2004 May Issue
Cover Story
The future of payment in Asia-Pacific
Other Stories
POP culture - From visual displays to visual identity
The future of payment in Asia-Pacific
Refreshing discoveries off the beaten asiles at IHA 2004
Going organic in Malaysia

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Cover Story Page 2 of 3
The future of payment in

"We are constantly working on new payment products ...We play an instrumental role in realising the u-commerce vision by addressing four fundamental factors of payments: Developing common standards;enhancing security; maintaining a robust and reliable processing system; and making payments simple."
Philip Yen

Visa Smart Programme for chip migration

Visa recognises that the migration from magnetic stripe to EMV chip requires a concerted commitment and effort on the part of Visa’s members and merchants, involving the issuance of new cards, upgrading of existing payment terminals and making host system
changes. Visa also realises that business and technical environments differ from region to region and market to market.

In response, Visa has created Visa Smart, a comprehensive chip programme that is designed to provide financial institutions, merchants and industry players with the support and resources they need to manage the deployment of chip technology.

The programme aims to significantly reduce financial, technical and time-to-market barriers
currently faced by card issuers, acquirers and merchants in their chip-migration efforts, and to accelerate the adoption of Visa Smart debit and credit cards in the region.

The Visa Smart Programme addresses multiple aspects of planning and implementation of chip.

Based on extensive market research and consumer insights, the Visa Smart Programme is designed to support the industry in all key functions in the chipmigration process and include Smart Cards and Devices, Smart Policies and Incentives, Smart Personalisation, Smart Partners and Consulting, Smart Consumer Research, Smart Implementation Support, and Smart Education and Communication.

Visa Smart Device Programme

A core component of the Visa Smart initiative is to drive down the costs of chip migration by encouraging and facilitating special offers from chip card and terminal manufacturers.
Apart from the family of cost-effective smart cards, Visa has also been working with industry partners to develop cost-effective EMV devices. Visaapproved chip-reading POS devices that
are available through the Visa Smart Programme now cost as little as US$177.Merchants can leverage the Visa Smart Programme to capture new opportunities that chip brings as well as benefit from this cost-reduction exercise.

Under the Visa Smart Partners’ Programme, Visa offers member banks a host of smart-card services from the chip consultants and experts from major vendor companies.

With exceptional value offered on all the components of a successful chip implementation including smart cards, acceptance devices, host systems, personalization solutions, test tools and technology consulting, Visa’s members and their retailers can now enjoy the cost saving. There are more than 50 vendors currently participating in this programme.

Working with retailers

Along with consumers, retailers represent the primary stakeholders in the Asia-Pacific’s migration to chip as the end-user of the payment product. With EMV now firmly established as the globally interoperable standard for smart cards, Visa’s focus is on enabling the payments infrastructure within the retailer community and driving chip transaction volumes.

Visa and the industry’s focus have, initially at least, concentrated on the development of stand-alone payment terminals to upgrade both bank and retailerowned terminal space. With the support of industry partners, there are now in excess of 200 different types of stand-alone terminals approved by EMVCo available in the market, and terminal prices have fallen by more than 50% to an average US$200 in recent years.

However, the implementation of integrated solutions servicing high-volume sectors, including supermarkets, department stores and petrol stations, and international merchants such as hotel and car rental, will be needed to achieve regional chip maturity in 2008.

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