The first initiative of its kind, LaunchPAD is an agreement between VeriFone, Mosaic Software and ID Data to deliver an end-to-end solution for the implementation of Pre-Authorised Debit (PAD) - a new offline payment method that slots into existing EMV infrastructure as an extension to credit and debit. LaunchPAD will enable issuing and acquiring banks to target new customer segments through the deployment of low-risk payment products based on smart cards.

The three companies, which are all highly experienced at working in partnership with a variety of vendors, are combining their expertise in the areas of payment terminals, Electronic Funds Transfer (EFT), transaction processing and smart card solutions to provide a unique one-stop shop for the complete implementation of pre-authorised debit banking products, such as MasterCard's OneSMART Pre-Authorized solution.

The deployment of pre-authorised applications will provide new revenue-generating opportunities for all card-issuing and acquiring institutions, enabling banks to expand their market and reach new cardholders and merchants. In addition, service levels to existing customers can be increased by delivering value-added products that can be associated with their existing credit and debit cards.

The pre-authorised debit payment method leverages the infrastructure that is already being put in place for EMV, i.e. smart card readers and PIN pads, thereby minimising further investment for the introduction of a wholly new payment product.

The pre-authorised transaction is debit-like, but reduces risk by guaranteeing that funds are available - based on the fact that they have been 'ring-fenced' on the account for off-line spend. Generally, using PIN-based identification at the Point of Sale (POS) to identify the cardholder, pre-authorised does not require any online authorisation. The merchant terminal treats a purchase transaction as EMV-authorised offline and generates an audit trail showing the authenticity of the card and PIN.

Cardholders will "top up" the value on the card at an online terminal, such as bank branch terminal or ATM. This is the only online transaction to ensure that, when the value is loaded, it is reflected immediately on the central system.

By delivering best-in-class solution components and implementation expertise in a fully integrated package, the non-exclusive LaunchPAD programme from VeriFone, Mosaic Software and ID Data provides issuing banks and acquirers with a simple and fast route to profit from their existing EMV investment.