michelle thornton navigating emv and apple pay

SEIZE THE NOW

FOCUS ON SECURITY 2015SIX ESSENTIAL QUESTIONS FOR CREDIT UNIONS

DIRECTOR OF PRODUCT DEVELOPMENT, CO-OP FINANCIAL SERVICES

THORNTONMICHELLE

IS SECURITY A HOT TOPIC?

1.

STILL INSECURE?

Source: Identity Theft Resource Center

783U.S. Data Breaches in 2014

A Record High

100Medical & Healthcare Records

Stolen This Year

MILLION

400,000Financial/Banking/Credit Records Stolen So Far in 2015

Eva Velasquez, ITRC

The ubiquitous nature of data breaches has left some consumers and businesses in a state of fatigue and denial.

DAZED AND CONFUSEDConsumers who think mobile payments are the safest way to pay in store.(Tripwire, 2014)2%

Adults “agree” or “strongly agree” that consumers have lost control over how personal information is collected and used by companies. (Pew Research, 2014)

91%

MOBILE INHIBITION

36% 15% 22%

Would not try mobile payments because of security concerns

Had used a mobile wallet or were thinking of doing so

Were concerned their financial data might be stolen.

ARE YOU TRUSTWORTHY?

WHERE DO WE FOCUS?

2.

HAS THE CONVERSATION CHANGED?

EMVSECURITY

MOBILE

CARDS

EMV October 1, 2015 is the liability deadline

APPLE PAY

Fast start, steady growth

TOKENIZATION Set to expand beyond Apple Pay

WHAT’S THE DIFFERENCE?

• Security for plastic cards• Authenticates using cryptography• Deters counterfeit cards• Uses a processing chip implanted

in the card

EMV TOKENIZATION

• Security for digital environment (online, mobile)

• Replaces card data with “tokens” that can’t be used by others

• Also uses cryptography• Powers security in Apple Pay

Source: Smart Card Alliance

THE YEAR OF EMV• 575 million EMV chip cards will be issued in the U.S. by the end of 2015 –

up from 120 million at the start of the year. (Smart Card Alliance)• EMV merchant terminals: 59% by 2015 (Aite Group)• Liability shift: October 15• Primarily credit: debit much further behind

APPLE PAY THEN & NOW

700,000 Locations

2,500 Financial Institutions

Coming Soon to Vending Machines

BY THE NUMBERS4 IN 10 IPHONE 6 USERS HAVE TRIED IT

Nearly half of those who haven’t expect to in the next six months

THREE-QUARTERS OF THOSE WHO’VE TRIED IT MADE A SECOND APPLE PAY PURCHASE AT THE SAME LOCATION

Used at Physical Location

43%

Used in Store and In-App

37%

Used In-App Only

19%

A+of Apple Pay users rated their satisfaction4 or 5 on a five-point scale

98%

A FUTURE FOR TOKENIZATION?

IS THAT ALL THERE IS?

• Biometrics: Are Passwords Passe?• Analytics as a tool• CardNav – Card Controls and Alerts

WHICH ONE DO YOU CHOOSE?

3.

FALSE QUESTIONThe answer is “both.”

HOW DO I PRIORITIZE THESE TWO TECHNOLOGIES?

WHAT DO OUR MEMBERS NEED?

4.

se·cu·ri·ty (səˈkyo͝orəodē/) Noun

1. the state of being free from danger or threat.2. the state of feeling safe, stable, and free from fear or anxiety.

DEMYSTIFY FRAUD

• What is it?• Where is it?• Why are you introducing it?• What can and can’t it do?• How do we use it?

TECHNOLOGY EXPLAINED

IS THIS CREDIT- UNION-READY?

5.

YES.

www.co-opfs.org/CardPayments

GET THE LATEST ON EMV, TOKENIZATION AND APPLE PAY:

ARE THERE COMPLICATIONS?

APPLE PAY & FRAUD

HOW DO I GET STARTED?

6.

SET YOUR PRIORITIES

• Encourage mobile engagement?• Improve member experience?• Reduce fraud losses?• Position yourself as an advocate?

WHAT ARE YOUR LARGER GOALS?

CREATE A STRATEGY

GET HELP

GET READY TO GO – AND GO

DISCUSSIONMASON OSWALDOperations Card Services ManagerIdaho Central Credit Union

JEAN NELSONeBranch ManagerMissoula Federal Credit Union