Semi-Integrated Payments / A Simplified Approach to EMV & PCI AUGUST 28, 2015
Semi-Integrated Payments / A Simplified Approach to EMV & PCI
AUGUST 28, 2015
1 Welcome
Agenda
Introduction & objective
About Ingenico Group
Traditional payments architecture
Semi-Integrated architecture
Overview of Ingenico Group’s Telium Semi-Integrated solution
Q&A
4
Speaker Introduction
Dr. Robert Martin
VP of Security Solutions
Ingenico Group / North America
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015
Rhonda Boardman
VP of Strategic Development
Ingenico Group / North America
5
Objective
Ease EMV migration &
reduce certification bottleneck
Improve security by eliminating
sensitive card data from the
POSReduce PCI
scope, saving valuable time, money, and resources
Gain flexibility with the ability
to choose preferred
processor or gateway
Learn what is driving a shift in the traditional payments architecture and
how a secure, semi-integrated approach can help:
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015
6
PollWhat is your primary concern or challenge with EMV migration?
A) Cost of migration
B) Timeline of migration
C) Complexity of integration
D) Other
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015
About
Ingenico
Group2
8
Global footprint / multi-local solutions
$1.8Bin 2015
88sites across
the world
35years of
payment
expertise
global reach
170countries
78nationalities
5.5Kemployees
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015
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• Security-focused / EMV, NFC, P2PE
• Seamless experience / in-store, out of store and onboard
• Innovative solutions / across industries and use cases
• Trusted partner / unmatched service and support
Ingenico Group U.S. / at a glance
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015
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Trusted partner / from small merchants
to global brands
Network of
1,000+financial
institutions
Partner with
70%of the Top 30
leading retail
brands
250K+ merchants
connected to our
platforms
Accepting
300+payment methods
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015
3Traditional
Payments
Architecture
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Evolving U.S. payments market / key drivers
The EMV migration is forcing the U.S. market to reconsider its approach to
payments
EMV and smartcard shipments overtake magstripe card shipments in 2015
The costs of cardholder data security and PCI compliance continue to increase
as attackers get more sophisticated and PCI standards increase in complexity.
0
100
200
300
400
500
2013 2014 2015 2016
Card Shipments (millions)Smart and EMV Card Shipments Mag-stripe Card Shipments
Source: ABI Research
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015
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An integrated architecture:
The point of sale (POS) controls the terminal
POS builds the payment message and controls the authorization flow
This serves merchants well with innovation in consumer interaction and
payment flow.
Traditional integrated retail environment
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015
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Challenges with the traditional model
Migrating to EMV involves upgrading much more than just the payment
terminal:
POS/ECR
Back office infrastructure
EMV certification involves all merchant systems in the payment flow.
The same systems are part of the cardholder data environment:
Systems need to be protected against determined criminal attackers
PCI compliance costs throughout the retail locations and back-office
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015
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Challenges with the traditional model
• Current EMV certification bottleneck as everyone is
rushing to get their solutions certified
• Adding security solutions such as point-to-point
encryption (P2PE) and tokenization have an effect on
many system components
• Criminals have mainly attacked sensitive PCI data on the
POS or within the retailer’s internal systems via malware
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015
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Keep components that benefit merchants and consumers:
Consumer interaction, signature capture
Flexible payment flows
Reduce or eliminate challenges with:
EMV certification
Cardholder data security
PCI compliance
The ultimate challenge
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015
Semi-
Integrated
Architecture
A seamless way to meet the
challenges of EMV and PCI
4
18
Hardware Semi-Integrated architecture
A Semi-Integrated architecture:
Maintains a connection between the terminal and electronic cash register (ECR)
Provides an independent connection for transactions to go “around” the ECR,
directly to the host
Sensitive payment data does not enter the POS
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015
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Key benefits of a Semi-Integrated architecture
Simplify EMV Migration
Leverage “pre-certified”
solutions
Minimize upgrades required to POS
& back office systems
Reduce costs of EMV migration
PCI Scope Reduction
Reduce footprint where sensitive
data passes through
Opportunity for PA-DSS removal
Lower cost of PCI compliance
Increase chance of audit success
Improvements to Security
Limit attack surface
Avoid breaches commonly
occurring in the POS
Simplify path to add point-to-point
encryption (P2PE) & tokenization
Avoid EMV Certification Bottleneck
Bypass the backlog of merchants
simultaneously looking for
certifications
Skip the long and expensive process
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015
5Telium
Semi-
Integrated
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Telium Semi-Integrated (TSI) architecture
Flexible approach enables merchants and partners to deploy TSI solutions using Ingenico Smart Terminals
Processor and gateway agnostic
Cross-platform SDK (iOS, Android, Windows, Linux)
Two product variants to suit unique business needs – TSI Basic & TSI Enterprise
Leverages the certified applications running on Ingenico Group’s Telium2 platform
Compatible with Ingenico Group’s range of countertop terminals, PIN pads, and signature capture multi-lane retail devices
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015
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TSI / simplifies integrating value-added
services
By maintaining a direct connection to the
host and bypassing retailers’ systems, the
integration of additional services is
simplified because fewer system
components are affected:
P2PE and Tokenization – eliminates the
need to upgrade systems to route new data
formats
Estate Management – software updates can
be managed directly via IngEstate or local
downloading through the ECR
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015
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TSI / summary of benefits
TSIA semi-integrated architecture
can help by:
Simplifying EMV migration
Reducing PCI scope
Improving security
Avoiding the EMV certification bottleneck
Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 8/28/2015
Questions?www.ingenico.us
Thank You