About Smart Cards : Applications : Financial |
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Financial Applications
- Smart Card Alliance Financial Resources
- Contactless Credit and Debit Payment
- EMV Credit and Debit Payment (“Chip and Pin”)
- Electronic Purse
- Payments Industry Resources
Smart Card Alliance Financial Resources
- Accepting Contactless Payments: A Merchant Guide
- Contactless Payment Deployment: Merchant Implementation Guide
- Contactless Payment Security Statement
- Contactless Payments Resources
- Contactless Payments: Consumer Attitudes and Acceptance in the United States
- Contactless Payments: Delivering Merchant and Consumer Benefits
- Contactless Payments: Frequently Asked Questions
- Contactless Payments: Issuers Meet Demand for Speed and Convenience
- Contactless Payments: Merchant ROI Model
- Contactless Payments: A New Era of Payments for Retailers
- Contactless Payments: The Retailer Experience
- EMV Chip Cards Expected for Upscale U.S. Cardholders
- EMV Resources
- EMV Migration Study and Market Analysis on Mexico and Brazil (fee)
- End-to-End Encryption and Chip Cards in the U.S. Payments Industry
- Fraud in the U.S. Payments Industry: Fraud Mitigation and Prevention Measures in Use and Chip Card Technology Impact on Fraud
- Issuer and Merchant Best Practices: Promoting Contactless Payments Usage and Acceptance
- LinkedIn Smart.Payments group
- Proximity Mobile Payments Business Scenarios: Research Report on Stakeholder Perspectives
- Proximity Mobile Payments: Leveraging NFC and the Contactless Financial Payments Infrastructure
- Security of Proximity Mobile Payments
- Smart Card Alliance Contactless Payments Council
- The What, Who and Why of Contactless Payments
- Top 10 Reasons U.S. Should Consider EMV webinar
- Transit and Contactless Financial Payment: New Opportunities for Collaboration and Convergence
- Transit and Retail Payment: Opportunities for Collaboration and Convergence
- What Makes a Smart Card Secure?
Contactless Credit and Debit Payment in the United States
Contactless payment has had the fastest deployment and acceptance of any emerging payments technology in recent memory and speaks of a unique market momentum for the industry. Since mid-2005, leading financial issuers have placed tens of millions of contactless credit and debit cards and devices into the hands of consumers worldwide. U.S. consumer research commissioned by the Smart Card Alliance in 2008 showed nine percent of the U.S. population now has a contactless credit or debit card. Issuers in the United States include: Advanta; American Express; Bank of America; Citibank; Citizens Financial; HSBC Bank; GE Consumer Finance; JPMorgan Chase; KeyBank; SunTrust; US Bank; and Wells Fargo. The payment brands, various issuers and different mobile operators have also launched proximity mobile payments pilots in a number of regions.
Merchant acceptance has also increased dramatically over the past 3 years. According to MasterCard, over 174,000 merchant locations worldwide now accept contactless payments, including quick service restaurants, convenience stores, pharmacies, theaters, sports venues, taxi cabs and transit operators. Both well-known national merchants (such as McDonald’s, 7-Eleven, AMC Theaters, Regal Theaters, CVS/pharmacy, Arby’s and Best Buy) and regional retailers (such as Wawa and Sheetz) have chosen to accept contactless payments.
Up-to-date information about contactless payment issuers, merchants accepting contactless payment and contactless payments news can be found on the Smart Card Alliance Contactless Payments Resources page.
EMV Credit and Debit Payment
Financial institutions in Europe, Latin America, Asia/Pacific and Canada are issuing contact or dual-interface EMV smart cards for credit and debit payment (commonly referred to as “chip and PIN”) or migrating to EMV issuance. According to EMVCo, worldwide EMV card deployment was 730 million cards as of first quarter of 2008, with 9.9 EMV point-of-sale terminals deployed.
EMVCo manages, maintains and enhances the EMV Integrated Circuit Card Specifications to ensure interoperability and acceptance of payment system integrated circuit cards on a worldwide basis. EMVCo is currently operated by JCB International, MasterCard International, and Visa International. EMV specifications were first issued in 1996 and has active working groups providing updates and revisions. In March 2006, EMVCo formed a new working group to define a common contactless application kernel and related type approval process for both cards and terminals, with initial specifications published in May 2008.
The following resources provide additional information on EMV and EMV migration.
- EMVCO
- EMV Resources. This resource page lists Smart Card Alliance reports and industry organizations, resources and news relating to EMV.
- EMV Migration Study and Market Analysis on Mexico and Brazil (fee), market study conducted by First Annapolis Consulting for the Smart Card Alliance Latin America and Visa
- Chip and PIN, APACS: the UK payments assocation
- Chip and PIN - The Facts and the Future, Visa Europe
- EMV Canada
- Visa Chip Cards, Visa Canada
- MasterCard Introduces Chip, MasterCard Canada
- EMV takes aim at the U.S., Digital ID News article, May 26, 2009
- Could this chip have prevented the TJX breach?, Boston Globe, August 8, 2008
- 2008 Fraud Figures Announced by APACS, APACS, March 19, 2009
- Can Smart Cards Reduce Payments Fraud and Identity Theft?, by Richard Sullivan, Federal Reserve Bank of Kansas CIty
- EMV Chip Cards Expected for Upscale U.S. Cardholders, Smart Card Alliance Contactless and Mobile Payments Council statement, November 2009
- Top 10 Reasons U.S. Should Consider EMV webinar, Smart Card Alliance Contactless and Mobile Payments Council webinar, January 2010
Electronic Purse
Smart cards are used for electronic purse payment applications. In this application, the smart card carries a stored monetary value. Cardholders generally use these cards to replace cash in making frequent, low-value transactions. Electronic purses are used for both retail payment and transit fare payment. A few electronic purse implementations are listed below.
- France Moneo
- German Geldkarte
- Hong Kong Octopus Card
- Japan EDY
- London Oyster Card
- Singapore NETS Cash Card
