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News from the 2013 Smart Card Alliance Payments Summit: MasterCard, Visa Clarify Roadmaps for U.S. Move to Chip-Based EMV



News from the 2013 Smart Card Alliance Payments Summit: MasterCard, Visa
Clarify Roadmaps for U.S. Move to Chip-Based EMV Payments, Isis Mobile Wallet
Use in Transit Takes Off in Salt Lake City

2013 Smart Card Alliance Payments Summit, Salt Lake City, Utah, Feb. 6, 2013
(GLOBE NEWSWIRE) -- As the U.S. move to secure chip-based EMV payments
continues to progress, executives from MasterCard and Visa addressed the
payments industry, clarified their roadmaps, and provided vision for the
future payments infrastructure yesterday at the 2013 Smart Card Alliance
Payments Summit.  Attendees also were updated on pilots for Isis mobile
wallets, and their launch throughout transit in Salt Lake City. 

The U.S. Path to Chip-based EMV Payments

Stephanie Ericksen, head of authentication product integration for Visa,
addressed the audience of more than 600 attendees about new details that
expand Visa's roadmap to EMV.

Ericksen announced Visa's proposed solution to the Durbin Amendment's
requirement that card issuers enable at least two unaffiliated network routing
options on their cards.  This requirement allows merchants to choose their
preferred debit network. Ericksen said that Visa will make some of its EMV
chip technology available free of charge in conjunction with a "generic,
unbranded Application Identifier (AID)," the number that identifies the
payment system and the card type.  With such a common AID, payment processors
can route transactions to merchants' preferred networks.

Visa will also expand its roadmap, according to Ericksen, to include an
October 1, 2017 deadline for the liability shift for counterfeit card fraud
for ATMs.  This date is a year later than the deadline MasterCard has imposed
for ATMs.

MasterCard's Michael Weitzman, group executive, global products and solutions
for U.S. markets, explained how EMV will impact the future of payments, saying
he "couldn't think of a more exciting time to be in the payments industry." 
He noted that by 2015, there will be "twice the number of globally connected
devices than there are people," presenting an opportunity for payments
innovations that should not be missed.  He urged payment card issuers to issue
cards with dual contact/contactless capabilities, and for merchants to
implement terminals to accept both technologies. Regarding the options for
online vs. offline transactions in the new EMV ecosystem, MasterCard supports
both.  According to Weitzman, "online is better, but doesn't work in every
case." 

A panel consisting of merchant acquirers, issuers, and brands also offered
their unique perspectives yesterday on the move to EMV. Patty Walters of large
merchant acquirer Vantiv noted the unique challenges in the U.S. due to the
sheer size of the market, as well as regulatory requirements. She said she has
seen significant advancement in her industry to meet the looming April 2013
mandate, when all acquirer processors are required to support merchant
acceptance of chip transactions. Concerning her organization, Walters said she
is "confident we will get there."

From an issuer perspective, Whitney Stewart of SunTrust Banks said that
customer experience is going to be a major priority with EMV, and that
customer service education as well as consumer education is going to be "a big
piece of the pie."  All of the panelists agreed that a common language and
communication strategy is necessary, and pointed to the EMV Migration Forum's
Communications and Education Working Committee as a valuable collaboration to
meet this goal. 

Isis NFC Mobile Wallet Pilots

Attendees were updated on the Isis mobile wallet pilots happening now in Salt
Lake City and Austin. The Isis wallet is an NFC-based, PIN-protected virtual
wallet that allows consumers to carry payment cards, loyalty cards, and offers
in their mobile device.

Jim Stapleton, chief sales officer for Isis, said the pilots are still in
"early days" but initial results are positive, with active users paying with
Isis five or more times per week.  Stapleton said that consumers who take
advantage of offers from merchants will shop twice as often at that merchant. 
He described several local merchants using the wallet to engage the customer
and take the "relationship beyond that moment of payment," and pointed to the
Utah Transit Authority (UTA) as the best use case of Isis in Salt Lake City.

UTA Open Payments Go Mobile

The UTA has fully implemented open contactless fare payments, which allow
travelers to pay for transit directly with the American Express, Discover,
MasterCard, or Visa contactless card already in their wallet.  Now, the UTA
transit system is set to accept Isis mobile NFC payments, too.  According to
Jerry Benson of the UTA, these new ways to pay are about customer convenience
- allowing everyone to "always have the exact fare" - but also extremely
helpful to the UTA to gather data to better serve their customers.  Mobile,
according to Benson, is a "great new way to get a payment device in
everybody's hands."  Since the launch of mobile payments acceptance, the UTA
has seen revenues increase by 25 percent, and contactless transactions
increase from 400 to 1,000 per day, and still growing.  The long term
strategy, said Benson, is to move people away from cash and to electronic
media payments. 

The Summit is being held through Thursday at the Grand America Hotel in Salt
Lake City, Utah. For more newsfrom the 2013 Payments Summit, follow the Smart
Card Alliance on

Twitter @SmartCardOrgUSA hashtag #PaymentsSummit, Facebook at Smart Card
Alliance, and LinkedIn at Smart.Payments.

About the Smart Card Alliance

The Smart Card Alliance is a not-for-profit, multi-industry association
working to stimulate the understanding, adoption, use and widespread
application of smart card technology. 

Through specific projects such as education programs, market research,
advocacy, industry relations and open forums, the Alliance keeps its members
connected to industry leaders and innovative thought.  The Alliance is the
single industry voice for smart cards, leading industry discussion on the
impact and value of smart cards in the U.S. and Latin America.  For more
information please visit http://www.smartcardalliance.org.

###

CONTACT: Deb Montner
         203-226-9290
         dmontner@montner.com
         dmontner AT montner.com
         Montner & Associates Tech PR Agency
         www.montner.com

SCA
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