michelle thornton navigating emv and apple pay
Post on 09-Feb-2017
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SEIZE THE NOW
FOCUS ON SECURITY 2015SIX ESSENTIAL QUESTIONS FOR CREDIT UNIONS
DIRECTOR OF PRODUCT DEVELOPMENT, CO-OP FINANCIAL SERVICES
THORNTONMICHELLE
IS SECURITY A HOT TOPIC?
1.
STILL INSECURE?
Source: Identity Theft Resource Center
783U.S. Data Breaches in 2014
A Record High
100Medical & Healthcare Records
Stolen This Year
MILLION
400,000Financial/Banking/Credit Records Stolen So Far in 2015
Eva Velasquez, ITRC
The ubiquitous nature of data breaches has left some consumers and businesses in a state of fatigue and denial.
DAZED AND CONFUSEDConsumers who think mobile payments are the safest way to pay in store.(Tripwire, 2014)2%
Adults “agree” or “strongly agree” that consumers have lost control over how personal information is collected and used by companies. (Pew Research, 2014)
91%
MOBILE INHIBITION
36% 15% 22%
Would not try mobile payments because of security concerns
Had used a mobile wallet or were thinking of doing so
Were concerned their financial data might be stolen.
ARE YOU TRUSTWORTHY?
WHERE DO WE FOCUS?
2.
HAS THE CONVERSATION CHANGED?
EMVSECURITY
MOBILE
CARDS
EMV October 1, 2015 is the liability deadline
APPLE PAY
Fast start, steady growth
TOKENIZATION Set to expand beyond Apple Pay
WHAT’S THE DIFFERENCE?
• Security for plastic cards• Authenticates using cryptography• Deters counterfeit cards• Uses a processing chip implanted
in the card
EMV TOKENIZATION
• Security for digital environment (online, mobile)
• Replaces card data with “tokens” that can’t be used by others
• Also uses cryptography• Powers security in Apple Pay
Source: Smart Card Alliance
THE YEAR OF EMV• 575 million EMV chip cards will be issued in the U.S. by the end of 2015 –
up from 120 million at the start of the year. (Smart Card Alliance)• EMV merchant terminals: 59% by 2015 (Aite Group)• Liability shift: October 15• Primarily credit: debit much further behind
APPLE PAY THEN & NOW
700,000 Locations
2,500 Financial Institutions
Coming Soon to Vending Machines
BY THE NUMBERS4 IN 10 IPHONE 6 USERS HAVE TRIED IT
Nearly half of those who haven’t expect to in the next six months
THREE-QUARTERS OF THOSE WHO’VE TRIED IT MADE A SECOND APPLE PAY PURCHASE AT THE SAME LOCATION
Used at Physical Location
43%
Used in Store and In-App
37%
Used In-App Only
19%
A+of Apple Pay users rated their satisfaction4 or 5 on a five-point scale
98%
A FUTURE FOR TOKENIZATION?
IS THAT ALL THERE IS?
• Biometrics: Are Passwords Passe?• Analytics as a tool• CardNav – Card Controls and Alerts
WHICH ONE DO YOU CHOOSE?
3.
FALSE QUESTIONThe answer is “both.”
HOW DO I PRIORITIZE THESE TWO TECHNOLOGIES?
WHAT DO OUR MEMBERS NEED?
4.
se·cu·ri·ty (səˈkyo͝orəodē/) Noun
1. the state of being free from danger or threat.2. the state of feeling safe, stable, and free from fear or anxiety.
DEMYSTIFY FRAUD
• What is it?• Where is it?• Why are you introducing it?• What can and can’t it do?• How do we use it?
TECHNOLOGY EXPLAINED
IS THIS CREDIT- UNION-READY?
5.
YES.
www.co-opfs.org/CardPayments
GET THE LATEST ON EMV, TOKENIZATION AND APPLE PAY:
ARE THERE COMPLICATIONS?
APPLE PAY & FRAUD
HOW DO I GET STARTED?
6.
SET YOUR PRIORITIES
• Encourage mobile engagement?• Improve member experience?• Reduce fraud losses?• Position yourself as an advocate?
WHAT ARE YOUR LARGER GOALS?
CREATE A STRATEGY
GET HELP
GET READY TO GO – AND GO
DISCUSSIONMASON OSWALDOperations Card Services ManagerIdaho Central Credit Union
JEAN NELSONeBranch ManagerMissoula Federal Credit Union
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