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MasterCard Smart Card Strategy

MasterCard Smart Card Strategy. MasterCard International Payment Brands. Martyn Cooper Global Platform Symposium - August 2002. MasterCard A Global Smart Card Leader. . At Q2 2002, 125 million MasterCard -, Maestro-, Mondex-, and Clip -branded cards had been issued worldwide.

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MasterCard Smart Card Strategy

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  1. MasterCard Smart Card Strategy MasterCard International Payment Brands Martyn Cooper Global Platform Symposium - August 2002

  2. MasterCard A Global Smart Card Leader  At Q2 2002, 125 million MasterCard-, Maestro-, Mondex-, and Clip -branded cards had been issued worldwide •  Already 1/10 of total MasterCard • card base •  98 members in 32 countries •  Over 50% carried value-added applications Global Platform Symposium

  3. Total Number of Banking Smart Cards +59% Source: Celent, October 2001: Smart Cards in US Banking: Is the Chip Hip? Global Platform Symposium

  4. Smart Card Migrations EMV Migrating/In Progress EMV Committed/Planned EMV Analyzing Global Platform Symposium

  5. Europe 2001/2002 EMV Migrating/In Progress EMV Committed/Planned EMV Analyzing Iceland Finland Norway Sweden Estonian Latvia Denmark Ireland Russia Littuania UK Netherlands Germany Belgium Poland Lux. Ukraine Czech Rep. Slovakia France Austria Switzerland Hungary Slovenia Italy Croatia Portugal Spain Turkey Greece Israël Indicates few banks / processors implementing EMV, not entire country 7 PROPRIETARY & CONFIDENTIAL

  6. Asia Pacific 2001/2002 Jp SKor China Tai. India HK Phil. VNam Thai. Thai. Mal. SL Sing. Indonesia Australia EMV Migrating/In Progress NZ EMV Committed/Planned EMV Analyzing Global Platform Symposium

  7. Middle East/Africa 2001/2002 Leb. Kuw. Egypt SAr. Nga. Gha. Moz. Zim. EMV Migrating/In Progress EMV Committed/Planned SAfr. EMV Analyzing Global Platform Symposium

  8. Latin America 2001/2002 Mex. Costa Rica Ven. Col. Ecuador Peru Brazil Bol. Par. Chile Arg. EMV Migrating/In Progress Uruguay EMV Committed/Planned EMV Analyzing Global Platform Symposium

  9. North America 2001/2002 Key Members are both issuing and planning to issue EMV smart cards, though no national migration isplanned. EMV Migrating/In Progress EMV Committed/Planned EMV Analyzing Global Platform Symposium

  10. OneSMART MasterCard • Highly flexible umbrella strategy for helping members introduce smart cards in cooperation with MasterCard • Based on extensive consumer research • Reflects MasterCard’s approach of providing comprehensive support and flexibility to members • Members can choose application set, platform, security strategy, chip size, and card designs Global Platform Symposium

  11. OneSMART MasterCard MasterCard Role • Assist members in end-to-end implementation • Opportunity identification • Business requirements • Process requirements • Support • Program development • Program launch • Work with industry to improve the state of the art • Standards and specifications • Maintain alliances/relationships with best in class vendors Global Platform Symposium

  12. Value-Added Applications Key To A Positive Business Case In Many Markets • Data Storage • Ticketing • Couponing • Loyalty • Authentication (non-payment) Enable issuer differentiation and enhanced functionality Global Platform Symposium

  13. Value-Added Applications The Business Case • Grow GDV by • Improving acquisition, usage, retention • Increase the account’s lifetime value • Add new fee services • Leverage non-payment opportunities • Partner business process improvement • Reduced inefficiencies or fraud Global Platform Symposium

  14. Value-Added Applications Developing The Business Case • MasterCard has developed a business case tool to model: • Specific opportunities • Multi-application programs • Multi-party programs • This model works in concert with the MasterCard chip payment models developed by EPI • These models will be merged Global Platform Symposium

  15. Platform Flexibility • MasterCard is only payments association to actively support all major chip platforms • MasterCard M/Chip™ available on MULTOS, JavaCard, and proprietary platforms Global Platform Symposium

  16. Platform Flexibility • MasterCard is a member of both MAOSCO and Global Platform • Committed to creating a universal platform/ infrastructure that will make it easier for members to issue multi-application cards JavaCard Global Platform Symposium

  17. Flexible Issuance Options • Via ‘MULTOS Issuance Partner’ • Indirect relationship with MULTOS key management authority (KMA) via MIP • MIP interacts with MULTOS KMA on card issuer’s behalf • May upgrade to direct relationship if required • ‘Standard’ card issuer • Direct relationship with the MULTOS KMA operated by MXI and within the ‘Global’ MULTOS Domain • Co-located MULTOS KMA • Managed by MXI KMA on card issuer’s behalf • Private domain MULTOS KMA • Licensed by MXI (complete software/hardware solution) • Operated by card issuer themselves or trusted 3rd party Global Platform Symposium

  18. MasterCard/Global Platform • MasterCard staff assigned to Global Platform Standing Committees and relevant working groups • Candidate nominated to chair re-launched Business Requirements Working Group • Facilitated Card and Application Management System (CAMS) contribution • Evaluating additional security contributions Global Platform Symposium

  19. MasterCard Objective Broaden Global Platform (GP) scope to embrace all open, industry technologies, including asymmetric approaches • In particular, aspects of MasterCard’s MULTOS experience • But not necessarily prescriptive MULTOS, rather a class of solutions of which MULTOS is one • There could be others Global Platform Symposium

  20. Possible/Desirable Outcome MULTOS Card Manager Open Platform Card Manager Open Platform Card Manager Today MULTOS API Java Card API Microsoft API MULTOS O/S Proprietary O/S Microsoft O/S Extended Global Platform Card Manager Future MULTOS API Java Card API Microsoft API MULTOS O/S Proprietary O/S Microsoft O/S Global Platform Symposium

  21. Load mechanism Java-tisation of MULTOS - The Goal applet Card specific loader Card specific loader Same Terminal Functionality Global Platform Symposium

  22. Our Contribution Context • Meaningful contribution on viable terms: • Intent for IPR terms to be normal GP practice, if at all possible • Minimal pre-conditions or constraints • At scope and level appropriate to GP • CAMS terminology will be adopted • ‘GP’ style technical authoring style to aid and speed review and debate in working groups • Timed to fit with next iteration of specifications Global Platform Symposium

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