The Future of Contactless Payments

- including EMVCo Contactless Kernel

Update

Brian Byrne
EMVCo Director of Engagement & Operations
Jonathan Main
Chair of the EMVCo Board of Managers

Contactless World Congress

7 September 2022

EMV® is a registered trademark in the U.S. and other countries and an unregistered trademark
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elsewhere. The EMV trademark is owned by EMVCo, LLC.
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EMV® Specifications: Supporting security, flexibility & innovation

EMVCo creates, evolves and promotes EMV

Specifications.

EMV Specifications EMV Specifications EMV Specifications

provide a common support innovation and are widely used to create
foundation for adopting are flexible to payment products and
technologies that are accommodate the unique services that deliver
proven to increase needs of different trusted and convenient
security and fight payments for merchants
marketplaces.
fraud. and consumers
around the world.

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What is a Specification?

Specifications define and document additional technical requirements to ensure seamless use and
acceptance of payment products regardless of manufacturer or issuer.

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Industry Engagement

EMVCo engages with industry, regional and national bodies to help shape specifications that
support the advancement of the global payment ecosystem.

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 Current EMVCo Associates

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 • Process may vary depending on requirements
• * https://www.emvco.com/wp-
content/uploads/documents/GB44-2nd-
edition_v1.0.pdf

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 EMV® Contactless Kernel Specification
To Simplify and Advance Global Contactless Acceptance

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Why an EMV® Contactless Kernel?

• Feasibility assessment launched in 2020.

• Feedback gathered from 58 key industry stakeholders across industry

and geographies.
• Independent report compiled by Edgar, Dunn & Company /
Consult Hyperion.

• Report noted that more than 20 different payment system contactless

kernels are in use around the world.

• Report identified a clear industry demand for an EMV® Contactless

Kernel.

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9
What is EMVCo’s Objective?

To address industry demand for an EMV® contactless kernel that is made

available in the same way as EMV Contact Chip to streamline global
payment acceptance.

Over time this can help reduce the number of contactless kernels that
stakeholders need to support and maintain, creating opportunities for
merchants, hardware providers and payment systems to:

• Reduce costs

• Improve roll-out speed and time to market

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 Summary of the Kernel and features

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Industry Needs Generate Kernel Features
Based on existing contactless architecture
Maintains existing terminal architecture
• Does not require new terminal
hardware
Co-exists with legacy kernels for transition
• Does not force card reissuance
Kernel is licensable under EMVCo royalty
free conditions
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Optimised for cloud operation, also benefitting
TapToMobile and terminal implementation choices
• Initial research indicates that existing
transaction speed requirements can be met
• The kernel delegates CVM and some risk
management task to the card enabling
better modularity
Minimises impact on processing network
• Supports mapping of new data tags to
legacy tags
Offline transaction support
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Industry Needs Generate Kernel Features

Uses Elliptic Curve Cryptography (ECC) for public Supports ECC or RSA based certificates for
key operations. ease of transition

Combined with Advanced Encryption Standard Data Storage with privacy and integrity
(AES, for symmetric key cryptography) to
provide:

• Secure Channel

• Privacy, Eavesdropping prevention

• Man-in-the–middle detection

• Relay attack resistance

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 Security – Enhanced Cryptography

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Elliptic Curve Cryptography

EMV Specifications support ECC

• Uses smaller keys size for the same security strength
• ECC is compact and efficient, supporting new, future payment scenarios

ECC for EMV

• ECC will play a long-term role within the EMV payment ecosystem
• State-of-the-art security standard can evolve in line with new technologies and support
the long-term needs of EMV Specifications

How will ECC impact the future of transactions?

• EMVCo continually monitors the payment security landscape and works with a wide
range of parties to understand potential current and future trends and threats
• For example, EMVCo is engaged in efforts led by the NIST on quantum-resistant
cryptography

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 Current Status of the EMV® Contactless Kernel

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Current Status

EMVCo has produced Version 1 of the EMV Contactless Kernel, Book C-8,
Kernel 8 Specification for approval for publication.
• Draft1 was released and reviewed by EMVCo Associates in Q1 2022.
• Draft2 was released for public review in Q2 2022.
• Publication expected in early Q4 2022*.
• The specification will then enter the standard EMVCo process for
updating and publication.
Version 1
October 2022

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 Further and Future Payment Acceptance
Enhancements

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IQ Demodulation

• By writing IQ demodulation requirements into contactless specifications, seamless

transactions can be made between a range of payment devices and acceptance terminals.
This provides:
o More reliable data transmission improving transaction speed
o Greater flexibility in where the card/device can be positioned to be read by the payment
terminal

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The future of payment acceptance

• EMVCo anticipates the trend towards ‘touchless’ payments to continue.

• We are exploring how EMV® Specifications can support the use of wireless technology such as Wi-Fi and Wi-Fi direct,
Bluetooth Low Energy (BLE) Ultra Wide Band (UWB) and mobile data.

• We are also seeing in-store and online payment experiences starting to merge and blur, as consumers will increasingly
make e-commerce transactions from physical stores.

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 Thank you
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