EMERGING PAYMENTS Breakout and Workshop
Agenda
Why do you need a digital payments strategy? Today - Your members are paying using digital and mobile wallets. If your cards are not enabled in these wallets, then your members are using some other card. Percent of 3.5% eligible transactions made using Apple Pay. 70+ Number of U.S. FI s that now support Samsung Pay. Top of wallet Top of phone 11M Number of Visa Checkout users
Why do you need a digital payments strategy?
Why do you need a digital payments strategy? Source: Accenture 2015
WHAT GOES INTO A DIGITAL STRATEGY?
Mobile Banking Highest Priority is a full feature mobile banking app and mobile website Needs to work on tablets, phablets, smartphones; landscape or portrait Remote Deposit Capture (mrdc) is now tablestakes Push Notifications for fraud alerts, new products (e.g. car loans), deposit status, news Mobile Banking is the lead-in to behavioral change for mobile payments Smartwatch apps 72% U.S. 26% Smartphone 51% Of adults now have smartphones. owners use mobile banking. Mobile Banking Users have deposited a check using the phone s camera.
Mobile Banking Watch apps By the end of 2016, 9% of U.S. population will own a smartwatch. Source: NPD April 2016 A few FIs, large and small, are taking advantage with banking watch apps Credit Unions will need to be on Android, iphone and watches to stay competitive.
Biometrics Fingerprints Retinal Facial Geolocation Combination? Driven by Mobile Handset Hardware Speed Streamlined Especially with Proximity Payments Accuracy
Mobile Account Opening Mobile account opening Should be easy and welcoming Start on one channel, continue another (e.g. in branch) But not start over! Data entry is painful Every potential in this channel has a camera on their phone Data capture front and back of license Perform Data validation ID verification back office Case study results: 50% increase in approvals form-fill accuracy Eliminate paper with PII Reduction in falsified applications (images of DL) 70%of likely applicants say they would prefer to submit a digital application. 12%of all banking customers in the U.S. will switch Financial Institutions this year. 21%of all millennials will make the switch in 2016
Digital Wallets E-Commerce is now 10 percent of total retail sales Growth in online purchases outpacing growth of traditional brick and mortar Hundreds of thousands of merchants offer Visa Checkout Both are targeting high-spend merchants Open to any card, credit or debit (i.e. Visa Checkout not limited to Visa-branded cards)
Mobile Wallets Consumers are gaining familiarity with mobile banking and mobile payment, primarily for its convenience Do not expect mobile payments to be a revolution. It s a gradual change Apple or Android*? iphone users tend to spend more But there are more Android users * The correct answer is All of the above
EVERYTHING YOU NEED TO ENROLL IN WALLETS
Visa Issuers 1) VDEP Issuer Participation Agreement No fees from Visa, defines processor 2) Apple Pay Terms and Conditions Defines Apple service marks Apple Fees: 0.015% of credit; $0.005 for debit Network issues monthly invoice Requires 95% of portfolio to participate 3 year term w/ 1 year auto renewal Complete review available in CSCU Apple Pay Contract Summary 3) VDEP Addendum for Samsung Protects Samsung IP, brand, service marks No steering of cardholders wrt various wallets 4) VDEP Addendum for Google Android Pay Majority of eligible Visa-branded cards Requires at least two forms of step-up authentication and verification (ID&V) E.g. One-time passcode, online banking validation, etc. Mutual termination for convenience 5) Visa Token Service - Service Description Guide (info only) 6) CSCU Apple Pay Contract Summary (info only)
MasterCard Issuers - no existing wallets Scenario 1: Issuer is signing up for MDES, MDES Express, and Apple Pay 1) MDES/MDES Express Enrollment Instructions Info Only MDES/MDES Express 2) MDES Express Standard Terms 3) MasterCard Digital Enablement Service and MasterCard Digital Enablement Express Enrollment Form Signature Required 4) MasterCard Digital Enablement Service Issuer Enrollment Information Form Apple Pay 5) Apple Pay Platform Token Implementation Plan - Signature Required 6) Apple Pay Platform Issuer Terms and Conditions - Signature Required 12) CSCU Apple Pay Contract Summary (info only) Samsung Pay 7) MasterCard Express Samsung Pay Rider - Signature Required 8) Samsung Pay Token Implementation Plan Android Pay 9) MasterCard Express Android Pay Terms (Rider) - Signature Required 10) Android Pay Issuer Onboarding Guide** 11) Android Pay Token Implementation Plan**
MasterCard Issuers previously enrolled in Apple Pay Scenario 2: Issuer is signing up for Samsung Pay and Android Pay. Already has (or doesn t want) Apple Pay 1) MDES/MDES Express Enrollment Instructions Info Only MDES/MDES Express 2) MDES Express Standard Terms 3) MasterCard Digital Enablement Service and MasterCard Digital Enablement Express Enrollment Form Signature Required Samsung Pay 7) MasterCard Express Samsung Pay Rider - Signature Required 8) Samsung Pay Token Implementation Plan Android Pay 9) MasterCard Express Android Pay Terms (Rider) - Signature Required 10) Android Pay Issuer Onboarding Guide 11) Android Pay Token Implementation Plan
MasterCard Issuers Enrolling in Apple Pay only Scenario 3: Issuer is signing up for Apple Pay (no MDES Express). 1) MDES/MDES Express Enrollment Instructions Info Only MDES/MDES Express 3) MasterCard Digital Enablement Service and MasterCard Digital Enablement Express Enrollment Form Signature Required 4) MasterCard Digital Enablement Service Issuer Enrollment Information Form Apple Pay 5) Apple Pay Platform Token Implementation Plan - Signature Required 6) Apple Pay Platform Issuer Terms and Conditions - Signature Required 12) CSCU Apple Pay Contract Summary (info only)
FIS Standard Pricing 1 st Wallet: $7000 Each additional. Wallet: $3000 Each token provisioned: $0.05 Step-Up Authentication: $100/month Optional Service Call Center (Yellow Path): $50/month, $1.50/minute Additional Fees Debit Network Setup: $500/network $250 per distinct card art after 1st
Visa Checkout To enroll, email regionalclients@visa.com or get in touch with your Visa AE No fee from Visa Nominal fee from FIS to upload card art Project takes 2-4 weeks Enrollment in Visa checkout does not modify any liability shift rules (different than Verified by Visa) Benefit of enrollment branding. Cardholder will see the credit union s card art during the transaction. At least once, but typically 3 times if the cardholder is a returning user : on the button, in the carousel, and on the order confirmation page.
DISCUSSION
THANK YOU Tom Davis tdavis@cscu.net 813-901-4552 Lou Grilli lgrilli@cscu.net 888-930-2728