Engaging, Enabling and Evolving Commerce in Canada since 1989

April 2006 ACTion Newsletter

IN THIS ISSUE

1. Editorial Comment
2. Giesecke & Devrient and MasterCard Launch World's 1st Over-The-Air Personalization Solution For Mobile Phone-Based Payments
3. LaserCard Launches ID Card Combining RFID & Optimal Memory Technology
4. Axalto Provides Bank With World's 1st Web Services To Manage Card Issuance Process
5. GlobalPlatform Releases New Spec
6. Visa Readies Contactless-Payment Trial In UK
7. SCM Microsystems' Physical Access Terminal Secures Entry At U.S. Air Force Facility
8. MasterCard PayPass To Be Deployed At Major League Baseball Stadiums
9. EMV Card Rollouts Increase In 2005
10. Visa Chip Cards To Be Issued In Vietnam Next Year
11. Axalto Offers Turnkey Personalization Solution Through Visa Smart Breakthrough Program
12. QI Systems & CardLogix Announce First Phase Completion Of Smart Card Payment Solution For Parking In Santa Monica
13. Gemplus Chosen By Saflink For SureAccess Multifactor Biometric Reader
14. Additional Stories Available In Members Only Section

ACT CANADA THANKS OUR NEW & RENEWING MEMBERS

PRINCIPAL

MasterCard Canada ~ member since 1999

GENERAL

Davis + Henderson ~ new member 

UPCOMING EVENTS

CardTech/SecurTech 2006
May 2-4
San Francisco, CA, USA
http://www.ctst.com

ACT Canada presents Cardware 2006
June 13 - Toronto, ON, Canada (financial focus)
June 15 - Ottawa, ON, Canada (government focus)
http://www.actcda.com

Ottawa - Identity is Everything
June 15th at the Hellenic Centre
We are taking Cardware on the road to meet the demands of the growing market in Ottawa. As our federal and provincial governments look at both the internal and external needs related to identity management, our members and committee have put together two tracks of information to support their interests.

1. EDITORIAL COMMENT
Source: Catherine Johnston, President & CEO, ACT Canada (04/24)

When is a card not a Card?

I've just come back from a week in Washington where talk of cross border travel ID and government employee/contractor ID dominates the industry, in the same way that EMV credit and debit does here. Although each country has its own focus, one thing is the same - the tendency to see one application linked to one card.

I'll be the first to say that we do need to get single-app cards into the market and grow from there, but while we are doing that we must shift our thinking and our discussions to applications, away from cards. That paradigm shift will help us make decisions today that will not only facilitate, but economize future initiatives.

The faster we make that mental shift, the more competitive we can be in the private sector. In the public sector this thinking will support our desire to be citizen-centric and cost effective.

Multi-applications on a card are as logical and inevitable as multi-applications on a computer. Electronic coins coupled with credit or debit; password management with physical and network access; travel ID with other government applications - all these make sense. Existing technology and work being done by Global Platform to support the management of multi-app means that it is time to be thinking of our options for the next stage. ACT Canada will help both the public and private sector do that at Cardware 06 in June.

One last thought. Of all the ID I carry, none is more important to me than my passport. I am very conscious of protecting it when I travel, but because it does not fit in my wallet, I occasionally misplace it. With my travel schedule, it isn't a big problem, but if I were a Canadian crossing the border frequently for business, I would want a card to put in my wallet. Carrying the ID safely is a key component of keeping the ID secure.

At ACT Canada, our job is to keep you ahead of the curve, so join us at Cardware 06.

WHAT DO CONSUMERS WANT?

ACT Canada is pleased to announce that we are in negotiations with IPSOS Reid to conduct consumer research this summer, as one of several Strategic Leadership Team initiatives. The teams are currently gearing up for their second terms and all ACT Canada members are entitled to join the teams of their choice.

If you are interested in: Driving Merchant Acceptance (EMV) to build a whitepaper, Consumer Research to plan the questions, Emerging Markets, Applications and Technologies to build a whitepaper on value add applications, development of a Privacy Design and Impact Assessment tool, as well as an update to our glossary - or our new Government team (initiatives to be determined), please contact the ACT Canada office, or visit us at CTST next week.
CARDWARE 06 GOES ON THE ROAD
Senior executives in both the public and private sectors are seeking answers to questions about advanced card infrastructure investments and identity management, so we are taking the annual Cardware on the road.

On June 13th, the Canadian financial sector and stakeholders will meet in Toronto to investigate practical ways to maximize EMV investments. The meeting explores means to leverage infrastructure investments and plans, as well as identifying value-add EMV business opportunities. Contact and contactless technologies will be featured.

June 15th, the government, both federal and provincials, will meet in Ottawa to look at emerging trends in identity management. Establishing, authenticating and protecting each person's identity is an important foundation to our ability to work, travel, bank and conduct our day-to-day business. Increasingly we are beginning to understand that we must not only control access to our offices, but also to our data, protecting it not only from outside attacks and also from internal misuse. The Cardware 06 Identity conference examines options open to government groups that issue ID to citizens as well as to employees and contractors. Balancing privacy and security will be among the topics on the program.

2. GIESECKE & DEVRIENT AND MASTERCARD LAUNCH WORLD'S 1st OVER-THE-AIR PERSONALIZATION SOLUTION FOR MOBILE PHONE-BASED PAYMENTS
Source: ICMA Daily News (04/05)

Giesecke & Devrient (G&D) and MasterCard International announced the launch of the world's first full-scale over-the-air (OTA) secure personalization payment solution for mobile phone-based payments, developed and managed by G&D. The solution will make the management of contactless payments with mobile phones secure, economical and flexible for participating financial institutions as the new process eliminates the time consuming need to "manually" personalize mobile handsets individually, which has been the method used for mobile payment trials until now.

This is the first OTA secure personalization and management solution for mobile payments that can activate the MasterCard(R) PayPass(TM) contactless payment application in the mobile phone securely. Customers wanting to enable PayPass with their phone, make a one-time request to their bank to register them for the service. Data is sent over the carrier network and then automatically loads and activates the PayPass payment application in the mobile phone while personalizing the phone's built-in "secure area" with the customers' payment account details. This OTA infrastructure can also be used to upload additional applications to the handset, as well as manage and modify user information.

MasterCard PayPass is widely used in the U.S. as a means for making fast and convenient "Tap & Go(TM)" payments. To perform a PayPass transaction using a mobile phone, users simply tap the back of the phone on the landing zone of the special PayPass reader to initiate the transaction. All PayPass-enabled mobile phones can be used at existing PayPass merchant locations.

The mobile phone's secure area can also be used for other security-related applications, such as access control and e-ticketing. G&D provides the complete OTA solution as a service, making it an independent partner for the many different application providers including banks, public transport services and government agencies.

Pilot projects of this breakthrough over the air contactless payments personalization platform are expected to begin shortly, beginning in the United States.

Giesecke & Devrient and MasterCard are members of ACT Canada; please visit http://www.gi-de.com & http://www.mastercard.ca.

3. LASERCARD LAUNCHES ID CARD COMBINING RFID AND OPTIMAL MEMORY TECHNOLOGY
Source: ICMA Daily News (04/19)

LaserCard Corporation announced the launch of the LaserPass secure ID card that combines RFID technology with the company's optical memory technology.

The company, which will demonstrate LaserPass at the CardTech/SecureTech Show May 2-4, will accept orders for the product beginning in June.

"Experts in border, airport, seaport, utility, industrial and commercial security are looking for the most reliable technology to keep people and facilities safe. However, they are also looking for the ability to enhance and facilitate the ID verification process," said Richard Haddock, president and CEO of LaserCard Corporation. "We have designed the state-of-the-art ID document by leveraging the strengths of two complementary technologies that meet these real-world needs."

LaserPass employs emerging RFID technology to expedite border crossings and remotely identify individuals. By combining RFID with the proven counterfeit-resistant and tamperproof strengths of optical memory, the company says LaserPass addresses the privacy and security vulnerability concerns of relying solely on RFID to protect a nation's borders or people.

LaserCard is a member of ACT Canada; please visit http://www.lasercard.com.

4. AXALTO PROVIDES BANK WITH WORLD'S FIRST WEB SERVICES TO MANAGE THEIR CARD ISSUANCE PROCESS
Source: ICMA Daily News (04/19)

Axalto announced it is providing National Australia Bank UK (NAB UK) with an innovative on-line tool for monitoring their personalization process. NAB is a leading international financial services organization and its UK operations include the Clydesdale Bank and the Yorkshire Bank. The Axalto solution allows NAB UK to greatly streamline their supply chain and logistics by significantly reducing paperwork and manual operations. NAB UK will use this service to monitor and interact with the production process in the Axalto personalization center of Fareham in the UK, and also in the contingency site of Tours in France.

This unique web service enables NAB UK to increase efficiency and responsiveness in managing urgent customer requests by providing full card traceability and real-time interaction with Axalto's personalization centers. For example, NAB UK is offered the possibility to track a particular card or batch and get instant information on production status. For end users, shorter issuance time is a tangible benefit and will contribute to increasing customer satisfaction and building loyalty.

As the personalization infrastructure is common to all Axalto banking production sites, this web service is available from all of the company's personalization centers worldwide. The ability to offer an end-to-end solution for managing card issuance processes across the world is unique in the market and a key differentiator for Axalto.

Axalto is a member of ACT Canada; please visit http://www.axalto.com.

5. GLOBALPLATFORM RELEASES NEW SPEC
Source: CardTechnology (04/11)

GlobalPlatform, an international organization that provides smart card specifications, says it has released a new version of its Card Specification, 2.2. New features of the spec include public key infrastructure functionality, over-the-air card content management, and support for dual-interface contact and contactless smart cards. The PKI function will be useful for GlobalPlatform cards used as identification credentials, the organization says. PKI can be used to digitally sign documents and encrypt documents transmitted electronically. Additionally, the spec now works with Multos and Java Card cards, which are competing software environments for applications on smart cards. The royalty-free software is available on http://www.globalplatform.org.

6. VISA READIES CONTACTLESS-PAYMENT TRIAL IN UK
Source: CardTechnology (04/06)

Visa Europe will launch a pilot of contactless payment in which consumers can make low-value purchases by tapping a smart card or key fob on a reader in the UK, Guido Mangiagalli, Visa Europe's head of new channels, tells Card Technology sister publication CardLine Europe. "We are in negotiations with a couple of our major members to trial a contactless product starting from September of this year," he says. "If the trials will be positive, they have a full strategy to deploy contactless commercially in 2007." Visa is also discussing contactless trials in other European countries. To achieve widespread acceptance of contactless payment in Europe, Mangiagalli says, merchants must first install point-of-sale terminals that include contactless readers. For that to happen, he adds, European countries must move to a payment system based on chip cards that comply with EMV, the global payment standard for smart cards. "Our contactless platform is built on top of EMV, so we need to have an EMV infrastructure well established," he says. "So the countries that we are targeting today are the countries that are in an advanced state of the deployment of EMV."

Visa Canada Association is a member of ACT Canada; please visit http://www.visa.ca.

7. SCM MICROSYSTEMS' PHYSICAL ACCESS TERMINAL SECURES ENTRY AT U.S. AIR FORCE FACILITY
Source: SecureIDNews (04/05)

SCM Microsystems, Inc. announced that its PACT physical access control terminals are being used in a recently implemented physical access system supporting both contact and contactless secure access applications at a U.S. Air Force facility.

SCM's PACT terminals are designed to support the 3.8 million contact interface Common Access Card (CAC) cards that have been distributed to U.S. military personnel and contractors since late 2002, as well as new contactless interface CAC cards planned for distribution in the next few months. Originally used as a personal token for gaining secure access to PCs or networks, under Homeland Security Presidential Directive 12 (HSPD-12), the CAC card now has the role of a multipurpose identification card for military and other government personnel to enable secure logon, secure building access and other applications.

The new system is designed to address both current and future CAC applications. Currently, personnel can gain access to buildings and individual offices by inserting the CAC card into a PACT terminal. The same card also allows users to securely logon to computers or networks. For rapid and convenient access to the facility, personnel currently carry a separate non-CAC card that has a contactless interface supported by the PACT terminals. In the next several months, the Department of Defense plans to issue new CAC cards that provide both contact and contactless interface under Federal Information Processing Standard 201 (FIPS-201), which will allow Air Force personnel to use one card throughout the facility for contact or contactless physical access, using SCM's PACT terminals.

SCM Microsystems is a member of ACT Canada; please visit http://www.scmmicro.com.

8. MASTERCARD PAYPASS(TM) TO BE DEPLOYED AT MAJOR LEAGUE BASEBALL STADIUMS
Source: ICMA Daily News (04/04)

MasterCard International announced that nine Major League Baseball (MLB) teams will accept MasterCard(R) PayPass(TM), a new contactless payment option, at in-stadium concession stands. Cardholders simply tap their PayPass-enabled card or device on the specially-equipped merchant terminals throughout the stadiums when purchasing concessions under $25.

PayPass is now accepted at stadiums across the country, including Busch Stadium, Citizens Bank Park, Dodger Stadium, Fenway Park, Great American Ballpark, Petco Park, Shea Stadium, Turner Field and Yankee Stadium - homes of the St. Louis Cardinals, Philadelphia Phillies, Los Angeles Dodgers, Boston Red Sox, Cincinnati Reds, San Diego Padres, New York Mets, Atlanta Braves and New York Yankees, respectively. MasterCard expects to announce additional stadiums in the future.

MasterCard is a member of ACT Canada; please visit http://www.mastercard.ca.

9. EMV CARD ROLLOUTS INCREASE IN 2005
Source: CardTechnology (04/07)

Banks and credit card companies issued nearly 80 million smart cards complying with the international EMV standard during the last six months of 2005, according to EMVCo, the organization that maintains the standard.

EMVCo reported banks and merchants deployed 600,000 EMV point-of-sale terminals and ATMs during the period. By comparison, issuers rolled out 65 million EMV credit and debit cards during the first six months of 2005, and there were 900,000 EMV terminals deployed during the period. For the full year, banks and card companies issued about 8% more EMV cards, or just under 145 million, than in 2004. But the 1.4 million EMV terminals banks and merchants rolled out during 2005, were fewer than the 1.7 million such terminals deployed during 2004.

All told, financial institutions and merchants have rolled out 408.8 million EMV-compliant cards and 4.5 million EMV terminals since standards makers adopted the first version of the EMV specification in 1995. Many of those cards and some of those terminals are no longer in circulation or use. Rollouts of EMV are continuing in Europe and parts of Asia and Latin America, but still have a long way to go. International card organizations estimate no more than 40% of cards and terminals in Europe have been converted to the more secure standard. And Visa International says only about 15% of its cards are EMV-enabled in Asia-Pacific, with about 20% of terminals in the region able to accept the chip cards. Banks and card companies in the United States have not adopted the standard and continue to rely on magnetic-stripe cards.

Visa International, MasterCard International and Japan's JCB Co. jointly own EMVCo.

MasterCard and Visa Canada Association are members of ACT Canada; please visit http://www.mastercard.ca & http://www.visa.ca.

10. VISA CHIP CARDS TO BE ISSUED IN VIETNAM NEXT YEAR
Source: ICMA Daily News (04/04)

VISA International will officially issue payment cards using chip technology in Vietnam in 2007, VISA country director Stuart Tomlinson has announced. He said the decision was based on the results of surveys VISA has conducted since 2004 in Vietnam and other countries in the Asian-Pacific region. Up to 69 percent of queried Vietnamese customers considered chip cards to be better and safer than other cards for payment. According to the VISA director, banks and sales agents in Vietnam have been preparing to provide chip card payment services in late 2006.

VISA holds the largest market share in the Asia-Pacific region with a total of 277 million cards, making up 62 percent of card payments and including 43 million chip cards.

Visa Canada Association is a member of ACT Canada; please visit http://www.visa.ca.

11. AXALTO OFFERS TURNKEY PERSONALIZATION SOLUTION THROUGH VISA SMART BREAKTHROUGH PROGRAM
Source: ICMA Daily News (04/05)

Axalto announced a turnkey smart card personalization offer through the Visa Smart Breakthrough program, an initiative bringing cost-effective solutions and innovative technologies to member financial institutions, and facilitating the EMV migration process. Axalto will be offering in particular a very compelling "fee-per-card" scheme that allows banks to migrate to the advanced EMV standard without a large upfront investment.

As part of the Visa Smart Breakthrough program, Axalto offers Visa member banks its field-proven personalization package which includes data preparation, personalization software suite for EMV cards, quality control software, as well as ongoing technical support. The Axalto package is available immediately.

Axalto & Visa Canada Association are members of ACT Canada; please visit http://www.axalto.com & http://www.visa.ca.

12. QI SYSTEMS & CARDLOGIX ANNOUNCE FIRST PHASE COMPLETION OF SMART CARD PAYMENT SOLUTION FOR PARKING IN SANTA MONICA
Source: ICMA Daily News (04/20)

QI Systems Inc. and CardLogix announce the launch of a re-loadable stored value card scheme for payment of parking in the City of Santa Monica, California. QI Systems along with CardLogix have developed a smart card-based solution for the payment of parking fees at meters throughout the city, which collects on 6,400 spaces.

The Santa Monica program is modeled after the successful installation of a similar system several years ago in the City of San Diego. As in San Diego, the system uses QI Console Value Reload terminals to monetize the customer cards. A feature of this system is the ability to work with the city's existing installed base of parking meters from major suppliers. The QI Console Reload Terminal is placed with attendants in City-owned 'parkades' for easy access by consumers.

QI Systems is a member of ACT Canada; please visit http://www.qisystems.ca.

13. GEMPLUS CHOSEN BY SAFLINK FOR SUREACCESS MULTIFACTOR BIOMETRIC READER
Source: Gemplus (04/04)

Gemplus announced the integration of its GemProx contactless reader into the SureAccess(TM) all-weather biometric smart card reader from Saflink(R). The integrated smart card reader solution is designed to comply with the US government's stringent Federal Information Processing Standard (FIPS) 201 requirements.

The Saflink SureAccess reader can strengthen security for both seaports and airports, and can be integrated with many existing physical access control systems. It is designed to comply with the HSPD-12/FIPS 201 directive which will provide interoperable credentials for all federal employees and contractors.

Saflink turned to Gemplus to provide the technology for reading the contactless ID cards carried by authorized personnel in secure facilities. GemProx is a range of contactless interfaces which are already in use for a range of applications including access control, transport, payment and border control.

Gemplus is a member of ACT Canada; please visit http://www.gemplus.com.

14. ADDITIONAL STORIES AVAILABLE IN ACT CANADA MEMBERS ONLY SECTION

These additional stories are available to ACT Canada members via the Members Only section of our web site. Click on the link below to access this section.
If you are a member of ACT Canada but do not have your login details please contact me - andrea@actcda.com.
http://www.actcda.com/members-only/members-only-news/

SUCCESSFUL TRIAL LEADS TO NFC DEPLOYMENT IN GERMANY

Nokia, Royal Philips Electronics, Vodafone and the regional public transport authority for the Region Frankfurt Rhine-Main in Germany, have announced that following a successful 10-month field trial, Near Field Communication (NFC) technology will be deployed in a commercial environment…

PROPOSED BORDER-CROSSING CARD RAISES PRIVACY CONCERNS

A proposal by the U.S. Department of Homeland Security to use a border-crossing card with a radio-frequency chip that can be read up to 30 feet (9 meters) away has raised privacy concerns, including from officials of the State Department, the agency that would actually issue the card…

For more information, please contact Andrea McMullen at 1 905 426-6360 ext 124 or email andrea@actcda.com.

Please forward any comments, suggestions, questions or articles to andrea@actcda.com. Please note that articles contained in this newsletter have been edited for length, and are for information purposes only.