The VS3 specification creates a common environment for value-added services on any chip card including EMV cards, allowing issuers to more easily broker new partnerships and manage multi-function chip programs. VS3 allows issuers to create pre-formatted cells that they can offer to their partners to populate with data related to their programs, such as loyalty rewards programs, personal identity services, and club memberships. The VS3 specification is EMV-compliant and can reside on a static chip or GlobalPlatform multi-application chip. Research conducted by Visa International in Asia-Pacific found that three-quarters of those surveyed were attracted to smart cards for their ability to consolidate payment functions and value-added services. The VS3 specification reduces the back-office systems changes that need to be made by the issuer and the partner in order to integrate multiple programs on one card. Also, depending on the preferences of each issuer, partners can share data with each other directly. For example, an issuer may offer space on the chip to two partners: a cinema chain and a quick service restaurant (QSR). VS3 allows the cinema chain and the QSR to dynamically share information so that when the cardholder buys a movie ticket he also receives a coupon for a free drink at the restaurant. This removes the burden of managing the details of each program from the issuer, while allowing the partner to control how its program is run and reducing the need for costly changes on the host to support its partners program. In the past, a major challenge for these combination payment/non-payment smart cards has been the need for all functionality to be included on the chip, such as updated rewards and cardholder profile. The VS3 specification allows the issuer and the partner to store only the most recent data in the cell with all of the program functionality residing in the issuer or partner?s host system. This capability reduces the cost and complexity of managing multiple services on one chip.
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