Home News & events Press Releases 2015 RuT2UG 2015 – Celebrating the 10th anniversary of the TranzWare/TranzAxis User Group

 

RuTUG 2015-03RuT2UG 2015 – Celebrating the 10th anniversary of the TranzWare/TranzAxis User Group

Compass Plus successfully held their 10th bi-annual Russian TranzWare/TranzAxis User Group which took place 2 - 6 March in Abzakovo, Magnitogorsk, in the heart of the Ural Mountains.

The five day event provided a platform for leading industry experts and specialists in retail banking, electronic payments and information technology to network, share insights and exchange experiences. The conference agenda was filled with presentations from customers, partners, Compass Plus staff, as well as lively roundtable debates.

RuTTug 2015 article MulticartaThe forum brought together 110 delegates from 60 Russian and international companies, including organisations from Azerbaijan, Tajikistan, Latvia, Mongolia, Serbia, Germany, Egypt, Vietnam, Sweden and Ukraine. A video conference option was also available for customers unable to attend the event, which saw representatives from approximately 25 companies watch the conference online.

Participants for whom the User Groups have become regular occurrences, and delegates who have only just joined the IT2TUG/RuT2UG community, actively shared their experiences of using Compass Plus products in different business RuTTug 2015 article ATM serviceenvironments. Views were exchanged on how the payment industry is handling the current difficult economic situation, as well as promising retail banking and electronic payments trends. The most prominent presentations included:
 - a report from Youri Koliakin, CEO and President at Compass Plus, about the history and development of the company
 - a presentation on MobiCash, a global mobile payments service
 - the RadixWare Open Source project
 - the implementation of TranzAxis at Klarna
 - presentations regarding the development of national payment systems.

The presentations by Compass Plus customers and technology partners were also of particular interest, covering a wide range of projects and issues, including the development of remote banking channels, the growth of the mobile acquiring market, contactless payments, the security of payment technologies as well as other highly topical issues.

Compass Plus – from small beginnings come great things
RuT2UG was held around several commemorative dates for the company: the 60th anniversary of the Proektavtomatika Institute of which Compass Plus was the successor, the 25th birthday of the company and the 20th anniversary of the establishment and launch of the Compass Plus Processing Centre. In addition, RuT2UG also celebrated its 10th anniversary. Youri Koliakin, CEO and President at Compass Plus, spoke about these events during his opening presentation amongst other important milestones in the history of Compass Plus, which has evolved from a small IT company to an international provider of innovative software for the retail banking business.

TranzWare and TranzAxis - new features, best practices
TranzWare and TranzAxis Roadmaps presented at the conference identified the main directions of development for Compass Plus products and solutions in response to customer requirements, as well as consumer needs and expectations in light of recent trends in the payments industry.

RuTTug 2015 article HP RussiaAmongst the most discussed topics regarding the development of TranzWare products was the automation of settlements in a multi-branch bank, the capability to create multi-level acquiring networks, authorisation for several accounts, including accounts in different currencies, and support of card tokenisation as announced by the payment systems. This technology involves the generation of a token for a card, storage of the token in the mobile device and the use of the device to pay for goods and services in physical retail outlets, online stores, as well as performing payments in mobile applications.

The future developments for TranzAxis covered a wide range of features, including support of interbank payments and transfers, acquiring loyalty programs, and the implementation of debt collection linked to a contract. Compass Plus solutions for remote banking services – Internet banking, mobile banking and e-Commerce – aroused particular interest amongst the audience. RuT2UG attendees learned about plans for the development and market launch of TranzAxis Pocket Bank, the implementation of the customer financial profile in Internet banking, as well as the integration of mobile and Internet banking with social networks. As part of this integration, a special banking application for social networks will be implemented, which will allow customers to search and view ATMs and branches, view exchange rates, transfer funds between cards from any bank, and top up cardsRuTTug 2015 article Quipu and accounts.

In addition, the conference featured presentations from Compass Plus regarding the testing of TranzWare and TranzAxis software. The results of the stress tests conducted in 2014 on HP ProLiant servers, using Intel x86 Xeon E7 platforms, demonstrated the capability of Compass Plus products to ensure maximum performance for their customers even with the most high volume products, as well as compatibility with various hardware platforms. During load testing, another performance record was achieved: 1,500 business transactions per second for TranzWare Online, 15 million business transactions per day for TranzWare Interchange, and 1,600 business transactions per second for TranzAxis.

RuTTug 2015 article Transportny BankAnatoly Kaptsan, Vice President and Chief Software Architect at Compass Plus, shared how the Compass Plus open development payments platform, TranzAxis, has been used by Klarna, a leading European online payments provider. Klarna provides a convenient and secure online shopping experience, enabling consumers to purchase goods and services using their email address and postcode, cutting out the need for passwords. As such, Klarna had very specific requirements when choosing a vendor for their IT infrastructure. TranzAxis was the ideal platform, not only meeting their technological requirements, but also providing them with the tools to build new innovations quickly. Despite the technical and organisational complexity, the project was implemented in record time; it took just six months from concept to go live, which allowed Klarna to maintain their high level of business development and continue their global expansion. Today TranzAxis manages all Klarna accounts and settlement with merchants, acquirers and banks.

MobiCash – a global mobile payments service
Compass Plus used RuT2UG 2015 as a platform to introduce MobiCash, an innovative mobile payments service that offers a quick, convenient and secure way to pay for goods and services using a smartphone application. MobiCash is based on the ‘push’ scheme (where the payer initiates the payment), as well as the integrated technology of Online Banking ePayments (OBeP), Electronic Bill Presentment and Payment (EBPP) and 3D Secure.

The payment process through MobiCash is very simple, requiring the merchant and the buyer to perform a minimal number of basic actions. Having registered and linked a Visa or Mastercard card to the application, the customer enters RuTTug 2015 article Kapitalthe bill number generated by the merchant or business already registered with the MobiCash service. MobiCash offers several ways for the customer to pay: by entering the bill number manually, scanning a QR code, by voice command or via NFC.

When making a payment, no customer data is sent via the merchant terminal – all information is stored in the secure MobiCash cloud, which guarantees reliability and security. MobiCash provides numerous benefits for all participants – customers, merchants and acquirers creating a global ecosystem for the service (host service, customer mobile applications, terminal solutions – MobiCashPOS, integrated POS terminals, cash register systems, an open API for integration with issuers and acquirers).

As a cost-effective alternative to accepting cards, MobiCash can be used in any retail and service outlet, including online stores: from paying bills in cafés to making utility payments. RuT2UG participants were able to see the versatile use of the service firsthand with a live demonstration, where MobiCash was used to pay a bill at a restaurant, in a shop, at an online store, as well as to pay for concierge services.

The MobiCash presentation aroused great interest amongst the RuT2UG audience: the attendees actively asked questions about the operational principles and the security of the MobiCash application. After the demonstration, a roundtable session was held where delegates continued their discussions on a wide range of issues: from the integration of service into mobile banking apps, to the possibility of using location-based services in the application to fit the requirements for banks, acquirers and issuers. The roundtable debate helped to shape the development strategy and the to-market plan, as well as to identify the most pressing issues and challenges that might arise after the completion of the pilot projects, and launching MobiCash into commercial production. These topics, alongside detailed plans for project implementation and partnership programs for issuers, acquirers and payment associations, were highlighted in the MobiCash follow-up presentation on the last day of the conference.

RuTTug 2015 article TajikistanRadixWare - the open source project
During the forum, delegates also learned of the company's decision to publish RadixWare source code for developers to use for free as part of the open source project. RadixWare is the software engineering environment on which TranzAxis is built. Opening the platform up is part of the long-term strategy for the development of the company's technology and solutions, to increase their competitiveness in an environment of rapidly changing business requirements and meet the expectations of market participants and regulators.

RadixWare not only contains development tools, but also a ready-made infrastructure for a number of components for system solutions and standard tasks, such as working with the database, providing a user interface via a desktop client and web-based technologies, the implementation of online and offline interactions with the external systems, as well as editors, report execution and workflow, access control systems, monitoring and auditing systems, systems delivery RuTTug 2015 article SMS Trafficand deployment, and much more. As a result, the platform is completely focused on solving various business problems.

The unique approach of RadixWare allows financial service providers to quickly and cost-effectively build and launch a high-quality technological base for innovative products, which is crucial in today’s rapidly changing market.

Best practices of Compass Plus customers
Presentations of successful business cases from the company's customers demonstrated the flexibility of Compass Plus products and their capability to meet the needs of financial institutions and payment services providers in a competitive environment.

The first bank to share its experience was Kapital Bank, one of the largest banks in Azerbaijan, which boasts the largest branch network in the country. Zakir Khanmammadov, Deputy Director of Payment Cards and Processing Department, spoke about a new credit product based on a credit card with a revolving credit line, which enables cardholders to pay for goods and services in installments. The special feature of this credit scheme is that the interest rate is offset by a discount provided by the merchant for qualifying goods and services. This product is implemented using TranzWare CMS and has enabled the bank to significantly expand its customer base and increase its acquiring network.

Maxim Totskiy, Deputy Head of IT Development Division at Center-Invest Bank, continued with the theme of credit products by discussing how TranzWare CMS and TranzWare Online Algorithmix helped the bank implement consumer loans in its ATM network as an alternative to micro-loans. Whilst significantly lowering the risk for the bank (small amounts, short term loans, limit estimations), the product ‘Credit 0.07%’ allowed the bank to attract a large number of customers. The bank's customers appreciate the simple and fast application process to receive a loan, as well as the possibility of early repayment without commission.

RuTTug 2015 article TrustwaveContactless payments were also highlighted at the event. Natalia Krasnovskaya, Senior Manager at Bank Saint Petersburg, shared details of the first project in Russia to introduce an innovative contactless payment solution for Metro turnstiles. The project was implemented by the bank with support from Compass Plus, the Transport Committee of St. Petersburg, St. Petersburg Metro and Mastercard. This innovation means Metro passengers do not need to waste their time purchasing tickets or tokens or topping-up their prepaid transport application in advance, which reduces queues at the turnstiles and minimises operating costs.

MultiCarta, one of the largest processing companies in Russia, gave several presentations on various themes at the conference. In one of the presentations, Nikolay Stanchenko, Director of the Technology Development Directorate, discussed the re-engineering of MultiCarta’s processing platform using the universal high-performance and reliable TranzWare processing suite with built-in development tools. The merger with the TransCreditCard processing companyRuTTug 2015 article INPAS and the upgrade of the multivendor processing infrastructure to a single hardware platform enabled MultiCarta to reach uncompromising reliability and performance and provide all its customers with services such as e-Commerce (ACS, payment gateway), enhanced technical and financial monitoring and web-based device management.

Payment systems and the payment card market - experiences of the company and customers
The creation and development of payment card systems was a hot topic during RuT2UG 2015. A representative from National Bank of Tajikistan, the central issuing reserve bank of the Republic of Tajikistan, gave the audience a first-hand account of how the ‘Korti Milli’ payment system was built. Hamidullo Mashrabov, Director of Payment Systems Department, discussed the details of launching the national processing centre built on TranzWare from Compass Plus, which became the intellectual and technological core of the payment system. As a result of the well-coordinated teamwork between NBT and Compass Plus, the national processing system was implemented in record-breaking time for a project of this size and complexity – just six months. After the creation of the national payment card system, the bank managed to reduce cash transactions in the country, significantly increase non-cash payments and expand its ATM network.

RuTTug 2015 article Center-invest BankThis presentation also announced the integration of the ‘Korti Milli’ payment system with UnionPay and the United Settlement System (USS), whose representative, Igor Zotikov, Chairman of the Board, also reported on the direction and prospects of USS’s development. Today, the USS network includes almost 250 Russian banks with a total infrastructure of more than 45,000 ATMs and cash points. The financial indicators, as well as the network of terminals and the number of participants in the USS continue to grow steadily. New projects from USS included: Cash by Code (cash withdrawal from the account of a mobile operator), transfers via e-wallets, P2P transfers (transfer between the cards of the USS participants), as well as loan repayments via the ATM network.

Focus on payment infrastructure security and acquiring business development
Another interesting theme during the conference was security. Mikko Jarvinen, Regional Director, and Alexander Norell, Director of Compliance & Risk Services at Trustwave, a leading provider of information security and compliance management solutions, shared the new requirements of PCI DSS version 3, as well as other Payment Card Industry compliance frameworks: PA-DSS, PCI PTS (Pin Transaction Security) and P2PE (Point-to-point Encryption Standard). Many delegates highlighted the practical relevance of this presentation, as security is a key theme for the electronic payments market and financial industry in general.

Alexander Bekishev, Deputy Business Development Director at Ingenico, a leading global manufacturer of terminals and provider of integrated secure payment solutions, covered acquiring in the current economic climate in his presentation and introduced a retail acquiring solution named "Excellent Non-cash", which includes everything needed to enable non-cash payments. RuT2UG participants also learned about convenient mobile commerce solutions, including a set of POS terminals and mobile cash registers. The solutions expand the payment options for goods and services, increase the security of payments, reduce the risk of fraud and receiving counterfeit banknotes, as well as reduce the cost of cash replenishment.

Developing on the acquiring theme, representatives from INPAS, the largest provider of payment solutions for banks and retailers in Russia, gave presentations on the development of acquiring business and outsourcing acquiring RuTTug 2015 article Ingeniconetworks.

Chris Woods, Regional Sales Director at Thales, a leading global provider of security solutions, discussed issues around the security of processing card transactions using the example of payShield HSMs, which provide a secure, tamper-resistant environment for performing secure cryptographic processing, data management and protection.

Ivan Korostelev, Senior Technical Consultant at HP Russia, shared a conceptual plan for building new generation data centres based on HP products. The HP Converged Infrastructure for modern processing systems bridges the gap between business needs and IT services opportunities allowing companies to get rid of cluster technologies, and to integrate servers, storage systems, network devices and other equipment in shared resource pools. A unified platform helps manage these pools and distribute their capabilities. During the presentation, HP also introduced HP ProLiant Gen9, a new generation of servers delivering flexible and scalable computing resources. The servers are optimised for converged infrastructure and cloud-based software-defined environments.

RuT²UG was also partnered by LAN ATMservice, LANTER, Smart Continental, Transaction Systems, SMS Traffic, SFOUR, Alioth and Smartfin (2Can). Many of these partners gave presentations on interesting and relevant industry themes.

The presentation by Sergey Logachev, a leading Russian expert on negotiations was another highlight of the event. Within the lively talk on anti-crisis negotiations, Sergey Logachev interacted with the audience and answered questions from the RuT²UG attendees. The delegates learned about the basic mistakes and tactics of the negotiating process, as well as incentives and the need for talks during crises. The author's method of determining the psychological profile of the customer roused substantial interest amongst the audience.

RuT²UG 2015 was a great success, with the event receiving universal praise from the attendees for both the atmosphere as well as the highly topical and informative conference program, which was full of interesting presentations and roundtable discussions.During the gala dinner, attendees enjoyed the traditional awards ceremony which rewarded customers who have been particularly successful in partnership with Compass Plus. Other networking events were also organised, such as an outdoor sports relay competition, which was held on the first day of the conference and was thoroughly enjoyed by the participants. For English-speaking guests, a sightseeing tour around Magnitogorsk and its surroundings was organised, during which the delegates learned about the history of the city and the region.

We are very pleased that our customers and partners appreciate the content of our user groups, as well as the comfortable atmosphere we endeavour to create within the Compass Plus community. We are proud that since the first forum in 2005, this community has grown significantly, whilst maintaining the permanent members,” said Andrey Chirkov, Senior Vice President and Chief Sales Global Officer at Compass Plus.

Many thanks to all of our customers and partners! See you soon!

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Conference attendees

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Youri Koliakin, CEO and President at Compass Plus, makes a presentation about the history and development of the company

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Conference attendees are happy to participate in winter relay "Healthy body - Healthy spirit"

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