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Challenge:
In order to remain the world's leading payment card
and system, Visa needed to gain broad acceptance and
use of its smart card technology platform, the Visa
Open Platform�, amongst issuing banks and application
developers worldwide.
Research and Strategy:
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Visa
had long been the leader in the global card payments
arena, but that position was now being threatened
as the industry began its inevitable migration
to more powerful chip-based smart cards. |
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Visa's
main competitor, MasterCard, was backing a competing
smart card platform, Mondex/MULTOS. This technology
had already gained traction with issuing banks,
mainly because it was first to market, and was
viewed as easier and cheaper to implement. |
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With
no exaggeration, Visa and MasterCard's future
leadership positions hinged on the choice of these
smart card platforms. If the Mondex/MULTOS platform
won out, Visa could well lose marketshare, as
well as billions of dollars in annual card payment
revenues. This could potentially signal the end
of Visa's global market leadership. |
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Visa's
Open Platform enjoyed a slight advantage because
of the popularity of the Java language, on which
it was based. Visa had also attracted greater
interest from application providers, developers
and strategic technology partners, who would be
critical to enhance the platform's value proposition
for consumers and card issuers.
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Research
found that Visa had other strong advantages, including: |
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Successful completion of Open Platform pilot
programs
More Visa Open Platform cards actually issued
worldwide
Strong reviews by key industry analysts
Visa's reputation for technology and product
innovation |
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Solution:
Create a global integrated marketing program to promote
the essential "openness" and flexibility of Visa's smart
card solution, emphasizing how it was better positioned
to help issuers accelerate their adoption of business-building
smart card programs worldwide.
Implementation: |
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Encouraged
industry analysts in Europe, Asia and the U.S.
to carefully compare the Visa Open Platform with
MasterCard's solution; we were confident that
Visa's platform would prevail under such in-depth
scrutiny, which it did |
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Conducted
"Visa Future of Money" media/analyst events in
London and New York; each event attracted more
than 100 leading technology/business/financial
media and analysts. Collectively, the two events
generated nearly 200 million media impressions
about Visa's Open Platform solution |
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Implemented
Open Platform direct mail program to all 21,000
Visa issuers worldwide; created Open Platform
monthly newsletter |
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Created
and launched Visa Open Platform Web site for issuers,
developers, technology partners and media/analysts;
the site became a critical, interactive vehicle
to communicate regularly with key Open Platform
stakeholders |
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Conducted
joint PR activities with Sun and its Java Group,
and with other technology partners, such as Gemplus
(smart card developer) and telecom companies that
would ultimately use the platform for payment
applications on cell phones |
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Launched
a worldwide developer communications program,
including developer seminars at major conferences
in London, Paris and Orlando, and a joint conference
during Sun's Java trade show |
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Full
page ads in influential trade publications |
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Ongoing
media outreach campaigns worldwide |
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Results: |
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Visa
succeeded in encouraging key industry opinion
formers (media, analysts, consultants) to "question"
the sustainability of MasterCard's smart card
solution because of its closed architecture (as
opposed to Visa's "open" system) |
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Industry
analysts published several reports, outlining
the inherent benefits to issuers and consumers
of Visa's Open Platform |
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Major
issuers in each of Visa's six global regions decided
to license the Open Platform instead of MasterCard's
Mondex/MULTOS offering |
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Significant
positive coverage that emphasized all key messages,
including prominent stories in leading business,
technology and industry trade media worldwide |
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Because
of the growing issuer acceptance of Visa's Open
Platform, MasterCard recently - and reluctantly
- agreed to offer it to their issuing banks |
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By
creating strong demand for, and adoption of, the
Open Platform, Visa solidified its leadership
position, particularly as the global card payment
industry migrates from traditional magnetic stripe
technology to chip-based smart cards |
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