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©2014 MasterCard. Proprietary MasterCard Digital Enablement Service Tarusov Andrey

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Page 1: MasterCard Digital Enablement Service - bankseasonsbankseasons.ru/uploads/files/andrey_tarusov.pdf · • The MasterCard Digital Enablement Service ... Customer Interface ... ©2014

©2014 MasterCard. Proprietary

MasterCard Digital Enablement Service

Tarusov Andrey

Page 2: MasterCard Digital Enablement Service - bankseasonsbankseasons.ru/uploads/files/andrey_tarusov.pdf · • The MasterCard Digital Enablement Service ... Customer Interface ... ©2014

©2014 MasterCard. Proprietary

• The changing payments ecosystem

• Tokenization and Digitization

• The MasterCard Digital Enablement Service

- Program

- Benefits

- Players

• Cardholder experience

• Issuer onboarding and resources

• Appendix

PRODUCT

KNOWLEDGE

Contents

September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing

Page 3: MasterCard Digital Enablement Service - bankseasonsbankseasons.ru/uploads/files/andrey_tarusov.pdf · • The MasterCard Digital Enablement Service ... Customer Interface ... ©2014

©2014 MasterCard. Proprietary

Where is the payments ecosystem going?

September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing

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©2014 MasterCard. Proprietary

The changing ecosystem: connected devices blur the lines between physical and digital commerce

More Devices Consumers are browsing, shopping and transacting with all their connected devices – from mobile phones to wearables.

More Mobile These devices enable consumers to shop in-store, online, in-app and on-the-go.

More Secure Digital payments allow for more safe and secure payments for consumers.

The industry must keep pace with consumer expectations September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies»,

Beijing

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©2014 MasterCard. Proprietary

Our point of view is that…

Consumer card account numbers will only be visible

on a physical card, and will shortly be replaced

everywhere else by “payment tokens”

In the Cloud On a Mobile Device Stored Online

September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing

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©2014 MasterCard. Proprietary

Digital payments make the industry more secure

Credential Creation

Credential Storage

Credential Usage

Today: • 16-digit PAN

Emerging: • Personalized token

Today: • EMV • Mag stripe

Emerging: • Token on a mobile

device • Tokenized COF

Today: • Swipe • Dip • Tap (plastic)

Emerging: • Tap (device) • QR • Other…

September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing

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©2014 MasterCard. Proprietary

How do we enable digital payments to enhance the security of the ecosystem?

September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing

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©2014 MasterCard. Proprietary

and

Tokenization Digitization

By embedding card payment credentials directly into mobile

devices for simpler, more secure payment experiences in store, online and in-app

This is done through:

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©2014 MasterCard. Proprietary

The process of replacing a card’s primary account number (PAN) with an alternate

card number, or “token”

Tokenization

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Original Card Data Traditional 16-digit

card number and data

Token Standard account number

format, Dynamic data

Tokens are mapped to the funding account, leveraging the existing payments infrastructure and messaging formats for authorization and processing. The standard is managed by EMVCo

5XXX XXXX XXXX XXXX 5XXX XXXX XXXX XXXX

Tokenization standards leverage existing infrastructure

September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing

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©2014 MasterCard. Proprietary

The process of delivering tokenized card details and associated data onto a mobile

device and/or cloud

Digitization

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©2014 MasterCard. Proprietary

What are Tokenization use cases?

September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing

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©2014 MasterCard. Proprietary

Enabled devices can transact in-store, in-app or online

Contactless Consumer taps a mobile device with tokenized credentials in-store at Contactless terminals

In-App or Digital Secure Remote Payments (DSRP) Consumer uses secure token stored on mobile device for in-app payments

Card on File (coming in 2015) Consumer card information stored on a merchant site or in a Digital Wallet replaced with a token

September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing

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©2014 MasterCard. Proprietary

What are the benefits of Tokenization?

September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing

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©2014 MasterCard. Proprietary

Tokenization reduces fraud for the entire digital payments ecosystem

For Merchants For Issuers For Consumers

• Reduced chargeback risk

• Faster checkout

• More secure

• More payment options

• More ways to sell

• Opportunity to extend existing card business

• More secure transactions using EMV-like cryptography

• Fewer chargebacks

• New ways to pay from every device

• Better user experience

• Added peace of mind due to fewer fraudulent transactions

September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing

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©2014 MasterCard. Proprietary

So, what is MasterCard doing to enable tokenization?

MasterCard Digital Enablement Service

September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing

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©2014 MasterCard. Proprietary

Tokenization & Digitization services

Transactional services

Transactions

MDES is a new MasterCard platform that enables end-to-end tokenization and

digitization services “on-behalf-of” Issuers

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©2014 MasterCard. Proprietary

MDES Business Services

Mobile Device Configuration

Card Configuration

Card Availability

Identification and

Verification

Card Image Creation Service

Digital Card Generation

Transaction Mapping

Customer Interface

Transaction Detail

September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing

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©2014 MasterCard. Proprietary

Why should Issuers use MDES to tokenize their card

portfolios?

September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing

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©2014 MasterCard. Proprietary

Scalable

MasterCard provides

end-to-end OBO services for Customers

Centralized

Provides a centralized

token generation

and management

platform

Secure

Two factor authentication

and EMV-like crypto-validation

Access

Allows Issuers to connect to a

multitude of Digital Wallet

partners

MDES is a centralized platform that allows Issuers to digitize their MasterCard portfolios via a single point of management

September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing

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©2014 MasterCard. Proprietary

Who else will be interested in using MDES services?

September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing

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©2014 MasterCard. Proprietary

Traditional Card Issuers

Digital Wallet Operators (DWOs) • Mobile device original equipment manufacturers

(OEMs) • Device operating system providers • Other third parties providing digital wallets to

customers • E.g. MasterPass

Merchants

September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing

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©2014 MasterCard. Proprietary

What is the consumer digitization experience?

September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing

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©2014 MasterCard. Proprietary

1. Issuer enables ranges of eligible cards in the service

For Illustrative Purposes Only

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©2014 MasterCard. Proprietary

2. Cardholder installs wallet app

The cardholder enters their card details into the mobile wallet and requests to digitize their card

For Illustrative Purposes Only

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©2014 MasterCard. Proprietary

3a. MDES checks card eligibility

The mobile wallet confirms card is available for digitization

For Illustrative Purposes Only

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©2014 MasterCard. Proprietary

3b. MDES checks card eligibility

The mobile wallet confirms that the card is declined for digitization. The cardholder must contact the issuer.

For Illustrative Purposes Only

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©2014 MasterCard. Proprietary

4. Cardholder enters security code

The cardholder enters her card security code to initiate digitization

For Illustrative Purposes Only

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©2014 MasterCard. Proprietary

5. MasterCard validates card details

MasterCard sends an Tokenization Eligibility Request to the issuer to validate card details

and initiate digitization

For Illustrative Purposes Only

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©2014 MasterCard. Proprietary

6. Cardholder accepts T&Cs

The cardholder accepts the issuer terms and conditions and the digital “card” is delivered to her mobile device

For Illustrative Purposes Only

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©2014 MasterCard. Proprietary

7a. Issuer sends activation code (if required)

Where required, the issuer sends the activation code to the cardholder’s email address, card statement or phone by

text, push message or call

For Illustrative Purposes Only

Yellow Rule

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©2014 MasterCard. Proprietary

7b. Cardholder enters activation code (if required)

The cardholder enters the activation code sent by the issuer into their digital wallet

For Illustrative Purposes Only

Yellow Rule

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©2014 MasterCard. Proprietary

7c. Cardholder activates card (if required)

The cardholder enters their chosen PIN and confirms to verify and activate their digital card

For Illustrative Purposes Only

Yellow Rule

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©2014 MasterCard. Proprietary

8. Device is successfully digitized

The cardholder can now use her device to shop in-store and in-app

For Illustrative Purposes Only

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©2014 MasterCard. Proprietary

How will a consumer use their device to shop?

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©2014 MasterCard. Proprietary

1. Cardholder enters store

The cardholder chooses to buy a product or service

For Illustrative Purposes Only

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©2014 MasterCard. Proprietary

2a. Contactless payment

The cardholder taps her mobile device on the merchant's terminal to pay for a good or service

For Illustrative Purposes Only

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©2014 MasterCard. Proprietary

2b. In-app payment

The cardholder chooses to buy a good or service in a merchant app. She selects a card from her digital wallet,

checks the transaction amount and enters the PIN associated with the card

For Illustrative Purposes Only

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©2014 MasterCard. Proprietary

3. Authorization response

The acquirer/merchant sends the authorization response to the cardholder’s mobile device

For Illustrative Purposes Only

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©2014 MasterCard. Proprietary

4. Transaction complete

The Digital Wallet displays the transaction details on the cardholder’s mobile device

For Illustrative Purposes Only

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©2014 MasterCard. Proprietary

How does an MDES transaction work?

(behind the scenes view)

September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing

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©2014 MasterCard. Proprietary

Transaction overview slide

For Illustrative Purposes Only

Wallet

September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing

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©2014 MasterCard. Proprietary

How will Issuers make portfolios eligible for

digitization?

September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing

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©2014 MasterCard. Proprietary

Immediate considerations for Issuers looking to implement MDES

• Define Identification & Verification (ID&V) strategy (Green, Yellow, Red Rules)

• Which interface for Customer Support tools: Build API or use MasterCard Connect

• Define CVM priorities

• Define reporting requirements and options

• Define Fraud Rules

• BIN ranges that will be eligible for tokenization

• Digital card images • T&C’s for cardholder

acceptance • Requests for employee

access to MasterCard Connect portals - Onboarding - Customer Service - PA Reports

• Work with processor to confirm support of MDES network messages

• Train internal fraud chargeback team on MDES implications

• Enable internal employee workstations to access API or MC Connect tools

• Train internal customer service teams

• Define marketing and consumer education strategy

Decisions Submit to MasterCard Internal Prep

September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing

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©2014 MasterCard. Proprietary

MasterCard Connect

Issuers access and enable MDES via MasterCard Connect at www.mastercardconnect.com

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©2014 MasterCard. Proprietary

Required information

The issuer inputs required to enable MDES include:

Contact information for the issuer personnel

enabling MDES

Billing ICA number

Issuing country

Billing currency

September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing

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©2014 MasterCard. Proprietary

Estimated issuer enablement completion time: 30 minutes

Issuer Enablement flow

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©2014 MasterCard. Proprietary

What Customer Service tools will be available?

September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing

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©2014 MasterCard. Proprietary

Customer Service Portal and API

The Customer Service Portal allows issuers and WPs to:

• Investigate and resolve cardholder issues

• Perform specific actions for cardholders, such as initiate re-provisioning, suspend tokens, etc.

Issuers register for the Customer Service Portal via MC Connect

The Customer Service API allows Issuers and WPs to:

• Integrate their own environment with MDES

The API is exposed through the MasterCard Developer Zone

September 22, 2014 VIII Forum «Bank Seasons. Innovations in Payment Technologies», Beijing

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Thanks !