Pre- Make/Buy meeting for EMV chip and contactless (NFC) solution

Payment Trends
© 2015 Panasonic Avionics Corporation. Proprietary and Confidential
Agenda
•
On Board Retail Market Trends
•
Trends in EMV
•
Challenges in EMV for Cabin
Wide Aircraft Installation
© 2015 Panasonic Avionics Corporation. Proprietary and Confidential
Why Onboard Payment Matters
© 2015 Panasonic Avionics Corporation. Proprietary and Confidential
Upward Trend in Airline Ancillary Sales
Visa recognizes upward trend in airline
ancillary sales, and is accommodating
new global payment data standards to
support the evolving airline industry.
Source: Visa
© 2015 Panasonic Avionics Corporation. Proprietary and Confidential
4/14/2016
4
On Board Retail (OBR) Marketplace 2012-2014
Duty Free & Travel Retail: $3.2B
Total On Board Retail: $5.0B
Buy On Board: $1.8B
Average annual growth
of 12.9% since 2012
Source: Guestlogix
© 2015 Panasonic Avionics Corporation. Proprietary and Confidential
4/14/2016
5
DFTR – Duty Free & Travel Retail
Duty Free & Travel Retail
Total: $3.2B in 2014
Average annual sales growth
of 13.7% per year
Source: Guestlogix
© 2015 Panasonic Avionics Corporation. Proprietary and Confidential
4/14/2016
6
Buy on Board (BoB)
Buy on Board sales total:
$1.8B in 2014
Average annual sales
growth in excess of 11%
per year.
Source: Guestlogix
© 2015 Panasonic Avionics Corporation. Proprietary and Confidential
4/14/2016
7
Unattended Cardholder Activated Terminal In-Flight/In-Transit
Credit Card Brand
No CVM
Offline Limits
Online Limits
Category
MasterCard

$200
No Limit
CAT4 – in-flight
commerce
Visa

$0 - international
No Limit
UCAT – in-transit
commerce
$100 – domestic
Delayed online authorization acceptable
Other Brands generally follow MasterCard or Visa specs
Authorization
Definition
Offline Authorization
Local negotiation between card & terminal.
Online Authorization
Online real-time authentication with the issuing bank.
Includes checking for reported
Lost or Stolen status
© 2015 Panasonic Avionics Corporation. Proprietary and Confidential
4/14/2016
8
Trends in EMV
© 2015 Panasonic Avionics Corporation. Proprietary and Confidential
Payment Focus
Card Present Transactions with
Major Credit Card Brands
© 2015 Panasonic Avionics Corporation. Proprietary and Confidential
4/14/2016
10
Global EMV Card Transactions
Low Merchant EMV Terminal
Deployment & Activation
© 2015 Panasonic Avionics Corporation. Proprietary and Confidential
4/14/2016
11
Projections of NFC Mobile Payments Globally
MasterCard & Visa
mandating all terminals in
European to accept
contactless by 2020 (NFC)
MasterCard: High value
mobile contactless
payments to be accepted
across Europe by 2017. (NFC)
Android Pay & Apple
Pay support EMV mode
transactions, and works
in Airplane mode.
© 2015 Panasonic Avionics Corporation. Proprietary and Confidential
Payment Type Challenges Onboard
© 2015 Panasonic Avionics Corporation. Proprietary and Confidential
NFC Installation Challenges
Conflicting Requirements
NFC
Performance
© 2015 Panasonic Avionics Corporation. Proprietary and Confidential
EMI




Airbus Offerable Cabin Wide
Boeing Offerable Cabin Wide
MasterCard Type Approved
Other brand approvals – Q4,
2016
Chip & Pin Terminals Cabin Wide Aircraft Installation Challenges
Conflicting Requirements
Lost & Stolen
Card Fraud very
small in-flight
 Back-up battery
 Complexity of PCI-PTS
requirements.
Multiple issues
due to PCI-PTS
requirements &
Aviation
regulations
Is Pin Acceptance really
necessary for embedded IFE
industry?
© 2015 Panasonic Avionics Corporation. Proprietary and Confidential
 Hundreds of Batteries Cabin Wide
 Maintenance Logistics
 Cost Per Seat
Thank you
© 2015 Panasonic Avionics Corporation. Proprietary and Confidential