Nexo / IFSF Working together towards next generation standards

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3 Nexo / IFSF Working together towards next generation standards Régis Massicard Technical Steering Committee co-chair, nexo European Payments Strategic Director, Ingenico

4 NEXO ABOUT US nexo is a global open standardization association, whose headquarters is in Brussels. Its mission is to unite the players of the card-based payment industry on the definition and enhancement of payment acceptance solution implementation specifications. To ensure the interoperability between card acceptance and acquiring solutions on the one hand and integrated retail and terminal management systems on the other, nexo drives the development, delivery and maintenance of a new generation of universal card payment standards, protocols and implementation specifications. International non-profit organization (AISBL) based in Brussels, BELGIUM

5 NEXO, WHERE WE CAME FROM Born in 2014 out of the merger of three historical standards and card payment specifications contributors -- EPASOrg, the OSCar consortium and the CIR SEPA-Fast technical working group -- nexo is a leader in card payment standardization. nexo is at the origin of the entire ISO standardization process for card payments. ISO AND RELATED PROTOCOLS SEPA-FAST PAYMENT APPLICATION IMPLEMENTATION SPECIFICATIONS BASED ON EPAS PROTOCOLS

6 PROVIDING THE BUILDING BLOCKS FOR CARD PAYMENT STANDARDIZATION + + CARD ACCEPTANCE APPLICATION SOLUTION SPECIFICATIONS ISO20022 PROTOCOLS (ACQUIRER, RETAILER, TMS, ATM) TEST CASES IMPLEMENTATION SPECIFICATIONS

7 NEXO GOALS & VALUES INTEROPERABILITY Promote the interoperability of card payment transactions, through Design and development of common card payment protocols Interoperability of components and systems through standardized protocol interfaces Adoption of a universal ISO procedure. UNIVERSALITY Strengthen the commitment to open, common and universal standards, through Adoption of ISO as the preferred universal way of developing global standards Formal declaration made to ISO that all NEXO standards will be made available open and royalty free of charge INNOVATION Ensure the development, evolution and use of common standards, through Involvement of all actors of the card payment value chain adherence of a high level of security, notably through a universal ISO security syntax. PARTNERSHIP Ensure an appropriate level of partnership and lobbying actions Vis-à-vis partners of the card payment industry and related entities involved in similar or complimentary standardization activities

8 NEXO COMMITMENTS DESIGN AND MAINTAIN common card acceptance standards protocols and specifications based on universal ISO accreditation SUPPORT users implementin g nexo standards and specification s DELIVER common implementation guidelines to ensure full interoperability PROMOTE the universal use of NEXO standards and specifications PROVIDE test cases and tools helping implementers to evaluate their compliance with specifications VALIDATE implementation thereby ensuring faster approval and deployment to market

9 ORGANISATION, MEMBERS & PRODUCTS

10 NEXO MEMBERS CATEGORIES ACCEPTORS VENDORS CARD SCHEMES PROCESSORS PAYMENT SERVICE PROVIDERS

11 PRINCIPAL MEMBERS BY CATEGORY ACCEPTORS PAYMENT PROCESSORS CARD SCHEMES SERVICE PROVIDERS VENDORS

12 NEXO STANDARDS AT A GLANCE Nexo FAST PAYMENT APPLICATION XML NEXO RETAILER PROTOCOL XML NEXO TMS PROTOCOL XML NEXO ACQUIRER PROTOCOL Tele-management system

13 NEXO FOCUS PROTOCOLS FOR PAYMENT ACQUIRER PROTOCOL The interface between a card payment terminal and a buyer. Defines a clear separation between the protocols and software or application. RETAILER PROTOCOL The interface between a card payment application and a retail POS system. Defines a clear separation between the functions of sale and payment. TERMINAL MANAGEMENT The interface between card payment terminals and systems used to manage them remotely. Allow download settings, electronic keys and software upgrades. PROTOCOLS RELATING TO THE WITHDRAWAL ACQUIRER PROTOCOL the interface between the device and the ATM* banking systems * Automated Teller Machine

14 NEXO ORGANIZATIONAL CHART GENERAL ASSEMBLy CHAIRMAN TBD MARCOM Normand Provost Desjardins LIAISONS Normand Provost Desjardins OPCOM Arnaud Crouzet Groupe Auchan BOARD OF DIRECTORS CHAIRMAN Claude Brun CM-CIC GENERAL SECRETARY Arnaud Crouzet Groupe Auchan TREASURER Kust Gjesten Pan Nordic Card Ass TECHNICAL STEERING COMITTEE Régis Massicard INGENICO FINANCIAL APPLICATION SPEC. ACQUIRER PROTOCOL RETAILER PROTOCOL IMPLEMENTATION SPECIFICATIONS IFX-ATM PROTOCOL TMS PROTOCOL Brigitte Nebelung, SRC_GMBH David Mousty Verifone Martin Provost Desjardins Dolorès Mimran GIE-CB A.Foster KAL Software Philippe Cece Ingenico MEMBERS

15 KEY SUCCESS FACTORS STAKEHOLDERS Meet the needs of all stakeholders in the market SECURITY Ensure security is embedded into the standard SUPPORT Develop and provide test cases and tools to guarantee the compliance SERVICES Support new value-added payment services (mobile, NFC, P2P, Web ) PARTNERSHIPS Partner with other third-party organizations to accelerate time-to-market MULTI-ACQUIRING Enable cross-border multi-acquiring

16 WHAT WE REPRESENT A WORLDWIDE INITIATIVE BEYOND THE SEPA REGION A SPECIFICATIONS PROVIDER (IMPLEMENTATIONS CERTIFICATION AND COMPLIANCE TO ENSURE INTEROPERABILITY) MOST OF THE PAYMENT VALUE CHAIN

17 Nexo / IFSF partnership

18 IFSF Initial Considerations of ISO IFSF has developed its card payment standards based on ISO 8583 that is becoming more and more limited in respect of the payment innovations popping-up every day In December 2012, IFSF started the process of preparing their move towards ISO with an initial analysis o to assess the degree of change required in the IFSF standards for this move, o to propose a methodology for developing the amended standards, o to comment on possible limitations on interoperability, o and to express recommendations on the optimum time for initiating this work and to conduct any later phases. The IFSF study concluded in March 2013 that : o The move would be quite complex due to non objective correspondence of the Data Elements between the two standards generating interoperability concerns. o The maturity of ISO and further more the implementation would not come up before some years. o Many petroleum companies running their own FEP would face major investments and complications to migrate (business case issue).

19 ISO including oil industry specific In 2014, within the IFSF EFT work group, some participants were concerned about the ISO improvements where the petroleum specifics were not yet taken into account. In July 2015, an agreement between Conexxus, IFSF and nexo was ratified to provide the expertise to enhance the ISO standards to meet the needs of the petroleum retail and convenience store industries. A following six hands work started and introduced a change request in March 2016 to ISO : the ISO CAPE messages were officially updated introducing Oil Industry Corporate Data. *: Conexxus is a non-profit, member-driven technology organization dedicated to the development and implementation of standards, technologies innovation and advocacy for the convenience store and petroleum market.

20 Current status of the three party agreement The nexo MUG will be enriched by the end of 2016 with the oil industry specific already introduced in March 2016 to ISO Conexxus and IFSF are about to produce their first MIG for the oil industry specific based on the new coming MUG. The loyalty and mobile specific to the oil industry will be also studied and will generate potentially nexo change requests to ISO

21 CONCLUSION Thanks to the joint work of Conexxus, IFSF and nexo, the oil industry is getting prepared for the adoption of a new standard where each association will bring its business expertise for the interest of all the actors of the payment chain. nexo 2016 Annual Conference

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23 QUESTIONS?

24 Spare Slides

25 PARTNERSHIPS OBJECTIVES Leverage the expertise of major industry players to deliver common standards Accelerate time-to-market leveraging ISO developments Ensure consistency with other ISO based messages (similar components) Type: US-based non-profit organization Expertise: design and development of financial messages Objectives : joint development of ISO ATM withdrawal, management and security messages, development of card-based ISO messages Type: Forums of international petroleum retailers Objectives : standards development agreement to enhance existing NEXO card payment standards (ISO and others) with added-value information related to the retail petroleum and convenience store industries. Submit jointly further ISO candidate change requests to messages pertaining to the petroleum and convenience store industries.

26 IMPLEMENTATIONS DESJARDINS AND CRÉDIT MUTUEL-CIC Deployment type: SEPA POI standalone payment solution, OSCar 3.2 certified Area: Canada (Quebec), France (Strasbourg) More than 20 merchants and POI deployed: 36,000 transactions processed for 700,000$Can without issues Objectives: International deployment GROUPE AUCHAN, CRÉDIT MUTUEL-CIC AND INGENICO Deployment type: SEPA POI payment solution Area: France, Portugal, Spain Objectives: International deployment

27 IMPLEMENTATIONS CARREFOUR BANQUE, CRÉDIT MUTUEL-CIC AND INGENICO Deployment type: SEPA POI payment solution Area: France Objectives: boosting the pan-european payment systems acquisition; deployment within the SEPA area TOTAL, SER2S (CARTES BANCAIRES SUBSIDIAIRES) AND BANKING PARTNER Deployment type: EPAS Acquirer Protocol Conversion Gateway <> CB2A Being deployed Area: France (initially) Europe (Total S.A.)