Weekly news sept wk4 2014

ATM&CARDS Weekly Newsletter

www.atmandcards.com

Volume 9 No 4

…………….In This Issue

Interswitch partners Paynet Group

2

CBN approves incentives for e-payment channel uses 3

NPA plugs into Cashless

Mastercard envisions biometric future

5

7

Plus NIMC alerts of fake NIN enrolment centers.

Police rewards jobless youth for securing ATM cash.

Bangladesh bans Bitcoin.

Bbva compass deploys Wincor solution.

NCR ATM security solution to secure China Merchants Bank ATM.

www.atmandcards.com

September 23, 2014

CoinJar Launches Bitcoin Debit Card CoinJar is set to begin a national trial of a bitcoin-to-debit card system called Swipe, which can be used to pay at any store that accepts electronic payments and to withdraw cash at some ATMs. The Australia-based exchange and payment processor’s debit cards will work on the country’s electronic funds transfer at point of sale network, which is supported by all major banks and has 826,769 payment terminals nationwide.

“CoinJar Swipe is our way of making bitcoin accessible to everyone,” Asher Tan, CEO of CoinJar “Swipe lets CoinJar customers spend their bitcoin at any retail outlet that accepts EFTPOS, or withdraw cash from EFTPOS-compatible ATMs. It’s all part of CoinJar’s plan to build a simple, usable bitcoin ecosystem.”

According to the Australian Payments Clearing Association (APCA), over 17 million transactions take place via the country’s ATM and EFTPOS terminal network per day.

About 100 CoinJar users will participate in the trial over the next couple of weeks before the company makes the service available to its entire 30,000-strong user base.

Customers will load bitcoins manually onto their debit cards, which will be converted into Australian dollars and incur CoinJar’s standard 2% fee. There is no extra charge for using the EFTPOS feature.

The cards are planned to be issued by local company Emerchants.

Alibaba payment service Alipay allows mobile consumers to pay with their fingers Alipay (payment subsidiary of Alibaba Group Holding Ltd), a widely used online payment service in China has added fingerprint authentication for mobile shoppers using two smartphones.

Authentication solution provider Nok Nok Labs Inc. said that Alipay has deployed the company’s payment authentication system, NNLTM S3, to authenticate payments by fingerprint by consumers using the Samsung Galaxy S5 smartphone.

The users of Apple Inc.’s iPhone can’t use this authentication of Alipay because Apple didn’t open its payment interface to other companies, Alipay says.

Apple also announced that it would enable outside companies to develop fingerprint authentication applications for its iPhone 6.

“Fingerprint authentication is faster and easier to use [than passwords],” Nok Nok Labs The users of Alipay’s mobile application, no longer president and CEO Phillip Dunkelberger tells need to input a password to complete a purchase. Internet Retailer. “ Besides, the system is much Instead, they can swipe finger on the home button safer than a password. of a Samsung Galaxy S5 to authenticate themselves when shopping online.

The NNLTM S3 suite allows Alipay to store Besides the Galaxy S5, Alipay said that it had fingerprint information in an encrypted zone enabled fingerprint authentication for users of on the phone and only the server can validate another smartphone, the Mate7 from China’s it.”

Huawei Technologies Co. Nok Nok says it is not Alipay users in 2013 spent more than 900 providing the authentication technology for the billion Yuan ($145.16 billion) through mobile devices such as smartphones and tablets.

Huawei phone.

1

Interswitch, Paynet Group form partnership A Nigerian born payments company, Interswitch Transnational has partnered with Paynet Group, East Africa’s payments provider to combine their businesses. The partnership will require Interswitch to have majority shareholding in Paynet Group and Paynet’s existing shareholders will become shareholders of the Interswitch Group.

Both companies emphasized that the deal will enable both to take advantage of fast-growing EastWest Africa trade and continue to provide their customers, both businesses and government, with a trusted partner.

According to Interswitch, the new company will create an unrivalled payment infrastructure across East and West Africa, uniting financial institutions on a single network, integrating transaction solutions seamlessly into businesses, and creating a secure and convenient way to make cross-border

payments.

Paynet has done a great job at building an innovative and trusted payments company in East Africa and the union between these two companies will drive growth by continuing to provide payment solutions that are highly tailored to the African market. transactions. “To build a successful payments business, customers are looking for trust, scale, efficiency and a proven track record of execution. This partnership will significantly expand our footprint in East Africa and uniquely positions Interswitch in the market. The new business will provide comprehensive solutions for regional and international businesses looking to take advantage of growth opportunities in Africa. ” says Mitchell Elegbe, group managing director and chief executive officer of Interswitch.

The new combined network will connect over 100 financial institutions in West and East Africa.

Paynet was founded in Kenya in

Banks set to upgrade all its ATM cards to combat against fraud Philippine banks will soon replace the existing ATM cards with a new technology to combat the increasing fraud incidents.

Lamberto Villena, president and chief executive,Sterling Bank of Asia said EMV (Europay, Mastercard, Visa) chip cards would soon replace magnetic stripe cards issued by local banks.

EMV chip is the new global standard for chip-based credit and debit transactions that is considered more secure than magnetic stripe cards.

Sterling Bank of Asia, the first domestic bank to release the locally-issued Visa card with EMV chip, is actively involved in the BancNet task force on the migration to EMV chip cards. www.atmandcards.com

“For banks like us that already have an arrangement with EMV chip card issuers like Visa, the accreditation or certification process will be easier. The problem will be for banks that do not pass the standards of Visa or Mastercard or other schemes. They are still required to shift to the technology,” Villena said.

The Bangko Sentral ng Pilipinas requires that magnetic stripe cards be replaced by EMV by the end of 2016 to meet the January 1, 2017 deadline.

Villena said local banks were now working double time to meet the deadline and the Philippine EMV chip card would be most helpful for banks that might not be accredited or certified by international issuers of the EMV cards.

2003 by the current senior management team. Since then, it has provided services to some 70 financial institutions and over 2,000 companies, as well as numerous public sector entities.

Its offering comprises three brands, Paynet, PesaPoint and Electronic Financial Technologies (EFT). PesaPoint is found at 1,200 ATM locations, some of which are owned by the company, and over 1,300 agent locations in Kenya.

Bernard Matthewman, CEO of Paynet, said: “The payments market in East Africa is moving rapidly into an era where specific products are required for sectors like transport, health, government and county payments, as well as the move towards secure Internet based

“Paynet has been looking for a partner that has both products and experience in these areas, so we can rapidly deliver them in the most efficient manner.

Interswitch has the most comprehensive range of products of any provider we have seen in an emerging market and this alongside their existing presence in Uganda provides us with additional strength as we continue to grow in East Africa.”

The deal, which is subject to regulatory approvals, comes at a time when both governments and private institutions across Africa are looking to cashless solutions and financial inclusion to accelerate economic growth and drive business efficiency.

Prepaid cards catching on with Canadian FIs ATMmarketplace

Major Canadian banking institutions have begun to enter the general purpose reloadable prepaid card market, a move that bodes well for longer-term growth, according to "Prepaid and Gift Cards in Canada," a recent report by market research publisher Packaged Facts.

The move opens up growth avenues beyond the narrow band of unbanked and underbanked consumers who have been the primary targets for these cards in Canada, the report finds.

For instance, travel prepaid cards open doors to international use, while cards such as TD Bank's TD Go Card target banked families.

Canada's focus on financial inclusion leaves less room for products such as prepaid cards. Banking account ownership is nearly universal, debit cards are prevalent, and low-cost bank accounts are offered by the country's major banking institutions.

"Because Canada is so highly banked, expanding the target audience of general purpose reloadable prepaid cards beyond underserved consumers is key to growth.

Continued on page 3

2

Nigerian Banks to Start Paying Customers Who Use e-payment Channels- CBN

The Central Bank of Nigeria says it has approved an industry-wide incentive scheme and awareness campaign on electronic payment channels for stakeholders and users.

As a result, the CBN is collaborating with Deposit Money Banks through the Nigeria Inter-Bank Settlement System Plc to work out a system that will make banks to pay customers, merchants and salespersons for using electronic payment channels.

The Electronic Payments Incentives Scheme will make bank customers, merchants and salespersons receive cash and gift rewards for using electronic payment channels.

Police rewards jobless youth for securing ATM cash The Hyderabad police on Saturday felicitated a youth who found the cash box of an ATM with Rs 24 lakh unlocked and called the police.

out. Instantly, he alerted the police. A police team reached within 7 minutes.

Detective Inspector N Shankar said that it was gross negligence on the part of the bank staff who Sheikh Latif Ali had gone to forgot to lock the machine withdraw Rs 200 from a properly. “These boys, all State Bank of Hyderabad of them looking for jobs, ATM on Friday night when went to withdraw Rs 200 he found the cash box open but found so much cash. with no guard around. He There was no security called the police who found guard and the ATM does Rs 24 lakh in the unlocked not have a CCTV camera.

ATM machine. It was later They could have done learnt that there was no anything they wanted.

CCTV camera.

Instead, they decided to Ali, 22, on Friday who went inform the police,’’ to the ATM at State Bank Shankar said. of Hyderabad’s main branch in S R Nagar with Police Commissioner M two of his friends to Mahendar Reddy withdraw Rs 200, had felicitated Ali and gave noticed a small door on the him a certificate and cash side of the machine fell reward on Saturday. open and currency notes fell www.atmandcards.com

Continued from page 2

Prepaid cards catching on with Canadian FIs a strategy some of these newer cards are clearly intended to actualize," Packaged Facts Research Director David Sprinkle said.

On the down side, the report also anticipates that it's only a matter of time before prepaid card interchange rates garner more scrutiny, as they generate fees far above those generated by the country's Interac debit card platform. Still, the report forecasts robust growth for these cards in the near term.

Bangladesh bans Bitcoin The Bangladesh Bank has warned the country's citizens that the use of Bitcoin or any virtual currency is illegal and individuals found using it are subject to jail time, according to multiple reports.

"Bitcoin is not a legal tender of any country," the bank said in a statement.

"Any transaction through Bitcoin or any other cryptocurrency is a punishable offense."

The bank made its announcement based on a couple of factors. Reports surfaced in the local media that Bitcoin transactions were happening on some online exchanges.

Bangladesh also recently updated what are viewed as strict anti-moneylaundering laws.

SA’s leading independent ATM network provides services in areas where no one can Since 2005 Spark ATM has grown to be South Africa’s leading independent ATM network, with over 2,500 cash machines in some of the country’s most remote areas - all built on the basis of a uniquely lean, low-cost business model that has enabled it to put ATMs where nobody else can.

Many of our Spark’s ATMs are in deep rural areas or small towns where the transaction volumes are very low.

According to Spark ATM founder and MD, Marc Sternberg “If the cost of communicating with a site like that is R1,000 a month or more, it’s simply not viable to put an ATM there - it’s too expensive. A good 20-30% of our network falls into that category.”

What has made it possible to put ATMs at these sites, says Sternberg, is Spark ATM’s partnership with industrial communications specialist Metacom. “Using Metacom’s devices and network we’re able to keep our communications costs below R200 a month at each site, whilst not compromising on quality - and that makes all the difference.”

Metacom’s modems and routers enable seamless connectivity to the full spectrum of GSM cellular communications, as well as ADSL or satellite. The devices is built into the ATM at factory point in Cape Town, where it arrives on site with the full communications solution already installed.

At about 10% of Spark ATM’s sites, says Sternberg, there is no other way for residents to get access to cash; in many others, there is only one bank branch, which is closed at night and on weekends. “We believe we’re playing an important role in keeping economic activity within rural communities - and the demand is growing with the number of banked consumers, especially Capitec and SASSA (SA Social Services Agency) card holders.”

Seamless communications through Metacom also enables Spark ATM to keep maintenance costs low, adds Sternberg. “Metacom’s service includes remote monitoring and control, which is critical. So far this year we’ve rolled out 10 versions of our software - with 2,500 machines the only affordable way you can do that is remotely. Our contact centre staff can diagnose and fix problems, change configurations and settings and reboot machines anywhere in the country, all without leaving the office.”

The Spark ATM network is currently growing by 50-60 a month, says Sternberg, and the company is looking beyond the borders of South Africa. “We have just under 40 machines in Zimbabwe already, and plan to be represented in another five African countries within the next 36 months.”

3

NIMC Alerts of Fake NIN Enrolment Centres The National Identity Management Commission (NIMC) has cautioned Nigerians about fake agents who, parade themselves as members of NIMC staff.

NIMC's investigation showed that these fake agents have opened unauthorised centres in parts of the country for National Identification Number (NIN) enrollment and are asking applicants to pay certain amounts of money before they could be allowed for the NIN enrolment exercise.

Deputy Director, Corporate Communications, NIMC, Mr. Abdul-Hamid Umar, who drew the attention of Nigerians to the scam, cautioned Nigerians not to fall victims to such agents, insisting that enrolment into the National Identity Database (NIDB) is absolutely free, and that no citizen or legal residents is expected to pay for it.

According to him, “It has come to the notice of NIMC that certain business centre miscreants posing as NIMC agents, use banners bearing the NIMC or Presidential logos at their business centres, and charge eligible applicants for pre-enrolment, making applicants believe they are paying for the NIN or the National e-ID Card."

"NIMC wants to make it categorically clear that anyone who visits a cyber cafe or a business centre and is charged for preenrolment is paying for the use of the internet, which is service rendered by business centres, and not for the NIN or the National e-ID Card," Umar added.

He however noted that NIMC was not oblivious of the fact that persons who visit

business centres and cyber cafes for online pre-enrolment must pay for the use of internet which is cost of services rendered by the business owners but condemned the report that the payment was either for the NIN or the National e-ID Card or that the money goes to NIMC. He explained that NIMC has no business charging anybody for enrolment into the National Identity Database, insisting it is completely free. “Anyone who is asked to pay by any NIMC official, must report to the nearest security post," Umar insisted.

Noting that it was safer and faster for eligible applicants who have access to the internet to pre-enrol themselves via the NIMC Pre-enrolment portal http://ninenrol.gov.ng using their personal computers (PCs), internet enabled phones or tablets at their convenient, he called on Nigerians who do not have such access to visit the NIMC enrolment centre where they will be attended to.

The Deputy Director further noted that the NIN and National e-ID Card could only be issued to applicants who have successfully completed the enrolment process at the NIMC enrolment centres where they enroled, and that no business centre or individual has the right to do that.

He advised Nigerians to beware of fraudsters posing as NIMC agents or staff, and urged applicants to call 0700CALLNIMC or 07002255646 for any enquiry about the NIN enrollment process and procedures.

London's Oyster card is not going to die, says TfL exec

Transport for London's director of customer experience has insisted that the introduction of contactless payment does not spell the end for the Oyster card on London's transport system.

Oyster cards have become a part of everyday life for hundreds of thousands of commuters since their arrival, revolutionising the transport system in Britain's capital city.

“Although Oyster cards may not be as common a sight going forward, they will remain an important part of London's transport.” Says Shashi Verma, director of customer experience for TfL, According to him, Oyster cards will always be there for people who do not have a contactless credit or debit cards or people who simply don't want to use it.

"In that first category is, of course are children who are going to need to travel but won't necessarily have a payment card. So Oyster is still a service option for our customers and while it continues to do that I can't see anything changing."

London's next-gen transport payments system in action

Oklahoma Project Woman, Security National Bank provide Visa debit card Security National Bank (SNB) of Enid has partnered with Oklahoma Project Woman to provide a Visa debit card that gives back to a good cause.

"We are excited to help bring continued awareness of breast cancer and to partner with Oklahoma Project Women and TransFund", said April Danahy, SNB Vice President of Corporate Communications. "Each signature based transaction made with the SNB Oklahoma Project Women debit card will help Oklahoman women and men in need of life saving services.

Since its beginning in 1998, Oklahoma Project Woman has provided breast health care for more than 25,000 uninsured Oklahomans. Oklahoma Project Woman works with more than 60 clinics, more than 30 hospitals and three stand alone breast centers to offer patients in all 77 counties with free mammography, and if necessary, a diagnostic procedure and surgery.

In Enid Community Clinic is utilized to identify those women and men who are in need and qualify for the benefits of Oklahoma Project Woman. www.atmandcards.com

Integris Bass Baptist Health Center works with OPW to provide mammograms and diagnostic procedure and surgery.

Security National Bank Oklahoma Project Woman Visa debit card is available at any of three SNB Enid locations Additional information on this card and the many services offered by SNB is located at snbenid.com.

4

Taxi-booking apps allow fare payment via Visa credit cards Passengers in Singapore can now pay taxi fares using Visa credit cards without incurring administrative charges, but only if they use third-party taxi-booking apps UberTAXI or Easy Taxi.

NPA unveils electronic ship entry notice

Reviving the payment option this month, the two apps said they were absorbing the administrative charges.

UberTAXI said it would permanently cover the credit card processing fees, but Easy Taxi said Vessels berthing at the nation’s ports have began to enjoy a quicker turnaround time as the Nigerian Ports Authority (NPA) has unveiled its electronic ship entry notice (e-sen) meant to deal with the problem of cargo delay and turnaround time of ships.

According to the Managing Director of NPA, Malam Habib Abdullahi, the e-sen was part of the programmes of the present leadership of the authority in its quest to make the ports safer, more secure and generally more user friendly.

The option of paying via Visa credit cards for fares on ComfortDelGro and TransCab taxi application was withdrawn in July last year after the two largest operators refused to waive an administrative fee imposed on passengers.

Then, the operators said the 10 per cent levy on fares paid using credit cards – which Visa said was a breach of contract terms – was to cover investments in and maintenance of payment terminals and systems, as well as to pay bank fees and telco charges. It was also used to compensate drivers before they received bank payments the next working day.

only that it would waive the charge for now.

Ms Ooi Huey Tyng, Visa country manager for Singapore and Brunei, said the company was “supportive of all merchants that accept card payments without charging a surcharge or setting a minimum spending limit”.

According to TODAY, Visa is maintaining its stance that consumers should not pay a surcharge for using their cards and that the company will engage the third-party apps in discussions should any impose such fees in future.

He lamented that shipping agents manually handled their ship entry notices in the past, which had its own challenges including delays and increase in demurrage.

“Stakeholders purchased booklets of application forms, filled a leaflet and submitted manually to the designated SEN offices located in either the western ports or eastern ports head offices depending on the port of call. This process is full of challenges including duplication, delayed verification and validation of ship data, among others.

“The e-sen, when fully operational will eliminate delay in confirmation of payment of provisional bills across the ports, long documentation and payment confirmation procedures arising from confirmation of payment of provisional bills.

“This platform will help build a data repository of ship movement in all the ports for intelligence, research and educational purpose, eliminate revenue leakage and improve port efficiency as well as promote transparency and efficiency in the entire ship entry notice process,” he explained.

Also in February, an electronic payment solution was introduced to help improve operations by identifying and blocking all avenues of revenue leakages.

Planet Payment Launches Bank In Your Currency Across Columbus Data Services Network Planet Payment, Inc. a leading provider of international and multi-currency payment processing and transaction services, and Columbus Data Services, one of America’s largest ATM processors, have announced the launch of Bank In Your Currency on Columbus Data Services ATM network.

The result of this arrangement will make this service available to all Columbus Data Services Market Partners and more than 85,000 ATMs nationwide.

Bank In Your Currency will enables international travelers to withdraw local currency from an ATM while seeing the www.atmandcards.com

amount debited from their account in the currency they know best - their own.

International cardholders will now have the ability to instantly view, select and better understand the conversion to their home currency of the US dollar amount dispensed at participating ATMs. "We are eager to launch the Bank In Your Currency solution throughout our ATM network," said Stuart Mackinnon, President of Columbus Data Services. "With international visitors to the US spending a record breaking amount in 2013, we remain committed to making it easy for these international travelers to access cash and know exactly how much will

be deducted from their account at the time of the withdrawal. By enabling these products at the ATM, Columbus Data Services is helping ATM ISOs combat declining interchange with new services."

"The currency conversion shift to the ATM creates additional revenue opportunities on both new and existing ATM transactions for Columbus Data Services and its Market Partners," said Drew Soinski, managing director - Americas, at Planet Payment. "We are delighted to be working with a market leader such as Columbus Data Services to jointly provide our innovative solutions to their customers, which deliver an enhanced ATM experience to international visitors."

5

BBVA COMPASS DEPLOYS WINCOR CHECK CASH CONSOLIDATION SERVER TO AUTOMATE CASH AND CHECK DEPOSIT PROCESSING THROUGH ATMS Wincor Nixdorf announced that BBVA Compass is actively using the Wincor Check Cash Consolidation Server (CCCS), which automates cash and check deposit processing and helps give the bank’s customers faster access to their money through ATMs.

of Wincor Nixdorf, USA. “This latest initiative expands our technology relationship with BBVA Compass and provides a solution that seamlessly integrates into the bank’s customer-centric infrastructure.”

As part of the initial CCCS deployment, Wincor worked with BBVA Compass to replace the bank’s legacy envelope-style batch processing system with a real-time, end-to-end check imaging and automated cash deposit solution. BBVA Compass operates 673 branches domestically and is among the top 25 largest U.S. commercial banks based on deposit market share.

The new system allows cash and checks to be processed in real-time, giving customers near immediate access to their money. The cost-effective solution also improves efficiency by fully automating the process.

“We created a best-in-class hardware and software solution for BBVA Compass that enhances usability and grants customers earlier availability to their deposits,” said Javier Lopez- Bartolome, president & CEO

“Our customers expect near immediate access to their money, and Wincor Nixdorf’s solution allows us to provide that across our ATM fleet,” said Franklin Johnson, applications manager for BBVA Compass.

Multi-currency ATM now in Bermuda The Bank of N.T. Butterfield & Son Limited unveiled the island’s first multi-currency ATM in the refurbished international departure lounge at L. F. Wade International Airport.

According to a press release, the ATM which is located airside and outside the British Airways Lounge, can dispenses Canadian dollars, Great Britain pounds and euros.

Sean Lee, executive vice president and head of retail banking at Butterfield was quoted saying: “We are pleased to be introducing Bermuda’s first multi-currency ATM, which offers our customers the convenience of obtaining foreign currency in Bermuda for use while travelling in Canada, the UK or Europe before departure without the need to visit a banking centre.”

Butterfield explained the ATM, which will only accept Butterfield ATM cards, will allow customers to withdraw up to C$/€/£600 from their Butterfield accounts.

Butterfield is working with Airport authorities to install a US dollar ATM in the US Departures Lounge for customers travelling to the US.

Contactless technology points to cashless society

By Asina Pornwasin

Digital payment technologies are expected to go beyond plastic cards to include such things as wearable devices and smartphones, leading towards the cashless society of the future.

Ben Soppitt, Visa's head of emerging products for Southeast Asia and Australia, said the future of digital payment was being driven by contactless technology, especially near-field communication (NFC), which has already been introduced in Visa payWave.

That technology allows Visa users to make low-value payments with no need to insert the card into a terminal, sign their name or enter a PIN - they just hold the card in front of a special card reader.

Transactions take place in less than a second.

Visa payWave is now available in both credit and debit cards.

But in the near future, this service www.atmandcards.com

will be available in three other forms.

These will be a plastic card attached to a smartphone called PayTag; a wearable device called PayBand; and an application embedded in a smartphone called host card emulation (HCE), which presents a virtual and exact representation of a smart card using only software.

Soppitt said PayTag would be available in Thailand soon, with HCE possibly arriving before the end of the year as well.

"Currently, Visa is working with banks to further launch Mobile Visa payWave service in [Southeast Asia] including Thailand," he said.

Somboon Krobteeranon, Thailand country manager for Visa International Asia-Pacific, said that according to the Bank of Thailand, last year only 17 per cent - almost Bt1 trillion - of total face-to-face payment transactions were digital, while the rest were cash.

"There is a lot of room for growth in digital payment, which is leading the country to the cashless society. The beauty of a cashless society is that people's daily purchases will be easier, secure and convenient.

"Meanwhile, it helps banks save the cost of investment in and operation of such things as ATMs while helping them improve services in such aspects as speed and security," he said.

Somboon said four Thai financial companies Kasikornbank, Siam Commercial Bank, TMB, and Tesco Card Service - had issued about 300,000 cards with Visa payWave. By the end of this year, two more firms will be issuing payWave cards.

He added that there were about 5,000 (NFC) card readers in the country that could read Visa payWave. They will also work on the wearable devices and smartphone systems.

Soppitt said that since Visa payWave was launched across the Asia-Pacific region, the adoption rate had been growing, with Thailand leading the world in the pace of its acceptance of the technology.

Visa payWave was launched in Thailand four months ago.

"Thailand is fastest-growing [adopter of the technology] in the world, while Australia is the country where Visa payWave accounts for almost 50 per cent of total face-to-face payment transactions. In [Southeast Asia], Singapore is No 1, [with payWave] accounting for 22 per cent of total face-to-face payment transactions," he said.

Asina Pornwasin is the Social Media Editor of the Nation Newspaper in Bangkok, THAILAND

6

MasterCard envisions biometric future Finextra

MasterCard and Bansefi to drive financial inclusion in Mexico MasterCard and BANSEFI, the social bank of Mexico, announced a partnership to foster financial inclusion in Mexico through the disbursement of social benefits using electronic payments.

The BANSEFI MAS MasterCard MasterCard-branded card is part of the recently launched social support program developed by the Mexican Government. Through this partnership, over 6.5 million beneficiaries will have access to electronic payment methods, providing them with greater security, control and convenience to their routine.

MasterCard is claiming a 98% success rate ate for pilot trials of a biometric verification system combining both voice and facial recognition.

The card scheme says it recently held a closed pilot to understand the consumer experience around voice and facial recognition.

"We created a beta mobile app which we tested in a new-commerce new environment on over 14,000 transactions," says MasterCard. "The test group, drawn from MasterCard employees around the world, used both Android and iOS operating systems. The results were very exciting, yielding a successful cessful verification rate of 98%, mixing a combination of voice and facial recognition."

The process usually took less than 10 seconds. With the first wave of apps utilising Apple's TouchID fingerprint recognition system coming to market - both US neo-bank Simple and PFM outfit Mint have shipped their first iOS upgrades to incorporate the technology - biometric verification is beginning to gain currency among businesses and consumers as a useful tool in the fight against fraud. Earlier this month, Barclays launched a biometric reader for corporate client log-in in using vein authentication technology from Hitachi.

"The launch of Apple Pay will start to bring true scale to the next generation of payments authentication." says MasterCard: "Our challenge is to take lessons from the different applications of biometrics already in place and elevate them into the next generation of authentication, not just for one platform, but for the mass market globally."

MasterCard introduces contactless mm payments in Belgium

Most of the Mexicans enrolled in this social disbursement program are women who will, for the first time, be able to deposit funds, receive social benefits, save, or engage in many other financial transactions that are facilitated by electronic payments.

"By supporting governments around the world with electronic payment programs ograms we are helping to save money and improve efficiencies, but more importantly, together, we are opening up a world of inclusion for those who have previously not had access to traditional financial services," explains Antonio Junco, President of Maste MasterCard México and Central America.

This partnership is a great milestone for advancing financial inclusion in Latin America.

"BANSEFI is committed to giving a step ahead to foster financial inclusion, in line with the policy of the government in office in this matter. For the above, it is very important to carry out partnerships with companies such as MasterCard, to provide better solutions which, at the same time, offer a real benefit to the most vulnerable sector of the population in our country. MasterCard's rd's global experience in topics related to social inclusion has been key in this alliance, and we are very happy to be able to work jointly," affirmed Jorge Estefan Chidiac, President of BANSEFI.

MasterCard Belgium is introducing its contactless mobile payment solution in Belgium. The new payment technology transforms a consumer's smartphone into a payment card, and is currently being implemented by local MasterCard personnel.

"We feel honored that BANSEFI has entrusted us with the development velopment of this product: The Prospera program marks a great era for the company in Latin America, and this is just the first step to develop economies and the financial ecosystem, enabling more people to participate in the global economy," commented Junco. o.

The project was developed loped in collaboration with several partners: telecom operator Mobistar, who provided technical know-how how and experience in mobile payment, Prepay Solutions, the financial institution which will process the contactless payments via MasterCard® prepaid cards, cards Oberthur Technologies, who developed the NFC SIM cards and cardlets necessary for the contactless mobile payments and Penrillian, who managed key technical support roles for the mobile payments.

After this new payment ecosystem has been deployed in Belgium, Belgi MasterCard expects an important number of all Belgian payment terminals to upgrade to contactless technology within the next year.

"We are very enthusiastic about the introduction of mobile payments," says David Dechamps,, General Manager at MasterCard Benelux "Payments via

smartphone have been on the rise the last couple of years – but the technology has always been restricted to an ecommerce environment. From now on, consumers can transform their smartphone to an act actual wallet and conduct payments at contactless terminals in regular shops. This means a huge boost of ease-of of-payment."

"Smartphones and tablets have replaced traditional mobile phones," says Jean-Marc Marc Harion, CEO at Mobistar. "Belgian consumers have becomee a lot more 'digitally savvy' – which means their smartphone plays a more central role in their daily lives. We are convinced that consumers are ready to use their smartphone as a secure mobile payment method."

www.atmandcards.com

7

BitOcean Releases TwoWay Kiosks to Compete with Bitcoin ATM Market Leaders

NCR ATM security solution to secure China Merchants Bank ATM NCR Corporation has been selected by China Merchants Bank ("CMB") to use its Dynamic eLock Management solution, a software-based automated teller machine (ATM) electronic key management solution, to help the bank centralize the management of safe box keys and passwords across its over 10,000 unit ATM network.

Specially designed for the China market, NCR Dynamic eLock management solution restricts the access to an ATM’s safe boxes to only authorized users with an IC (integrated chip) smart key and a one-time password. The software solution will help the bank improve the related risks, efficiency and costs issues brought by traditional manual ATM locks during cash replenishment and while conducting service maintenance.

BitOcean Technology Development Co, Ltd has released Chinese-developed and -made bitcoin ATMs with a feature list designed to compete with popular existing products.

The new machines – the second generation developed by the Beijing-based company – are two-way kiosks, meaning they enable users to buy and sell bitcoins, with multicurrency support and compliance capabilities to match various jurisdictions.

BitOcean installed its first machine in the landmark Wangjing Soho office and retail complex in Beijing. In the next few weeks the company will organize an event that invites customers to use its ATM alongside those by Robocoin and Lamassu, and compare experiences.

The customer screen interface is available in other languages including Chinese, English and Japanese and the new ATMs offer more enhanced safety and functionality over the first generation, which BitOcean showcased at the Global Bitcoin Summit in Beijing in May. The company tested for two months prior to release, offer operators a “bank-level experience” in both hardware and software. Improvements include faster processing times – 30 seconds for a withdrawal – and a new multi-function online dashboard for operators.

They allow for transaction confirmations via email, SMS or telephone and paper wallet printing. Operators can connect to major exchanges via APIs. On the hardware side, the second generation also includes know-your-customer (KYC) and anti-money-laundering (AML) facilities powered by Jumio, as well as extensible cash boxes holding up to 3,600 bills total. BitOcean will produce customized designs to suit individual customers’ needs.

Although all ATMs of CMB are non-NCR branded, NCR Dynamic eLock Management Solution is multi-vendor compliant, which can support various safe standards and different types of locks. The solution can easily connect with the bank’s cash management system and monitoring system for easy upgrade and development. NCR will customize development and implementation of the solution. It is expected the solution will be live nationwide by the end of this year.

“With NCR’s deployment track record in Dynamic eLock management projects, we are excited in gaining the recognition from China Merchants Bank by working with us for the first time. We will ensure the smooth implementation of the system to achieve a higher level of security for the bank’s ATM and cash,” said Gary Miao, president of NCR Greater China for Financial Services. “The benefits brought by Dynamic eLock Management solution are able to meet the compliance needs for mitigating the risks of centralized management, and we believe that it will gradually replace the traditional manual ATM lock and password management mode.”

In the past, CMB used to deploy mechanical password locks where each lock was required to pair up with a mechanical key and password. The manual dissemination and management of the keys and passwords has generated high operational costs during cash replenishment and carrying out service maintenance at the ATMs. In addition, risks and costs were involved at the time of password change and key storage.

NCR Dynamic eLock Management Solution effectively eliminates the three core security issues of centralized ATM management which include risk defense, work efficiency and inspection. Electronic smart keys embedded with IC cannot be read without authorization, which can eliminate the risk of key replication. In addition, it is no longer necessary to change safe box lock password regularly, which will relieve a significant amount of work for bank staff. In the event of staff shift change, the bank only needs to change the setting on the system without having to go onsite and reset the password of a particular ATM maintained by that staff. The solution will also generate a comprehensive journal and analysis report, offering bank management a transparent view of the process, as well as an immediate understanding of the entire system’s operation.

ATMandCards aggregates news about the ATM and card industry in Nigeria, Africa and the rest of the world.

What we do? News, Issues, Analysis, Awareness and Advocacy. If you would like to support us please contact us.

Editor: Geraldine Ugbaja. Telephone +234-7033-4533-66, Website: www.atmandcards.com, Facebook page: facebook/www.atmandcards.org Twitter: www.twitter.com/atmandcards, Email: geraldine@cubedgem.com, g.ugbaja@yahoo.com.

ATM and Cards newsletter is a weekly publication published by Cubedgem Transact Services.

18, durojaye Close. Akute. Lagos.

www.atmandcards.com

8