoother experiences

More information passed to customer, in real-time

Cross-selling Etc.

Revolving and installment options?

Post-purchase cross-selling? Etc.

Convenience, money saving for customers

More footfall for merchants Commission revenue to issuer

from merchants for driving footfall

Customer convenience Increased transactions

Better cash-flow mgmt. for customer

Interest bearing revenue for issuer

Before the transaction During the transaction After the transaction

Ben

efit

s

Before mobile, the traditional role of payment card issuers has been to simply ensure the transaction is efficiently and securely executed…

The new, broader role of the payment card issuer, enabled by mobile

Page 8: One Tap Commerce Host Card Emulation Don's updates 10-11-2014

The Battle for Customer Mobile Engagement

8OneTap Commerce © 2014

ApplePay

Earns 15 cents per $100 spent via Apple Pay

800 Million I Tune Accounts with credit card numbers attached as of June 2014

i Beacon BLE (Blue Tooth Low Energy)

PayPal

Expands into SME Lending

P2P Payments

Bill Me Later (Now PayPal Credit)

PayPal Wallet

Implications: Banks must begin the journey of interacting with their consumers to enhance the consumers experience or some else will! Alternative payments will reduce the spend of your cardholders unless you start building your knowledge about using today’s technology to delight, engage and reward your loyal cardholders.

Page 10: One Tap Commerce Host Card Emulation Don's updates 10-11-2014

10OneTap Commerce © 2014

Contents

What is HCE and why is it such a hot topic now?

Our HCE deployment kit

Helping issuers use HCE to build mobile solutions

Page 11: One Tap Commerce Host Card Emulation Don's updates 10-11-2014

We help issuers develop their mobile solutions and underlying

infrastructure by offering 5 services

Our Mobile Commerce Services

Mobile Opportunity Assessment and

Strategy

Mobile Proposition Definition

& Business Case

Pilot Launch & Testing

Commercial Roll Out

& Business Plan

Mobile Solution Development

Knowledge Network International © 2014 11

We provide cutting edge mobile technologies and services to enterprises wishing to quickly gain traction in the mobile commerce space.

We conceive of, design, build, deploy and manage bespoke mobile ecosystems for our clients.

Depending on how far along the client is in their ‘mobile journey’, we can help with formulating their plans and business cases, or ‘down in the weeds’ installing complex mobile technologies.

Page 12: One Tap Commerce Host Card Emulation Don's updates 10-11-2014

In doing this, essentially we leverage a multi-disciplinary team approach with strategy, product & tech resources to do two main things…

Knowledge Network International © 2014 12

CRM/Customer Interaction Data integration E-wallets Gateway Processor Loyalty and Couponing Payments Real-time Personalization Security Software/App Integration Etc.

Deploy mobile infrastructureWhat we do

Consumer / commercial Credit / debit cards Smart phones, feature

phones, tablets iOS, Android, Windows,

Java, Blackberry…

Build mobile solutions (propositions)

Page 13: One Tap Commerce Host Card Emulation Don's updates 10-11-2014

HCE alone is only a payment technology, so to help issuers integrate HCE into customer propositions, we have created a set of Issuer Starter Packs…

Consumer Card Solutions

1. Finance ‘on the fly’

2. Location Based Behavioural Targeting

3. Mobile as a Primary Bill Pay Hub

4. Mobile Travel Companion

5. Transaction Assurance Application

Commercial Card Solutions

1. Owner-Centric Controls

2. Cash Flow Portal

3. Franchise App

1. The rationale for the solution

Research Trends Logic case

2. The use case – how it works

Introduction to the user Sign-up/set up of the

solution A “day in the life of the

customer” story

3. Description of what is in the solution

4. Positioning

Headline features Supporting features Pricing considerations Customer experience

5. Description of benefits for the stakeholders (customer, issuer and merchant)

6. Quantitative and qualitative impacts for issuers

7. ROI model (MS Excel)

Knowledge Network International © 2014 13

8 issuer starter packs to jumpstart HCE deployment

Page 14: One Tap Commerce Host Card Emulation Don's updates 10-11-2014

* Depends number of card processing systems in use at client & options they select in the process; HCE can be deployed with set options, on one processing platform in 12 weeks

HCE - User Side Implementation

Agree e-wallet features Develop initial interface diagrams and

user flow Review & update interface diagrams

and user flow with client Review interface design and user flow

with developer

Requirements / Solution Definition

Conduct issuer discovery/assessment Conduct ideation sessions & develop

prototype HCE app. Document requirements Define solution ROI Model Review requirements, solution design &

ROI model with issuer & obtain signoff

HCE ‘Ecosystem’ Partner Selection

Collect latest collateral, specs and documents on tool/service providers

Review landscape of options with issuer Agree on vendor scoring tool criteria Prepare and issue Request For Proposal Select vendors, conduct negotiations &

sign agreements

HCE - Server Side Implementation

Processor Host Interface Optional wallet interface, optional host

interface (Online Banking Host) HSM (Host Security Module) support Establish test plan, review and gain

agreement from issuer Certification - PCI DDS Certification Mobile Payment

We have also created the OneTap HCE Accelerator Programme™, which aims to have a HCE pilot up and running in less than 12 weeks*

HCE Pilot Rollout

Develop pilot plan & recruit participants Marketing plan review, merchant

readiness (locations & terminals) Refine plan and launch pilot Performance assessment (system,

ecosystem partners and users) ‘Kill switch’ decision Integrate learning & refine

System Deployment

Server plus HSM Deployment Online interface integration Card management integration interface Support for continuious integration Hardware and Software Platform (Issuer

Provided) Network & HSM Serve Cost Redundant

The OneTap HCE Accelerator Programme™: a 6 step process

Knowledge Network International © 2014 14

Page 15: One Tap Commerce Host Card Emulation Don's updates 10-11-2014

15Knowledge Network International © 2014

A high-value, productive, enjoyable and memorable experience for issuers…

The ideation team envelops, supports, encourages, stimulates and cajoles the attendees

Research, images and other content is displayed, at the exact time its needed, on different screens in the room

The facilitator of the event runs the show, sets the pace and forces production – he/she is part mobile guru, part payments expert, CRM wiz and part circus ring-master!

The attendees see a range of rapid-fire demonstrations of cutting-edge mobile customer experiences, specific point solutions like geo-location, HCE, ewallets, tokenization, etc.

At the conclusion of the event a deliverables pack is produced, including a tailored proposition concept, a working mobile prototype, business case and a plan

A central facet of our approach leverages a high-intensity, concentrated proposition ideation experience for the issuer – so we can deliver great HCE customer propositions as part of the process

‘On tap’ Research

Demonstration

The “IDEATE” Event

On-site researchers locate and display relevant content, on-the-fly, to stimulate discussion

Demonstrate specific solutions and technologies

Structured, high-energy proposition ideation to create tailored digital/mobile proposition concepts; West Coast USA team uses time-zone difference to create prototype draft overnight

2 day innovations experience

Ideation & Overnight Prototyping

Page 16: One Tap Commerce Host Card Emulation Don's updates 10-11-2014

16OneTap Commerce © 2014

Contents

What is HCE and why is it such a hot topic now?

Our HCE deployment kit

Helping issuers use HCE to build mobile solutions

Page 17: One Tap Commerce Host Card Emulation Don's updates 10-11-2014

Our deployment of HCE is aided by technologies and processes we already have in our ‘HCE kit’ – both on the server and user sides

Mobile API/components are provided so HCE can be integrated

within a mobile banking application or services (processor, brand or

directly with the issuer)

Our pre-built components accelerate HCE pilots

17OneTap Commerce © 2014

Server Application (HCE Server): enables payments and required security layers as deemed appropriate by the issuer/schemes (proxy PANs, etc.) – the issuer’s “HCE Manager”

HCE Personalization Module: for deployment of the card types and portfolios

Issuer Tokenization Service: optional if issuer does not already have it in place

Issuer UX Personalization Service / Module: for the creation of tailored user interfaces for each issuer’s customers

Server-side Implementation

User Interface Implementation

Page 18: One Tap Commerce Host Card Emulation Don's updates 10-11-2014

Using the components in our HCE kit, we can quickly bring up an operational HCE pilot

18OneTap Commerce © 2014

Features

Management and electronic deployment of HCE cards

Trigger/event based deployment

Card parameter assignment

Tokenisation service

Authorisationrequest handling

Data validation & management

Etc.

Page 19: One Tap Commerce Host Card Emulation Don's updates 10-11-2014

On the user side, using the kit, the user interface layouts can easily be tailored, based on issuer preferences

Layouts are configurable and allow for a wide

variety of look and feel options

19OneTap Commerce © 2014

Page 20: One Tap Commerce Host Card Emulation Don's updates 10-11-2014

+44 (203) 286 2923+1 (813) 699 5433

[email protected]

www.OneTapCommerce.com

Contact us and Go Mobile!

ap Commerce © 2014 20