CTS 2012: Rogers & Mobile Payments

Rogers & Mobile PaymentsCANADIAN TELECOM SUMMIT | JUNE 4, 2012

David Robinson, Vice-President, Emerging BusinessRogers Communications Inc.

Where we are today …

Recent announcement with CIBC

CIBC and Rogers Communications announced an agreement to launch Canada's first joint mobile payment solution,

Solution will allow Canadians to pay with their CIBC credit card at the checkout counter using their Rogers "Near Field Communications" (NFC) enabled smartphone

• Canada is unique in the world in its “readiness to scale”, with the most advanced contactless card issuance and acceptance ecosystem in the world.

• The mobile proximity payment ecosystem that Rogers will offer to merchants and consumers utilizes the same contactless card terminals currently used by merchants. – These contactless card terminals will recognize a mobile

devices in the same manner they recognizes a credit card today, therefore, if a merchant already has such a terminal new hardware will not be required.

Rogers Vision for Mobile Proximity Payments

The initial objective is to make a smartphone “look like” a payment card to existing point-of-sale equipment.

What will a “SIM based” Mobile Wallet Look Like?

The SIM as the “Secure Element”

The UICC (or SIM) is a cost-effective, secure, card storage facility, with the added benefit

of platform portability and global carrier support.

Because the platform is built to the security standards of global payment networks, it can be used for virtually any credential

Virtual cards create a growth opportunity for issuers who are willing to use the new channel to expand their market share.

A mobile wallet can contain payment cards of all types – Credit, Debit, and Pre-paid.Pre-paid cards may play the role of “cash” in the mobile wallet.

The SIM as the “Secure Element”

The Mobile Wallet

Use your transit pass to get on and off transit systems.

Secure government issued ID will reduce costs, and increase personal privacy.

Banks, government agencies, and others will rely on secure digital ID.

The Mobile Wallet Cont’d

Merchants prefer to store cards over any other payment type because they create customer loyalty, pay lower fees than credit cards, and have lower cash handling cost.

The mobile wallet will materially lower the barriers to store card distribution.

The only payment type merchants like more than store cards is gift cards, because they drive customers to their store, get the cash up front, and pay the same low fees as store cards.

The mobile wallet will materially lower the barriers to gift card distribution.

The Mobile Wallet Cont’d

Building Access is a good example of a credential that needs to be secure, and should be on the UICC. By removing the UICC from the phone you are guaranteed the credential is not usable.

Canadians use coalition reward programs more than any other country. Virtual versions of these programs will increase usage at merchants by eliminating the inconvenience of carrying multiple reward cards.

As well, mobile applications can automatically remind users to present the card, increasing loyalty to merchants.

Issuers will have the option to connect directly, or via aggregators

Smartphone

Ideally, the ecosystem will support the distribution of hundreds of millions of credentials, from thousands of issuers, to virtually every smartphone in Canada

• UICC

Credential Issuers SP-TSM Aggregator Secure ElementManagers

• UICC

• UICC

RIM

Apple

Android

Windows

RIM

Apple

Android

Windows

RIM

Apple

Android

Windows

Option 1: Direct Connections

Option 2: Aggregate Via:

Option 3: Aggregate Via:

Option 4: Aggregate Via:

Option 4: Aggregate Via: