MasterCard MasterPass -shopping with speed, security and simplicity
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Online fraud remains a significant issue as e-commerce continues to grow, with 7.9 million fraud cases reported in 2011 valued at 1.16 billion euros. The EMS Risk Event, organized annually by European Merchant Services, offers retailers insights on online fraud prevention and risk management. Masterpass aims to enhance consumer payment experiences by providing secure, quick, and simplified checkout processes across various devices.
MasterCard MasterPass -shopping with speed, security and simplicity
- 1. Page 1 October 2, 2013
- 2. Online fraud is still a big problem and as long as the number of online shoppers continues to grow, so will the number of fraud cases. According to the European Central Bank there were 7.9 million cases of fraud with a value of 1.16 billion euros in 2011 of which 56% took place in e-commerce. European Merchant Services organizes the EMS RISK EVENT annually for retailers who are active in e-commerce and multichannel. It is an excellent opportunity to increase your knowledge in the field of online fraud, risk management and advanced fraud prevention and detection tools. We help you to stay ahead of online fraudsters and to protect your online business by sharing the knowledge and experience of our fraud and risk experts, our customers and our partners. Do you want to attend next year’s EMS RISK EVENT? Please contact the EMS Marketing Department at T +31 20 660 3054 or send an email to marketing@emscard.com. For more information visit www.emscard.com/riskevent Follow us on:
- 3. MasterPassTM: Shopping with Speed, Security and Simplicity EMS Risk Event 2013 Okke Mönking, Business Development
- 4. ©2013 MasterCard. Proprietary and Confidential Smart Devices Are Transforming Consumers’ In Person and Online Shopping Behaviors 1 Yankee Group quoted by Zach Miners, IDG News Service,“Panel: Mobile payments could reach $1 trillion by 2015”, 7 Feb 2013. 2 Monetate, “Ecommerce Quarterly EQ3 2012”, 16 Nov 2012. 3 JiWire Survey, “Which of the following have you done on your mobile device while shopping in a store?”, Q3 2012. USD 1 Trillion Projected Payments via mobile devices by 20151 61.5% to 64.2% Cart abandonment rates grew from Q3 2011 to Q3 20122 49% Consumers who use mobile phones to comparison shop while in store3 USD 2.9 Trillion Projected Payments via mobile devices by 20164 Consumers use smartphones “to place items in shopping carts but prefer to switch to PC or laptop to complete their purchases.”5 19% Consumers who completed their purchase via mobile devices while in store6 4 Yankee Group, “The New Mobile Economy Opportunity Will Be Worth US$3 Trillion by 2016”, 26 Oct 2012. 5 eMarketer, “Retailers Rethink Shopping Cart Abandonment”, 4 Feb 2013. 6 JiWire Survey, “Which of the following have you done on your mobile device while shopping in a store?”, Q3 2012. October 2, 2013 Page 4
- 5. ©2013 MasterCard. Proprietary and Confidential Retail Sales Are Shifting to Smartphones, and Merchants Need to Be Prepared T A B L E T U S E R S 25% 22% 9% of mobile retail purchases are currently made through tablets3 of U.S. tablet users spend of U.S. tablet users spend $50 $100 or more per month on their devices4 or more per month on their devices4 2011 2012 Percent of top 450 Internet retailer sites optimized for mobile phones2 37% 95% 1 Source: Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2011–2016 February 14, 2012 (Figures in legend refer to traffic share in 2016.) 2 Acquity Group, 2012 M-Commerce Audit Summary, Q3 2012. 3 Javelin Strategy & Research, “Mobile Payments Hit $20 Billion in 2012: Tablets Are Key to a Successful Retail Strategy”, September 2012. 4 ABI Research, Jan 28, 2013. October 2, 2013 Page 5
- 6. ©2013 MasterCard. Proprietary and Confidential Consumers Want Easier, More Secure Payment Options Wherever They Shop 23% of customers abandon shopping cart when asked to register2 Top reasons online consumers abandon their shopping carts1 Improving the consumer experience can impact conversion rates³ • Online security concerns • Web site forms take too long • Enforced account creation before purchase 65%of online retailers reported improved conversion rates due to site testing, improved checkout procedures, and other enhancements³ 1 IBM Coremetrics Benchmark, ”Cyber Monday Report 2011.” 2 Forrester Research, “Understanding Shopping Cart Abandonment,” May 20, 2010. 3 Forrester Research, “The State of Retailing Online 2011,” September 2011. October 2, 2013 Page 6
- 8. ©2013 MasterCard. Proprietary and Confidential MasterPass: Shop with Speed, Security and Simplicity on Any Connected Device Partner-Hosted Wallets Portal for partners to connect their digital wallets • Enables them to leverage MasterCard’s checkout, authentication, and fraud reduction services • Allows their customers to pay wherever MasterPass is accepted MasterPass Checkout Services Globally integrated acceptance—both in store and online • Enables acceptance of electronic payments across multiple channels—whether online or, over time, at POS • Provides speed and convenience to eCommerce and mCommerce Web sites • One button, many wallets―saves space on the checkout page MasterPass-Hosted Wallets MasterCard-hosted wallets (white label and proprietary) store all payment and shipping information in one convenient, secure place • Easy integration • No need for consumers to re-enter their information • Enables banks, merchants and partners to white label their own wallets • Fraud-reducing security measures October 2, 2013 Page 8
- 9. ©2013 MasterCard. Proprietary and Confidential 2. Shop 4. Payment Type 5. Payment Details 6. Shipping Information 7. Billing Information 8. Sale Completed 3. Checkout 1. Search and Discover SECURITY CONCERNS PRIVACY CONCERNS TOO MANY STEPS ! ! ! Delivering a Streamlined Consumer Checkout Experience No need for merchants to request or consumers to re-key card details, including CVV2/CVC2/CID, shipping address, billing information Optimize the Checkout Experience SPEED Provides a swift, seamless, consistent checkout experience across all channels—computer, tablet, mobile—and, over time, will extend to POS and offer value-added services SECURITY Multi-tiered security helps minimize fraud and protect consumer data SIMPLICITY Streamlines checkout process and reduces the number of steps to make a purchase October 2, 2013 Page 9
- 10. ©2013 MasterCard. Proprietary and Confidential MasterPass MasterPass C O N N E C T E D W A L L E T S Checkout with MasterPass Partner Wallet Enabling Consumer Choice Partner Wallet AnyBank AnyBank MasterPass A C C E P T I N G L O C A T I O N S Checkout at point of sale October 2, 2013 Page 10
- 11. ©2013 MasterCard. Proprietary and Confidential Convergence of Buying Contexts – Creating Compelling Shopping Experiences* STANDALONE ONLINE Utilize cloud checkout services for online shopping experience “IN STORE REMOTE” Utilize cloud checkout services for in-store clienteling experience Shopper’s Device AT HOME IN STORE Store Device STANDALONE IN STORE Utilize proximity checkout services for in-store, point-of-sale experience “CHIP ONLINE IN STORE” Utilize cloud + SE services for in-store clienteling experience Shopper’s Device IN STORE Store Device Shopper’s Device IN STORE ( A ) C O N V E R G E N C E ( B ) C O N V E R G E N C E ( C ) C O N V E R G E N C E * Proposed MasterPass convergence capabilities are currently under development. MERCHANT LOGO MERCHANT LOGO MERCHANT LOGO Store Device October 2, 2013 Page 11 October 2, 2013 Page 11
- 12. ©2013 MasterCard. Proprietary and Confidential MasterPass merchant services: Supporting merchant loyalty efforts while enabling fast, secure purchasing online, in-store and on-the-go Security Enhancing security for shopping in the digital age. • Support for 3D Secure security protocol within wallet for reduced fraud • Text message purchase verification during checkout Loyalty Driving consumer loyalty and spending with our merchant partners. Omni-channel Future* Supporting new shopping experiences at home, in-store and on-the-go. • Suppression of shipping addresses for digital goods • Storage & passing of loyalty cards/numbers • Gift card giving and usage as payment option • Offer targeting & redemption Future* • Embedded mobile app checkout capability • Scan-to-pay, Tap-to-pay and other payment solutions • Support for global shipping addresses • Secure card provisioning & transaction risk detection capabilities * Future planned services subject to change. • Bank log-in credentials • Support for Private Label cards as payment option • Mobile optimized checkout for easy mobile-web shopping • Fast and secure checkout online • Framed checkout within merchant mobile app October 2, 2013 Page 12
- 13. MasterPass Flag and Transaction Flow
- 14. ©2013 MasterCard. Proprietary and Confidential Changes Required to Support New Data Value – MasterPass Flag MasterCard implemented system changes to support MasterPass that included a new data value to identify MasterPass transactions: • A new data value identifies MasterPass transactions in the authorization and clearing messages • The new data value is generated by the MasterPass system and passed to the merchant to be included in the authorization request • Acquirers will need to work with their merchants and gateways or Service Providers to ensure the new data value is passed properly • Support of this new data value is mandated for both issuers and acquirers who choose to accept MasterPass transactions • Note: On August 15, 2012, a release clarification outlined a change to the MasterPass flag and increased the field size from one byte to three bytes KEY DATES: MasterCard implemented the new data value changes following this schedule: DOCUMENTATION: • Technical Release Bulletin: 1 June 2012 • Operations Release Bulletin: 13 June 2012 • Release Clarification: 15 August 2012 EFFECTIVE DATES: MASTERCARD CORE RELEASE SCHEDULE • Dual Message System (Clearing): 12 October 2012 • Single Message System: 12 October 2012 • Dual Message System (Authorization): 6 November 2012 October 2, 2013October 2, 2013 Page 14
- 15. ©2013 MasterCard. Proprietary and Confidential C U S T O M E R G A T E W A Y A C Q U I R E R I S S U E R SEND PURCHASE DATA SELECT ITEMS TO PURCHASE SEND PURCHASE DATA SUBMIT AUTHORIZATION 1 3 4 5 * Standard transaction flow Regular & MasterPass Transaction Flow C U S T O M E R M E R C H A N T G A T E W A Y A C Q U I R E R I S S U E R ENTER DELIVERY ADDRESS SEND PURCHASE DATA SELECT ITEMS TO PURCHASE SEND PURCHASE DATA SUBMIT AUTHORIZATION 1 2 3 4 5 6 M E R C H A N T M E R C H A N T SELECT PAYMENT METHODSEND PURCHASE DATA SELECT CARD TYPE & DELIVERY ADDRESS 2 ENTER CREDENTIALS LOGIN October 2, 2013 Page 15
- 16. ©2013 MasterCard. Proprietary and Confidential User Experience: Transaction Authentication Basic Check-Out Guaranteed Check-out with SecureCode Guaranteed Check-out with Partner Log-in Issuer validation of log-in credentials Partner Bank Partner Bank October 2, 2013 Page 16
- 17. ©2013 MasterCard. Proprietary and Confidential MasterPass Experience: eCommerce
- 18. ©2013 MasterCard. Proprietary and Confidential Consumer Checkout: Merchant Shopping Cart After clicking the BUY WITH MasterPass button on the merchant site… October 2, 2013 Page 18
- 19. ©2013 MasterCard. Proprietary and Confidential Consumer Checkout: 1. Wallet Login Page – Recognized User User can select the USE ANOTHER WALLET tab to view additional wallets 1 October 2, 2013 Page 19
- 20. ©2013 MasterCard. Proprietary and Confidential Consumer Checkout: 2. Choose Card and Shipping Address Consumers validate their default card and shipping address, and click REVIEW YOUR ORDER 2 October 2, 2013 Page 20
- 21. ©2013 MasterCard. Proprietary and Confidential Consumer Checkout: 3. Choose Card and Shipping Address If opted-in, consumers are prompted to enter a 4-digit SMS code prior to completing checkout 3 October 2, 2013 Page 21
- 22. ©2013 MasterCard. Proprietary and Confidential Consumer Checkout: 4. Place Order QTY Product Description Delivery Options Price Total 1 Nathan Hydration Bottle With Clipless Cap Item#: 4026N SKU: NS 4026N Size: 22oz. Ships from Warehouse Alpha Shipping Method | Edit UPS Ground (4-6 Days)- $7.99 PLEASE NOTE: Shipping time refers to days in transit beginning the day after your order ships. Most orders ship within 1-2 days. Only business days apply (M-F). $5.95 $5.95 Edit First Name Last Name 123 Speedy Secure Path Simplicity, NY 10000 Edit First Name Last Name 123 Speedy Secure Path Simplicity, NY 10000 Edit Card Number: ************0008 Safe Shopping Guarantee ALL INFORMATION IS ENCRYPTED AND TRANSMITTING WITHOUT RISK USING THE SECURE SOCKETS LAYER (SSL) PROTOCOL. 4 Total: $13.94 Tax: $0.00 Shipping: $7.99 Subtotal $5.95 PLACE ORDER (click only once) Information is passed back securely to the merchant site and consumer returns to merchant site to finalize purchase October 2, 2013 Page 22
- 23. ©2013 MasterCard. Proprietary and Confidential Mobile MasterPass Experience:
- 24. ©2013 MasterCard. Proprietary and Confidential Mobile Checkout: Consumer Clicks BUY WITH MasterPass to Reach Sign-in Page After clicking the BUY WITH MasterPass button, the consumer is brought to the wallet selector page 1 2 3 Users can access the wallet selector by clicking the USE ANOTHER WALLET flyout menu PARTNER LOGO PARTNER LOGO PARTNER LOGO October 2, 2013 Page 24
- 25. ©2013 MasterCard. Proprietary and Confidential 4 Mobile Checkout: Choose Payment and Shipping Details, Complete Checkout Masthead can be customized with PARTNER logo and colors After selecting card and shipping address, consumer returns to merchant page to complete order 5 6 PARTNER LOGO PARTNER LOGO PARTNER LOGO October 2, 2013 Page 25
- 26. Okke Mönking Business Leader Acceptance Tel: +31-6-46884990 Email: okke_moenking@mastercard.com