Range of Applications

EMV cards cover a wide range of applications. Which functionality will be actually integrated on the card depends on the product positioning. On this account, first of all both an analysis and product definition by the issuer's business department are required.

NOVOSEC supports you with regard to the product definition and the market positioning of your card portfolio.

We would like to arrange a meeting with you in which we can survey your institution-specific questions and needs. Based on these, an activity plan (see project approach EMV) can be established afterwards.

1. Payments

The EMV standard is the basis of chip based credit and debit payments and enables international cash transactions with digital purses like the German GeldKarte.

Payment transaction functionalities:

1. credit
2. debit
3. purse (e.g. German GeldKarte)

The design of the EMV card as payment medium depends on the product positioning. A card product of an issuer resp. a bank is positioned either as a debit card (e.g. bank card/ec-card) or a credit card (e.g. VISA/MasterCard).

The following picture visualises the special relevance of the EM-standard for the payment transaction:

2. Identification / Authentication

Both in the context of offline or online payments the EMV chip can be used to identify and authenticate a cardholder. The following identification mechanism resp. authentication functionalities can be realised by means of an EMV-chip:

1. offline-PIN at the Point of Sale
2. online PIN at the Point of Sale or ATM
3. TAN-generator as replacement for the banking TAN-list, enabling for Verified by VISA, MasterCard Secure Code
4. electronic signature as substitution of the physical signature

Which functionalities should be integrated and enabled depends on your company's product strategy. For example, by means of the identification mechanisms a credit card can be used for secure internet payment transactions, or a bankcard can, beside the debit payment functionality, replace the physical TAN list for the internet banking by dint of the TAN generator.

3. Value added services

The usage of EMV cards for value added services meliorates the range of application. Following functionalities can be added on the EMV chip as value added service trouble-free.

1. couponing (administration of vouchers on the card)
2. ticketing (issuance and controlling of tickets)
3. market place functionality
4. bonus programs
5. customer recognition or age indicators

This short listing of range of applications for EMV cards shows the power of this standard. Because of the fact that chip cards can be used both for traditional trading and within the modern digital world and therefore are the link for the whole economy, their importance will increase.