European ATMs 2016
Contactless Innovation at the ATM
Audrey Priami – KAL Head of Sales Europe
Slide 2
“Visa Europe records contactless growth across the continent”
European adoption of contactless is growing
• Some 3bn contactless transactions were made across Europe on Visa cards and payment-enabled devices in the year to 30 April 2016 - growing from 143m transactions a month in April 2015 to 360m in April 2016.
• Contactless transactions accounted for one in five of all Visa-processed, face-to-face payments.
• The average transaction value has also risen by 12% from €12.29 to €13.83.
http://www.nfcworld.com/2016/05/30/345124/visa-europe-records-contactless-growth-across-continent/
Contactless
innovation
at the ATM
Maxim Dareshin
Head of self-service
development dpt.
London, 06/2016
ON
TARG
ET
Ab
ou
t A
lfa-B
an
kWho we are?
22%
# of retail customers 8,0 mln
market share 8,4%
# of ATMs 3500
- with cash-deposit 2200
- with cash recycler option 620
- contactless-enabled 160
withdraw61%
deposit39%
Transaction type’s shares
NCR78%
OKI19%
Wincor3%
Fleet by vendors
ON
TARG
ET
Co
nta
ctl
ess
Key reasons to do this!
33%
Safety (no skimming)
Speed of the transaction – 30seconds!
Allowing operations
using wearables and NFC-smartphones
ON
TARG
ET
Co
nta
ctl
ess
Requirements
44%
Tech
MasterCard© PayPass©
Single tap
PIN only
On-us, off-us
OKI RG7,
NCR SelfServ 32
Customers
Withdraw
Cash-in
Balance inquiry
P2P transfer
ON
TARG
ET
Co
nta
ctl
ess
Project
55%
Start – April 2015
Finish – November 2015
FB_IMG_1464625767652.jpg
First kick-off meeting
6 counterparties,
4 countries
ON
TARG
ET
Co
nta
ctl
ess
Results
67%
ON
TARG
ET
Co
nta
ctl
ess
ATM’s screen ad
78%
ON
TARG
ET
Co
nta
ctl
ess
89%
Next steps
+ 160 contactless-enabled ATM
Visa© PayWave© support
ApplePay©, SamsungPay©, … support
0
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- р.
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thousa
nds
Turnout, USD Quantity of transactions
Turn
out,
000 U
SD
Quanti
ty
Service usage statistics
Results
Slide 12
The Alfa-Bank contactless project - Requirements
On-us and off-us (Mastercard interchange system can cope with contactless ATM data ok)
Single tap (vs double tap/present and hold)
No possibility of Follow-on transactions (not a limitation of contactless per-say)
)
Slide 13
The Alfa-Bank contactless project – KAL answers
KAL application on NDC
NDC screen changes (prompt to let customer know to tap card to start transaction)
NDC Idle state changes (activate and manage 2 card readers at the same time)
NDC state flow changes (limited set of transaction types for contactless cards : no PIN change)
NDC application logic changes (where to get card and chip data from, no chip validation of host reply)
Host messages in same format, but data content changes (host must be able to handle)
Slide 14
The Alfa-Bank contactless project – KAL answer
Cash out
Slide 15
The Alfa-Bank contactless project – KAL answer
Cash in
Slide 17
KAL sponsored “ATM Software Trends 2016” – Online Survey
Please identify your industry segment.
Answer Options Response Percent
Financial institution47.5%
Other52.5%
52%48%
Other
Financial Institution
Slide 18
KAL sponsored “ATM Software Trends 2016” – Online Survey
In what global region are you based?Response
Percent
Africa 8.4%
Asia 13.7%
Australia 6.3%
EU and Europe 35.8%
USA, Canada, North America 29.5%
Central or South America 6.3%
EU and Europe
N. America
Asia
Africa
AustraliaLATAM
Slide 19
KAL sponsored “ATM Software Trends 2016” – Online Survey
How many ATMs do you have?Response
Percent
1-100 18.4%
101-500 22.1%
501-2,000 20.0%
More than 2,000 39.5%
More than 2000
501 - 2000
101 - 500
1 - 100
NUMBER OF ATMS
Slide 20
KAL sponsored “ATM Software Trends 2016” – Online Survey
Which of these features are supported today by some or all of your ATMs? [Select ALL that apply]Response
Percent
Bill payments 50.8%
Coin handling 26.9%
Cardless transactions (such as one-time use PIN for emergency cash, Tap and Go) 33.8%
Customize the user interface based on transaction history 16.2%
Dispensing multiple denominations ($1, $5, $10 etc) based on customer selection 38.5%
E-receipts 15.4%
General marketing campaigns 60.8%
Mobile phone integration, pre-stage transactions on mobile device 19.2%
Purchase items (e.g. prepaid cards, tickets, stamps) 16.2%
Remote teller assistance 8.5%
Targeted marketing, soliciting customer input (“Are you interested?” Yes / No) 22.3%
Video conferencing 4.6%
0
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70
Slide 21
KAL sponsored “ATM Software Trends 2016” – Online Survey
What are your biggest ATM ‘pain points’ today? [Choose up to THREE]Response
Percent
• ATM availability, reliability 38.5%
• Complexity of meeting regulatory compliance issues 20.0%
• Cost management 43.8%
• Need to improve the customer experience 33.8%
• Limited integration with other banking channels and internal systems (eg CRM) 29.2%
• Limited information about real-time operational status of ATM estate 6.2%
• Insufficient management information (reporting) 10.8%
• Lack of tools to remotely control and manage your ATMs 12.3%
• Limited functionality, lack of support for advanced features 17.7%
• Time to market to deploy new updates, new features 20.8%
• Speed of the ATM transactions (too slow) 4.6%
• Vendor / Supplier management 16.2%
• None of the above 3.1%
Slide 22
KAL sponsored “ATM Software Trends 2016” – Online Survey
Regarding ATM usage, which of the following will be true for your
bank in 2020 compared to today?Response Percent
Our ATM transaction volumes will increase significantly 29.7%
Our ATM transaction volumes will increase somewhat 44.1%
Our ATM transaction volumes will remain about the same 9.0%
Our ATM transaction volumes will decrease somewhat 12.6%
Our ATM transaction volumes will decrease significantly 4.5%
ATMs in 2020
Slide 23
KAL sponsored “ATM Software Trends 2016” – Online Survey
What do you think will be the biggest challenges in achieving your goals for
ATMs by 2020? [Choose up to TWO]Response Percent
Capital cost of new / upgraded machines to support latest technologies 42.3%
Operational costs to maintain new systems 30.6%
Complexity of implementing new technologies 36.0%
Customer acceptance of new / different technologies 22.5%
Maintaining security 29.7%
Meeting new government regulations 8.1%
Significant decrease in investment by bank in ATM and self-service
technologies16.2%
Other (please specify) 1.8%
ATMs in 2020