Mobile POS and EMV Acceptance A use case of EMV Payment on a Mobile device in the Logistic & Transport verticals

Olivier Sery Country Manager & Head of EMV competence center www.tasgroup.eu

Setting the scene

•  Chip or Magstripe cards. •  PCI PTS (PCI Pin Transaction Security). •  Secure PIN entry. •  Device hardened against physical &

logical hacking. •  SRED module (encryption, Secure Read

and Encryption of Data).

•  Windows Mobile or Android light weight, integrated or ruggedized devices

•  Customer application (ERP connection, route management)

•  API/Library to enable payment (pin pad and gateway communications)

A device

A Pin Pad

The User Experience

Merchant: Open App From your mobile application select mPOS function

Merchant: Confirm Payment Confirm amount

Cardholder: Pin Pad Ask the customer to insert their card into the pin pad, confirm the amount, enter their pin and press OK OR sign on the device screen.

Merchant: Receipt Wait for authorization, choose to send the customer a receipt (printed ticket, sms, mail) to complete payment process

INTERNET

NET ACQUIRER GATEWAY

BlueTooth

HTTPS/SSL /SSL3

DATABASE

ACQUIRER

Transaction Flow

Pin Pad

NETWORKS ISSUER

ISO8583 and ISO20022

NETWORKS

Multi-function terminal

The values of a Payment Gateway

NETWORKS

BANKS PUBBLIC ADMIN.

VENDING RETAIL TRANSPORT

PARKING

ATMs Traditional POS

Unattended PINPAD

mPOS E-commerce

COMMERCES

CHANNELS

…

NA Engine

Switch Business

Rules

Protocol Conversion

Routing Rules

Value Added Services

Loyalty Monitoring & Reporting

Adapter Adapter Adapter Adapter Adapter Adapter

NET ACQUIRER

OTHER TAS SOTWARE:

ATM Management

Terminal Management

MOBILE WALLET

MY BANK

….

OTHER NETWORKS

BANKS

Attended PINPAD

The values of a Payment Gateway

A Merchant centric solution •  Dynamic switching:

–  Within a given network (e.g. Least cost routing ) –  Between Networks/Acquirers, countries.

•  Transactions Monitoring: –  Multi channel. –  Real time.

•  Value added services: –  Digitized Signature storage –  Dynamic Currency Change (DCC). –  Wallet & Recurring payments (CNP). –  Loyalty & Non financial information storage. –  Closed loop cards (prepaid, gift). –  Remote Terminal Management

The Values of a Payment Gateway

A dedicated resource focusing on achieving the transaction and integrated within the Acquiring ecosystem.

•  One integration:

Direct integration with the POS management software via a library or app allowing:

–  To capture the amount to be charged –  Real time feed to the ERP of the payment result –  Same architecture and hardware for all the networks.

•  Pin pad agnostic:

–  Pin pad are managed by a software layer allowing hardware to be interchanged with no impact.

–  The pin pad does not have to support the network protocol (the gateway manages the protocol).

Enough technicalities … the use case

•  Our focus: –  Merchants or Logistic companies with a “at your door

step” payment issue –  People transport services with payment at service start

(buses) at end of service (taxi) •  Some peculiarities

–  Need to reduce exposure to fraudulent cards and cash management for risk and cost (multiple trips to the bank or dedicated service)

–  Rugged environment and low technical expertise of users –  Existing POS, Dispatch, Route management, ERP

integration solutions to squeeze the payment process in –  Existing Hardware and 3G connection

Some conclusions at this stage The technology

Some positive… •  EMV level 2 and PCI PTS

3.1 meant to last •  Durable •  Easy to replace the pin pad

(decoupling & online parameters download)

•  Easy update of the application

•  Offering SMS or Email receipts saves on the printer cost

… And some character building •  Bluetooth is not a perfect

technology •  Two devices, two batteries •  ISO 8583 flavors and

network peculiarities •  SMS or Email receipts are

OK for medium/high amounts but hard to justify and too slow for transport services

Some conclusions at this stage The Business

Some positive… •  One interface per person

(merchant device / customer pin pad)

•  Integrated with ERP so no need for heavy reconciliation

•  Cost effective vs a GPRS solution and …

•  With volumes come lower costs on the pin pad

•  Identical customer experience thanks to Gateway services

… And some character building •  It is hard to change an habit

(Low transaction volumes at start)

•  Swap service, buffer stocks and phone support

•  Cost of the pin pad

What comes next ? •  Additional Services at Gateway

level –  DCC –  Recurring Payment

enrolment

•  Contactless interface

•  Tactile Pin pad –  Communication with the

cardholder for services or promotions.

–  Direct signature capture

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Empower your business

TAS Group is the strategic partner for business innovation in Payment Systems, Cards and Financial Markets §  30 years experience §  More than 500 experts §  More than 150 customers

Olivier Sery Country Manager &

Head of EMV competence center

www.tasgroup.eu

Listed in the Italian Stock Exchange, TAS Group operates globally and has direct presence in Europe USA and Latin America