Contactless Cards

Table of Contents

Section

Executive Summary

• Challenges of Alternative Payments Innovation
• Electronic Payments
• Focus of Report
• Technology
• Competition, Cooperation, Partnerships
• Conclusion

Overview of Alternative Payments

• Overview of Alternative Payments
  • Scope of this Report
• The Way People Pay
  • Three Ways of Paying
  • on Account and Extending Credit
• The Payments Value Chain
  • Potential to Shorten the Value Chain
• The Four Party Payment System
  • Authorization
  • Clearing and Settlement
• Interchange Fees
• Types of Alternative Payments
  • Contactless Payments (Debit And Credit)
  • Mobile Payments
  • Biometric Payments
  • Specialized Payment Markets
  • Micropayments
  • Social Money
• Key Market Segments
  • Mainstream Market
  • Unbanked, Immigrants, and Credit Challenged
  • Unbanked -- International
  • Youth Market
  • Merchants
• Conclusion

• Overview of Alternative Payments - How A Purchase Is Made
• Overview of Alternative Payments - How A Merchant Gets Paid

• Annual Number of Noncash Payments

Alternative Payments Technology

• Introduction
• Magnetic Stripe
• Radio Frequency Identification (RFID)
  • RFID Acceptance
  • Smart Cards
  • Short Message Service (SMS)
  • Direct Debit Using SMS
• Near Field Communications (NFC)
  • NFC Trials
  • Philips Arena Trial in Atlanta, Georgia
  • NFC Trial in Dallas, Texas
  • NFC Potential
  • NFC Developments in Japan
  • NFC In Europe
• Biometrics
  • Fingerprint Template and Payment Procedure
• Industry Coordination and Standards
  • RFID
  • m-Payments and Contactless Payments
  • NFC Forum
• Payments: Mag-Stripe, Contactless, Smart Card, Wireless, Biometrics
  • Conclusion

Market Drivers and Trends

• Introduction
• Speed and Convenience
• Country Specific/Cultural Factors
• Differing Payments Infrastructures By Country
• Ease of Use, Fumble Factor
• Micropayments
• Microcomputer in the Hand
• Cool Factor
• Retaining Customer Loyalty -- Rebates and Coupons
• Payment/Cardholder Steering
• Unbanked Population (Immigrants, Credit Challenged)
• High Credit Card Fees -- Background on PIN-Based Debit Cards
• Disintermediaton
• Security Concerns
• Active versus Relatively Passive Payment Action
• Government Support and Regulation
• Need for Online Payments, New Payment Alternatives
  • PayPal
  • Google Checkout
• Un-Drivers
• Point of Sale Equipment
• Other Payment Providers
  • MoneyGram International
  • Peppercoin

Contactless Payments

• Introduction
• Background and History -- United States Japan and Korea, Europe
• Strategic Factors Affecting Contactless Usage and Deployment
• Interchange Costs
• Additional Benefits of Contactless Cards
• Security of Contactless Cards
• Cross-Elasticity with PIN-Based Debit Cards
• Background on PIN-Based Debit Cards
• Applications
  • Big City Mass Transit
  • Case Studies -- 7-Eleven and Sheetz
  • Employee Cafeterias
  • Vending Machines
  • Market Promotions
• Incentive for Customer and Merchant Use
• Contactless Market Opportunity
• Lessons from Target' s Bad Experience with Smart Cards
• Terminal Upgrades to Contactless
• Key Players
  • Credit Card Companies and Payment Services
  • American Express
  • Citibank
  • Discover Financial Services
  • MasterCard Worldwide (PayPass)
  • Visa
  • First Data
• Reader Systems and Equipment Companies
  • On Track Innovations Ltd. (OTI)
  • Symbol Technologies
  • ViVOtech
• General Technology Providers
  • Giesecke & Devrient GmbH
  • INSIDE Contactless
• Other Contactless Payment Players
  • Chockstone (Customer Loyalty Solutions)
  • FreedomPay (Corporate Cafeteria Market)
  • Precision Dynamics (Alternative Contactless Payment Provider)
  • Texas Instruments (RFID Chips)
  • Oberthur Card Systems (Contactless Cards)

Market Projections

• Introduction
• Contactless Payments
  • Current Market
  • Key Assumptions
  • Market Forecast

• Contactless Payment Revenues at U.S. Merchants - 2006 to 2011
• Contactless Payments at U.S. Merchants Percent of Credit and Debit Card Dollar Volume - 2006 to 2011
• Contactless Payments at U.S. Merchants Percent of Credit and Debit Card Transactions - 2006 to 2011