1. MasterCard Smart Card Strategy
MasterCard International
Payment Brands
Martyn Cooper
Global Platform Symposium - August 2002

2. Global Platform Symposium
MasterCard
A Global Smart Card Leader 
At Q2 2002, 125 million MasterCard-, Maestro-, Mondex-, and Clip -branded cards had been issued worldwide
 Already 1/10 of total MasterCard
card base
 98 members in 32 countries
 Over 50% carried value-added applications
Global Platform Symposium

3. Total Number of Banking Smart Cards
+59%
Source: Celent, October 2001: Smart Cards in US Banking: Is the Chip Hip?
Global Platform Symposium

4. Global Platform Symposium
Smart Card Migrations
EMV Migrating/In Progress
EMV Committed/Planned
EMV Analyzing
Global Platform Symposium

5. Europe 2001/2002 UK EMV Migrating/In Progress EMV Committed/Planned
Iceland
EMV Analyzing
Norway
Finland
Sweden
Estonian
Latvia
Denmark
Ireland
Russia
Littuania UK
Netherlands
Germany
Belgium
Poland
Lux.
Czech Rep.
Ukraine
Slovakia
France
Switzerland
Austria
Hungary
Slovenia
Italy
Croatia
Portugal
Spain
Turkey
Greece
Israël
Indicates few banks / processors implementing EMV, not entire country
PROPRIETARY & CONFIDENTIAL 7

6. Global Platform Symposium
Asia Pacific 2001/2002 Jp
SKor
China
Tai.
India HK
Phil.
VNam
Thai.
Thai.
Mal.
With the improved economic picture, huge populations will perform their day-to-day purchases with EMV cards.
MasterCard is working with the key government bodies to ensure that the Multos/MCPA/Mondex capabilities are fully understood. SL
Sing.
Indonesia
Australia
EMV Migrating/In Progress NZ
EMV Committed/Planned
EMV Analyzing
Global Platform Symposium

7. Global Platform Symposium
Middle East/Africa 2001/2002
Leb.
Kuw.
Egypt
SAr.
Nga.
E-cash and EMV are establishing strong bases in Ghana, Zimbabwe and Mozambique based on South African influence.
The same phenomenon applies to the Middle East and Gulf States based on initial Egyptian, Israeli, and Saudi Arabian decisions.
Gha.
Moz.
Zim.
EMV Migrating/In Progress
EMV Committed/Planned
SAfr.
EMV Analyzing
Global Platform Symposium

8. Global Platform Symposium
Latin America 2001/2002
Mex.
Costa Rica
Ven.
Col.
Ecuador
Latin American adoption of EMV is continent-wide phenomenon that is driven by the same forces that got the Europeans started -- fraud and processing cost reduction.
Of particular interest to the Latins is EMV’s inherent “skimming prevention” capability and off-line authorization.
Peru
Brazil
Bol.
Par.
Chile
Arg.
EMV Migrating/In Progress
Uruguay
EMV Committed/Planned
EMV Analyzing
Global Platform Symposium

9. Global Platform Symposium
North America 2001/2002
Canada
The IMV effort is expected to bear fruit with national merchant and issuer adoption of EMV.
United States
EMV will continue to be a secondary factor in U.S. banks smart card planning and implementation.
Key Members are both issuing and planning to issue EMV smart cards, though no national migration is planned.
EMV Migrating/In Progress
EMV Committed/Planned
EMV Analyzing
Global Platform Symposium

10. OneSMART MasterCard
Highly flexible umbrella strategy for helping members introduce smart cards in cooperation with MasterCard
Based on extensive consumer research
Reflects MasterCard’s approach of providing comprehensive support and flexibility to members
Members can choose application set, platform, security strategy, chip size, and card designs
Global Platform Symposium

11. OneSMART MasterCard
MasterCard Role
Assist members in end-to-end implementation
Opportunity identification
Business requirements
Process requirements
Support
Program development
Program launch
Work with industry to improve the state of the art
Standards and specifications
Maintain alliances/relationships with best in class vendors
Global Platform Symposium

12. Value-Added Applications
Key To A Positive Business Case In Many Markets
Data Storage
Ticketing
Couponing
Loyalty
Authentication (non-payment)
Enable issuer differentiation and enhanced functionality
Global Platform Symposium

13. Value-Added Applications
The Business Case
Grow GDV by
Improving acquisition, usage, retention
Increase the account’s lifetime value
Add new fee services
Leverage non-payment opportunities
Partner business process improvement
Reduced inefficiencies or fraud
Global Platform Symposium

14. Value-Added Applications
Developing The Business Case
MasterCard has developed a business case tool to model:
Specific opportunities
Multi-application programs
Multi-party programs
This model works in concert with the MasterCard chip payment models developed by EPI
These models will be merged
Global Platform Symposium

15. Global Platform Symposium
Platform Flexibility
MasterCard is only payments association to actively support all major chip platforms
MasterCard M/Chip™ available on MULTOS, JavaCard, and proprietary platforms
Global Platform Symposium

16. Global Platform Symposium
Platform Flexibility
MasterCard is a member of both MAOSCO and Global Platform
Committed to creating a universal platform/ infrastructure that will make it easier for members to issue multi-application cards
JavaCard
Global Platform Symposium

17. Flexible Issuance Options
Via ‘MULTOS Issuance Partner’
Indirect relationship with MULTOS key management authority (KMA) via MIP
MIP interacts with MULTOS KMA on card issuer’s behalf
May upgrade to direct relationship if required
‘Standard’ card issuer
Direct relationship with the MULTOS KMA operated by MXI and within the ‘Global’ MULTOS Domain
Co-located MULTOS KMA
Managed by MXI KMA on card issuer’s behalf
Private domain MULTOS KMA
Licensed by MXI (complete software/hardware solution)
Operated by card issuer themselves or trusted 3rd party
Global Platform Symposium

18. MasterCard/Global Platform
MasterCard staff assigned to Global Platform Standing Committees and relevant working groups
Candidate nominated to chair re-launched Business Requirements Working Group
Facilitated Card and Application Management System (CAMS) contribution
Evaluating additional security contributions
Global Platform Symposium

19. Global Platform Symposium
MasterCard Objective
Broaden Global Platform (GP) scope to embrace all open, industry technologies, including asymmetric approaches
In particular, aspects of MasterCard’s MULTOS experience
But not necessarily prescriptive MULTOS, rather a class of solutions of which MULTOS is one
There could be others
Global Platform Symposium

20. Possible/Desirable Outcome
MULTOS
Card Manager
Open Platform
Card Manager
Open Platform
Card Manager
Today
MULTOS API
Java Card API
Microsoft API
MULTOS O/S
Proprietary O/S
Microsoft O/S
Extended Global Platform
Card Manager
Future
MULTOS API
Java Card API
Microsoft API
MULTOS O/S
Proprietary O/S
Microsoft O/S
Global Platform Symposium

21. Java-tisation of MULTOS - The Goal
applet
Load mechanism
Card specific
loader
Card specific
loader
Same Terminal Functionality
Global Platform Symposium

22. Our Contribution Context
Meaningful contribution on viable terms:
Intent for IPR terms to be normal GP practice, if at all possible
Minimal pre-conditions or constraints
At scope and level appropriate to GP
CAMS terminology will be adopted
‘GP’ style technical authoring style to aid and speed review and debate in working groups
Timed to fit with next iteration of specifications
Global Platform Symposium