The payments revolution - are you in? How financial services ...
The Digital Payments Revolution - wsbi-esbg.org · PDF fileThe Digital Payments Revolution ......
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The Digital Payments Revolution Matthias Setzer, Senior Director Strategic Partnerships EMEA PayPal (Europe) S.a.r.L. & Cie S.C.A Barcelona, 13 th of April 2015
Transcript of The Digital Payments Revolution - wsbi-esbg.org · PDF fileThe Digital Payments Revolution ......
The Digital Payments Revolution
Matthias Setzer, Senior Director Strategic Partnerships
EMEA
PayPal (Europe) S.a.r.L. & Cie S.C.A
Barcelona, 13th of April 2015
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
Strong momentum and network
19 Million
$235 Billion
New Active Digital Wallets
Total Payment
Volume
^26% YoY
162 Million
11 Million
Active Digital Wallets
Transactions per day
7 MillionMerchants
2.5 MillionDevelopers
Source: PayPal annual results
http://investor.ebayinc.com/
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
PayPal processed $46 billion in mobile payment volume in
2014, up 68% over 2013
$14
B
$27
B
$46
B
2009 2010 2011 2012 2013 2014
$4B
$0.8B$0.1B
Source: PayPal annual results
http://investor.ebayinc.com/
Challenges facing the European Payments Business in 2015
1. Regulatory shake up of the payments market underway
2. Rapidly changing end user needs for payment services
3. Deflationary Macro-Economic environment in Eurozone
4. Recent payment security and access technology
breakthroughs
1. Regulatory Shake up of the Payments Market underway
Single
European
Payments
Area
CT/DD SEPA
Migration
Aug, 2014
EU MIF Regulation
PSD 2.0
2017
ECB Security of
Internet Payments
Aug 2015
EBA Security of
Mobile Payments
2017 ?
E-Money Directive Review
HOW WE CAN TURN A SET OF REGULATIONS INTO NEW CONSUMER &RETAILER
CHOICES?
6 6
2. Rapidly Changing End User Needs for
Payment Services
The Millennial Disruption Index*
* The Millennial Index – 2014, Scratch,
Viacom Media Networks
7
The Mobile first
era..
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.8
Merchant needs: Braintree Merchants Using Apple Pay
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
1 2 3 4
Add PayPal App switch Future Payment Agreement Checkout with PayPal
PayPal TouchReturning Customer using a second App the first time
3. Deflationary Macro-Economic environment in eurozone :
deliver growth
4. Technology breakthroughs enabling new entrants leveraging existing rails
OS & hardware
Agnostic platforms?
With in cloud security
& existing rails?
Smart Card Alliance ©2014 10
with a user interface, such as a mobile wallet for payment. The credentials used by this HCE service can be stored in the application itself, or they could be stored in other secure locations such as a trusted execution environment (TEE) or an SE (see Figure 4).
Figure 4. HCE Service with Different SE Form Factors
Alternatively, the HCE service could connect in real-time or at given intervals with a back-end server in the cloud
to retrieve credentials to exchange with the contactless terminal. Real-time retrieval of credentials from the cloud
at the moment of tapping on a reader is a possible but unlikely option, as network latency may result in a poor
user experience.
Figure 5 illustrates this process for a payment app.
Figure 5. Obtaining Credentials from the Cloud Using HCE
2.3.3 Application Identifier Routing
Prior to the introduction of HCE, all requests coming from a contactless reader to communicate with an NFC
application were routed to the active SE. The HCE implementation in Android or other mobile operating systems
must take into account the possible coexistence of NFC card emulation services on an SE and in the host (mobile
Accessing multiple payment
options?
O
N
O
N
O
F
F
FUTUREPayment Method
O
N
O
N
HCE/Tokenization providing security, innovation and opening the market to new entrants
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
Appification / Digitalization / Platformization–Customer at heart
And more to
come..
