13, 2015, 10:00-11:30, LVCC

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Gyles Walker
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1 EMV on the Forecourt Simon Stocks, S.J. Stocks Consultancy, Ltd. Tiina McCombie, National Energy Equip., Inc Parker Burke, Gilbarco Veeder-Root Tim Weston, Wayne Fueling Systems October 13, 2015, 10:00-11:30, LVCC

2 EMV Implementation on the Forecourt Lessons Learned PEI October 2015 Simon Stocks S.J. Stocks Consultancy Ltd.

3 Key Messages It s not easy not just a hardware change. It will take longer than you expect. Plan in detail, but the unexpected will still happen. Resources will be stretched and under pressure for an extended period. If you haven t started preparing yet start now!

4 The Experience Elsewhere Each country had its own timing, requirements and issues. Software modifications were required in each case.

5 The Experience Elsewhere EMV implementation was largely driven by major oil companies. Worked with suppliers on upgrades and roll out Some companies did not react in time and missed deadlines Pre-investment avoidance Penalties Deadline pressure Certification issues

The Experience Elsewhere Impact on field resources also varied depending on complexity of upgrade, time and scale Modern equipment/ software versus older Country

6 The Experience Elsewhere Impact on field resources also varied depending on complexity of upgrade, time and scale Modern equipment/ software versus older Country characteristics Certification led to delays and recycles Time stretched Some sites needed extra resources Skilled labor lacking Management level intervention Ensure contingency plan

7 The Experience Elsewhere The markets moved as a whole eventually Some delays in upgrades but sites that remain in the market have had to upgrade General reduction in number of sites added investment requirement may have been the final straw

implementation was typically on a country basis Limited complexity manageable size Timing varied between

8 Differences in the U.S. Environment Size of the market is far greater Europe as a whole is a significant market, but EMV implementation was typically on a country basis Limited complexity manageable size Timing varied between countries Resources could be used across borders to handle peaks in demand Size of the market will mean that roll outs will be longer More pressure on the technicians Swing resources less available

9 Differences in the U.S. Environment The U.S. market is more diverse than elsewhere Only one country but many more parties involved Limited standardization Previous implementations mainly before the trend towards BW Major oil companies had more influence On a country basis, typically only one POS More BWs with multiple brands and multiple POS/dispenser brands/models Will upgrades be viable for all sites or will they chose not to upgrade while that is still an option

10 Issues That Must Be Addressed Retailers must ensure that scope and requirements are correctly defined Business and technical issues, hardware and software Off-the-shelf software version or something customized? Map the processes to identify major decisions and design requirements Ensure your processor/acquirer agrees requirements and schedule Is a continue as today solution justified for your forecourt are there alternatives? Avoid scope creep this is big enough!

11 Issues That Must Be Addressed Testing and certification are complex and timeconsuming Ensure certification requirements are understood and process is clear Potential recycles can impact the whole schedule Knock-on effect on the rest of the plan/other parties Understand limitations of each certification Define all test cases in advance, including exception cases Early pilots provide useful information and help optimize roll out

Issues That Must Be Addressed Training is essential Sales associates will need to understand basics plus how to deal with exceptions Customers are likely to be

12 Issues That Must Be Addressed Training is essential Sales associates will need to understand basics plus how to deal with exceptions Customers are likely to be unfamiliar with processes and may try to use the old ways Technicians and help desks will need training and will also need to provide additional support during roll out

13 Issues That Must Be Addressed Project management best practices must be implemented Detailed planning Identify all major tasks, dependencies and actors Contingency time and budget Risk management identify major risks, consequences, mitigation plans and contingent actions Share plans and ensure they are coordinated Track progress and develop catch-up plans

14 Final Thoughts U.S. banks promoting use of chip and signature Unworkable outdoors Majority of EMV implementations around the world have been chip and PIN Likely a matter of time before U.S. will have to adopt this approach Changing mid-way or after implementation will have major impacts Strong message needed from industry that chip and PIN is right decision before significant investments made

15 EMV in Canada Distributor/Service Provider Implementation Experience PEI October 2015 Tiina McCombie National Energy Equipment Inc.

16 EMV Hardware Implementation

17 EMV Hardware Implementation Adoption Rate Exceeded Expectations 51% by Dec % by June 2015 Expect nearly 95% compliance including work done by others Dispenser Replacement versus Upgrade 90% new dispensers 10% upgrade kits Widespread Adoption of Contactless 84% with new dispensers 49% with upgrade kits

18 Technician Resources Technician resources stretched beyond capacity Typically multiple phases to implementation Dedicated trainers supplemented by EMV Super Techs to specialize in training, troubleshooting and activation support Extra calls during consumer and station manager learning curve Since deployment, tripled service techs in retail sector Strong aptitude for electronic, mechanical, computer skills Exceptional customer service and communication skills NEE providing support for own techs and approx. 200 alliance contractor techs

19 Working Capital Extra manpower for training, installation, go-live and maintenance New units inventory, staging, warehouse space Projects frequently get delayed from original schedule due to various factors by multiple stakeholders Extra administration personnel Spare parts inventory in warehouses and service vehicles Significantly higher cost of EMV replacement parts EMV may require device software upgrade depending on POS certification feedstock for swap outs Variety of pre-injected security devices per client versus RKL (remote key load)

20 Cautions EMV Capable, Enabled, Backwards Compatible Clearly communicate the differences to meet customers expectations Install Time and Cost Can Vary Significantly Thorough on-site surveys critical before quoting Perform by techs not sales personnel Higher Parts Cost on Fixed Maintenance Contracts Open discussions to apply corrective price adjustments

21 Strategies to Smooth the Wave Stop selling non-emv capable units as soon as EMV capable units became available Get a head start by installing necessary hardware during normal dispenser purchase/replacement cycles Operate in backwards-compatibility mode until go-live Promote early adopter incentives to pull business in before deadline squeeze Work in consultation with major accounts to stagger time lines of wide scale installation programs in line with available technician resources

22 EMV Building Blocks PEI October 2015 Parker Burke Gilbarco Veeder-Root

23 Business Confidential Not for broad distribution

24 Business Confidential Not for broad distribution

25 Business Confidential Not for broad distribution

26 Business Confidential Not for broad distribution

27 Business Confidential Not for broad distribution

28 Business Confidential Not for broad distribution

29 Emerging Technologies and Deployment Considerations PEI October 2015 Tim Weston Wayne Fueling Systems

30 Embracing Emerging Technologies What can retailers leverage to improve EMV ROI? Dispenser Media Solutions Increase store traffic Build brand loyalty Equipment upgrades Extended warranties Combining with new capabilities to leverage solution overlap, minimize TCO, and refresh site equipment

2D Barcode Readers Combining new capabilities

31 Embracing Emerging Technologies What can retailers leverage to improve EMV ROI? Mobile Payment Apple Pay, Android Pay MCX, Mobile Wallets EMV Contactless Loyalty Programs 2D Barcode Readers Combining new capabilities to leverage solution overlap, minimize TCO, and refresh site equipment

32 EMV & Network Certifications EMV certifications are more complex Updated protocols, hardware, payment apps, controllers/eps, network processors, card associations, etc. PCI and EMV certification is the entry point The complexities lie with overall system certification Advance planning and scheduling are key to success

Equipment availability Manufacturer capacity Managing lead-times Scheduling Service

33 Other Deployment Considerations Industry resource availability What will the demand curve look like? Equipment availability Manufacturer capacity Managing lead-times Scheduling Service capabilities # of service companies Qualified technicians Resource planning Contract services Forecasting EMV deployment timeframes are key to managing resource and equipment availability

34 EMV on the Forecourt Simon Stocks, S.J. Stocks Consultancy, Ltd. Tiina McCombie, National Energy Equip., Inc Parker Burke, Gilbarco Veeder-Root Tim Weston, Wayne Fueling Systems October 13, 2015, 10:00-11:30, LVCC

EMV and Mobile Payments - What's the Right Plan. Steve Morris Regional Manager Patriot Capital

EMV and Mobile Payments - What's the Right Plan Steve Morris Regional Manager Patriot Capital Enabling America s Entrepreneurs To Succeed Card Association Migration Dates Forecourt POS EMV Migration Timeline