Multi-Application Strategy

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Multi-Application Strategy

• Johan Ras
• Visa International

21 August 2002Toronto, Ontario, Canada
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The Future of Universal Commerce Anytime,
Anywhere, Anyway
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Delivering Universal Commerce through Smart Card
Technology

• Ensuring customer service quality through global
  chip standards
• EMV, CEPS and GlobalPlatform
• Establishing baseline infrastructure by
  implementing Visa Smart Debit/Credit in national
  markets
• Support Debit/Credit chip migration to reduce
  fraud
• Enabling development and support of value-added
  services that drive payment volume and help
  Members take advantage of business opportunities

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Vision for Multi-application Smart Cards

• The multi-application smart card offers a variety
  of benefits to Visa Members, merchants and
  cardholders

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The Challenge and the Goal

• Meet the needs of everyone Issuer, merchant and
  cardholder

Loyalty Program Development
Merchant
Loyalty Program Management
Issuer
Merchant Selection
Card-holder
Personal Information Management
The approach must enable Issuers to strengthen
the relationship with their customers by
delivering valuable utility at the lowest level
of effort.
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Driving Support for Multi-Application Smart Cards

• Establishing GlobalPlatform as the preferred
  multi-application platform for Visa Members
• Leveraging GlobalPlatform Java Card technology in
  the marketplace
• Furthering strategic partnerships to improve the
  business case and speed implementations through
  Visa Global Smart Partner Program
• Cost-effective GlobalPlatform cards and support
  systems
• Each region working with value added service
  vendors for local market needs
• Setting standards with industry organizations
  (e.g. IATA)

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Visa Low Cost Smart Card Program
Global Platform Combi card OP DI/16
Global Platform OP PK/16
Global Platform OP DES/16
Functionality
Single app VSDC PK
Java / OP Triple DES Public Key Contactless
64k ROM 16k E2
Single app VSDC DES
Java / OP Triple DES Public Key 64k ROM 16k E2
Java / OP Triple DES 48k ROM 16 E2
SDA DDA
SDA
2.70 (was 2.89)
3.37 (was 3.56)
3.91 (was 4.67)
0.99
1.99
Max Price (US) white plastic
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Most Common Multi-application Smart Card Programs
Today
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Multi-app Project Highlights
Australia

• Key drivers new business opportunities,
  multi-application, threats from competitors
• ANZ began converting Visa credit card portfolio
  to chip in November 2001 and introduced Secure
  Internet shopping
• Products FIRST in Australia, ZED in New
  Zealand
• Approximately 1 million GlobalPlatform cards and
  50k POS devices by end 2002

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Multi-app Project Highlights
Korea

• Five credit card issuers co-branding with SK
  Telecom to offer dual interface cards with VSDC
  payment and contactless transit
• Can also be used in dual-slot mobile phones
• Expected to issue approximately 2 million cards
  in next 12 months
• Discussions underway to migrate existing transit
  cards to the GlobalPlatform dual-interface cards
  in Seoul and Pusan

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Multi-app Project Highlights
U.S.

• smart Visa issuance
• 10 MM cards issued by end 2001
• Over 12 MM cards projected by end 2002
• 1520 of all Visa cards by 2006
• 4 Members issuing cards
• Target began issuing in Nov. 2001
• Will begin acceptance by end 2002
• Approximately 3-4 more banks expected to
  implement
• Focusing on chip acceptance at POS and developing
  smart Visa Rewards loyalty program

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Projecting 70 Million Visa EMV Smart Cards by
end 2002
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Thank you

• Johan Ras
• Visa International