New Payment Platforms Discussed in AllCard Summit

Wednesday, October 17, 2012

By Denn Meneses

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Summit 2012 Highlights

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AllCard Incorporated, the country's leading card services supplier, hosted the Specialized Business Solutions Summit 2012 at the Marriott Hotel on October 4 showcasing new trends in technology that encompasses financial payments options and how the company can help different industries, particularly the banking sector, in upgrading their systems into the new platforms.

AllCard general manager Roy Ebora said that while the company was established in 2001 primarily as a distributor of card printers, it has since evolved into a provider for total card solutions that include card management systems, mobile payment processing, point-of-sale, loyalty, and fraud control. Backed by state-of-the-art equipment and a highly-skilled team, AllCard is now an end to end production and card services supplier to different business sectors whileenjoyinggood growth in terms of revenue, customer base and market penetration.

Speaking at the whole day summit, VISA country manager for Philippines and Guam Iain Jamieson Iain Jamieson
Country Manager, Philippines and Guam

- Has been with Visa for 18 years.
- Appointed as Visa Country Manager for the Philippines and Guam in 2010.
- Significantly expanded Visa's range of payment options from the standard Credit products to Visa Debit and Visa Prepaid in New Zealand.
- Was able to grow Saudi Arabia Visa business by more than 70%.
- Led the team responsible for Visa eCommerce and Smart Card initiatives in the Gulf, which resulted in the first smart card launches in the UAE, Qatar, Saudi Arabia and Kuwait.
- Involved in the successful implementation across the Gulf of Visa's online security program – Verified by Visa.
pointed out that an estimated 2.5 million Filipinos own credit cards out of 7.5 million in circulation accounting for a mere 9.4% of payment transactions in the Philippines, with 84% still done in cash and 6.4% paid in checks. He added that while more players are getting involved in the financial payments business, a huge segment of the population does not have access thus far to a fully structured economic environment.

Jamieson said that the country has an evolving commerce landscape where better-than-cash options will become the norm rather than the alternative solution, adding that "wallet" providers, mobile companies and social networks will be at the forefront of the impending change in consumers' bills payment habits. He also remarked that with the Philippines' young and tech-savvy population, VISA is tapping into initiatives that will try to move cash out of the system and drive electronic commerce instead. Foremost among these is VISA PayWave or contactless card payments which will reduce the system from 12-14 seconds to approximately four seconds and is ideal for supermarkets as well as fast food outlets.

Another emergent platform is EMV which David Cole David Cole
Consultant/ EMV Expert

- Executive Director in several companies in cards and payments, including Caribbean Electronic Payments, Safetipay, Transaction Processing Solutions and Smart Direction Online Services.
- He has been involved heavily in the emergence of smartcards and the EMV standards
- Has expertise in smart cards, payments processing, outsourced processing, smart card software and hardware, card production, multi application cards, cashless society, PCI data security, loyalty, mobile payments, fraud prevention, and the use of smart cards in security, access and loyalty.
- Involved in the successful implementation across the Gulf of Visa's online security program – Verified by Visa.
, an international business consultant, propounded at the forum. EMV is a global standard for inter-operation of integrated circuit cards (IC cards or "chip" cards), IC card capable POS terminals and automated teller machines (ATMs) for authenticating credit and debit card transactions. A joint effort between Europay, MasterCard and VISA to ensure security and continued acceptance everywhere, EMV was first adopted by Lloyds Bank of London as a fraud prevention measure in May 1997 and has since become prevalent in Europe and Africa.

Cole said there is no way to go forward without migrating to EMV. "With EMV, fraud becomes less of a problem and cards will no longer be declined," he said. "Without it, there would be no interoperability. However, migration is costly and entails a five-year timeline."

He also said that VISA and MasterCard have also developed standards for using EMV cards in devices that will support card-not-present transactions over the telephone and Internet for secure e-commerce. MasterCard has the Chip Authentication Program (CAP) and VISA uses its own Dynamic Password Authentication (DPA) scheme.

Boosting economic development in rural areas through better financial services was the topic discussed by Heston Hutton Heston Hutton
AGM Strategic Development & Planning, Credit Unions of Jamaica

- He is the Assistant General Manager Strategic Development and Planning of Jamaica Co- operative Credit Union League.
- His portfolio includes spearheading the National Strategic Plan for the Credit Union Movement.
- Mr. Hutton is also the Managing Director for Centralized Strategic Services Limited.
- He is a career banker having more than 25 years in the industry.
of the Credit Unions of Jamaica, citing the economic landscape of his country back in 2009 which was characterized by exchange rate issues ($90 to 1 Jamaican currency), high interest rate (up to 30%), reduction in foreign investment, high unbanked population vis-à-vis widespread use of cell phones and their impact on the credit union environment.

"Savings declined, delinquency rose, fraud increased and loan demands went down," Hutton said. "Commercial banks were regarded as competition because there was no separation of markets and regulators imposed new terms and rules for the industry." The economy forced people in a position where they could not pay their loans, he continued, and market shares were compromised because there were greater players in force.

They had to revise their suite of services, mindful of the fact that the aging demographic was looking to preservation rather than creation of wealth; rationalize infrastructure to bring foreign markets and reduce expenses by establishing key strategic partners; focus on youth being the most progressive market with longer lifestyle cycle; and outsource back office services to reduce operating expenses.

On the other hand, Alfred Hung Alfred Hung
Regional Manager, Spectra Technologies HK

- Has earned a Degree in Master of Science in Electrical Engineeringfrom Maryland, USA with almost 20 years of experience in Asia Pacific regional sales of Communications Equipment and of Payment Solutions in SPECTRA Technologies.
- Worked for Cable & Wireless (a multi-national British company) in the 80s.
- Joined SPECTRA in 1995 and head the Sales & Marketing since then.
of Spectra Technologies HK, talked about integrating contactless payment into existing traditional platforms. His company, which was founded in 1993 in Hong Kong, designs and manufactures POS terminals and payment solutions. They are also now into manufacturing POS terminals with integrated contactless readers and are present in 26 countries worldwide.

Hung presented as a case study the Flexicard project innovated by PG Bank with the objective of increasing its market share and widening the services offered by its mother company Petrolimex by deploying terminals in their gas stations that can accept contactless payment aside from the traditional magnetic stripe plastic cards. As a result, PG Bank account holders increased and Flexicard has now over 800,000 members.

Evolis, being one of the major suppliers of AllCard was also given a booth to showcase the various printers that they offer; Zenius, Primacy, Securion and Quantum.

The event was the fourth annual business summit staged by AllCard, a testament to the company's dynamism and innovativeness. It has established a strong presence in five industries (banking, telecommunications, government, retail, and education) and owns an expanding list of core high-tech products such as all types of plastic cards, card readers, card personalization equipment and software, kiosks, turnstiles, biometrics solutions, POS terminals, and of course, Card Solutions.

For inquiries on the topics discussed at the summit and as to when the next event will be held, call (02) 9110904.