London, UK, & Paris, France - 2 November 2004 - Mosaic Software announced
today that its product - Postilion - supports secure and risk-free offline
transaction processing with MasterCard's OneSMART Pre-Authorized solution.
The OneSMART Pre-Authorized solution is a MasterCard initiative that allows a card issuer to provide secure and risk-free offline payment services to its cardholders. This solution ensures that Maestro-branded chip cards can be used for making payments at acceptance environments that have no reliable means of communication, or where the cost of providing for online authorisation exceeds the benefit. This means that OneSMART Pre-Authorized can be profitably deployed in emerging markets such as Eastern Europe, where a large volume of low-value transactions prevails, or in areas where communications are unreliable or costly.
The pre-authorised solution is based on fully EMV-compliant payment components. EMV is an industry standard that was introduced by Europay, MasterCard and Visa (EMV) primarily to reduce fraud, as well as to provide additional value-added benefits for merchants and card issuers.
When an issuer provides a cardholder with a OneSMART Pre-Authorized chip card, the issuer sets aside an amount to be used for all transactions authorised offline with the card. The chip card keeps track of this available offline balance. These funds are used for offline transactions only and are not used to fund other transactions initiated by the cardholder. When a transaction is considered for offline authorisation, the card checks if there are sufficient funds and, if so, it reduces its offline balance by the requested amount.
Mosaic Software believes that developing countries where the majority of retailers do not have continuous access to online telecommunications stand to benefit greatly from the introduction of the new technology.
Willem van Biljon, New Business Development Director at Mosaic Software, commented: "Mosaic Software's solution for MasterCard's OneSMART Pre-Authorized is based on Postilion, our proven transaction processing product. Postilion provides a financial institution with the complete capability to issue OneSMART cards and to acquire transactions from these cards via a POS or ATM environment. A deployment using Postilion enables an issuer to roll out OneSMART Pre-Authorized without adding new functionality to the issuer host system. This offers short time-to-market to tap into previously unexplored market segments."
At Cartes 2004, Mosaic Software will deliver a case study workshop to give a
greater insight into the OneSMART Pre-Authorized technology. 'Pioneering
new business opportunities for banks with MasterCard OneSMART Pre-Authorized
Debit' will be held from 2-3pm on Thursday 4th November, Atelier 1, Hall 4
with guest speakers from MasterCard. Mosaic Software will also be exhibiting at Cartes 2004 in Hall 3 stand 3F29, Villepinte, Paris from 2nd to 4th November.