Munich, New Delhi, May 19, 2010 – HDFC Bank, one of India’s premier banks, has become one of the first Indian banks to supply credit cards compliant with the global EMV standard to its premium-segment customers nationwide. The 500,000 smart cards for the commercial launch phase that will run until March 2011 are being supplied by the Indian subsidiary of security technology specialists Giesecke & Devrient (G&D). This initiative significantly boosts the Indian subcontinent’s migration to EMV, from standard magnetic stripe formats to chip-based smart cards. These cards are based on complex and advanced technology and will provide the highest standard of security. This further enhances the security of electronic payment systems.
HDFC Bank has started its migration to the EMV standard with credit and forex prepaid smart-card products on the Visa platform. HDFC Bank also plans to issue EMV smart debit cards in the near future. Going forward, these smart cards will also serve as a multi-application platform. Applications being considered include a customer loyalty program and an electronic purse.
Announcing this migration plan, Mr. A. Rajan, Group Head-Operations, HDFC Bank said: “We want to offer our customers the benefit of modern, secure EMV cards and safeguard them from fraudulent skimming and misuse of their credit cards.” He added, “As a leading credit-card issuer in India with more than 4.8 million cardholders, HDFC Bank fulfils the needs of all customer segments from individual users through small and medium enterprises to large corporations by offering a wide product range in both Visa and MasterCard® versions. Our bank has been a pioneer in leveraging technology for card transaction security, customer service and operational efficiency. Throughout the time we have been dealing with G&D, we have always valued them as an innovative and reliable partner for payment systems and we are happy to entrust them with this vital project of EMV migration.”
Mr. Parag Rao, Executive Vice President and Head – Credit Cards, HDFC Bank stated, “EMV cards offer the highest level of security to our customers especially against data compromise at the point of sale.” He further said, “HDFC Bank is initially targeting its premium customers by offering to upgrade existing signature-based cards to smart cards. We will also focus on customers who frequently travel overseas. The bank aims to issue over 500,000 smart credit cards to customers by March 2011.”
The HDFC Bank is also one of the leading players in the “merchant acquiring” business in the Indian market and has already equipped a substantial proportion of its deployed POS terminals to accept EMV smart cards.
“G&D has been working intensively on EMV migration in many countries. In India, HDFC Bank has given us a head start in the EMV migration business. Thanks to the experts at our Indian subsidiary, we have been in a position to provide complete EMV project consulting and operations support for HDFC Bank,” confirms Axel Deininger, Head of the Payment division at G&D.
India ranks as one of the world’s fastest-growing markets for cards. Some 270 million payment cards are estimated to be in circulation in India as of December 2009, and the annual growth rates in this area lie at over 25 percent. About seventy percent of Indian cash dispensers and point-of-sale (POS) terminals are already equipped to operate with EMV cards. EMV is the name of the international standard for chip-based payment systems originally developed by the three organizations Europay International (now MasterCard Europe), MasterCard and Visa.
About HDFC BANK
HDFC Bank was set up in 1995, promoted by the Housing Development Finance Corporation (HDFC), India's leading housing finance company. HDFC Bank is one of India's premier banks providing a wide range of financial products and services to its 19 million customers across hundreds of Indian cities. Its multiple distribution channels include a pan-Indian network of branches, ATMs, phone banking, online banking and mobile banking services. Within a relatively short span of time, the bank has emerged as a leading player in retail banking, wholesale banking, and treasury operations, its three principal business segments.
The bank’s distinctive competitive strength lies in the use of technology and the ability to deliver world-class service with rapid response times. Over the last 16 years, the bank has steadily gained market share in its target customer franchises while maintaining healthy profitability and asset quality.
As of March 31, 2010, the bank has a distribution network with 1,725 branches and 4,232 networked ATMs in 779 cities. Leading Indian and international publications have lauded the bank for its performance and quality of service. For more information please visit: www.hdfcbank.com
About Giesecke & Devrient
Giesecke & Devrient (G&D) is a leading international technology provider headquartered in Munich, Germany. With a headcount of more than 10,000 employees, the Group generated sales of EUR 1.7 billion in fiscal 2009. Founded in 1852, G&D is a global market leader and pioneering innovator in banknote production and processing, smart card solutions and services for telecommunications and electronic payment, and security documents and identification systems. 65 subsidiaries and joint ventures in 32 countries ensure customer proximity worldwide. For more information, visit our website at: www.gi-de.com.
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