increasingly want to do their banking online and on-mobile, and
with the right partner, banks can deliver highly personalized,
convenient services. With Gemalto’s world leadership in both
financial services and mobile communications, plus our local
knowledge and capacity for innovation, we’re ideally placed
to support these diverse demands.”
EMV: trust and convenience
Banks are adopting the EMV standard for their payment cards in more and more countries worldwide. For some, like India, China, Brazil and the US, the potential for growth is substantial (see ‘Our opportunity’ page 17). One compelling reason for doing so is that EMV cards are accepted globally. By contrast, travelers often find they cannot use magnetic stripe cards abroad because of fraud concerns. This was a critical factor for the US Silicon Valley Bank (SVB) when it selected us to provide EMV cards for its customers – as well as consulting services, personalization and card delivery. By migrating to EMV, SVB is able to address this growing issue for its cardholders, many of whom travel frequently. Multiple benefits
It will see further benefits too – like those revealed by a study undertaken in 2011 for another of our US clients, the United Nations Federal Credit Union (UNFCU). They launched our chip cards in 2010 and after five months in circulation, revolving balances rose 20%, card applications were up over 150% and booked credit lines soared over 380%. In response, UNFCU is slated to launch another EMV product in the first quarter of 2012. Contactless speed
Meanwhile in South America, Banco Santander Brasil, one of the largest financial institutions in the world, selected us to deploy the country’s first contactless EMV payment system for university students. This represents the evolution of the University Smart Card, which already has 5 million users in over 200 universities worldwide. Contactless payment offers exceptional speed and convenience especially for low-value transactions. In addition, it provides a stepping stone to more advanced payment programs, such as those using contactless NFC technology in cellphones.
Se gm en ta l r ev ie w 33 Secure Transactions
Success in Italy:
contactless payment
In June 2011, Intesa Sanpaolo began rolling out our specially designed contactless prepaid cards for tourists. Intesa Sanpaolo is among the top banking groups in the Eurozone and a leading bank in Italy, offering its services to more than 11 million customers. The Carta Esperienza cards offer EMV-compliant transactions, speedy contactless payments and fast-track access to public transport and cultural venues, all in one product.Tourists celebrating the 150th anniversary of Italy’s unification enjoyed the speed and convenience of contactless payments in shops, as well as the security of EMV for conventional payments and online purchases. They were also offered speedy access to museums and cultural events.
Gemalto was selected because of our expertise in EMV contactless payment worldwide, as well as our extensive experience across the banking, transport and access control sectors.
Also in South America, we were later selected by Colsubsidio, the major compensation fund in Colombia, to supply them with the country’s first multi-application EMV cards (see further details on page 49).
These successes can be partly attributed to the support we offer the EMV industry behind the scenes. For example, in early 2011 we became MasterCard’s preferred emergency card replacement vendor worldwide. The service enables premium cardholders to receive their new card within 24 hours, even when on the move, anywhere in the world. Once notified of a lost or stolen card, MasterCard taps into our network of banking service centers and securely communicates the cardholder’s information. We then do everything necessary to supply a replacement, even if this means delivering it by hand. Mobile payment
Payment using a mobile handset is growing fast, but is naturally constrained by the number of handsets adapted for this use. One quick solution comes in the form of stickers which are attached to the back of any mobile phone. In 2011, UniCredit Slovakia selected our contactless stickers for its first commercial mobile payment deployment. The microprocessor-
based devices are certified by MasterCard and 1 55% of India’s adults are not served or under-served by
the finance sector. Source: ‘The Socio-Economic Impact of Mobile Financial Services, Analysis of Pakistan, Bangladesh, India, Serbia and Malaysia’ The Boston Consulting Group (April 2011).
once stuck to a handset can be used to make contactless payments under €20 (larger amounts require a PIN code).
Micro-finance
The end of the year was marked by the remarkable announcement that some 10 million customers of FINO (Financial Inclusion Network & Operations) in India are now using multiple micro-banking applications on our smart cards. More than half of India’s adults today are not served or are under- served by the finance sector1, creating an
immense need among its population of 1.2 billion. FINO is a business and banking technology platform combined with an extensive delivery service, and has some 42 million customers in India.
Our smart cards are part of FINO’s branchless banking program. Transactions undergo biometric authentication, and are processed by FINO’s business correspondents who travel by bicycle or motorbike to deliver doorstep services using a smart card reader. Each FINO card can store up to 15 types of application such as deposit remittances, savings, loans, insurance and ePurses. FINO’s solution has already enabled the implementation of various social and Government schemes, and Gemalto is committed to supporting them and growing this new business potential.
Transport
Our contactless mass transit payment cards are extensively used in major conurbations around the globe. In 2011, our portfolio was enhanced with the world’s first customized picture card for travel for Stockholm public transport (SL). Around 700,000 commuters use SL services every day.
With our solution, they can create a highly personalized card with their own photo. By using our interface on SL’s website, they can upload their chosen photo, select a visual and order their card. This pleasurable, easy and convenient solution has enjoyed very high adoption rates.
Security
Our performance
1For more information see pages 147-149