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Your Easy Wallet

Focus on E-wallet solutionApril 2014 | e-newsletter

The Display Card

Contactless Cards

Supercard, the new member of Provus Group

2 | April 2014

Market | Supercard, the new member of Provus Group

• partner in launching the first Romanian nationwide fidelity program (Connex Land);

• partner in implementing the biggest loyalty program nationwide (Sensiblu);

• a record quantity of 500,000 cards personalized and shipped, in only one month

• a portfolio of over 1000 clients, amongst which over 20 big retailers, 6 gas station chains, 18 banks and 6 non-banking financial institutions;

• over 100 complex loyalty programs implemented;

• over 33 million cards, produced and personalized;

• over 50% coverage on the cards production and personalization market in Romania;

• over 70% coverage on the non-banking cards production and personalization (loyalty cards, membership cards, gift cards, access cards).

Supercard, the new member of Provus Group

Supercard means:

In December 2013, Provus Service Provider, leader on the Romanian banking cards market, took over the majority stake of Supercard Solutions & Services, non-banking card producer and leader on loyalty programs and solutions, in Romania.

Supercard Solutions & Services was established in 2000, under the name Cards4u. In the following 14 years of existence, the company managed to become the main player on retail loyalty solutions, in Romania.

Supercard, the new member of Provus Group | Market

Supercard, the new member of Provus GroupIn the last two years, Supercard also developed loyalty solutions based on complex technologies. With the add of a young and skilful in-house IT team, Supercard now offers its partners loyalty programs based on NFC (Near Filed Communication), RFID (Radio-frequency Identification), QR (Quick Response code), WEB and CRM (Customer relationship management).

As a result of Supercard’s take over, Provus Group becomes, on the Romanian market• the main card processor• the main supplier for finance solutions • the main supplier for banking and retail

loyalty solutions• one of the most important players in

the e-wallet solutions field, for retail and banking

April 2014 | 3

Trends | E-wallet – your Easy Wallet

4 | April 2014

E-wallet – your Easy Wallet

Moreover, according to Goldman Sachs, in the next 4 years, the mobile branch of ecommerce, mcommerce, will reach the 2013 ecommerce level, as the number of mobile terminals is expected to rise to over 1 billion, worldwide.

E-wallet is the solution that gets you ready for these new times and the new generation of buyers, as the electronic wallet (or digital wallet), represents both a new face of the loyalty program for the merchant and a much greater shopping experience for the consumer.

Studies show that the next 4 years will mark a transition from real stores shopping to online shopping. The convenience to order anywhere and anytime, the growing interest in mobile devices, the quicker order procedure and the time saved by instantly accessing dozens of products, all are factors that encourage consumers to increasingly choose electronic commerce (or ecommerce, as it is known).

E-wallet – your Easy Wallet | Trends

April 2014 | 5

E-wallet – your Easy Wallet Increasing ordersStudies proved that over 25% of shoppers tend to abandon an online order because they lack the time or patience to fill in the order forms. The e-wallet successfully prevents that. When ordering online, the shopper has to fill in his personal data only once, then check the option for electronic wallet and choose a username and password. The electronic wallet will save the information and fill in the form automatically, for all future purchases, thus reducing the acquisition time to a minimum.

A wallet for all cardsMany shoppers do not usually carry all their loyalty or gift cards and tend to lose them, forget them or abandon using them. E-wallet solves this by storing all cards in one place, so they can all be used safely, at any moment.

Information on consumer behaviorThe electronic wallet can be used to gain access to the orders history, to create the buyer profile, to give instant prizes or access to promotions.

High safetyThe personal information provided to the e-wallet system are kept on maximum security servers, allowing a safely deposit of all information and avoiding filling forms on unsecured sites.

Easy access from all platformsThe e-wallet can be accessed from both desktop or mobile terminal (phone or tablet), as all information are kept on central servers, managed by the accredited e-wallet service providers.

E-WALLET MEANS:

6 | April 2014

Trends | E-wallet

ADVANTAGES FOR CONSUMER

ADVANTAGES FOR MERCHANT

• Easy access to all personal cards enrolled in the e-wallet system;

• Easy shopping, through automated data fill ;

• Unlimited re-usage and availability; • High security for personal data; • Safety against possible card theft or

piracy;• Access only with personal username and

password ;• Unlimited number of cards stored;• Access to current balance• Compatibility with multiple hardware

supports; • Zero cost

• No card reader for loyalty cards or POS for banking cards, needed;

• Higher trust from clients, due to high protection of data;

• New interested customers, due to safe and easy procedures;

• No responsibility for data –the e-wallet system supplier acts as intermediary and carries responsibility for the safety of the electronic wallet;

• Certainty that there will be no misuse or loss of information ;

• Protection against electronic thefts ;• Easy access to information about

customers profile ;• Better platform to create personalized

offers

E-wallet – your Easy Wallet | Trends

April 2014 | 7

Provus Group, through its companies Supercard and Romcard, offers the E-wallet Loyalty solution to all clients in both finance and retail area.

E-wallet loyalty Provus:

• can be personalized based on the client’s requests;

• it is scalable, the merchant can add any facility desired, in any moment;

• can be integrated the company system, for real time reporting;

• gives access to a highly organized, accurate and targeted client database;

• offers maximum security, according to PCI-DSS security standards

E-WALLET LOYALTY – PROVUS GROUP

Trends | The Display Card

8 | April 2014

The Display Card The Display Card looks and functions like a regular credit/debit card. What differentiates it is the LCD display and keyboard, embedded in the card’s plastic, as well as and the touch sensitive button. These elements allow the owner to generate a unique One-Time Password (OTP), as a security measure for authentication.The display card is easy to use, comfortable and offers perfect security through the unique authenticating code, successfully replacing the traditional digipass.

The display card, fully compliant with national and international standards, highly secure and using a state-of-the-art solution technology, is an innovative 2 in 1 solution that combines the functionality of a payment card with the security of a token. Moreover, this card can have additional functions, such as indicating certain information in real time: balance of payments, loyalty points or recent transactions.

The Display Card | Trends

April 2014 | 9

Romania has been chosen to be part of the pilot trial, being the third country in the world where we can find this type of card.

Supercard Solutions & Services and Provus, both members of Provus Group, are engaged in promoting, launching and personalizing the display card, on the Romanian market.

The display card fulfills the five key elements essential for the success of any electronic ID program:

• High security• Low investments• Rapid implementation• Use of existing infrastructure and standard

equipment• Convenience and ease of use

Trends | The Display Card

10 | April 2014

Multiple services in one card

The display card can be used to make payments, redraw money or pay online, as it incorporates the standard system EMV - Europay, MasterCard and VISA. This way, the clients have one instrument for many services, while the banks have the opportunity to articulate needs that were not expressed before.

Strong authentication

As more employees are working remotely and there is an increasing need to access secure data, static passwords are no longer effective. A convenient way to add an unrivaled extra layer of protection, when authorizing sensitive user logins to the internal network, is the use of Two Factor Authentication (strong authentication).This method combines something that you know (such as a user name and password) with something that you have (a credential such as a card).Secure authentication based on Password Authenticated Connection Establishment (PACE) and using existing infrastructures and standard equipment like mobile phones (GSM/GPRS), smartphones (WLAND), walkie-talkies (police / military network) and computers (Internet), without the need of smartcard or fingerprint readers

Advantages of the Display Card

Safety for all transactions -One Time Password

The Display Card comes with a single button or a multiple button touch keypad version.The e-service ID Display Card platform allows for strong universal One Time Password (OTP) authentication solutions and support a variety of algorithms such as event based (HOPT), time based (TOTP), and challenge response (OCRA) solutions as well as high secure native algorithms certified for homeland security.

Safer and simpler are the words that describe the advantages of the display card and advocate for its larger use. The display card is easy to use, comfortable and offers perfect security through the unique authenticating code.

The Display Card | Trends

April 2014 | 11

Access card

Unauthenticated access to a governmental and corporation websites or intranets allows unauthorized people to access confidential data that may be restricted. Within many organizations today, remote access is common, as employees and stakeholders gain access daily to data and reports. The authenticity of a person or employee using these Virtual Private Networks (VPN) and websites becomes essential and the only way to protect the integrity of private data and assets.

Easy to use, stylish and comfortable

The display card can be easily carried in the wallet and is produced with vibrant customized artwork in a familiar credit card format factor (ID-1). In order to login and access its secure data the user will have to go through the normal identification process and then, in order to securely authenticate, enter the unique numeric password generated by the Display Card.The display is a high contrast LCD screen with superb readability, designed for maximum brightness in all types of lighting. It comes with an instantaneous refresh rate and the data is able to scroll across the screen, providing access to a large amount of information.In order to generate the code it is enough to press the button incorporated in the card. For the electric screen, the card has a long-lasting battery - 3-7 years or 100,000 hits.

Advantages of the Display CardCan be personalized

as a standard ID

The display card can be equipped with any kind of electronic chip using contactless interface compatible with legacy access control systems. The increased capabilities of the e-service ID Display Card help government agencies and corporations to maintain operational efficiency and reduce costs while providing optimum security for their network, facilities and assets.

12 | April 2014

Trends | Contactless Cards

Contactless Cards

This year we are expecting significant growth regarding the adoption and use of contactless payments. Presently in Romania there are more than 200,000 contactless cards and over 5,000 POS that use this technology. Every day transactions are being made in the transportation and retail areas and their number is expected to double up in the near future.

Facts:• Millions of contactless payment cards

and devices are being issued every year• The number of accepting merchant

locations is increasing rapidly • More new consumers are drawn to

contactless payments every day

Contactless payments are• safe • fast • convenient

and provide benefits to consumers, merchants and issuers alike.

Advantages of Contactless Payments • Shorter queuing time• Quicker transaction time• Higher comfort for customers• Shorter serving time for merchants

Contactless payment is especially beneficial in high-traffic venues such as mass transit stations, movie theaters or fast food restaurants.

April 2014 | 13

Contactless Cards | Trends

Contactless CardsContactless payment the easy way to payIn order to make a payment is enough to tap the contactless card or device on a contactless terminal. The contactless card or device transmits the card information to the terminal. The contactless terminal interacts with existing authorization mechanisms to initiate and complete the authorization.

Security*The financial payments networks used to process contactless payments are the same networks that process millions of magnetic stripe transactions securely today. The primary difference is that the contactless payment device (card, fob or other form factor) uses RF technology to send payment account information to the merchant’s point-of-sale (POS) terminal, instead of requiring the payment card’s magnetic stripe to be swiped.

* http://www.smartcardalliance.org/pages/publications-contactless-payment-security-qa

Trends | Contactless Cards

14 | April 2014

Contactless payment devices are designed to operate at very short ranges–less than 2-4 inches–so that the consumer needs to make a deliberate effort to initiate the payment transaction.As contactless payment devices are designed to exchange information with a payment terminal using RF technology, the financial payments industry has designed multiple layers of security throughout the traditional credit and debit payment systems to protect all parties involved in the payment transaction. Most of these protective measures are independent of the technology used to transfer the consumer payment account information from the payment card or device to the merchant POS terminal and are used for both magnetic stripe and contactless transactions. For example, online authorization, risk management and real-time fraud detection systems are used to detect potential fraudulent activity for any credit or debit card payment transaction. Plus, the liability policies which protect consumers from fraudulent transactions on traditional consumer credit and debit accounts also apply to American Express, Discover, MasterCard, STAR and Visa contactless transactions.

For contactless payments, the financial industry uses added security technology both on the contactless device as well as in the processing network and system to prevent fraud. While implementations differ among issuers, examples of security measures that are being used include the following:• Industry standard encryption. At the

card level, each contactless card can have its own unique built-in secret “key” that uses standard encryption technology to generate a unique card verification value, cryptogram or authentication code that exclusively identifies each transaction. No two cards share the same key, and the key is never transmitted.

• Authentication. The issuers verify that the contactless payment transaction has a valid card verification value, authentication code or cryptogram before authorizing the transaction. Therefore, at the system level, issuers have the ability to automatically detect and reject any attempt to use the same transaction information more than once.

Contactless Cards | Trends

• Confidentiality. The processing of contactless payments does not require the use of the actual cardholder name in the transaction. In fact, best practices being used within the industry do not include the cardholder name in the contactless chip.

• Control. Cardholders control both the transaction and the card throughout the transaction. Cardholders do not have to hand over either a card or their account information to a clerk during a contactless transaction.

Implement the Contactless Payments Today!

Provus Group can help you implement the contactless payments system in a fast and organized way, with little impact on your organization. As a certified processors, we cover all steps required to implement a complete contactless solution: • Payment processing requirements • Physical requirements • Software and hardware development and

certification requirements • Training requirements • Marketing requirements • Support requirements

April 2014 | 15

16 | April 2014

2014 - We Proudly Celebrate

20 Years of RomcardROMCARD MEANS:• First card processing center in Romania• 20 YEARS of experience in card processing

field• Processing agreements with more than 15

banks.• The only full 3DSecure (issuing/acquiring)

certified entity in his region.• Personalized services based on the clients

requests.• Highly skilled specialists in card processing

operations.• More than 850 distinct ecommerce

terminals managed• 12 million 3DSecure cards managed• More than 1 million transactions per month

in national switching scheme• More than 50 million International

transactions per year

• Switching capacity of about 24 transactions per second (currently processing peaks of 8 transactions per second).

• MasterCard - Member Service Provider• Visa - Visanet Processor • MasterCard and Visa Vendor Certification

(Physical and Logical Security)• VbV Certification • EMV Certification (Issuing and Acquiring

switching)• Visa (Base I, Base II, SMS) and MasterCard

direct connections• FTP Services with international

organisations• SecureFTP Services with local customers

Celebration | 20 Years of Romcard

3D SECURE How we got here

3D SECURE What we offer

10 Years of 3D Secure | Celebration

2014 - We Proudly Celebrate

10 Years of 3D Secure

April 2014 | 17

• February 2003 – RomCard VbV launches offer based on 3D Secure 1.0.2 standard

• September 2003 - RomCard began implementing Issuing & Acquiring processes for 4 major banks

• December 2003 – RomCard project was declared Pilot Project by Visa CEMEA;

• February 2004 – All acquiring tests were successfully completed;

• March 2004 – All issuing test were successfully completed;

• 25 March 2004 – First e-commerce transaction in production;

• November 2010 – ADS (Activation During Shopping) available for issuing banks;

• December 2010 – ecommerce installments available for acquiring banks;

• September 2011 – 3DSecure recurring is available for merchants;

• 2013 – ecommerce integrator and e-wallet developed for acquiring banks;

• 2014 – One time password during development for issuing banks.

• Verified by Visa issuing – offers the authentication of the Visa cards enrolled by the Romanian banks in the 3D Secure system;

• MasterCard SecureCode issuing - the authentication of the cards MasterCard enrolled by the Romanian banks in the 3D Secure system;

• Verified by Visa acquiring – offers to the traders enrolled in the 3D Secure system the possibility to generate safe e-commerce transactions carried out with Visa cards;

• MasterCard SecureCode acquiring – offers to the traders enrolled in the 3D Secure system the possibility to generate safe e-commerce transactions carried out with MasterCard cards;

• Acquiring volume in 2013: 5,758,831 transactions - 220,575,923.32 EUR.

• 12 million Visa/MasterCard cards enrolled by the end of March 2014.

3D SECURE in figures

PROVUS SERVICE PROVIDER S.A.

Str. Vasile Milea 2H , Sector 6, Bucuresti,

Cod Postal 061344, ROMANIA

Telefon: +40 21 202 69 00; +40 21 202 69 99

Fax: +40 21 315 85 57; +40 21 315 95 57

E-Mail: office@provus.ro

www.provus.roS.C. ROMCARD S.A.

Str. Vasile Milea 2H , Sector 6, Bucuresti,

Cod Postal 061344, ROMANIA

Telefon: +40 21 402 00 29

Fax: +40 2 1 315 85 57 +40 21 315 95 57

E-Mail: romcard@romcard.ro

www.romcard.roSUPERCARD SOLUTIONS & SERVICES S.R.L.

Str. Vasile Milea 2H , Sector 6, Bucuresti,

Cod Postal 061344, ROMANIA

Telefon: + 40 21 211 60 08

Fax: +40 21 211 60 09 +40 21 315 95 57

E-Mail: office@supercard.ro

www.supercard.ro