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1 Transforming Customer Engagement in Payments Landscape Suresh Rajagopalan President – Software Products
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Transforming Customer Engagement in Payments Landscape
Suresh RajagopalanPresident – Software Products
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Payments Landscape1990-2000
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Payments Landscape> 2000
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Bank
Devices
Analytics
Regulators
Social
Consumer behavior is influenced by…
Consumer
Infra
Aggregator
Security
Merchant
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I don’t carry a Wallet. Do you?
Consumers
• Ease of Use• Hassle Free Service• Highway or My-way?• End-End Security• Super Fast
Images Courtesy: Google
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• Real Time Sentiment Analysis
• Live Inventory Updates• Faster Checkouts• High Customer Satisfaction
Images Courtesy: Google
Pay with your mobile ring tone!
Facial bio-analytics
I exactly know what you did at the last aisle…
Merchants
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• Adopt Next-Gen Technologies• Reduced Risk/Frauds• Glocalization – Open Access• Customer Delight• Lower CapEx, OpEx
Consumer, Product, Risk, Market Intelligence
Market dynamics
Consumer profile
Merchant profile
Strictly ON-US and Open Access Accounts
Banks
Where
When
Habit ₹
ShopLive
Travel
Total Spend
Category Spend
My Store Spend
Shop
Dine outOnline
Loyal
Naive
Precision targeting based on past behaviour
Switcher
Images Courtesy: Google
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• Cloud Scale Architecture• Lowest Cost per-use• Always ON and Secure• On demand availability• Business Continuity • Reduced energy consumption
Virtually yours… Computing, storage, networking
Infra Providers
Images Courtesy: IBM, Google
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Payments have become as easy as taking a selfie!
Social Media sites
• P2P payments• App Interoperability• Social Analytics• Cross Platform portability• Sentiments Analysis• In-app purchase• Split & Pay
Images Courtesy: KPMG, Adobe
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• High Interoperability• Cross border commerce• Anti-Money Laundering• War-on-Cash• End-end traceability• Standards harmonization• PSD2 initiatives
Regulators are NOW Accelerators! Not just brakes…
Regulators
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• Device sensors• Machine Learning• Advanced Visualization• Customer, Risk, Product and
Market intelligence• Pricing Strategies• Decision Support System
Churn the data oceans to get the Nectar…
Data Mining & Business Intelligence
Images Courtesy: Google
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• Across Verticals• Merchant Aggregation• MADP/RADP• Omni Channel experience• App authenticity• Digital Economy • (App Commerce)
Apparel merchandize aggregation
Parking Rentals Aggregation
Energy & UtilsAggregation
Aggregate everything – Lets chant the app Maha~Mantra…
The Aggregators
Images Courtesy: Google
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Images Courtesy: Google, MobilePaymentsToday
SIM overlay SoC for secure wallets on feature phones
Google ARA – Modular Designs
Think IoT and then there is Payments of Things…
Devices & Gadgets
Car key as a payment instrument Micro ATM
Proximity Pay
• System on a Chip (SoC)• Nano Technology• Internet of Things• Sensor Devices• Proximity Payments
Crypto Currency ATM
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• Multi-factor Authentication• Bring your own device• Connected devices• Data loss prevention• Privacy control• Geo fencing
Images Courtesy: IBM, Google
Tightening controls and defense in depth….
Security
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FSS Pay – Blue Print
RBI | SEPA | ISO | NPCIVISA | MasterCard | AMEX | RuPay |
CUP
Payments Data Lake
Customer/Market/Product/Risk Intelligence
Back Office & Monitoring Stack
NFC/HCE/ContactlessMobile Payments
Payment Gateway
Financial Inclusion
POS Acquiring
ATM Acquiring
Merchant & Acquirer StackIssuer Stack
Payments Hub - Wholesale payments
Digital Payment Server –Internet/MobileSwitching – ATM/POS
Payment Data Infrastructure
Customers MerchantsRetail | Rural | Corp | Govt ATM | POS | Mobile | NFC
Regulators
Interchanges
Digital Security Stack
Payment Processing
Faster Payments/RT-RPS, UPI, ISO 20022
Bill Pay
Recon & Settlement
Device MonitorATM/POS Managed
ServicesLoyalty BBPS
Tunable Cards
Digital Wallet
Green PIN
Smart Chip
Prepaid
Debit
Instant Issuance
Access Control Server
Tokenization
Fraud & Risk
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FSS - Products portfolio
Issuer
• FSS Card Management Suite• FSS Green Pin
Digital Banking
• FSS Mobile Pay• FSS dWallet• FSS Tablet Banking
Acquirer
• FSS Payment Gateway• FSS Merchant• FSS PoSability• FSS Finclusiv Suite
Monitoring & Middleware
• FSS ATM Monitor• FSS POS Monitor• FSS Cash Monitor• FSS Connect
Digital Security
• FSS Access Control Server• FSS Toggle• FSS TokenVault
• FSS Reconciliation Suite• FSS Product Cross Sell • FSS BillPay• FSS iRewards
Smarter Back office
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VALUE ADDED PAYMENTS
Institution FeePayment
Bill Pay/BBPOU &Utilities
ATM SERVICES
POS SERVICES
DIGITAL PAYMENTS
NCR Diebold Wincor
BACK-OFFICE PROCESSING
ATM / POS Monitoring &
Mgt
ATM / POS Switch Servers
Core Banking
Hosts
Domestic &Regional Interchange
Business Continuity
Servers (DRS)
FSSDigital Payment Servers
InternetPaymentGateway
Mobile Banking &Payments
ATM/Debit/Prepaid & Smart
Cards
FraudDetection & Prevention
MerchantAcquiring &Managed Services
GenericRecon
ATM EJ &Content
ATM Cash Mgt & Recon
ATM/POS Testing
& Cert
Prepaid & Loyalty
FinancialInclusion &Remittance
ATM / POS SERVICES
Mobile POS POS Micro ATM
Wholesale PaymentsPayments Hub
Corporate Payments
Co
pyr
igh
t ©
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UPIBBPOUWallet
FSS Presence across Payments Domain
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A global payments systems company
Investment FY16-FY19
₹1000 Cr
100+ customers worldwide
₹600 CrInvested FY11-FY15
₹850 CrRevenue FY16
₹2350 Cr Revenue FY20
2000+ Payments technology
professionals
25 years Payments Technology
Excellence
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2.5 Bn mobile bankingtransaction served annually
by FSS Mobile Pay
400 Mn cards issued usingFSS Card Management Suite
750+ Mn reconciliationtransactions per month;
75% market share in India
Pioneer in transactionswitching services
First integrated Payment Hub implementation in India
Largest IMPS (Immediate PaymentService) processor - more than
30% of India’s IMPS transactions
First to offer financial inclusion services with debit card + PIN option
ATM service provider for 35,000+ ATMs and 30+ banks
Asia’s largest e-CommercePayment Gateway Services
FSS Powering Payments - Fast facts
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FSS – Partner in Nextgen banking needs
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Need for Fraud Control
CNP frauds to Increase from $3.1B in 2015 to $6.4B in 2018double!
Frauds
Frauds outpaced card
growth over years19%
15%
• Mobile User base growth• Internet penetration• Technology development
Increase in transactions
*AITE group Study
USA – 45% UK – 70% Australia – 77%
$6.7B
$1.5B
2020
2014
eCommerceIndustry Growth
CNP Fraud % in data breaches – FY15
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Introduction
PA DSS 3.1 compliant
*Certification inp;rogress
* *
FSS Access Control Server provides 3-D Secure authentication to verify and identify cardholders during an online purchase.
The additional layer of security for eCommerce and mCommercetransactions enables Issuers and Banks to protect their customers from fraudulent usage of cards during a purchase transaction in a remote environment.
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Product Overview
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Product Modules
• Customer mass Enrollment (Batch upload, web service, dedicated Portal)
• Cardholder enrollment through web banking or ADS (Activation during
Shopping)
• Verify customer Enrollment during a payment transaction
• Authenticate Payment transaction by supported authentication
challenge types during a transaction (OTP/IPIN/Static Password)
• Authentication History Server for archiving customer authentication
activity
• Real time dashboard for transaction monitoring
• Configurable Report Engine
• Extensive User and Report management support
• HSM Hardware based data encryption and online digital signature generation
• Link to Fraud and Risk Management systems
Enrollment
Fraud Prevention
Monitoring using Administration
Console
Risk
Management
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3D Secure Transaction Flow
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Product FeaturesMulti channel enrolment of cardholder through web banking or ADS (Activation During Shopping)
Flexible and various authentication methods – OTP (SMS, Email), Static password, IVR, Certificates
Card holder authentication for multiple institutions by same application
Enhanced transparency and better management through highly configurable report engine
Online interface to register card holder data from card issuing host
Customized portals for Configuration, Registration and Authentication
Centralized repository for Payment authentication for fraud mitigation
Batch file Processing enables large card holder data file upload
Seamless integration into banks Information Systems
Two factor authentication for additional layer of security
Proactive alerts to customers via email or SMS
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• Extensive audit trail support
• Optimized queries and utilization
Security
• Encrypts sensitive transmitting data with SSL
• Encrypted or hashed comprehensive security mechanism for storage of confidential details
• Sensitive data encrypted for storage and transmission as per PCI & PA-DSS security standards
Data Encryption
• Firewalls and server protection from network-based threats
• Load balancer and application deployed in the separate managed servers
• Penetration testing, vulnerability testing, 3rd party code validation
Server and Network level security
Data Security and Integrity
• Allows password generation only for a stipulated period
• Encrypts login, change password and forgot password processes using 3DES based on dynamic keys
Password Security
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Benefits
• Increased consumer confidence for purchases via the Internet
• No special application software is needed at the Cardholder’s access device
• Reduced risk of fraudulent transactions• Reduced operational expenses due to
fewer transaction disputes
• Increase in retail sales volume• Helps in reducing total fraud
among cardholder base
• Improved value to merchants by providing new sales opportunities and less disputes
• Low OPEX due to decrease in volume of chargebacks
Cardholders Merchants
AcquirersIssuers
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Platform supported
Web ServerIIS 8.5 , Oracle HTTP server 11g, Apache HTTP server 2.4
Application ServerOracle 12c, Apache Tomcat 9x, IBM WebSphere 8.5 , JBOSS 7.1.1
Browser SupportedIE 8.0 , Firefox 25.0 , Chrome 24.0 & above.
DatabaseOracle
Operation SystemLinux, Solaris, IBM AIX , HP UX, Windows
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Thank You
