Visa Click to Pay
The Future of eCommerce
Arbeitskreis SicherheitDebit- und Kreditkarten
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Confidentiality:
This presentation is furnished to you solely in your capacity as a client of Visa and/or a participant in the Visa payments system. By accepting this presentation, you acknowledge that the information contained herein (the “Information”) is confidential and subject to the confidentiality restrictions contained in the Visa Core Rules and Product and Service Rules or other confidentiality agreements, which limit your use of the Information. You agree to keep the Information confidential and not to use the Information for any purpose other than in your capacity as a customer of Visa or as a participant in the Visa payments system. The Information may only be disseminated within your organization on a need-to-know basis to enable your participation in the Visa payments system. Please be advised that the Information may constitute material non-public information under U.S. federal securities laws and that purchasing or selling securities of Visa Inc. while being aware of material non-public information would constitute a violation of applicable U.S. federal securities laws.
Disclaimers:
Case studies, comparisons, statistics, research and recommendations are provided “AS IS” and intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial or other advice. Visa neither makes any warranty or representation as to the completeness or accuracy of the information within this document, nor assumes any liability or responsibility that may result from reliance on such information. The Information contained herein is not intended as investment or legal advice, and readers are encouraged to seek the advice of a competent professional where such advice is required.
This document contains depictions of a product currently in the process of deployment and development, and should be understood as a representation of the potential features of the fully-deployed product. The final version of this product may not contain all of the features described in this presentation
Disclaimers
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Digital commerce is expected to keep growing… but challenges still exist.
80% online
98% in store
eCommerce transactions are completed via high-
friction manual PAN entry
1) Total global retail spend excludes travel and event ticket sales. CAGR represents dollar growth of digital spend. Sources: eMarketer; Comscore; Central Bank data; Oxford Economics; Euromonitor Merchant Segment Study 2018. This presentation includes data researched by Euromonitor International plc for its client, Visa U.S.A. Inc. and its subsidiaries
using industry standards. Euromonitor disclaims and excludes any and all liability for any loss suffered by any party as a direct or indirect result of the use of any of the Extracts.
2) September 2019 VisaNet Global Data
3) eCommerce Fraud Trends 2019, Merchant Fraud Journal, https://www.merchantfraudjournal.com/ecommerce-fraud-trends-2019/
4) Forbes, Why Cart Abandonment Rates Aren’t Falling, 2018, https://www.forbes.com/sites/paultalbot/2018/06/27/why-cart-abandonment-rates-arent-falling/#7f1bfd7f7bb6
86% mobile
73% desktop
Opportunity to accelerate digital commerce growth
eCommerce
authorization rates are
lower than in store 2
eCommerce cart
abandonment rates
are extremely high 4
eCommerce fraud is
on the rise 3
14% CNP fraud growth
by 2023
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What is Visa Click to Pay?
Designed to improve security, simplify consumer experience, and increase conversion
No PAN key entry
Cost/Revenue opportunity $
Visa solution based on EMV® standards
Supports Token – use of token benefits from those of Cloud Token Framework
Works across devices
Issuer sets up cards for CTP
via VCEH No passwords
EMV® CTP payment icon is a trademark owned by and used with permission of EMVCo, LLC.
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Opportunities to Participate in Visa CTP
Roles Can be performed by
Merchant
Facilitates the consumer-facing CTP experience.
• Merchant
• Marketplace
• Hosted order page provider
Digital Terminal (DT)
Distributes client-side code necessary to invoke CTP user experience.
• PSP
• Network
• Merchant
• Shopping cart provider
Digital Acceptance Gateway (DAG)
Manages API integration with CTP systems.
Registers the merchant to CTP systems. Fetches full payload from CTP systems.
• Merchant
• Acquirer/ Gateway
• PSP
Digital Card Facilitator (DCF)
Provides consumers access to information/digital cards for use during an exchange
• Network
• Merchant
• Commerce/IoT platform
• Browsers
• Operating System
CTP System
Orchestrates technical activities between participants.• Payment network
Issuer
Sets up cards via VCEH framework and verifies cardholder credentials• Issuer
CTPi
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Roles in the CTP ecosystem
MerchantImplements Trigger
IssuerSets Up Card
Digital Terminal Trigger
Digital Card FacilitatorVerifies Consumer
Digital Acceptance GatewayAuthorizes & Processes Transaction
Disclaimer: All brand names, logos and/or trademarks are the property of their respective owners, and are used for identification purposes only.
MerchantShows Payment Details
7 | Digital Commerce is the new commerce
Alex’s credentials now appear wherever Click-to-Pay is enabled...
and on Alex’s favourite sites, Trusted Listing
makes the checkout process even easier
Products showcased:
• Click-to-Pay
• 3Ds 2.1+
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User initiates checkout in merchant app
User activates new card for CTP
User ’s order is confirmed
Merchant checkout with CTP: New User ExperienceNew user has not yet enrolled into CTP
Disclaimer: All brand names, logos and/or trademarks are the property of their respective owners, and are used for identification purposes only.
User reviews cart and places order. “Remember me” option is provided for
Returning User experience with Visa T&C’s
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Disclaimer: Some features and functionalities described above are currently under development may be subject to cancellation or change by Visa
Issuer sets up an existing card for CTP with Call To Action for cardholderAn existing card is set up via Issuer app/website. "Trust this device” option enables device binding for CTP
User logs in to Issuer App Account Overview If cardholder clicks
‘Remember this device’,
his/her card is sent to
Visa CTP system
Visa’s T&C are presented
Card is ready to use
with CTP
Issuer website or app
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Improve customer
experienceGrow confidence in
transactions
Open the door to new
device & payment
technology
Maximize revenue
opportunities
• Increase revenues with higher
authorization rates
• Token & CTP standards enable scale
• Reduce fraud and associated costs
• Optimize payments with Lifecycle
Management
• Minimize friction with Click to Pay
• Streamline payments with
authentication during
provisioning
• Reduce fraud with tokens
• Verification of ID with Card
Token Framework (CTF)
• Better control and visibility
• Digital Card Art links to users
physical cards
• Click to Pay
• Device binding
• IoT/Non-Payment credentials
EMV® SRC payment icon, consisting of a pentagon design oriented on its side with a stylized depiction of a fast forward symbo l on the
right, formed by a continuous line, is a trademark owned by and used with permission of EMVCo, LLC
Our aim is to provide tangible benefits to PSP’s and merchants
across all digital commerce
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Multi-Layered Payment Security within CTP EcosystemProtection in every step of the payment flow
Payment Data Capture User Authorization Payment Processing
1 2 3
Issuer Authentication
Secure Data Exchange
Unique Verifiable Data
Data Masking to Prevent Exposure
Replace PAN with Tokens
Authorized
transactions can
originate with tokens
to prevent
compromising card
credentials
Issuer authentication
can provide a high
degree of confidence
during provisioning,
binding or transactions
Participants must be
previously known to
the network and
secure credentials
must be used to
access payment
information
Dynamic data can
ensure validity of the
transaction and the
participants
throughout the
transaction
Payment and personal
information is not sent
through the browser-
reference and masked
data is used over open
networks
Disclaimer: Some features and functionalities described above are not yet available and may be subject to cancellation or change by Visa.
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Show relevance for the online shopping experience (easy, smart, secure)
“My money is always secured” – Ich zahle Visa
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The first Click to Pay merchant in Germany is live!
URL: https://www.palast.berlin/
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• Click to Pay is a global solution
• Europe priority markets for 2021: Switzerland,
UK, Ireland, Poland, Spain, Germany, Finland,
Italy, Denmark, Norway, Sweden & Austria
Rollout planning for Click to Pay at Visa in Europe
Sweden
Norway Finland
Ireland
UK Netherlands
Belgium
France
PortugalItaly
Austria
Germany
Poland
Czech Republic
Slovakia
Slovenia
Hungary
Denmark
Luxem-burg
Spain
Switzer-land
Prepare for Click to Pay
Already available in Germany!
©2020 Visa. All rights reserved. Visa confidential
Thank you!
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Thank you.
@VisaEurope
Visa Europe
Darius Metzner