On April 4, the 12th Security World 2017 Conference and Expo was

held at Hanoi Melia hotel with the theme “Information and cyber

security strategy in the 4th industrial revolution”.

Having been held in Vietnam for 11 consecutive years since 2007, the

Security World has been recognized as the most prestigious forum on

information security in Vietnam. This year, the event brought

together high ranking government officials, national experts, chief

information officers and chief security officers to discuss and share

advanced security solutions and experience so as to help the

government of Vietnam, organizations and enterprises strengthen

their security supervision and quickly respond to increasing and

complicated security threads.

MK Group took part in this event as a badge sponsor. Besides, we

also had a booth which displayed latest products and solutions such

as SIM PKI card, OTP Token, card reader, OTP authentication

solution, PKI solution, biometrics solutions, etc. During the event, MK

Group shared with customers about security trends and introduced

more secure authentication options.

❖ Agricultural Bank of Taiwan chooses a secure future

❖ MK Group accompanies with the annual meeting of

Vietnam Bank Card Association in 2017

❖ Barclaycard strikes new wearable deals for

contactless jewelry and watches

❖ Top 10 trends for biometrics and digital identity for 2017

❖ Thailand ripe for biometrics growth: Analyst

❖ Singapore commuters can now tap-and-pay for their fares

with MasterCard

❖ Why debit cards will drive Latin American e-commerce

All information and images in this internal magazine were collected and edited from different sources by MK Group

and used only for knowledge sharing purposes.

Copyright© 2017 by MK Group | www.mk.com.vn | contact-mk@mk.com.vn | www.facebook.com.vn/mkgroup1999

Internal Newsletter of MK Group – Trusted partner for Authentication and Secure transaction solutions, Card personalization, and Smart Card products

Issue #14

April 2017

MK Group participates and sponsors for the Security World 2017 Conference and Expo

With extensive experience in the field of secure authentication and

smart cards, MK Group thoroughly understood market demand as

well as technology trends of the industry; the company, therefore,

can provide the security market with products – solutions which

meet various levels of security requirements and draw great

attention from financial institutions, banks, enterprises as well as

government agencies.

Two key authentication solutions introduced by MK Group at the

Security World 2017 included KeyPassTM OTP authentication

solution, which is OATH-certified with a variety of authenticator

devices, such as: tokens, smart cards, mobile applications, SIM

Stickers with OTP function and PKI Solutions. MK Smart’s PKI cards

and SIM cards were granted a production and business license by the

Vietnam Government’s Department of Encryption.

With a view to providing products with US technology & Japan

quality & Vietnam cost, MK Group’s secure authentication solutions

can meet demanding requirements of the security market, help

organizations enhance their services and optimize implementation

costs.

Keypasco are pleased to welcome new customer – Agricultural Bank of Taiwan. They are the 17th customer to use the Keypasco Solution to provide state-of-the-art authentication to enhance the online security for their end-users. The Agricultural Bank of Taiwan (ABT) is the only officially authorized banking institution in Taiwan that simultaneously functions as a professional agricultural bank and a commercial bank. They provide a full range of commercial banking services for retail customers. The bank assists farmers and fisherman throughout Taiwan in obtaining funds needed for agricultural production. Among their many services ABT offers consumer loans, commercial loans, mortgage loans, and deposit products. Adaptation to modern authentication requirements Like most banks and companies today, the Agricultural Bank of

Taiwan have set ambitious goals to digitize their services. The

rapid development and transition to online banking and mobile

solutions however, places new demands on banks to find

solutions that don’t compromise on the security for their

customers.

By being open to new innovations and solutions, ABT can be at

the forefront of the development and provide their customers

with divergent electronic platform services and excellent

eBanking services. By providing user-friendly solutions with

secure authentication they can keep up a great customer

satisfaction.

The Keypasco Solution

To ensure a convenient user experience, Keypascos’ cutting-edge technology is working in the background to maintain the security behind the provider’s ordinary application interface. The core technology of the Keypasco solution, the collecting of device-related data – makes it possible to offer something no one else does – a risk-based authentication solution that is easy to integrate and can be rolled-out in the background to ALL end-users at once, regardless of the number of users. In addition, the Keypasco solution provides a unique risk

engine, analysing the device behind every authentication

attempt to detect fraudulent behaviour, to further increase the

security. Several other features also add to the security.

(Keypasco)

Build Loyalty | Drive Revenue

PARTNER NEWS

FINANCIAL INSTANT ISSUANCE SOLUTIONS

CARDWIZARD®

▪ DRIVE NEW REVENUE - INSTANTLY

▪ CROSS-SELL OTHER PRODUCTS

▪ BUILDING COMPELLING OMNI-CHANNEL EXPERIENCE

▪ IMMEDIATE IMPACT ON CUSTOMER SATISFACTION

HOTLINE:

Hanoi: 84-4-6266 2703 | HCMC: 84-8-3930 5023

Agricultural Bank of Taiwan chooses a secure future

Copyright©2017 by MK Group | www.mk.com.vn | contact-mk@mk.com.vn

MK Smart – member’s MK Group is a pioneer manufacturer of card industry

in Vietnam, typically smart card in finance sector

✓ Financial card (ATM card, credit/debit card)

✓ Prepaid card, warranty card

✓ SIM card

✓ PKI card Certified by

✓ Member card, loyalty card

✓ ID Card

VIETNAM NEWS Copyright©2017 by MK Group | www.mk.com.vn | contact-mk@mk.com.vn

• From April 1st to May 15th, 2017, Sacombank

has a special promotion “Preferential

corporate credit cards” which offers

multiple gifts and privileges for its

corporate credit card holders nationwide.

• From April 1st to June 30th, 2017,

Vietcombank implements a preferential

program “New credit card with attractive

gifts” which offers preferential treatments

for Vietcombank MasterCard credit card

holders.

• SeABank was recently awarded “The best

internet banking service in 2016” by Global

Business Outlook (UK) for its development

and creativity in provision of modern and

convenient banking services for customers.

• From now on until April 20th, 2017,

Agribank MasterCard card holders will get

a special discount of 600,000 VND if they

buy Inverter air conditioners -paid by their

Agribank MasterCard cards at Nguyen Kim

Shopping Centers.

• From 5th April to 30th June 2017,

Vietcombank launches a promotional

program “Paying by Visa, Winning Toyota”

for Vietcombank Visa standard, gold and

platinum credit card holders. Customers

will receive a code for every 500,000 VND

they spend, which give them a chance to

win lucky gifts.

• From April 3rd to May 31st, 2017, VIB has a

special promotion “Quick payment, instant

reimbursement”. Customers who activate

and use MyVIB to pay bills (excluding

credit card payments) or refill their phone/

game accounts will get a refund up to

100,000 VND.

(Collected from Internet)

VIETNAM NEWS IN BRIEFS

On March 31, 2017, Vietnam Banks Association (VNBA) in cooperation with National

Payment Corporation of Vietnam (Napas) held the annual meeting of Vietnam Bank Card

Association, announcing many important data related to bank cards in 2016.

With the 1st ranking position in Vietnam for Authentication and Secure transaction

solutions, Card personalization solutions and Smart card products, MK Group continued to

participate in the event as a lucky draw sponsor for Gala Dinner event.

According to Mr. Dao Minh Tuan, the president of VBCA, in 2016, Vietnam’s card market

still maintained its growth rate contributing to the stable and sustainable development of

commercial banks and speeding up cash-less payments as directed by the Government and

State Bank of Vietnam.

The number of domestic cards accumulated constantly through the years, reaching 92.08

million domestic payment cards by 2016. However, the growth rate has seemed to slow

down because domestic cards have gradually leveled off.

For domestic card issuance, domestic card payment revenues have increased year by year,

accounting for 89% of total card usage, domestic cards, however, are mainly used for cash

withdrawal, accounting for 81.86% of the total revenue despite an increase in card payment

at card accepted stores.

For international card issuance, the number of international cards issued has continued to

increase over the years. By 2016, the number of international cards has reached over 12

million cards, an increase of 30% in comparison with 2015.

With regards to ATM network development, transactions at ATMs are mainly used as cash

withdrawals accounting for 86.8% of domestic card revenues. ATM cash withdrawal

transactions continue to increase from 60 billion VND in 2012 to 106 billion VND in 2016,

which reflects the prevalence of cash spending among many people.

For POS network development, international cards were still used primarily for payment at

POS. The number of POS and POS payment revenues increased continuously over the past

years, but this figure remained modest.

For ECOM network development, in recent years, e-commerce payment has really boomed

with continuous payment growth from 2012 to 2016: domestic payment revenue increasing

597% from 2012-2016, increasing 48% from 2015-2016; international payment revenue

increasing 319% from 2012-2016, increasing 47% from 2015-2016.

MK Group accompanies with the annual meeting of Vietnam Bank Card Association in 2017

Copyright©2017 by MK Group | www.mk.com.vn | contact-mk@mk.com.vn

Contactless payment technology is migrating from the plastic

card to high street jewelry and watch brands under deals

agreed by Barclays with DCK Group and Tappy

Technologies.

First introduced in 2015, Barclaycard's bPay’s proprietary range

- which comprises a wristband, fob, sticker and loop - has

recorded a £6.6m spend across 1.1m transactions.

The bank has already struck a number of deals in the wearable

market, embedding bPay within fashion jewelry at retail

clothing chain Top Shop, in mobile phone cases and weaved

into jackets from Scottish knitwear brand Lyle & Scott .

Under the first of the new deals, DCK Group will add the bPay

chip to its on-trend range of ‘Tutch’ jewelry offered in some of

the UK’s leading high street retailers - including Miss Selfridge

and Dorothy Perkins. DCK currently has relationships in place

with 15 retailers in 33 countries and sources 60 million pieces of

jewelry each year.

The second is with Tappy Technologies Limited - which

transforms traditional timepieces from a number of fashion

brands into a wearable contactless payment device.

Tami Hargreaves, commercial director, digital consumer

payments at Barclaycard says full details on the products to

have contactless included, the retail stores and price ranges will

be confirmed in due course.

“Thanks to the huge growth we are seeing in contactless

payments, consumers are looking for even more convenience

when it comes to paying and these partnerships show how the

worlds of fashion and technology can combine to provide

consumers with quick, easy and convenient ways of making

secure payments for £30 and under,” she says.

(Finextra)

TECHNOLOGY NEWS

Barclaycard strikes new wearable deals for contactless jewelry and watches

MK® Point+ Solution

Pinpoint Your Loyalty Programs

MK Group offers your businesses flexible and dynamic

Loyalty Point Solution that strengthens your brands, and

grows with your business.

http://mk.com.vn

Hanoi: (84-4) 6266 2703 | HCMC: (84-8) 3930 5023

contact-mk@mk.com.vn

OUTSTANDING FEATURES:

• Can be used to reward consumers in different ways

(i.e. with points or gifts or actual currency)

• Set up rules to address precisely target customers

• Scalability: Extend prepaid feature

• User-friendly interface

• Comprehensive reporting and branch management

functions

IDEAL FOR:

• Hotels & Resorts

• Theme Parks

• Retailers

• Taxi companies

• Game companies, etc

Acuity Market Intelligence has released the 2017 “Ten Top

Trends for Biometrics and Digital Identity”. Acuity

characterizes 2017 as a “breakout” year for biometrics and

digital identity when increased adoption reflects a new

understanding of the potential benefits these technologies offer.

“Biometrics and digital identity are often perceived as threats to

privacy and security,” comments Maxine Most, Principal of

Acuity Market intelligence. “However, taken together these

technologies have the potential to enhance privacy, increase

personal data control, and shift power relative to the

monetization of consumer data.”

According to Most, “2017 will be a tipping point as cloud-based

biometrics, secure mobile credentials, and fintech innovation

coalesce into consumer centric solutions offering previously

unobtainable levels of accessibility, security, and individual

control over PII (Personally Identifiable Information).”

Acuity’s Ten Top Trends for Biometrics and Digital Identity:

1. Behavioral biometrics on smartphones, and the associated

privacy issues and PII concerns, become mainstream.

2. Iris biometrics “breakout” as smartphone availability drives

consumer acceptance up and price points down.

3. Security impact and liability implications of PII via IoT

(Internet of Things) begins to influence Enterprise Executives.

4. Cloud biometrics are recognized as critical Infrastructure for

global digital payments and commerce platforms.

5. Links between digital identity, smartphones, and mobile and

stationary smart devices begin to be monetized.

6. New monetization models for digital identity emerge, shifting

power from commercial enterprises to consumers.

7. Secure mobile smartphone credentials drive infrastructure

development with migration from tests and pilots to

deployments.

8. Many fintech innovators are swallowed by BFSIs thwarting

their impact on industry transformation.

9. A handful of fintech standouts, committed to disruption,

emerge as potential threats to the status quo.

10. Biometrics and digital identity begin to be understood as

forces for social justice, equity, privacy, and accessibility.

(Paymentscardsandmobile)

Top 10 trends for biometrics and digital identity for 2017

BIOMERICS NEWS

www.mk.com.vn | contact-mk@mk.com.vn

KeyPassTM OTP is the two-factor authentication

solution developed by MK Group JSC with the aim of

providing secure remote authentication via a number of

different authentication devices and different

authentication methods.

ONE-TIME PASSWORD

AUTHENTICATION SOLUTION

Applied for

e-Banking | e-Commerce | Online Gaming

Authentication devices and methods:

KeyPass OTP Display Card | KeyPass OTP SIM Sticker | SMS |

KeyPass OTP Software-based Token | KeyPass OTP Hardware Token

MK Group to be the member of

HOTLINE:

Hanoi: 84-4-6266 2703 | HCMC: 84-8-3930 5023

CARDS & PAYMENT NEWS

www.mk.com.vn | contact-mk@mk.com.vn

Singapore commuters can now tap-and-

pay for their fares with MasterCard

Singapore's Land Transport Authority is working with

MasterCard on plans to enable commuters to pay for their fares

with contactless bank cards.

The LTA's collaboration with MasterCard was first announced in

July last year.

A pilot of the system will be launched next month with at least

100,000 commuters using tap-and-pay cards on public buses and

trains. Users will be able to track their journey and fare history

through a special TransitLink mobile services app or on the Web.

Deborah Heng, country manager of MasterCard Singapore, says:

“The introduction of Account-Based Ticketing in Singapore’s

public transportation system is the latest in MasterCard’s

commitment to deliver smart city solutions to Singapore. In the

near future, we expect to broaden contactless access by enabling

mobile and wearable devices for cashless use.”

(Finextra)

Southeast Asian nation Thailand could become a growth area of

biometrics technology, according to an industry insider.

Speaking to the Bangkok Post, Dutch Ng, co-founder and chief

executive of i-Sprint Innovations, a Singapore-based identical

management service provider, said moves in the government and

commercial sector indicate the chances of progress.

Ng highlighted the future role for biometrics in e-payment and fintech

services, particularly fingerprint and face recognition systems.

Last year, the Bank of Thailand issued a notification to financial

institutions to reset their customers' password verification protocols to

avoid possible fraud. "This could be a wakeup call for banks and

financial institutes to adopt biometric technologies for verification

system," he said.

Meanwhile, Poonsuk Wattanayingjaroenchai, executive director of

DataOne Asia Thailand, said he expects to see a surge in spending on

cybersecurity and identity management systems among private and

public sectors…

i-Sprint Innovations has appointed DataOne Asia Thailand, the system

integrations arm of SET-listed SVOA, as its local authorised distributor

to expand its presence in other sectors like telecom, healthcare.

(Planetbiometrics)

Thailand ripe for biometrics growth: Analyst

3D Secure authentication solution

3D Secure authentication solution provides cardholders

with an additional security layer for online transactions,

which enables merchants and card issuers to improve

online shopping experience for consumers and

encourage the growth of e-commerce payment.

Certified by

Ensuring that you and your customers are protected

from e-commerce fraud.

Hanoi: (84-4) 6266 2703 | HCMC: (84-8) 3930 5023

E-commerce

Copyright©2017 by MK Group | www.mk.com.vn | contact-mk@mk.com.vn CARD & PAYMENT NEWS

In Latin America, overall banked levels as reported by

governments are reaching surprising levels. Colombia, considered

one of the most cash-dependent economies in the region, claims

that 75% of its citizens have a bank account. In Peru, the number is

66%.

While these numbers appear optimistic, they don’t tell the whole

story. To calculate these figures, governments consider people

‘financially included’ if they have any type of formal financial

product, regardless of type or usage – according to Lindsay Lehr, a

Senior Director of the Payments practice at Americas Market

Intelligence. For example, millions of Colombians have basic

savings accounts and are thus considered ‘financially included,’

even if their accounts have zero balance and sit inactive for months

or years.

What’s more, a bank account is not tantamount to a payment card,

and having a payment card is not tantamount to using it. For

example, around 500,000 Peruvians own a savings account with

affiliated debit card where they receive government benefits.

However, 95% of these funds are withdrawn in cash within 24

hours of them being deposited, inside a bank branch from a teller.

Certainly, the term ‘financial inclusion’ is misleading at best and

downright deceitful at worst, considering the complex levels of

access and barriers to banking that still exist in the region.

Debit Card Growth Not Helpful for E-Commerce

While most often we conceive of financial inclusion in terms of

access to payment methods, it is often a function of merchants’

ability to accept them. Nowhere is this more apparent than in e-

commerce.

Credit card penetration in the region is still low, since banks lack

the tools to properly evaluate credit worthiness and expand issuing

to the middle class and young people. Debit card penetration,

however, has climbed at a decent pace in the past three to four

years, in large part thanks to banks pushing out payroll cards.

Why debit cards will drive Latin American e-commerce

There’s some interesting potential here for e-commerce…except for

enablement issues.

Most debit cards in Latin America lack a CVV code and are thus not

enabled for e-commerce purchases. Traditionally, banks have been

concerned about fraud on debit cards, because fraudulent transactions

result in the theft of customers’ actual funds.

This is opposed to credit card fraud, in which banks have the ability to

deny chargebacks and transfer liability to the merchant. As such, while

an estimated 230 million Latin Americans have debit cards, only the

113 million who also have credit cards can consistently make

purchases online.

Changing over from Cash

This is part of the reason why cash payment methods are so prevalent

in Latin American e-commerce. Lacking an acceptable payment card to

buy online, many Latin Americans use vouchers that must be printed

and paid for in cash at affiliated agents, sometimes up to 72 hours after

the order was made. Once printed, only about 30% of all vouchers are

actually paid for, creating uncertainty and inventory problems for

merchants. As a result, cash is still king in Latin American e-

commerce.

But cash’s reign may soon end. Even though the risk of

fraud is higher, online merchants across the board prefer

payment cards for their convenience and efficiency and

have been leading the charge to get banks to become less

strict about debit—and banks are slowly coming around.

In 2015, BCP, Peru’s largest bank, began the slow process of

migrating its seven million debit cards to make them e-

commerce ready. Banco de Bogotá in Colombia started this

process only at the end of 2016.

In Mexico, banks have been particularly stern; in response,

both payment processors and merchants have gone

knocking on doors, convincing issuers to enable debit cards

for their customers specifically.

But Brazil is the market where most work needs to be done.

While only 30% of Brazilians have a credit card, a whopping

70% have a debit card. Yet the use of debit cards in

Brazilians e-commerce is negligible, barely reaching 2% of

transactions, as banks apply additional security measures

that decimate conversion rates.

This in part explains the success of the boleto bancario,

Brazil’s famed cash-payment voucher. However, a

regulatory change in 2016 will add a cost for merchants that

issue boletos, so there could well be a decline in the use of

them this year. As such, this will leave many Brazilians out

of luck when it comes to buying online.

Copyright©2017 by MK Group | www.mk.com.vn | contact-mk@mk.com.vn CARD & PAYMENT NEWS

Driving Debit

Some forward thinkers in Brazil see the missed opportunity in debit and

are developing solutions. Payzen, a French payment gateway operating in

Brazil, has developed a merchant plug-in for debit, which helps bypass

bank authentication measures for selected cards and increase conversion.

Payment processors, banks and merchants are likely to follow suit this

year.

However, enabling debit for e-commerce is only the first step in achieving

widespread usage. Once banks decide to enable debit, they then need

educate consumers. This should be a collective effort between banks, card

networks, processors, and merchants. Certainly Visa and MasterCard

stand to benefit from increased use of debit in e-commerce, but they have

done little to advertise this capability to consumers. Co-branding debit

cards with digital merchants, as Bankaool, MasterCard and Uber have

done in Mexico, is a brilliant strategy to this end.

Despite payments and logistics challenges, e-commerce in Latin America

still has many years of robust growth ahead, thanks to the millions of

Latin America who will come to the channel for the first time in coming

years.

Debit cards will be at the head of this growth trend, as credit card usage in

the channel begins to mature. As such, payment players waging a war on

cash must first enable and then incentivize debit to lure the middle class

away from their beloved boletos and Oxxo payments.

Banks who do not get on board for fear of fraud risk will missing the boat

altogether for these opportunities.

(Paymentscardsandmobile)

Smart Financial Cards

✓ Magnetic Stripe Card , EMV Card (contact/contactless, dual-interface,

hybrid), ATM card, debit card, credit card, prepaid card

✓ EMV migration solutions

✓ Card personalization solutions

✓ Consultant – Technical support services

Why debit cards will drive Latin American e-commerce (to be continued)

Copyright©2017 by MK Group

www.mk.com.vn | contact-mk@mk.com.vn | www.facebook.com.vn/mkgroup1999

Hanoi: F11th, TTC Tower, 19 Duy Tan Str., Cau Giay Dist., Hanoi, Vietnam | Contact: (84-4) 6266 2703

Ho Chi Minh City: F7th, Thien Son Building, 5 Nguyen Gia Thieu Str. , District 3, HCMC, Vietnam | Contact: (84-8) 3930 5023

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