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Contactless Smart Card Technology - GRP 4
Contactless Smart Card Technology - GRP 4
Contactless Smart Card Technology - GRP 4
CARD TECHNOLOGY
ASSIGNMENT #1 PRESENTATION
http://www.bergengroupind
ia.com/business_vertical/5_
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AGENDA
Feature &
Performance
Overview
Stakeholders Perspective
Competition analysis
Commercialization
New Innovations
Market Success
SWOT Analysis
Effect on Competition
Industry Impact
OVERVIEW
The topic
Contactless Smart Cart
An innovation relating both Manufacturing and
Information
Industry need
Anti-fraud features: Magnetic card fails to provide it.
Memory card improves situation
Versatility: Memory card falls short for limited
space; cannot be reprogrammed; good for pre-paid
only
Data security: Memory card has questionable data
security. Industry introduces Smart card
Faster Technology: Contact CPU Smart card fails in
this aspect
Common applications
Conveying quick, secure exchanges such
as building access
Government or, corporate recognizable
proof cards (e.g. Passport, ID)
Transportation fare pass
Retail transactions (e.g. Visa, MasterCard)
TECHNOLOGY
Card requires only close
proximity to reader
Both card and reader have
antennae
The card and the reader
communicates through RF
Battery-less card; derives
power for internal chip from EM
signal
Range 10-50 cm
Reliability
Temper resistant encrypted
data
Portability
Convenience
53% faster than contact card
STAKEHOLDERS PERSPECTIVE
20% of consumers use contactless payment
Speed and Convenience are biggest factors
Chase reports 30-40% less time at POS
American Express reports 63% faster than cash, 53% faster than
magnetic/pin card
COMPLETION ANALYSIS
Innovation Security
Magnetic Very low;
Strip Card easily
duplicated
Memory
Card
Biometric
Cost
$0.25$0.75
Low; easily
$1.00duplicated;
$2.50
cannot be
tracked by oncard identifiers
Very difficult
to forge
$200$250,000
Advantages
Data can be altered, modified and
rewritten
Inexpensive to replace
Suitable for pre-paid, disposable-card
applications
Disadvantages
No pin protection; when lost/stolen, very high risk of fraudulently
Data can be harmed when exposed to magnetic fields
No CPU - therefore has limited functions
Cannot be reprogrammed
Contact
CPU Card
Encrypted
technology;
cards cannot
be cloned
Microprocessor controls data handling and Time consuming: insert card, enter pin; not suitable for high traffic
memory access
operation
Can add/delete or manipulate memory
Contactles Encrypted
s CPU
technology;
Card
cards cannot
be cloned
$10.0$30.0
COMMERCIALIZATION
Telecommunications
Banking
Health care
Transportation
Transportation
Impact:
Place
JPMorgan
Chase
New
York
Citibank
London
is expecting to issue
over 400,000 cards
with Visa Contactless
capability
Access control
Keybank
Well Fargo
Bank
Seoul
Experience:
10% off when
more than $15
was loaded on
the magnetic
card
paid by Oyster
cards
Impact:
20% increase
in bus and
subway
ridership
2.1 million
smart cards
issued
free transfer
proportion of
between bus
smart card use
and subway for for bus is over
smart-card
90% and 75%
users
for subway use
(Sources form: Marie, P. Martin, T &Catherine, M. (Nov 2009). Smart card data in public tra
MARKET SUCCESS
Global addressable market for contactless is
$2.9Trillion/year.
Revenue generated from contactless smart card
market will grow at a CAGR of 30.31% over the
period 2014-2019 globally
Globally, 20% of consumers use contactless
payment
Contactless payments market is forecasted to grow
from $4.32Billion (2013) to $9.88Billion (2018)
1Billion contactless payment cards will be shipped
globally in 2016, an increase of 170Million from
2010
INDUSTRY IMPACT
Increased Transaction Security with encryption
Major reduction in transaction time over cash or pin transactions
Easy payment in public transportation systems
Vast savings in cash handling expenses
Advanced analytic use tracking capabilities
Security access control
SWOT DIAGRAM
EFFECT ON COMPETITION
NEW INNOVATION
MOBILE PAYMENTS
APPLE PAY
GOOGLE WALLET
SAMSUNG PAY
SUMMARY
The most important card payment innovation in the last decade
New, safe way to pay that provides benefits to consumers, merchants,
and issuers
A technology allowing creativity and differentiation
An innovation leading up to numerous value-added applications
Exponentially growing market
What the future holds
SMART
CARDS
Q&A
ANY QUESTIONS?
Group Members: Samiya Jahan , Vuk Pejovic, Brett Lloyd & Shigeng Zhao
REFERENCES
http://vision.visaeurope.com/report-global-contactless-market-to-grow-33-5-to-2018/
http://www.toggletime.net/contactless-payment-using-contactless-cards/
http://www.mobilepaymentstoday.com/articles/mobilizing-emv-in-the-us/
http://www.journal.au.edu/ijcim/2004/jan04/jicimvol12n1_article2.pdf
http://www.smartcardbasics.com/smart-card-types.html
http://www.smartcardalliance.org/publications-contactless-business-benefits/
L. A Mohammed, Abdul Rahman Ramli, V. Prakash, and Mohamed B. Daud. Smart Card Technology: Past,
Present, and Future. Online source: http://www.journal.au.edu/ijcim/2004/jan04/jicimvol12n1_article2.pdf
Zouhaer MCHIRGUI.(2004). The economics of smart card industry: Towards coopetitive strategies.
Online source: http://www2.druid.dk/conferences/viewpaper.php?id=2528&cf=17
Marie, P. Martin, T &Catherine, M. (Nov 2009). Smart card data in public transit panning: a review.
CIRRELT.
http://www.smartcardalliance.org/
"Security of Proximity Mobile Payments", May 2009
"An overview of smart card technology and markets", Mark Furletty, April 2002