THOUGHT LEADERSHIP
IMPLEMENT TWO KEY
STRATEGIES TO MAXIMIZE
INVESTMENT IN EMV
TECHNOLOGY
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The lingering financial crises and resulting economic uncertainty have forced banking executives to squeeze
efficiencies at the expense of revenue growth. On top of this, issuers face unrelenting regulatory pressure and
the expensive rollout of EMV technology.
In years past, the industry has chosen
low-cost patch work which has small
up-front investments, but long-term
unaccounted for costs.
It’s time to think about the payments
business and turn technology spend
into technology investment. It’s time
to consider a holistic approach to
building ROI models.
Business owners have new tools to
combat their evaporating margins,
deliver new payment services to
customers and aggressively capture
market share.
BUT HOW?
With reduction in fraud not expected
to offset the costs of adopting EMV in
the U.S., the value of moving to EMV
must be realized elsewhere: through
leveraging a much more flexible,
adaptable, dynamic and secure form
of technology — the chip itself.
Thinking of the chip as just a “skimproof magnetic stripe” and not actively
managing it through the adoption of
an in-house smart chip management
system will limit the exploit
opportunities and prevent controlled
costs in the long run.
Two key strategies for maximizing the
investment in EMV technology are
the acceleration of mobile payments
adoption and the flexibility to get to
market quickly with the products.
FLEXIBILITY TO OFFER
CONSUMER-DEMANDED
PRODUCTS
EMV cards can provide new revenue
sources when they are managed
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The case for off-the-shelf smart chip
management solutions
The U.S. payments industry is facing an
expensive rollout of EMV technology,
estimated to be $10-11B for hardware
and plastics alone.
The challenge
Issuers have to roll out EMV technology
for their consumers or face the
consequences of fraud liability shifts.
They also face unrelenting regulation
which is compressing their ability to
generate revenues. Every dollar spent is
agonized over and typically the shortterm view is taken. Wise business and
technology owners invest to increase
the ROI of their decisions.
The options
•Patch legacy home-built issuing
system
•Cede control over destiny of
payments to processors
•Dedicated off-the-shelf smart chip
management solution
Benefits of an off-the-shelf smart chip
management solution
•Niche segmentation of the customer
base and long-term cost reduction;
the flexibility to create new
competitive payment programs with
a fast time to market
•Expansion in the types of payment
and non-payment products that
can be supported on a single card
through multi-application issuance
and lifecycle management
•Acceleration in the adoption of
mobile payment products and
programs, such as NFC
•Business agility to switch physical
card suppliers or use multiple
suppliers as required
•Owning and controlling the
cryptographic security keys
associated with cards
by an in-house chip management
system. New payment — and nonpayment — services can be launched
and delivered to the cards during
personalization or post-issuance.
The new applications can be stored
alongside the core EMV payment
applications already resident on the
card. This approach, known as multiapplication management, enables
card issuers to improve customer
segmentation, rapidly roll out
marketing offers, execute targeted
loyalty programs and potentially
create mobile-based identity
verification programs. Giving the
consumer what they want, when they
want it, and being able to charge for
demanded payment services.
INRASTRUCTURE FOR NFC
PAYMENTS
The adoption of mobile payments is set
to increase. The potential integration
of NFC chips based on EMV will allow
banks to accelerate this payment type,
further driving up electronic payments
and reducing small-value, high-volume
cash payments. Banks that own their
own smart chip management solution
can stay ahead of the market and be
a fast adopter. The facilities that are
required to manage chip cards are in
many ways identical to the functionality
required to manage mobile NFC
payment tokens. Being able to
download a payment app to an NFCenabled phone is a powerful argument
for retaining control over smart chip
management.
These two benefits of an in-house
issuance system can be turned into
key strategies for issuing banks
looking to maximize their investment
in EMV technology. By focusing on
giving consumers what they want, and
being able to charge for it, issuers can
increase per-customer revenue and
market share.
ACI has a leading role in the rollout
of EMV technology in the U.S. and
currently serves as the committee vicechairman for the U.S. EMV Migration
Forum.
Look at the evidence
ACI is proven in the marketplace.
ACI Token Manager™ is currently
responsible for the day-to-day
management of 125 million chip-based
instruments globally. It is the world’s
leading and most trusted smart card
management solution available on the
market.
What next?
For further details about ACI’s EMV
solutions, please visit
www.aciworldwide.com/emv
or scan here:
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ABOUT ACI WORLDWIDE
ACI Worldwide, the Universal
Payments company, powers electronic
payments and banking for more than
5,000 financial institutions, retailers,
billers and processors around the
world. ACI software processes $13
trillion each day in payments and
securities transactions for more than
300 of the leading global retailers,
and 21 of the world’s 25 largest banks.
Universal Payments —  — is ACI’s
strategy to deliver the industry’s
broadest, most unified end-to-end
enterprise payment solutions. Through
our comprehensive suite of software
products and hosted services, we
deliver solutions for payments
processing; card and merchant
management; online banking; mobile,
branch and voice banking; fraud
detection; trade finance; and electronic
bill presentment and payment. To learn
more about ACI, please visit www.
aciworldwide.com. You can also find
us on Twitter @ACI_Worldwide.
www.aciworldwide.com
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Americas +1 402 390 7600
Asia Pacific +65 6334 4843
Europe, Middle East, Africa +44 (0) 1923 816393
© Copyright ACI Worldwide, Inc. 2015
ACI, ACI Payment Systems, the ACI logo, ACI Universal Payments, UP, the UP logo and all ACI product names are
trademarks or registered trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in the United States, other
countries or both. Other parties’ trademarks referenced are the property of their respective owners.
ATL5706 02-15