Mastercard Biometric Card - Innovative technology to drive security and efficiency
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Mastercard® Biometric Card Innovative technology to drive security and efficiency
LANDSCAPE
Governments are
focusing on increasing
efficiency and security
While stakeholders, economics, and opportunities may differ,
many governments share the common challenges of reducing
costs, ensuring transparency, minimizing fraud, and driving financial
inclusion—especially when it comes to disbursements (i.e.,
Government to Citizen or “G2C” payments).
Biometric technology can not only help governments address
©2018 Mastercard. Proprietary and Confidential.
these goals but, also help them effectively scale their efforts
and demonstrate leadership by introducing a new solution
that is both cost-effective and innovative
2
GOVERNMENT PROGRAMS
User-friendly technology
that adds security with
every in-person transaction
Mastercard Biometric Card provides a simple and
secure way for recipients or pensioners to verify their
identity when they use their card for in-store
purchases or at cash-out locations—with their
fingerprint, as an alternative to PIN or signature.
Key Benefits for G2C Disbursements:
©2018 Mastercard. Proprietary and Confidential.
It does not require changes to current EMV terminals
and the biometric data never leaves the card. • Ability to validate “Proof of Identity””
• Helps reduce program leakage on an ongoing basis
• Provides user-friendly alternative to PIN—which is useful
for low literacy populations
3REASON TO ACT
Drive Financial Inclusion
Mastercard Biometric Card can help governments increase financial inclusion by providing access to bank accounts
and electronic funds—which is especially useful in low literacy populations. It can also help close the gap between
unbanked men and women, giving women the opportunity to drive economic growth.
“Paying government wages, pensions, and social benefits directly into accounts
could bring formal financial services to up to 100 million more adults globally.”2
750 adults (2/3 of whom are
65% of women have an account
©2018 Mastercard. Proprietary and Confidential.
women) –lack basic reading compared with 72% of men, a
MILLION and writing skills1 gap unchanged since 2011. 3
1. UNESCO INSTITUTE FOR STATISTICS. LITERACY RATES CONTINUE TO RISE FROM ONE GENERATION TO THE NEXT. 2017. 2. THE WORLD BANK. FINANCIAL INCLUSION ON THE RISE, BUT GAPS REMAIN, GLOBAL
FINDEX DATABASE SHOWS. 2018. 3. DEMIRGÜÇ-KUNT, ASLI, LEORA KLAPPER, DOROTHE SINGER, SANIYA ANSAR, AND JAKE HESS. THE GLOBAL FINDEX DATABASE 2017: MEASURING FINANCIAL INCLUSION AND
THE FINTECH REVOLUTION. OVERVIEW BOOKLET. WASHINGTON, DC: WORLD BANK. LICENSE: CREATIVE COMMONS ATTRIBUTION CC BY 3.0 IGO.2018.
4BENEFITS
Potential benefits are threefold
Governments Issuers Recipients/Pensioners
• Greater insight into verified and non- • No need to support a proprietary • An extra layer of security that can help
verified recipient/ system; Issuers can process transactions address concerns about card or PIN theft
pensioner spending/withdrawals similar to other Mastercard products
• Greater confidence and convenience—
• Reduce operational cost and fraud • Reduced customer servicing costs from since recipients/pensioners do not need to
related to benefit distribution, compared recipients who are unable to remember remember a PIN
to closed loop systems PIN
©2018 Mastercard. Proprietary and Confidential.
• Easier payment experience over PIN or
• Ongoing “Proof of Identity” • Reduced card-present fraud signature transactions—especially useful
confirmations without need for costly for low literacy populations
infrastructure for in- person verifications • Potentially greater revenue through
broader adoption of card payments • Peace of mind through added protection
• Demonstrate commitment to that in-person transactions are verified
technology and innovation
5REASON TO ACT
Biometric Card Test Results
Trials & market
research confirm –
easy of use and value
9 out of 10 86%
People thought the Of respondents felt confident
Biometric Card was easy using their Biometric Card 3
to use 2
“
Protecting data via ….I like things simple and easy to use &
©2018 Mastercard. Proprietary and Confidential.
advanced technology absolutely hate remembering PIN #s!1
A numerical representation of the
thumbprint vs. an actual image is captured
and used to verify cardholders identity
1. MASTERCARD. QUALITATIVE CONSUMER RESEARCH. 2016. 2. MASTERCARD. USABILITY RESEARCH 2017.
3. MASTERCARD. PILOT SURVEY. 2017.
6HOW IT WORKS—AT PHYSICAL POINT-OF-SALE
Biometric cards How it works for in-person transactions…
provide a simple
and secure user
experience
Step 1 Step 2 Step 3
• A cardholder dips or taps* • The fingerprint image is • Issuer receives chip data which
the card into a chip-enabled compared against the stored indicates whether biometrics
terminal—while holding their image within the card was successful or failed
thumb onto the built-in
• The biometric match results • Issuers --switching via
sensor on the face of the
are sent to the EMV chip and Mastercard-- can also check a
card
the transaction data is sent biometrics authentication
Keeping Biometric
©2018 Mastercard. Proprietary and Confidential.
• When the card is inserted to the Issuer indicator, which is part of the
into the terminal, a digital authorization message
Data Secure image is created of the
• If matching is not possible,
the cardholder may be asked
Biometric data never leaves the cardholder’s thumbprint
to enter a PIN instead**
card and is not shared with the
*Contact cards to be launched 3Q **Fallback verification method to
merchant
2018 and self enrollment to be PIN/signature can be configured as per
launched 4Q 2018. Issuer’s request
7HOW IT WORKS—ENROLLMENT
Enrollment is Enrollment experience…
quick and easy
OPTION 1 Recipient/Pensioner visits their Cardholder places their thumbs
local government post and on the enrollment scanner. Digital
In-Person
validates their identity images of both thumbs are
Appointment —before receiving their card. securely transferred and stored
. on the card.
OR
OPTION 2 Cardholders can easily set up Cardholder inserts the card into
AVAILABLE 4Q 2018 their card without going to their the sleeve and places their thumb
local government post—via a on card sensor. After repeating a
Self Enrollment
disposable sleeve that is sent few taps on the sensor a digital
(i.e., At Home)
with their new card. image of their fingerprint is
©2018 Mastercard. Proprietary and Confidential.
Start to finish captured and enrollment is
complete.
about 5 minutes
Initial trials confirm enrollment is
Cardholders can use the biometric feature of their card right after enrollment completes.
fast and simple—taking about 5
minutes to complete1
8IMPLEMENTATION CONSIDERATIONS
For current Biometric Card Implementation
payment programs,
set-up is simple—
with no impact to
EMV terminals
Card Cardholder Issuer Platform
Procurement Enrollment Set-up Changes
• Available as feature for • Contract with an enrollment • Issuer host needs to read
any Mastercard or vendor to support enrollment the biometric authentication
Maestro card1 activities values—within the transaction
data
• Certified Biometric Cards are
purchased from a card • Issuer’s risk scoring models
Innovation
©2018 Mastercard. Proprietary and Confidential.
manufacturer to be updated to capture
Made Easy the biometric authentication
• Mastercard Biometric Card values
program enrollment form
With minimal outlay, biometric
to be completed
cards can quickly and easily
help drive innovation
1. NOT FOR U.S. REGULATED DEBIT OR PREPAID PORTFOLIOS.
9PRODUCT ROADMAP
Advancing Product Availability*
Building on success
Mastercard Biometric Card Current Markets
(Markets in orange italics are “In Process”)
helps issuers around the world
drive better authorization Asia Latin Middle East North
results and ensure a positive Europe
Pacific America Africa America
cardholder experience.
• Australia • Albania • Kosovo • Brazil • Egypt • Canada
• China • Armenia • Latvia • Chile • Jordan • United States
• Hong Kong • Austria • Lithuania • Costa Rica • Kuwait
• India • Belgium • Luxembourg • Haiti • Libya
• Korea • Bosnia • Macedonia • Jamaica • Morocco
• Malaysia • Bulgaria • Montenegro • Mexico • Oman
• Singapore • Croatia • Netherlands ----------------- • South Africa
• Sri Lanka • Cypress • Norway • Argentina • UAE
Planned Activity • Thailand • Czech • Poland • Colombia -----------------
--------------- Republic • Romania • Dominican • Bahrain
4Q/2018 Dual interface cards to be piloted • Japan • Denmark • Russia Republic • Kenya
4Q/2018 At home (i.e., self) enrollment • Philippines • Estonia • Serbia • Panama • Lebanon
option available • Taiwan • Finland • Slovenia • Namibia
• France • Spain • Nigeria
©2018 Mastercard. Proprietary and Confidential.
4Q/2018 Dual interface cards to be piloted • Germany • Sweden • Pakistan
with self enrollment • Iceland • Switzerland • Qatar
• Ireland • Turkey • Saudi Arabia
2Q /2019
• Italy • United Kingdom
Dual interface (i.e., contactless)
cards to be launched
*COUNTRIES LISTED HAVE PASSED REGULATORY AND PRIVACY SCANS FOR BIOMETRIC CARD. LIST MAY NOT INCLUDE ALL MARKETS; NEW COUNTRIES
ARE CONTINUALLY BEING ADDED..
12NEXT STEPS
Let ’s get
start ed
Discuss interest in biometrics to drive security and risk management
strategies
Explore the need for more detailed information
Evaluate potential pilot opportunity
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