Issue #10 February 2017 Internal Newsletter of MK Group – Trusted partner for Authentication and Secure transaction solutions, Card personalization, and Smart Card products Last January, MK Group held an Year End Party in Hanoi and HCMC, which was also the opportunity for the board of management to share with their staff about the future plans for the coming year, as well as orientation toward 2020. The event took place at MK Smart factory located in Quang Minh Industrial Zone, Hanoi and Van Thanh Tourist Area in Ho Chi Minh city with participation of more than 600 MKers. On this occasion, Mr. Nguyen Trong Khang – MK GROUP: STRIVING FOR A LEADING Chairman of MK Group was pleased to review financial report and outstanding activities TECHNOLOGY PROVIDER IN THE REGION achieved by the company in 2016. The achievement includes enhancing production mission of a “trusted partner for Authentication In 2017, the destination of President Club will capacities, manufacturing 167 million cards, and Secure solutions, Personalization solutions be Portland, Oregon – the city of lighthouse. successfully researching and implementing 2 and Smart card products” with criteria of JAVA operating systems for banks and “American Technology – Japanese Quality – telecommunication sectors, maintaining its In addition to the summary of leadership, Vietnam Cost”. international brand as a secure authentication various interesting activities were held, for solution provider, and becoming member of example, original repertoires made by MK’s One of the main purposes of this Year End Party leading authentication technology worldwide, individuals and teams, lucky draw activity was to express the gratitude and honor toward including OATH and FIDO Alliance. The with valuable prizes, such as: smart TV, all individuals and teams who had made company’s vision toward 2020 is to become a smartphones as well as other high-end outstanding contributions to the development of regional leading provider in smartcard appliances. MK Group in 2016. There were several types of technology and authentication & secure awards, including individual with the highest This was an opportunity for MKers to take a solutions. turnover, excellent management officer, look back at the previous year, ready for the outstanding salesman, outstanding employee, upcoming year with new plans and With its goal to reach the market of one billion potential employee and dynamic team. objectives. Hope that in 2017, there will be people, MK Group will have to deal with fierce Especially, since 2017, MK Group has more and more MKers named on the competition in global markets, rapid change of established the President Club – the meeting gratitude list and MK Group will strengthen technology, demand for highly qualified human point of excellent MKers with an appealing its position, leverage its remarkable resource, etc. Besides, MK Group should outcomes of previous year to compete in ceaselessly make a great effort to fulfill the reward a trip to the US. international market. MK GROUP: Striving for a leading Deputy PM signs no-cash policy technology provider in the region UK payments industry going through biggest Airtel pilots India's first Payments Bank shake-up in a generation Contactless card payments becoming Biometrics to feature on 600 million devices by 2021 'second-nature' to EU consumers Cash replacement: The $19 trillion opportunity All information and images in this internal magazine were collected and edited from different sources by MK Group and used only for knowledge sharing purposes. Copyright© 2017 by MK Group | www.mk.com.vn | contact [email protected] | www.facebook.com.vn/mkgroup1999 Copyright©2017 by MK Group | www.mk.com.vn | [email protected] VIETNAM NEWS VIETNAM NEWS IN BRIEFS Deputy PM signs no-cash policy VPBank spends thousands of gifts and Under the plan, by 2020 total cash transactions would total less than 10 per cent of total market discounts for customers making payment transactions; all supermarkets, shopping malls and distributors would accept credit cards; 70 per by VPBiz cards at Lotte Mart, Lotte cent of water, electronics and telecommunication service providers would accept cash-free payments from households and individuals, and 50 per cent of total urban households would use Cinema, Nguyen Kim shopping center electronic payment methods for daily transactions. and Vexere. The policy also proposes the development of new payment methods for rural and remote areas Maritime Bank has implemented a in order to encourage financial inclusion and increase overall access to transaction services, so number of new features in their that at least 70 per cent of Vietnamese over the age of 15 would have bank accounts by the end of electronic banking, including: proactive 2020. Social welfare and pensions would also be paid through electronic payment methods. Cashless payment is an inevitable step, said Le Xuan Nghia, a member of the National Advisory in card activation, lock card temporarily Council on Finance and Monetary Policy. The move will save both time and cost to the nation, as (ATM card, international debit and credit well as to businesses and individuals. card); proactive in changing transaction limits of international debit card or Nghia advised implementing the policy in the very near future. The few remaining challenges proactive in making payment of credit include online security for customers at commercial banks and the need for an automatic payment card debts. centre to be established by the State Bank of Viet Nam (SBV) to connect between paying customers and businesses or commercial banks. He believes this could be achieved in three to four years, noting that neighboring countries like Singapore, Malaysia and Thailand have long had such centres. Bank launches series of promotional programs for customer on New Year The electronic commercial payment system would connect bank payment infrastructure with occasion, named “Accumulating loyalty retail and business to complete a national payment network, as well as to governmental financial point – Gaining rewards”. Customers agencies, such as the SBV, the General Department of Customs and the General Department of who newly register Combo packages of Taxation. products & services, including payment The Government will conduct research and devise various procedures and policies to boost account – ATM card – eBanking service, electronic transaction in taxation and online commerce. The shift to electronic payments and will be rewarded with appealing gifts. commerce would also enable transparency, prevent tax evasion and improve documentation for both individuals and organizations. Viettel has issued the official statement of Point of sale systems and automatic teller machines would be established and improved for retail applying the roaming charge among purposes, and would expand to healthcare facilities, public transportation and the education three Indochinese countries equivalent to sector. Use of multi-purpose magnetic cards would also be encouraged. This would apply to daily the domestic charge since 2017. That transactions, as well as purchases of real estates and properties of high value, such as vehicles. In means this new charge will be reduced order to encourage individuals as well as organizations to start cash-free transactions, fees on down to 13 times for the call rate, 160 cash payments could be increased while those on electronic payment for credit organizations and times for data rate from the former rates. commercial banks could be reduced. This is considered as a movement to However, Nghia also suggested that several groups would not benefit from electronic payments, create a “flat world” in the field of such as payment collectors and those with low incomes. telecommunications. The policy is expected to change the payment habits of Vietnamese and create opportunities for startups in the electronic payment area. Many businesses specializing in online payments, such as MoMo mobile payment, eMonkey, Payoo, VTC Pay or BankPlus, would be increasingly (Collected from Internet) accessible and familiar to people. (Bizhub) Copyright©2017 by MK Group | www.mk.com.vn | [email protected] CARD & PAYMENT NEWS Airtel pilots India's first MK® Point+ Solution Payments Bank Pinpoint Your Loyalty Programs Telecoms giant Bharti Airtel has launched the first of India's new wave of 'payments banks', going live with a pilot across the state of Rajasthan. MK Group offer your businesses flexible and dynamic Loyalty Point Solution that strengthens your brands, and In a bid to take advantage of the mobile revolution to increase financial inclusion, last year India's government granted grows with your business. Airtel, along with others such as Paytm and the Department of Posts, so-called 'payments bank' licences. These new players, taking on traditional lenders, are able to take deposits of up to Rs 1 lakh, issue debit and ATM cards, and facilitate online transactions - but are not allowed to lend money. Airtel Payments Bank has now become the first of the new breed to open up to the public through a pilot in Rajasthan to test its systems ahead of a country-wide launch. Taking advantage of its vast retail network in the state, Airtel is inviting customers in towns and villages to open bank accounts using just their government Aadhaar ID number in one of its 10,000 stores, which will also act as banking points. OUTSTANDING FEATURES: Airtel mobile numbers will act as account numbers. Can be used to reward consumers in different ways A network of merchants across Rajasthan will accept digital (i.e. with points or gifts or actual currency) payments from Airtel Bank from day one, with 100,000 onboard by the end of the year. Customers will also be able to Set up rules to address precisely target customers make money transfers to any bank account in India and reap Scalability: Extend prepaid feature a 7.25% interest rate on deposits held in savings accounts. User-friendly interface Shashi Arora, MD & CEO, Airtel Payments Bank, says: "Airtel Comprehensive reporting and branch management Payments Bank is fully committed to the Government’s vision of financial inclusion and banking for all.