Keynote By Wayne Leung CEO of Tappy Traditional Watch Industry - - PowerPoint PPT Presentation

Wearable Token Service Provider (WTSP)

Keynote

By Wayne Leung CEO of Tappy

The $20 bil illion in industry ry that Io IoT couldn’t account for.

Over 1 Billion Traditional Watches are sold every year

Traditional Watch Industry

“Prestigious design is the number

• ne motivator driving consumer

purchases”

Design restrictions

Vs

Multiple SKU’s means more choices

Guess Payment Watch Collection Payment Enabled Fitbit Ionic

“Functionality is the number two motivator driving consumer purchases”

Smart Watches

Hybrid Watches

Digital Payments Are Mainstream

EDC – Every Day Carry

New Standards

Universal Passive Provision Unit

Second Factor Authentication

Thank You

Wearable Payment and Data Insights

Robert Morgan, Business Development, Barclays UK

2 | Mobile Payments MBR

Two-Thirds of All eligible transactions in the UK are now made using contactless

Restricted - Internal

• Over two-thirds of Brits now Tap to Pay on a

daily basis

• Millennial shoppers (aged 18-35) have

embraced contactless payments even more enthusiastically, with 76% making daily purchases with their contactless cards

• The total number of contactless cards now

stands at 123.5 million, an annual increase of 3.9%

• There are now over 535k contactless terminals

in the UK

• 2 in 3 UK terminals are contactless

£2.32 £7.74 £25.21 £52.37 £69.03 2014 2015 2016 2017 2018

Source: Dec 2018 Contactless Payment Report

UK Contactless Spend (£bn)

3 | Mobile Payments MBR

Other markets are even more advanced or at the start of their journey

4 | Mobile Payments MBR

Wearables payments are a growing trend, as the market matures

5 | Mobile Payments MBR

Our solution – bPay

What is bPay?

• bPay is an innovative contactless payment solution supported by a digital ecosystem that launched in July 2015
• Our original products included a wristband, fob, sticker and loop, and has grown to include: jewelry, fitness watches, luxury watches,

keychains, and coffee cups

• At the heart of bPay is a pre paid account that works with any Visa ™ or MasterCard™ credit or debit card, registered to a UK address
• You must be 13 years or over to register for a bPay account
• bPay can be used for spend up to £30; wherever you see the contactless symbol – in the UK or when traveling
• You can track spending and top up using the dedicated bPay app or online at bpay.co.uk
• Allows you to add up to 10 wallets (bpay devices) to your bPay account, and control/view your spend

benefits

• Speed and ease of use
• No charging required
• Avoid the risk of carrying cash, especially on the London Underground TFL
• Family friendly, as you can register up to 10 wallets
• No charges when using abroad
• Water Resistant

6 | Mobile Payments MBR

Change your account settings via the bPay app or at bpay.co.uk including personal details and marketing preferences.

bPay customer journey

You can have up to 10 devices registered per account. To register a bPay account customers can download the bPay app or go to www.bpay.co.uk and follow the instructions. It’s quick and easy to follow. Registration involves linking the bPay account to any Visa or MasterCard credit or debit card registered to a UK address. The card does NOT have to be Barclays/Barclaycard.

register link to credit or debit card up to 10 devices

Loading money onto a bPay account can be done through individual top ups, or auto top up, via the free bPay app or through bpay.co.uk

loading money

With the auto top up feature, whenever a bPay balance drops below a set amount, we’ll automatically top it up.

auto top up change account settings

You can immediately report your bPay device lost or stolen using the bPay app.

lost & stolen

7 | Mobile Payments MBR

2017 2015 2016 2018

Our physical product journey – move from proprietary to partner

2012

Festival access Own range Partner products (enabled by smaller flexible chip)

8 | Mobile Payments MBR

Press coverage

9 | Mobile Payments MBR

Convergence of Wearables and Data

Wearables can be used by partners to understand their customers in more detail:

• Spend data for campus type environments
• Spend behaviours for loyalty schemes
• Customer profiling

Enriched with other data sets, wearable customer data can help brands understand:

• Customer spend geographies
• Competitor benchmarking
• Customer demographics

10 | Mobile Payments MBR

Insight into real customer spending and market performance

Tailored Insights

unique to

No one else has such powerful insights into transactional customer data

Our data and models are based upon fact, driven from our relationships with our customers from all segments of society. It allows for us to understand consumer behavior across the UK in great depth on a timely basis.

Scale

We have access to the transactions of 17 million customers across our current account and credit card businesses.

Real Data

We have actual customer geo-demographic and transactional data in its truest form.

Granularity

We have the ability to geographically locate 99% of our transactions down to a postcode, enabling store level analysis.

Timely

Our insights reflect changing customer behaviour as it has happened that month: day by day, hour by hour.

Market & Customer Insight: A Wealth Of Real Data

11 | Mobile Payments MBR

Barclays customers account for between 20% - 25% of Consumer UK card spend

Barclays, being one of the largest retail banks in the UK, has significant coverage of the population’s expenditure. We see a considerable proportion of expenditure, and the scale and depth of our data allows us to provide with accurate and actionable insights. Protecting our customers’ privacy is important to us, we always apply anonymization rules to our data.

1. Minimum of 50 customers in any aggregate data. 2. Minimum of 5 companies in an aggregated competitor set. 3. No one company can have more than 50% market share in the aggregated competitor set. Total Unique Customers

67 thousand

30 Months

• f data

Market & Customer Insight: Data Coverage

12 | Mobile Payments MBR

Looking to the future – active v passive NFC technology

Passive chips Active chips

• Doesn’t require power
• Less suited to global roll-outs –

requires bank solutions (e.g. bPay) to be personalised onto cards

• Can send data only
• Quick to market/testing (could

launch with bPay in weeks)

• Requires power to enable tokens to

be provisioned

• Suitable for global roll-out using Visa

Tokenisation Service (VTS), or Mastercard Digital Enablement Service (MDES)

• Requires bank participation in VTS or

MDES

• Can send and receive data

13 | Mobile Payments MBR

Routes for device manufacturers – other considerations

• Pricing – how to price v non payment equivalents
• Product selection – do you retrofit an existing product, or develop a new model
• Customer awareness and engagement – how to grow awareness of a new spend category

and motivate usage

• Bank/scheme partnerships – bank partnerships to help two way promotion of products
• Regulatory requirements – will differ from market to market. In the UK we need to closely

monitor and approve staff training, POS signage etc…

• End to end payments value chain for your market – chip hardware, scheme, issuing bank,

token service provider, token requestor

14 | Mobile Payments MBR

Future developments 2: Access control and payment Holiday parks Gyms Sports clubs

15 | Mobile Payments MBR

Get in touch!

Thank you

The rise of traditional watch brands in digital payments | Wearable trend setter

Our history

October, 2018

• TIMEX GROUP has a long and colorful history.

The company was founded as the Waterbury Clock Company in Waterbury, Connecticut, USA in 1854.

• Beginning with clocks, we expanded to pocket

watches then wrist watches. Our portfolio has grown from basic mechanical movements to sophisticated analog quartz and category- defining technology

• With a focus on change and innovation, Timex

continues to draw upon our legacy of watch making expertise, timeless classic designs and a commitment to unparalleled quality.

A Rich History Of Innovation

1854 First Affordable Clock 1895 First “Yankee” Dollar Pocket Watch 1914 First Military-Issue Watch 1933 Mickey Mouse Watch at Chicago Fair 1941 Timers for Artillery and Torpedoes During WWII 1958 “It Takes a Licking and Keeps on Ticking” 1960 First Affordable Women’s Fashion Watch 1974 First LCD Watch 1982 First Calendar Watch 1984 First Affordable Sports Watch 1992 First Back-Lit Watch Face (Indiglo) 1995 First Wireless Watch Connection to a PC 2004 Introduced Intelligent Quartz Movement 2009 Giorgio Galli Design Lab in Milan, Italy 2016 Accessible Smart Analog Technology 2018 Analogue bPay launch

Our Brands

Timex is part of Timex Group one of the world’s true watchmakers. Timex Group designs and manufactures innovative timepieces under well-known global brands. Timex Group sells millions of watches worldwide each year.

8

Why Contactless Payment ?

Context

China – The Cashless Society

USA Is Arguably Behind the Curve – But they are catching up

• Visa expects more than 100 Million Visa Contactless Cards issued

by end 2019

• Chase the #1 credit card issuer is bringing on line millions of Visa

contactless cards in the next few years

• 78 of the top 100 Visa Merchants in the USA already offer Tap and

Pay facilities

Why Would Timex Be Interested in Contactless Payment?

Relevance

Relevance

• Whether it’s a traditional watch or a smart watch, we believe that contactless payment provides a convenience

that people will quickly look to adopt.

• A bridge in some ways towards customers opting to use Time+ features on the wrist
• But also helping to maintain the relevance of traditional watches in the near term

The Start

Thank You

Unlock the NFC power in Wearable Payments

securing your digital credentials

Wearable Payment summit

2

Gemalto, always pioneer in payment innovation

With the sponsor of &

1st chip & pin banking card 2nd generation Wearables

Gemalto N°1 in market share of number of smart payment cards shipped with 30 million

• f cards & modules

produced each month

1990 2000

1st Contactless payment card

2010

1st generation Wearables 1st Biometric payment card pilot

2020

Gemalto is the most experienced supplier for contactless deployments with more than 550 deployments WW Gemalto has launched the highest number of pilots with Banks WW

with strong usage in pioneer countries

Source* :

• Payment & Banking Card Technologies / ABIresearch / August 2018
• Number of cards in circulation: IHS - Payment and Banking cards - May 2017

3

A majority of Point of Sales are now equipped

Pay with contactless is the new Norm

Near 50% of cards in circulation are now contactless with strong consumers adoption in pioneer countries

Creating fantastic opportunities

Payment not limited to card format anymore! Open the door to imagination and creativity

And strong growth still expected in the coming years following Visa & MC Mandates.

The infrastructure is in place in many countries and growing quickly in new territories such LATAM or ASIA :

With the sponsor of &

4

1st generation of wearables showed great opportunities to

Boost contactless adoption

Awareness  Usage  Adoption

Enrich Image and branding

Be seen as innovative

With the sponsor of &

Target specific customers

Youngsters, Sportsmen & -women, Kids…

Support Cashless events & environments

Festivals, stadiums, amusement parks

5

How to extend these wearable opportunities ?

I want a fashion device I can wear everyday everywhere I love my favorite « TIMEX » brand, I do not want another watch I do not wish another account or bank than the

• ne I already have

Payment feature integration should remain simple Payment feature in my device should be country-agnostic

With the sponsor of &

Payment feature in my device should be bank-agnostic

Bank–driven deployments

February 2019 Making Payment Fun! 6

Driver from events & cashless environments

Boom of Day-To-Day Usage

With the sponsor of &

Payment Wearables ecosystem is now ready for market extension

Combining ..

large variety of devices – fashion oriented High secured banking platforms certified through

multiple schemes

Payment schemes

an accessible payment solution

7

Enabling an accessible payment solution

 Tokenization-capable

Current end user banking credentials are securely digitalized in the wearable banking chip. Banking credentials in the wearable are managed independently from your current card.

With the sponsor of &

• ken

8

Field proven banking chip reused for wearables



Adapted for unconnected wearables & for an easy integration : FlexiTag

 For invisible technology in fashion/luxury devices  Opening the way to various integrations 

Adapted SE for events/banks-driven usecases : MiniTag, MicroTag, Sticker

 Manually unplugged and inserted in the device by end user  Handled by end user OR delivered already integrated inside low-cost wearable devices

Reliable & fully certified ; up to date java technology. Will benefit from coming biometry technology on card Different choices of inlay form factors design

 Inheriting from high-runner banking platform

With the sponsor of &

9

A safe & convenient wearable payment expansion

With the sponsor of &

2nd generation EMV banking chips

Boom of Day-To-Day Usage Tokenization scheme services

Safe is your card … … Safe will be your wearable !

Thanks for your attention

Wearable Payment summit

Making Convenience Secure

Biometric authentication | Digital Identity, Security & Fraud

Our core technology is at the heart of secure convenience

Zwipe’s technology solution enables battery-less, contactless, ultra-low power, self-contained biometric authentication solutions in constrained environments

26 February 2019 Strictly Confidential

The challenge of making Convenience Secure Remove the unnecessary trade-off between security & convenience

Challenge Zwipe innovation solves the challenge:

FOR PAYMENT SCHEMES Drives contactless and cashless transactions FOR BANKS Fraud reduction Offers consumers peace of mind Preferred method of payment FOR CONSUMERS Convenience Peace of mind FOR MERCHANTS Speed Revenue

Strong adoption of contactless cards, but cardholders still have security concerns with contactless… …and banks introduce transaction limits to limit fraud Zwipe solves challenges for several groups

Source: Fingerprint Cards Research, 2018 3

Biometric authentication is fast becoming a necessity for all devices

• When looking at banking and

payments, fingerprint authentication is moving from mobiles to payment cards to wearables and other devices

The world wants Fingerprint Biometrics

• Major recent market surveys point to

the fact that people in different regions around the world are tired of PINs and Passwords

• Those

surveyed believe that biometrics, fingerprints especially, are more secure, easier to use and faster than PINs and passwords

Biometrics perceived as delivering superior security

6 Source: AYTM Market Research, April 2018, among pilot participants

31.9% 66.7% 4.4% 46.4% 15.9% 5.8% 14.5% 14.5% 13.0% 40.6% 24.6% 4.4% 4.4% 49.3% 52.2% 7.3% 2.9% Numeric PIN Signature 100.0% No authentication 1.5% Biometrics 100.0% 100.0% 100.0% Very insecure Neutral Insecure Secure Very secure

Customer ratings of perceived security among pilot participants

7

Biometrics could be key to attracting millennial consumer interests

• Biometrics is increasingly being

utilized not just for security but for driving convenience

• Millennials have shown preferences

to utilize means of authentication that are more convenient

• The use of fingerprint biometrics is

increasingly seen as the most convenient means of authenticating yourself

Wearables face challenges to widespread adoption

• 1. Payment credentials need to be done in

a safe and secure manner, from provisioning to usage

• 2. Availability of contactless EMV POS

terminals

• 3. Customer authentication limits use cases

to transactions below transaction limits

8

26 February 2019 Strictly Confidential

Making wearables more secure through biometrics addresses existing obstacles to widespread adoption

10

26 February 2019 Strictly Confidential

Merging our technological strengths can help unlock a massive market

• pportunity

Find out more about us at zwipe.com