Stakeholders Driving Payment Evolution and Digital Identity

September 2006 ACTion Newsletter

IN THIS ISSUE

1. Editorial Comment
2. The World of ID & ACT Canada's Expanded Role
3. EMV Training From Europe Performed In Toronto
4. ICC Solutions Approved As An Interac Association Test Tool Vendor
5. Five Leading Payment Brands Unite To Strengthen Global Data Security
6. Gemalto To Provide 2.5 Million National ID Cards To The Sultanate Of Oman; Cards Upgraded With E-Purse & E-Government Applications
7. Keycorp Dual-Interface MULTOS Certified By MasterCard For PayPass M/Chip Applications
8. Oberthur Card Systems Chosen As One Of The Two Suppliers For Non-Personalized Health Care Cards In France
9. MasterCard & New York Giants Enlist Fans To Test Latest PayPass Enabled Contactless Payment Device
10. Datacard Group Strengthens Commitment To Open Standards With New Open Platform Driver
11. Giesecke & Devrient Opens State-Of-The-Art Smart Card Production Facility In India
12. Poland Selects Gemalto Technology For Its Electronic Passport Program
13. Multiple Applications ­ One Wavecard
14. Australian State Plans A Smart Card Driver's License
15. Additional Stories Available In Members Only Section

ACT CANADA THANKS OUR NEW & RENEWING MEMBERS

GENERAL

Keystone Manufacturing ~ member since 2003

ASSOCIATE

A LA CARD Marketing & Consulting Services ~ member since 2004

UPDATED GLOSSARY NOW AVAILABLE IN MEMBERS ONLY SECTION

ACT Canada is pleased to announce the release of the Advanced Card Technology Glossary of Terms, version 4. The advanced edition of this glossary is available in the Members Only section of our web site - please click on the link below to access this section. If you are an ACT Canada member but do not have your login details please contact andrea@actcda.com.
http://www.actcda.com/information/glossary/

UPCOMING EVENTS

2006 Smart Card Alliance Annual Conference
October 3 - 6, 2006
San Diego, CA, USA
http://www.smartcardalliance.org

Cartes & IT Security 2006
November 7 - 10, 2006
Paris, France
http://www.cartes.com

1. EDITORIAL COMMENT
Source: Catherine Johnston, President & CEO, ACT Canada (09/27)

The need to connect people with information and other people applies to all stakeholders in this market. We are at a difficult juncture, one a little like the old joke - "it is hard to remember that the original objective was to drain the swamp, when you are up to your knees in alligators".

Within the Canadian financial sector, EMV conversion brings a vast amount of work, as well as stakeholder management. Everyone wants to get it right, meet their competitive goals and keep ahead of fraud. Steady progress is needed to accomplish these ends.

Within government, balancing Canadian needs with global advancements is the challenge. Yesterday, the possibility that we may have more time to work with the United States on a cross border ID, other than a full blown passport, was announced. If the US Congress approves the extension, so that passports would not be required until June 1, 2009, we may be able to benefit from work being done in the EU on travel ID.

Last week, we met with a UK municipal government delegation that is looking for a Canadian municipality to participate in a citizen's services project. In two weeks time, we will meet with an Australian task force studying consumer and privacy issues relevant to the implementation of the new Australian Access Card system. This will be a health and social services access card to replace 17 federal government health and social services entitlement cards (including the Medicare Card) from 2008.

ACT Canada is committed to supporting our members by providing timely and relevant connections.

As stated in last month's editorial, the need for access to people and information is booming, now that the advanced card market is emerging in Canada, and growing in other countries. I reported on eight initiatives and promised more information for this month. So, to meet the needs of our members, here are more of the initiatives we are working on this fall and winter and an update on a few from last month.

Cartes: All Canadian members have been identified to Cartes to facilitate their VIP status.

Consumer research: The first orders are in and the cut-off for charter subscribers is October 6th. If you need more time to process your order, please contact us.

Glossary: is now available on our members' area of the web site

ACT Canada Member council: members will receive their first council reports in the coming weeks, providing them with detailed information.

Network and Education meetings: we are currently looking at a number of options to bring this popular program back and accommodate all members, regardless of their physical location.

President's Advisory Council: all Principal level members will receive letters this week, providing information and seeking their input on strategic issues.

Government Strategic leadership team: we are still looking for members who wish to sit on this team. Now that ACT Canada is involved in a number of government related ID committees and board (see article this news letter), the opportunities for members have been expanded.

Privacy Impact Assessment and Design tool for Contactless card applications: is now out for review with members of the EMATs (Emerging Markets, Applications and Technologies) Strategic Leadership team.

Web-education program: We are currently contacting members who have membership credits accumulated to solicit instructors. A survey of members to determine what content to provide in stage 1 has been completed.

As you can see, providing information, networking and education for the benefit of our members is keeping us busy. If you would like information on membership or any of these initiatives, please contact us. It would be our pleasure to ACT on your behalf in this rapidly growing market.

2. THE WORLD OF ID & ACT CANADA'S EXPANDED ROLE
Source: Catherine Johnston, President & CEO, ACT Canada (09/27)

Our ability to both grow and protect our interests in a global market is a strategic goal for ACT Canada members and the association itself, so it gives us great pleasure to make the following two announcements.

Canadian Advisory Committee, Sub Committee 17: Identification Cards and Related Devices.

Catherine Johnston, President & CEO of ACT Canada has assumed the chairmanship of the Canadian Advisory Committee, Sub Committee 17: Identification Cards and Related Devices.

This Committee (JTC 1/SC 17) is responsible for developing standards for identification cards and personal devices associated with their use in inter-industry applications and international interchange -- recognizing, that the global market for card products is constantly changing. Standards help to ensure better, safer and more efficient methods and products, and are an essential element of technology, innovation and trade. It also represents Canada's interests in standards-related matters in foreign and international forums such as ISO.

SC17 also has workgroups focusing on:
Financial Transaction Cards
Machine Readable Travel Documents
Contactless Integrated Circuit(s) Cards
Motor Vehicle Drivers Licence and Related Documents
Biometrics
Integrated Circuit Cards with Contacts
Optical Memory Cards & Devices and
Physical Characteristics, Embossing, Magnetic Stripe and Test Methods for Conformance

Standardization is the foundation for international and regional trade, for enhanced competitive positioning in specific trade areas, for coalescing differing national regulatory and legal regimes, and for promoting innovative solutions to barriers to trade and commerce.

Clive Addy, the Executive Editor of Frontline Security magazine and retired Major-General in the Canadian Forces has assumed the position of Vice Chairman.

CAN ID? VISIONS FOR CANADA: Identity Policy Projections & Policy Alternatives

Catherine Johnston has also been named to the Advisory Board for this initiative.

The University of Toronto Faculty of Information Studies and the London School of Economics' Department of Information Systems joined together on a research project funded by the Privacy Commissioner of Canada. The project, called "CAN ID? VISIONS FOR CANADA: Identity Policy Projections and Policy Alternatives focuses on identity policy, with the aim of producing an analysis of the Canadian landscape for identity documents and systems. This work builds on the LSE's high profile work on the UK identity card legislation, as well as the University of Toronto's research on provincial, national, and international identity schemes.

ID World Conference

This conference, organized by Eurosmart and part of the e-Smart event in France last week, showed that there is a global move toward increasing the security of cards to support e-government for the benefit of both citizens and government bodies.

As in the financial community, the need to address fraud and fraud migration is a strong driver. Canada needs to be a part of discussions and workgroups, to ensure that our interests are served.

Our increased activities in this area serve our members interests.

3. EMV TRAINING PERFORMED IN TORONTO
Source: Peter Everill, PJE Consulting, Course Auditor (09/26)

EDITOR'S NOTE - Peter Everill, a long-standing member of ACT Canada, volunteered to audit the recent Collis EMV training in Toronto for the benefit of our members. A copy of the full report is available to members upon request.

In September Collis BV carried out EMV training sessions for those involved with implementing EMV programs in Canada. Based on training available from Collis head-office in the Netherlands, two separate programs are offered - Introductory Workshop and Expert Course. Each takes one day and though designed for each to be a stand-alone course, both together complement each other for a comprehensive overview of EMV. The first day gives the background as to how EMV developed as a payment scheme and its place in the global and Canadian market. The high-level architecture reviews the various steps of an EMV transaction between a terminal and card. Recent enhancements to EMV for example CPA and CAP are discussed, as are practical items such as optimizing transaction times. During the second day, more detail analysis of the transaction is reviewed including the file and data structures of EMV. The courses were well attended by a mix of business and technical people representing a wide cross section of parties engaged in the Canadian EMV migration.

Collis BV is a member of ACT Canada; please visit http://www.collis.nl.

4. ICC SOLUTIONS APPROVED AS AN INTERAC TEST TOOL VENDOR
Source: ICC Solutions (09/05)

ICC Solutions Ltd announced that Interac Association in Canada has formally approved ICC Solutions and their globally recognised ICCSim test tools, to support their Members during the Canadian chip migration.

Interac Association Members will be offered ICCSim test tools for both cards and terminals to enable the Interac Association certification process.

Dave Maisey, Managing Director and CEO at ICC Solutions says, "We are thrilled that ICCSim test tools have been validated and approved by Interac Association for use by their Members, for both card and terminal certifications. We were delighted to be selected initially to work with the Association to assist with the development of requirements for test tools and related processes for INTERAC testing and certification activities. This milestone is also an excellent reflection on Interac Association, who have clearly demonstrated they are best prepared for the migration to chip in Canada."

ICC Solutions and Interac Association are members of ACT Canada; please visit http://www.iccsolutions.com/canada & http://www.interac.org.

5. 5 LEADING PAYMENT BRANDS UNITE TO STRENGTHEN GLOBAL DATA SECURITY
Source: PCI Security Standards Council (09/07)

American Express, Discover Financial Services, JCB, MasterCard Worldwide and Visa International jointly announced the formation of an independent council designed to manage the ongoing evolution of the Payment Card Industry (PCI) Data Security Standard, which focuses on improving payment account security throughout the transaction process. The founding of the PCI Security Standards Council, LLC, marks a significant milestone in the payment industry's efforts to secure payment account data in a globally consistent manner. Ultimately this means that more than a billion global payment card users will benefit from a higher level of security protection against data theft and fraud.

By establishing the independent Council to manage the PCI Data Security Standard for the payments industry, the founding members are developing a system that is more accessible and efficient for all stakeholders including merchants, processors, point-of-sale (POS) vendors and financial institutions.

The PCI Security Standards Council will serve as an advisory group and manage the underlying PCI security standards, and each payment card brand will remain responsible for its own compliance programs. More details can be found at www.pcisecuritystandards.org.

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

6. GEMALTO TO PROVIDE 2.5 MILLION NATIONAL ID CARDS TO THE SULTANATE OF OMAN; CARDS UPGRADED WITH E-PURSE & E-GOVERNMENT APPLICATIONS
Source: ICMA Daily News (09/21)

Gemalto announces that the Sultanate of Oman has selected its technology to implement the second phase of the country's national ID program. The contract appoints Gemalto to provide an update of the current National Registration System, integration services, as well as to supply smart ID cards that will enable the Sultanate of Oman to provide faster and more secure public services to its population. The program, scheduled to begin at the end of 2006, involves over 2.5 million national ID cards.

The Sultanate of Oman's national ID card program is the first smart card-based e-government solution ever deployed in the Middle East. It is part of the Sultanate's policy to improve the quality of public service and homeland security infrastructure. Its core objective is to modernize the Sultanate's identification system and processes, making it more efficient and secure, both for government authorities and citizens. As part of this objective, the creation of a National Registry System will become the pillar of all future Omani e-Government initiatives. In addition, the Sultanate of Oman is aiming to develop new technical skills within the Royal Oman Police force, the local authority managing the ID program.

The first phase of the ID program, that began in January 2004, has enabled more than 1.2 million Omani citizens and residents to benefit from a secure and convenient identification means that stores personal credentials such as name, address, digital photograph, fingerprints, driving license, etc. In addition to digital identification, electronic gates have been implemented for border control. In the near future, the national ID card will integrate an electronic purse as well as e-government applications.

Gemalto is a member of ACT Canada; please visit http://www.gemalto.com.

7. KEYCORP DUAL-INTERFACE MULTOS CERTIFIED BY MASTERCARD FOR PAYPASS M/CHIP APPLICATIONS
Source: Keycorp (09/14)

Keycorp Limited announced they are the first smartcard vendor to receive full MasterCard certification under the MasterCard PayPass M/Chip approval scheme.

The certification is for a MasterCard Type A Reduced Embossing M/Chip 4 PayPass card using their MULTOS I4Dc dual interface platform for MasterCard PayPass M/Chip programs worldwide.

As a result of the certification by MasterCard, Keycorp is now able to work with a number of card manufacturing partners to offer a contactless chip payment product for general use by any issuer worldwide who wants to offer a OneSmart PayPass product.

Keycorp and MasterCard are members of ACT Canada; please visit http://www.keycorp.net & http://www.mastercard.ca.

8. OBERTHUR CARD SYSTEMS CHOSEN AS ONE OF THE TWO SUPPLIERS FOR NON-PERSONALIZED HEALTH CARE CARDS IN FRANCE
Source: ICMA Daily News (09/21)

Oberthur Card Systems is proud to announce that it has been chosen to produce another several million cards. These cards will be delivered to the French Health Insurance's internal personalization center. The first deliveries of this multi-year contract are scheduled for the end of the year.

Oberthur Card Systems is a member of ACT Canada; please visit http://www.oberthurusa.com.

9. MASTERCARD & NEW YORK GIANTS ENLIST FANS TO TEST LATEST PAYPASS ENABLED CONTACTLESS PAYMENT DEVICE
Source: ICMA Daily News (09/05)

MasterCard Worldwide announced the first trial of its latest form factor in contactless payment technology, the MasterCard PayPass wristband. The new PayPass wristband will be given to the first 5,000 fans entering Giants Stadium for the New York Giants-Indianapolis Colts football game on Sunday, September 10, compliments of MasterCard. The wristbands feature Giants' team colors and will be pre-loaded with $25. The wristband can be used at concession stands where PayPass is accepted. This trial is designed to test a new contactless form factor specific to venues and special events such as professional football and Major League Baseball (MLB) games.

"The New York Giants worked with MasterCard one year ago to install PayPass readers in our food and vendor kiosks, and it has been a huge success," said Rusty Hawley, Vice President of Marketing, New York Giants. "To work with MasterCard again to further enhance the fan experience while enabling spectators to show off their team pride is an added bonus."

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

10. DATACARD GROUP STRENGTHENS COMMITMENT TO OPEN STANDARDS WITH NEW OPEN PLATFORM DRIVER
Source: ICMA Daily News (09/25)

Datacard Group announced that it has developed the Datacard Open Platform driver as part of its ongoing commitment to open standards. This unique interface, now available for free download at www.datacard.com/openplatformdriver , allows card issuers to deploy Datacard SP Series card printers with Linux and other operating systems supporting the Common UNIX Printing System (CUPS).

The Open Platform driver supports all the key features and functions of the popular SP Series card printers, including full-color and monochrome card printing, magnetic stripe encoding, smart card personalization, secure laminate application and ultraviolet fluorescent printing. In addition to the driver, supporting documentation is available at the web site.

Datacard is a member of ACT Canada; please visit http://www.datacard.com.

11. GIESECKE & DEVRIENT OPENS STATE-OF-THE-ART SMART CARD PRODUCTION FACILITY IN INDIA
Source: Giesecke & Devrient (08/24)

By opening a new factory in Delhi, Giesecke & Devrient is strengthening its position in Asia to meet the particular requirements of India's up-and-coming chip card market. When completed, the new production facility will be the largest of its kind in India. Besides Subscriber Identity Module (SIM) cards for mobile communications, the plant will also be producing cards for other applications such as electronic payment, ID, etc.

The new G&D plant is located in the NOIDA high-tech industrial zone to the east of Delhi and designed for an annual production capacity of more than 40 million chip cards to cater for this market volume. The cards produced there will be sold not only on the Indian market, but also exported to other countries in Asia.

Giesecke & Devrient is a member of ACT Canada; please visit http://www.gi-de.com.

12. POLAND SELECTS GEMALTO TECHNOLOGY FOR ITS E-PASSPORT PROGRAM
Source: ICMA Daily News (08/31)

Gemalto announced it will supply its Setec e-passport solution for the future Polish electronic passports. The first commercial deliveries started in July, and under the frame agreement, Gemalto will provide the Polish Printing State Agency (PWPW) with the inlays for electronic covers of the future passports to be provided to Polish citizens.

In compliance with the European Union recommendations, Poland started issuing electronic passports for their citizens by the end of August 2006. A successful pilot phase including over 3 000 diplomatic e-passports took place earlier this year, confirming Gemalto as the main supplier for the global roll out handled by the Polish Ministry of Interior and Administration. According to the Ministry of Interior and Administration, all new Polish passports needed to be electronically-enabled by the end of August 2006. The Polish Printing State Agency currently produces around 1.5M passports each year.

Gemalto is a member of ACT Canada; please visit http://www.gemalto.com.

13. MULTIPLE APPLICATIONS ­ ONE WAVECARD
Source: Source: WaveCard (09/27)

WaveTrust, Inc. has announced the launch of its new WaveCard contactless payment, loyalty and ticketing platform.

Contactless technology promises to replace the magnetic-stripe and is quickly changing the retail point-of-sale. Consumers are now able to make small-value purchases quickly and easily with just the wave of a card, fob or NFC cellphone. The convenience and ease-of-use of contactless technology is driving its popularity amongst both consumers and merchants.

To date, most of these cards have been issued by large financial companies to their existing credit card holders. The WaveCard enables merchants to increase the return-on-investment in new contactless readers and hardware ­ by providing an easy, cost-effective way to issue their own co-branded prepaid cards and fobs.

The new WaveCard is the first card developed specifically for contactless transactions including micro-payment, loyalty and ticketing. WaveTrust is teaming with leading retailers, transit agencies and transaction processors to make this exciting new product available to consumers, passengers, patrons and guests.

Partners also have the opportunity to join the WavePoints rewards program that encourages adoption and usage of the contactless technology with the award of a common currency that can be earned from participating card issuers and retailers.

14. AUSTRALIAN STATE PLANS A SMART CARD DRIVER'S LICENSE
Source: CardTechnology (09/07)

After five years of study, the Australian state of Queensland has decided to replace its 2.5 million driver's licenses with a smart card. The government wants private companies to build and manage the system to minimize the cost to the taxpayers, and has asked that bids be submitted by October 2. Government officials say the smart card will be harder to counterfeit than the current laminated license. They say this will be the first smart card-based driver's license in Australia. While the system will be managed by private companies, the state will retain the database of personal information and photographs of motorists to avoid unauthorized use of that data.

15. 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/

NFC A HIT IN FIRST NORTH AMERICAN TRIAL

…the completion of the first North American Near Field Communication (NFC) trial for mobile phones, including contactless payments and content downloads…

ADVANTAGES OF GREATER SPEED & ACCURACY TO PROMOTE ADOPTION OF SMART CARD APPLICATIONS BY HEALTHCARE SECTOR

The benefits of greater speed and accuracy will promote the use of smart cards across the European healthcare sector…

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.