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OneTap CommerceHOST CARD EMULATION FOR ISSUERS
September, 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
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
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
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.
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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
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/
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
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.
9Knowledge Network International © 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
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.
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)
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
* 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
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
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
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
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.
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
+44 (203) 286 2923+1 (813) 699 5433
info@OneTapCommerce.com
www.OneTapCommerce.com
Contact us and Go Mobile!
ap Commerce © 2014 20
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