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The VeriFone EMEA Vision

Mr. Chris LomaxHead of Marketing - EMEA

Single European Payments Area

SS PAPA

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What does SEPA mean?

SEPA is defined in two ways– Single Euro Payments Area– Single European Payments Area

• It is actually both

SEPA definitions are being driven by the EU Commission• Legal and regulatory frameworks

Governance for card payments (and other things):• Through the European Payments Council

Where will SEPA impact?• 25 EU members +

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SEPA Cards Framework

Documentation can be found at• www.europeanpaymentscouncil.org

The Framework is aimed at building an environment in which there are no technical, legal or commercial barriers to stand in the way of cardholders, banks and merchants choosing and using SCF compliant payment and ATM access card products

Approved Framework published 8 March 2006 as version 2

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Roles and responsibilities of SEPA banks

Within the Framework in order to be considered “SCF compliant” SEPA banks have to exert their responsibilities under the following roles so that:

As an EPC Member (and/or member of an Association) • SEPA banks commit to:

– Implement the dispositions of the Framework – Association members to actively promote this Framework

• SEPA banks acknowledge that preventing and fighting card fraud is an underlying objective of this Framework

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Requirements - Acquirers

SEPA banks who act as acquirers or equivalent processors commit to offer to merchants, from 1 January 2008 onwards, the option to handle payment card transactions generated by one or more SCF compliant card schemes

Banks commit to make available to merchants information on the benefits of accepting SCF compliant cards and actively promote the benefits of migrating to an EMV certified terminal to enable them to accept SEPA cards

SEPA banks commit to ensure that the ATMs they deploy (directly or indirectly) accept SCF-compliant cards of all schemes of which they are participants, and that their card processors support the full compliance for ATMs and PoS

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Requirements - Cardholder experience

Scheme rules must enable and facilitate for cardholders a consistent service experience throughout SEPA

Where several payment applications are contained in the card and are supported by the terminal, cardholders have the choice of which application to use

Prevalence at PoS for a particular payment application may not be mandated by a card scheme

At a minimum, convenience for cardholders will be defined through consistent experience at point-of-sale, ATMs and unattended terminals

The basic transaction flow will be defined by each scheme

ATMs will offer English as well as the national languages and any other languages regarded as appropriate

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Interoperability domains

SEPA interoperability must be ensured in these 4 domains: • Cardholder to terminal interface• Cards to terminal (EMV)• Terminal to acquirer interface (protocols or minimum requirements)• Acquirer to issuer interface, including network protocols

Such interoperability will allow the different market options described in this Framework to exist

The Framework does not mandate any market option or infrastructure

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Certification principles

A common process for the certification of terminals, cards, and network interfaces will be defined

Card schemes commit to support and implement the resulting process

Under this process, any card, terminal, and/or network interface, certified by an accredited body can be deployed and used anywhere throughout SEPA

The entity providing certification services is outside any scheme, and works across schemes

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Terminal certification

Card schemes commit to make available to SEPA banks and card schemes their terminal security requirements

Card schemes will engage in mutual recognition for type approval

A terminal certified for SEPA transactions by a certification body in one SEPA country can be deployed in any SEPA country for acceptance of SEPA cards across all SCF compliant schemes

There may be no constraining, local requirement

Schemes may continue to perform post-certification approval• Schemes cannot withhold approval to prevent market access

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Our proposals - SEPA

Single security standard

Need for standardised cardholder interface process

No need for standard host interface message

Absolutely no TMS, or File Transfer standards needed• SEPA should not try to encompass all GIE CB 5.2!

SEPA Governance• The EPC provide the management and guidance• The EPC should open membership to technology vendors• That standards working groups are formed under EPC• Non-competitive environment

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Impacts of SEPA on acquirers

Acquirer revenues• According to some, these will be reduced• Increased available market

Scheme revenues• According to the schemes, these will be reduced

Competition among acquirers• Will increase across the EU• Probability is that the smaller acquirers will be absorbed

Standardised EFTPoS• National standards will disappear• Migration to a common SEPA standard will be slow but steady

Vendor competition• Numbers of devices will decrease but deals will get bigger

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Impacts on VeriFone and Our Partners

Single standards across Europe• The highest possible levels of payment security• But no need for many national applications

International acquirers • This could mean fewer customers• But much bigger deals

Internal EU borders will begin to come down

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Thank You

SS PAPA

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Mr. Dave TalachHead of Product Management

VeriFone Software Strategy

EMEA VIP Forum2006 – Athens, Greece

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Agenda

VFI SW Strategy…

• Proactive Development Support and Training

• SW Abstraction Model

• SW Roadmap• Updated Security

• New Advanced Terminal Mgmt Options

• Enhanced Product Configurability

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Development Support Services

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DevNet

Information portal for your development staff.

Corporate information currently available

Available to all developers with active Verix/Verix V DTK maintenance agreement

Benefits:

Access to latest SW releases

Additional technical support

Latest VFI development news

Discussion groups

Automatic email notifications

Development Resources

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Training Training required for development support

Trainings offered

Localized training provided by SS&S

Web Based Training

Custom Designed Training & Consultancy

Documentation/Developer Handbooks offered online

Writing & maintaining platform independent source

Introduction to the Ethernet media on Vx570

Writing a “Power Save Friendly” application

Development Resources

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SW Abstraction from HW

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VFI SW Benefits

Enhanced Comm Library Benefits

Provide application portability across multiple Verix V solutions

Application isolation from HW changes

Re-use existing applications to easily enter new markets

Reduce costs and time to market required for new applications

Includes CommServer, UCL, TCP/IP, IPDL

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Benefits: Manages application selection and device usage

Provides a standard messaging interface Reduce QA and cert efforts by separating application functionality

VMAC

EthernetHW

WiFiHW

GPRSHW

CDMAHW

The Verix V VMAC (Multi-App Conductor) simplifies the multiple application environment

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Benefits: Leverage the increasing growth of the IP infrastructure

Maintains data integrity through packet retransmission

Supports industry strength SSL security

Enhanced Comm Software

EthernetHW

WiFiHW

GPRSHW

CDMAHW

The embedded Verix V TCP/IP Library stack manages your IP enhanced communications

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Benefits: Complete fast, secure downloads on all enhanced comm media including GPRS

Flexibility in packet size to decrease download times

Supports secure SSL downloads

Enhanced Comm Software

EthernetHW

WiFiHW

GPRSHW

CDMAHW

The Verix V IPDL (IP Download) Library implements standard zontalk protocol over IP

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Benefits: Normalized APIs enable device change with minimal application code change

“Smart Linking” feature delivers memory efficiency

Time to market. Applications directly do not have to account for new HW changes.

Enhanced Comm Software

EthernetHW

WiFiHW

GPRSHW

CDMAHW

Universal Communications Library (UCL) manages the underlying communication with the different physical communication media.

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Benefits: Application isolation from physical hardware layer– minimize porting costs and timeframe

Reduces memory size requirements

Provides a UI for configuration, download initialization, and troubleshooting

Maintains constant control of underlying HW communication.

Enhanced Comm Software

EthernetHW

WiFiHW

GPRSHW

CDMAHW

Verix V CommServer is VMAC based application which provides a Client/Server based solution for IP communication.

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Development Timelines

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Software Solutions

SSL Lib Updates

• Migration to most recent OpenSSL version

• Features:• Mutual Auth (Server & Client)• Root Cert and Cert Chain Validation• Additional Error Code Reporting• Advanced Encryption Ciphers (3DES, AES, etc.)

• Implement SSL call back functionality for VCS

• Increased documentation and sample code

• Designed to meet MC IP Security Mandate

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Verix V SW Tools Roadmap

VSNMP LibECL

Component

Verix / Verix V SSL

AutoDL

VSNMP Lib

Verix V SNMP - Lib Protocol only

AutoDL

Enable Dial Support Support for multiple TMS

systems Enhanced scheduling

support Port to Verix V

SSL

Priority: (1)Verix V (2)Verix Migrate to most recent OpenSSL version Add SSL policies Implement SSL call back functionality in

VCS Server & Client Auth, Root Cert

Validation, and Cert Chain Validation, Error Code Reporting

Meets MC IP Security Mandate

Q1 ‘06 Q2 ‘06 Q3 ‘06 Q4 ‘06 Q1 ‘07Apr/May July/Aug Oct/Nov JanFeb/Mar

VVCS UI

NETDIAG TOOL

NETDIAG TOOL

Verix V FER/BER Reporting RSSI Printed report for Signal Strength,

Battery, Connection Type, etc.

VCS UI

Modifiable UI based upon preset options

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Software Solutions

VMAC Enhancements

• VMAC Menu Configurability• Rearrange order• New “Other” menu• Remove menu items and address by “hotkey”

• Enhanced VMAC reporting• New Device report – Display and Print Owners

F5 F6 F7 F8

F1

F2

F3

F4

MM/DD/YY HH:MM

Gift Card

EasyID

Other

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Software Solutions

VTMA IP

• VTMA modified to support IP-based Remote Diagnostics and Information Collection

• Works in conjunction with current VeriCentre value-add modules

• VTMA IP enable your 3rd party applications to monitor preset list of items

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V/VMAC

VMACComponent

V/VMACVTMA

V/VMAC

Verix, then Verix V Daylight Saving Configurable Menu Application Registration

Enhancements Configurable LOGSYS file Configurable DevMan resource

file VMAC reporting enhancements Increase record size

VTMA v602

Verix V, then Verix V IP enable Remote

Diagnostics and Information Collection.

V/VMAC

Verix V, then Verix LOGSYS enhancements – logging

binaries and lost messages. Config table for multi-language

support Verix V, then Verix Logo support PC Tool – Trace log files

Verix V SW Tools Roadmap

Q1 ‘06 Q2 ‘06 Q3 ‘06 Q4 ‘06 Q1 ‘07Apr/May July/Aug Oct/Nov JanFeb/Mar

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AutoDL 2.0

VC PROFILE 1192.168.1.89

VC PROFILE 2192.168.54.31

Add VC ProfileDelete VC Profile

Exit

Software Solutions

AutoDL• Automate IP and Dial terminal initiated downloads

• Configure download schedule through VeriCentre

• Supports multiple TMS hosts

AutoDL 2.0Select OptionVC Profile Setup

Common SettingsChk for Updates

Log HistoryChange Password

About

Any App A Updates?

App A Dld Schedule

App A Dld Request

App A Dld

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VeriCentre Roadmap

Download Automation

$Custom to raised by EMEA Automated Terminal Initiated

Download Scheduling and load balancing Needs to support Dial comm

VC 3.0

Differential Download Portfolio Manager App Support Extend Automation to code base Download Authentication Monitor Enhancements Database Tuning Terminal Manager Download Logs Install program enhancements

WebConsole

SoftPay Assist functionality

Program Developments

Download Automation

VC 3.0

WebConsole

Q1 ‘06 Q2 ‘06 Q3 ‘06 Q4 ‘06 Q1 ‘07Apr/May July/Aug Oct/Nov JanFeb/Mar

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Updated Software Security Architecture

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Software Solutions

WPA (WiFi Protected Access)

• Increased WiFi wireless data security adds:

• Authentication - PSK or pre-shared key

• Enhanced encryption - longer key length

• WEP+SSL or WPA security meets Visa and MasterCard regulations

• Supported on next gen portable WiFi terminal (Vx670)

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Thank you