The SI Perspective Martin Reilly hitachi-eu com Senior Consultant

The SI Perspective Martin. Reilly@hitachi-eu. com Senior Consultant September 2003 01628 585754 www. hitachi-eu/egov

¥ e-Purse ¥ Business Case ¥ Types of Scheme ¥ Standards ¥ SI Perspective ¥ Future ¥ Questions… Agenda

Argentina , Australia , Austria , Bahrain , Belarus, Belgium, Brazil, Bulgaria, Canada, Chile, China, Colombia, Costa Rica, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Finland, France, Germany, Ghana, Greece, Guatemala, Honduras, Hong Kong, Iceland, India, Ireland, Israel, Italy, Ivory Coast, Japan, Kazachstan, Kenya, Kyrgyzstan, Latvia, Lithuania, Luxembourg, Malaysia, Mali, Malta, Mexico, New Zealand, Nigeria, Norway, Philippines, Poland, Portugal, Puerto Rico, Romania, Russia, Singapore, Slovakia, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, Tunisia, Turkey, Ukraine, United Kingdom, United States, Uruguay, Venezuela, the Netherlands e-Purse A-Cash, American Express, Avant, Balcard, CAFÉ, CASH (Switzerland), Cartao Inteligente, Cash (Sweden), Cash. Card (Singapore), Chipknip, Chipper, Clip (Europay), Danmønt, ECard, ESCA, Easy Card, Edy, Electronic Cash Bradesco, Electronic Cents Purse, Euro 6000, Exact, Futura 3000, Geld. Karte, Hi. Purse, K-Cash, KLINK, MEP (Multibanco), MEPS Cash, MINIpay, Master. Card Cash, Micro. Cash, Mini. CASH, Modeus, Mondex, Monedero 4 B, Moneo, Monicash, Mybi - Digital Pusan Card, Octopus, Proton, Quicklink (now ECard), SMArt Rupee System (SMARS), Suica, Super. Cash, TIBC, Thai Smart Card, Ultimus, Valu. Card, Visa Cash, Visa Roskart, beenz, i. Button

¥ Electronic Purse ¥ Electronic Cash ¥ Prepaid Value ¥ Stored Value ¥ Magnetic Stripe Cards ¥ Smart Cards ¥ Other Physical Tokens ¥ Entirely Virtual e-Purse

¥ e-Purse ¥ Business Case ¥ Types of Scheme ¥ Standards ¥ SI Perspective ¥ Future ¥ Questions… Agenda

Where will revenue come from? How will we leverage it? How much will it cost? Business Case

¥ Cost of Handling Cash ¥ Interest on Float ¥ Unredeemed Value ¥ No Cash Infrastructure ¥ Faster than Cash ¥ Ease of Use ¥ Security ¥ Electronic Services Business Case

¥ ATMs ¥ Point of Sale ¥ Card Readers ¥ Revalue Machines ¥ Transaction Hub ¥ Txn Clearance ¥ Cost ¥ Charges ¥ Lease or Own Business Case

¥ e-Purse ¥ Business Case ¥ Types of Scheme ¥ Standards ¥ SI Perspective ¥ Future ¥ Questions… Agenda

Closed ¥ Value Circulates ¥ Single Organisation ¥ Partner Organisations ¥ Issuing Value ¥ Redeeming Value ¥ Vouchers not Currency ¥ Private Infrastructure Scheme Types - Closed

Closed - Example ¥ Positive Futures ¥ Leisure Centres ¥ Youth Workers ¥ Issued for Behaviour ¥ Redeem for Sports ¥ 1 point 1 p ¥ Closed Points Cycle ¥ All Transactions Logged Scheme Types - Closed

Open ¥ Electronic Cash ¥ Cash Alternative ¥ Issued by a Bank ¥ Merchants Accept ¥ Consumers Use ¥ Issuer Honours Value ¥ Central Bank Rules ¥ FSA in UK Scheme Types - Open

Open - Example ¥ Ghana ¥ Two Banks ¥ Poor Quality Paper Money ¥ No network of ATMs ¥ Limited Landlines ¥ Security in Bush ¥ Utility Payments ¥ Few Bank Accounts Scheme Types - Open

Fully Accounted ¥ Pre-Authorised Debit ¥ Shadow Account on Chip ¥ Central Hub ¥ Transaction Charges ¥ Not Anonymous ¥ Proprietary Solutions ¥ EMV ¥ Attractive to Banks Scheme Types - Accounted

Offline ¥ Reduce Telecom Costs ¥ Scales Better ¥ Robust and Reliable ¥ Lower Cost ¥ Secure Chip Required Scheme Types - Offline

Online ¥ All Transactions Centrally Cleared ¥ Potential Single Point of Failure ¥ Security in Servers and Terminals ¥ Cheaper Cards ¥ Centralised Settlement Scheme Types - Online

Transport ¥ Generally Closed ¥ Speedy Transactions ¥ Usually Prepay ¥ Contactless ¥ Low Cost Cards Used ¥ Interoperability Required ¥ Commercially Successful Schemes ¥ Transaction Fees Fund Infrastructure Scheme Types - Transport

Transport - Example ¥ SUICA ¥ Japan Rail East ¥ 5 Million+ Cardholders ¥ 20 M Daily Transactions ¥ 500 Stations ¥ Multi-Operator ¥ Season Tickets ¥ Stored Value ¥ Vending & Retail Scheme Types - Transport

¥ e-Purse ¥ Business Case ¥ Types of Scheme ¥ Standards ¥ SI Perspective ¥ Future ¥ Questions… Agenda

ITSO ¥ UK Transport ¥ Legacy Schemes ¥ Getting Started Standards - ITSO

Common European Purse Specifications ¥ Secure Electronic Transactions ¥ Standard being Adopted ¥ Evolution from EMV ¥ Face to Face ¥ International ¥ Multi-Currency Standards - CEPS

¥ EMV ¥ 2005 Roll Out ¥ International Standard ¥ UK Wide Infrastructure ¥ Master. Card and Visa ¥ Preauthorised Debit ¥ ATM, POST & Cards ¥ PIN at POS Standards - EMV

¥ e-Purse ¥ Business Case ¥ Types of Scheme ¥ Standards ¥ SI Perspective ¥ Future ¥ Questions… Agenda

Smart Cards act as a catalyst for Technical Integration and Stakeholder Cooperation SI Perspective

¥ Cardholder Take up ¥ Social Exclusion ¥ Organisational ¥ Security Worries ¥ Technology ¥ Standards ¥ Plans to Scale ¥ Sustainability ¥ 21 st Century Government ¥ and others… SI Perspective

¥ Consulting Stakeholders ¥ Community Involvement ¥ Legal ¥ Marketing ¥ Financing ¥ Implementing ¥ Operating ¥ Managing SI Perspective

¥ e-Purse ¥ Business Case ¥ Types of Scheme ¥ Standards ¥ SI Perspective ¥ Future ¥Questions… Agenda

Contactless Transport Cards are Popular with the Public unlike Bank e-Purse Schemes Future

Preauthorised Debit ¥ e-Cash Alternative ¥ Proprietary Solutions ¥ India ¥ Russia ¥ EMV ¥ Master. Card ¥ Visa ¥ EMV Widely Deployed Future

¥ Many Closed Schemes ¥ Low Cost ¥ Local ¥ School Meals ¥ Loyalty ¥ Social Inclusion Projects ¥ Staff Canteens Future

µ-Chip met the challenge to make a chip small enough for bank notes. ¥ Low Cost ¥ High Volume ¥ High Security ¥ Fast ¥ Simple Future

¥ e-Purse ¥ Business Case ¥ Types of Scheme ¥ Standards ¥ Future ¥ SI Perspective ¥ Questions… Questions

The SI Perspective Martin. Reilly@hitachi-eu. com 01628 585754 Senior Consultant September 2003 www. hitachi-eu/egov