EMV Chip Cards, NFC and QR Codes are all new technologies in the payments landscape that can have an impact on financial institutions. With the payments industry continuously growing, credit unions need to think differently about their credit business and how this growing technology can affect their members. Why are these technologies important for my credit union? How can I create opportunities for my business with these technologies? In this recording, you will learn more about how your credit union can adapt to what the future forecast looks like for this growing industry. Learn more at: www.nafcu.org/vantiv

1. The Ever-Changing Payments Landscape:
EMV & Mobile Payments
Presented by
Dean Seifert
Senior Vice President
Product Development & Innovation
National Association of Federal Credit Unions l www.nafcu.org

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3. WHAT WHY
are all of these are these
new technologies
technologies? important to my
institution?
HOW
do I position my institution
to create opportunity from
these technologies?
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4. The What
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5. First – Let’s Baseline on Terms
Stands for: Europay, Mastercard Visa
EMV Global standard for the
inter-operation of circuit cards
Stands for: Near-Field Communications
NFC Set of standards for wireless
communications between mobile devices
QR Stands for: Quick Response Codes
A set of standards for encoding data
Codes in a two-dimensional barcode
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6. EMV
Foundation for Next Generation of Payments
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7. EMV: A Global Reality
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8. EMV: Changing Cardholder Behavior
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9. EMV: Building a Card Application
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10. EMV: Choosing an Interface
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11. The Timeline: What’s Coming When
VISA MasterCard Discover
April Acquirers and sub- Acquirers and sub- Acquirers and sub-
2013 processors (Mandate) processors (Mandate) processors (Mandate)
Maestro ATM liability
shift1
Oct Merchant Account
2013 Data
Compromise(ADC)
relief (Phase I)
Oct US Liability Shift1 US Liability Shift2 US Liability Shift
2015 Merchant ADC Relief
(Phase II)
Oct Automated Fuel AFD Liability Shift2 AFD Liability Shift
2017 Dispenser (AFD)
Liability Shift1
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12. The NFC Ecosystem…Who Pays?
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13. QR Codes: Coming to a
Shopping Experience Near You
Retail / In-Store Restaurant Print Ads
Pay Online Pay Bills ATM / Cash Access
Ecommerce
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14. Let’s Talk Mobile
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15. Mobile Payments: The Reality
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16. What We Hear from FIs and Retailers
• FI’s and Retailers don’t want another brand between them and
their customers
• New intermediaries in proposed NFC-based ecosystems make
the business model nonviable
• Solutions that require new phones and new POS hardware will
take many years to reach critical mass
• Winning solutions will need to overcome the real and perceived
security and data ownership issues
• Monetizing consumer payment transactions via time & location
sensitive ads & offers is the big prize
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17. The Why
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18. EMV: Why Now?
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19. EMV: Travelers & Denial of Service
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20. Fraud Trends in Canada
2008 – 2010
Holiday Spikes
No Holiday Spike
Rapid Fraud
Decline
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21. Fraud Trends in US
Significant Cross
Border Fraud
Growth in the US
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22. EMV: Fraudsters Target the US
• The US…
• Accounts for 47% of global card fraud
• Generates 27% of total card volume
• Global average fraud rate is 4.5 bps
• The US should be in the 10 bps range…
and the majority is domestic fraud
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23. Consumers want a
simpler shopping journey
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24. Solutions to Shop…Not Just Pay
Pre Purchase Post
Pay
• What is out • Where can I • What did I get?
there? pay?
• If I don’t have it
• Where can I • How can I pay? now, when it is
find it? coming?
• What’s my
• Who will give preference? • What benefits can I
me value? expect now + in
future?
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25. Mobile Payments
Strategic Considerations
• Standards vs. entrepreneurs
• Battle for the NFC Secure Element
• NFC vs. Cloud
• Next Generation POS Systems
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26. Mobile Payments – Market Makers
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27. The EMV Payoff
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28. The How
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29. Enterprise Impact of EMV
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30. Traits of a Winning Payment System
Reliability
Security
Ease of use
Wallet functionality
Acceptance
Device availability
Beyond the Payment
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31. Next Generation Payments
Top 10 To Do List
10. Assign an Expert
9. Get to know your Processing Partners
8. Don’t be afraid to ask for help
7. Know your company’s limits
6. Upgrade your cards “naturally”
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32. Next Generation Payments
Top 10 To Do List
5. Build a Traveler program
4. Ask the hard question
3. Place bets - more than 1!
2. Be consistent with your Brand
1. Remember your Members
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33. Thank You
Dean Seifert
SVP – Product Development & Innovation
dean.seifert@vantiv.com
(720) 295 0110
@deanseifert
National Association of Federal Credit Unions l www.nafcu.org