Post on 07-Jul-2018
EMV® on the Forecourt
October 13, 2015, 10:00-11:30, LVCC
Parker Burke, Gilbarco Veeder-Root Tim Weston, Wayne Fueling Systems
Simon Stocks, S.J. Stocks Consultancy, Ltd. Tiina McCombie, National Energy Equip., Inc
EMV Implementation on the Forecourt
Lessons Learned
PEI October 2015
Simon Stocks S.J. Stocks Consultancy Ltd.
• It’s not easy—not just a hardware change.
• It will take longer than you expect.
• Plan in detail, but the unexpected will still happen.
• Resources will be stretched and under
pressure for an extended period.
• If you haven’t started preparing yet start now!
Key Messages
• Each country had its own timing, requirements and issues. Software modifications were required in each case.
The Experience Elsewhere
• EMV implementation was largely driven by major oil companies. • Worked with suppliers on upgrades
and roll out
• Some companies did not react in time and missed deadlines • Pre-investment avoidance • Penalties • Deadline pressure • Certification issues
The Experience Elsewhere
• Impact on field resources also varied depending on complexity of upgrade, time and scale • Modern equipment/
software versus older • Country characteristics • Certification led to delays
and recycles • Time stretched • Some sites needed extra resources • Skilled labor lacking • Management level intervention • Ensure contingency plan
The Experience Elsewhere
• The markets moved as a whole—eventually
• Some delays in upgrades but sites that remain in the market have had to upgrade
• General reduction in number of sites—added investment requirement may have been the final straw
The Experience Elsewhere
• Size of the market is far greater • Europe as a whole is a significant market, but EMV
implementation was typically on a country basis • Limited complexity—manageable size • Timing varied between countries • Resources could be used across
borders to handle peaks in demand • Size of the market will mean that
roll outs will be longer • More pressure on the technicians • Swing resources less available
Differences in the U.S. Environment
• The U.S. market is more diverse than elsewhere • Only one country but many more parties involved • Limited standardization • Previous implementations mainly before the trend
towards BW • Major oil companies had more influence • On a country basis, typically only one POS • More BWs with multiple brands and multiple
POS/dispenser brands/models • Will upgrades be viable for all sites or will they chose
not to upgrade while that is still an option
Differences in the U.S. Environment
• Retailers must ensure that scope and requirements are correctly defined • Business and technical issues, hardware and software • Off-the-shelf software version or something
customized? • Map the processes to identify major decisions and
design requirements • Ensure your processor/acquirer agrees requirements
and schedule • Is a “continue as today” solution justified for your
forecourt—are there alternatives? • Avoid scope creep—this is big enough!
Issues That Must Be Addressed
• Testing and certification are complex and time- consuming • Ensure certification requirements are understood and
process is clear • Potential recycles can impact the whole schedule • Knock-on effect on the rest of the plan/other parties • Understand limitations of each certification
• Define all test cases in advance, including exception cases • Early pilots provide useful information and help optimize
roll out
Issues That Must Be Addressed
• Training is essential • Sales associates will need to understand basics plus
how to deal with exceptions • Customers are likely to be
unfamiliar with processes and may try to use the old ways
• Technicians and help desks will need training and will also need to provide additional support during roll out
Issues That Must Be Addressed
• Project management best practices must be implemented • Detailed planning • Identify all major tasks, dependencies and actors
• Contingency – time and budget • Risk management – identify major risks, consequences,
mitigation plans and contingent actions • Share plans and ensure they are coordinated • Track progress and develop catch-up plans
Issues That Must Be Addressed
• U.S. banks promoting use of chip and signature • Unworkable outdoors • Majority of EMV implementations around the world
have been chip and PIN • Likely a matter of time before U.S. will have to
adopt this approach • Changing mid-way or after implementation will have
major impacts • Strong message needed from industry that chip
and PIN is right decision before significant investments made
Final Thoughts
EMV in Canada Distributor/Service Provider Implementation Experience
PEI October 2015
Tiina McCombie National Energy Equipment Inc.
EMV Hardware Implementation
Adoption Rate Exceeded
Expectations
• 51% by Dec 2012 • 80% by June
2015 • Expect nearly
95% compliance including work done by others
Dispenser Replacement
versus Upgrade
• 90% new dispensers
• 10% upgrade kits
Widespread Adoption of Contactless
• 84% with new dispensers
• 49% with upgrade kits
Technician Resources • Technician resources stretched beyond capacity
• Typically multiple phases to implementation • Dedicated trainers supplemented by EMV Super
Techs to specialize in training, troubleshooting and activation support
• Extra calls during consumer and station manager learning curve
• Since deployment, tripled service techs in retail sector • Strong aptitude for electronic, mechanical, computer skills • Exceptional customer service and communication skills
• NEE providing support for own techs and approx. 200 alliance contractor techs
Working Capital • Extra manpower for training, installation, go-live
and maintenance • New units inventory, staging, warehouse space
• Projects frequently get delayed from original schedule due to various factors by multiple stakeholders
• Extra administration personnel • Spare parts inventory in warehouses and service
vehicles • Significantly higher cost of EMV replacement parts • EMV may require device software upgrade depending
on POS certification—feedstock for swap outs • Variety of pre-injected security devices per client
versus RKL (remote key load)
Cautions
EMV Capable, Enabled,
Backwards Compatible
• Clearly communicate the differences to meet customers expectations
Install Time and Cost Can Vary Significantly
• Thorough on-site surveys critical before quoting
• Perform by techs not sales personnel
Higher Parts Cost on Fixed
Maintenance Contracts
• Open discussions to apply corrective price adjustments
Strategies to Smooth the Wave • Stop selling non-EMV capable units as soon as
EMV capable units became available • Get a head start by installing necessary hardware
during normal dispenser purchase/replacement cycles • Operate in backwards-compatibility mode until go-live
• Promote early adopter incentives to pull business in before deadline squeeze
• Work in consultation with major accounts to stagger time lines of wide scale installation programs in line with available technician resources
Emerging Technologies and Deployment Considerations
PEI October 2015
Tim Weston Wayne Fueling Systems
Embracing Emerging Technologies • What can retailers leverage to improve EMV ROI?
• Dispenser Media Solutions
• Increase store traffic • Build brand loyalty • Equipment upgrades • Extended warranties
• Combining with new capabilities to leverage
solution overlap, minimize TCO, and refresh site equipment
Embracing Emerging Technologies • What can retailers leverage to improve EMV ROI? • Mobile Payment
• Apple Pay, Android Pay • MCX, Mobile Wallets • EMV Contactless
• Loyalty Programs
• 2D Barcode Readers
• Combining new capabilities to leverage solution overlap, minimize TCO, and refresh site equipment
EMV & Network Certifications • EMV certifications are more complex
• Updated protocols, hardware, payment apps, controllers/EPS, network processors, card associations, etc.
• PCI and EMV certification is the entry point • The complexities lie with overall system certification • Advance planning and scheduling are key to success
Other Deployment Considerations • Industry resource availability
• What will the demand curve • look like?
• Equipment availability
• Manufacturer capacity
• Managing lead-times
• Scheduling
• Forecasting EMV deployment timeframes are key to managing resource and equipment availability
• Service capabilities • # of service companies • Qualified
technicians • Resource
planning • Contract services