Mobile device biometrics Neil Mc Evoy Consult Hyperion

Mobile device biometrics Neil Mc. Evoy Consult Hyperion

A slight diversion Customer Patience To be Tested As EMV Joins Android, Samsung And Apple Pay At The Register http: //www. forbes. com/sites/curtissilver/2015/09/30/customer-patience-to-be-tested-as-emvjoins-android-samsung-and-apple-pay-at-the-register/ 9 errors 1. They're not RFID chips; they're contactless microprocessor chips. 2. They're not a dream for scammers; they're used safely for millions of transactions every day in countries such as the UK and Australia. 3. Anybody who's bought a product to prevent scanning has wasted their money. 2

Diversion (2) 4. EMV chips do not require a PIN; it is one of a number of cardholder verification methods chosen at the card issuer's discretion. That said, hundreds of millions of Europeans and others use PIN happily and laugh at the concept of a signature. 5. EMV contact cards are not held against a terminal, they are inserted in a slot. 6. Apple Pay, Android Pay and Samsung Pay don't require retailers to do any prep because - get this - they work in more or less the same way as your dreaded (not-)RFID cards. 7. The mobile payment token systems use an alias (token) for the Primary Account Number - the permanent thing that might otherwise be stolen by the million in a retailer system - they don't encrypt ‘momentary transaction data’. 3

Diversion (3) 8. The mobile payment systems are already a combination of NFC and EMV. 9. If you think Bitcoin, a protocol deliberately designed to be computationally intensive, will have anything to do with billions of retail payments, dream on. 10. Other than that, good effort. 4

Apple. Pay experience (USA) PYMNTS/Info. Scout survey http: //www. pymnts. com/in-depth/2015/apple-pay-adoption-the-falling-side-of-the-bell-curve/ 5 Usage March 2015 August 2015 Users / Eligible 15% 13% Txns / User 39% 23% Txns / Committed User 48% 33% Non-usage March 2015 August 2015 Forgot 32% 34% Security 15% 19% Not sure how it works 31% 34% Might go wrong 1% 4%

Apple. Pay experience (UK) • Since July 14 th 2015 • Anecdote, speculation and conjecture: § More transactions than U. S. already (Transport for London) § Biometric fine, but customers not used to authenticating contactless (sub £ 20/£ 30) § Customers wary of potential for inconveniencing other people § Pre-arming helps transit use-case, but it’s not perfect 6

Apple. Pay conclusions (US and UK) • Little advantage over cards at traditional POS • Biometrics add security… • …but also inconvenience for small transactions • The real story will be in-app purchases… • …including in-store purchases 7

NFC and biometrics in Africa E-Vouchers 8

Key components of technology • Identification by NFC technology • All users are issued with a TAP card • Details of users and vouchers are held on tablets • The card must be tapped to the tablet for every task § Tablet owners must also enter a PIN • Users are identified by picture and personal data • TAP always knows who did every task and when they did it ama ck Ob : Bara Name 976 1 YOB: : NIMC e 1 ID typ 4567890 3 1 : ID 2 Abaji : Ward

TAP registration PHOTOGRAPH FARMER ID 10 PHOTOGRAPH FARMER COLLECT FARMER DETAILS ISSUE CARD TO FARMER

Redemption processing • Online § Data is transmitted after each task or at end of day • Offline § Data is copied onto field officers’ devices and taken into coverage

Safer corridors Consult Hyperion's technology options report

Biometrics investigation (Africa) • Fingerprint § More suited to urban than rural § Problematic with elderly, dry/dusty environments, poor hydration, smokers • Finger vein § Better performance, higher price • Voice § Mobile phone support § Limited by poor quality microphones • Iris § Requires good quality camera • § § • 13 Same for registration, verfication Phone cameras improving Needs good light Offices frequently too shady All: Requires token (e. g. smart card / SIM) issuance for 1: 1 comparison

Neil Mc. Evoy CEO Consult Hyperion neil. mcevoy@chyp. com