Stakeholders Driving Payment Evolution and Digital Identity

April 2008 ACTion Newsletter

IN THIS ISSUE

1. Editorial Comment
2. TD Visa & TD Merchant Services Complete Canada's First Visa payWave Transaction
3. Tim Wilson Named As Head Of Visa Canada
4. New President Appointed To Giesecke & Devrient Canada
5. Canadian Tire Money Goes Contactless
6. Collis Announces Approval Of Interac Terminal Functional Test Tool (FTT)
7. Paypal Launches Its First Mobile Service On A Downloadable Application - Members Only Access
8. Gemalto Rolls Out Electronic Social Security Program Nationwide In Algeria
9. Bell ID Gets FIPS201 Approval
10. Globalplatform Releases Security Management Specs
11. Canada Chip Card Trial Seeing Success At Midpoint
12. Jordanian Bank Installs Biometric Authentication - Members Only Access
13. DHS Orders LaserCard's New Encoding Solution For Green Cards
14. ViVOtech Enables Contactless Payments For Kiosk Systems
15. Moneris Buys Keycorp Canada
16. CoreStreet Pivman Solution Now Available For E-Access Control At DOD Facilities
17. Gemalto Selected For Electronic Passport Roll Out In Cote D'ivoire
18. Mobile Payments: The Saga Continues - Members Only Access

ACT Canada is pleased to announce our new Partner - Collis

Collis
Collis is a leading provider of EMV, e-ID, and e-Passport test tools, consulting, and training in Canada. Contact us for EMV training and test tools for every step of the EMV Transaction life-cycle - Cards, Terminals, Acquiring host and Authorization host. Collis America at 1-651-925-5410.

ACT CANADA THANKS OUR NEW & RENEWING MEMBERS

PRINCIPAL

EWA-Canada ~ member since 2004
Visa Canada ~ member since 1995

ASSOCIATE

Osler, Hoskin & Harcourt LLP ~ member since 2005

CALENDAR OF EVENTS

ACT Canada & Gemalto present:
EMV Emerging Trends: How will they play in the Canadian market?
The day consists of 3 separate sessions: Contactless; Card Like Me & NFC.
This no-fee event is open to representatives from financial institutions and retailers. For more details visit - http://www.actcda.com/calendar/

GlobalPlatform Value Proposition For Identity Management
May 12, 2008
Orlando FL, USA
For more details visit - http://www.actcda.com/calendar/

CTST
May 12-15, 2008
Orlando, FL, USA
http://www.ctst.com
CTST is the premier advanced payments and security event in the Americas, bringing together 2000+ industry professionals to discuss solutions in smart cards, pre-paid cars, mobile payments, biometrics and more. The 4-day, 6-track event is produced in association with Cards and Payments Magazine and the Smart Card Alliance. ACT Canada members receive a 10% registration discount, please contact Andrea McMullen - 1 905 426-6360 ext 24 or andrea@actcda.com.

ACT Canada is pleased to present:

Cardware 08 - Securing ID
September 23, 2008
Ottawa, ON, Canada
&
Cardware 08 - Securing Payments
October 8 & 9, 2008
Kitchener Waterloo, ON, Canada

Exhibit & Sponsorship information is available in the event section of our web site. ACT Canada members receive discounts for this event. For additional information ,please contact Andrea McMullen - 1 905 426-6360 ext 24 or andrea@actcda.com.

1. EDITORIAL COMMENT
Source: Catherine Johnston, President & CEO, ACT Canada (04/29)

Chip Challenges for Government and Merchants

GOVERNMENT
When you work for the federal, provincial or municipal government, how do you find out what others are doing with e-government? How do you determine their motivation and detect whether they achieved the desired outcomes? You could sort through the 7,920,000 e-government references on Google, but now there is an efficient way for governments across Canada to see what is happening in other countries.

The ACT Canada Government Strategic Leadership Team (GSLT) is conducting a global environmental scan of e-government initiatives. This is particularly important because no single agency has stepped forward to take the lead in identifying the benefits of broad e-government services for any government level in Canada. We do have some noteworthy projects at all three levels but we are far from the point where we can realize significant benefits in health care, travel and other programs. We have barely started to provide the secure ID that benefits citizens of other countries.

The scan will allow us to see the breadth of opportunities, so that we can determine which would be of benefit to our citizens and help us formulate strategies. Timing is critical because fraud migrates. As other countries move forward with secure ID, we become more vulnerable. Timing is also a positive factor as the Canadian financial sector is rolling out new secure payment infrastructure.
All members of ACT Canada are eligible to join the Government SLT. We will present the scan at Cardware 08 in Ottawa, September 23.

MERCHANTS
As EMV rolls out, merchants face challenges of a different nature. We have different POS environments and customer expectations, but we all have training and other shared issues. On May 7th, we will meet with retailers to discuss specific merchant needs as roll out approaches. We'll identify questions that need to be answered and strategize how to effectively get merchant messages to the right people.

For an invitation to this collective, open and non-aligned discussion, please contact us. This is a merchant only meeting.

Profiting from Mobile Payments in Canada

If you want to know:

  • The Canadian consumer's appetite for mobile paymentsStakeholder strategies for mobile payments: banks, credit card companies, mobile operators, handset manufacturers, merchants
  • Opportunities for revenue generation along the value train
  • Which business models are destined to survive in the Canadian marketplace
  • Potentially disruptive issues? Which emergent strategies will position stakeholders for success?

Contact ACT Canada to learn more about this research study, due to start soon - Eileen Cassidy at 1 905 426-6360 ext 22 or eileen@actcda.com.

2. TD VISA AND TD MERCHANT SERVICES COMPLETE CANADA'S FIRST VISA PAYWAVE TRANSACTION
Source: Canada Newswire (04/11)

Canada's first Visa payWave transaction was completed at a Dairy Queen Restaurant in Kitchener-Waterloo, Ontario. Using a TD Visa chip card equipped with the Visa payWave contactless feature, TD Canada Trust District Vice President Kevin Moffatt made a ceremonial purchase to kick-off the introduction of Visa payWave in Canada.

The Visa payWave feature gives cardholders the option of paying for small dollar purchases - typically under $25 - simply by waving their TD Visa chip card near a Visa payWave reader. TD Canada Trust is including the Visa payWave feature on TD Visa chip cards issued in Kitchener-Waterloo as part of the market trial of chip technology. TD Merchant Services has already installed Visa payWave readers at several locations in Kitchener-Waterloo and will add more in the coming months.

In Canada, the Visa payWave payment platform is unique because it's based on EMV(TM) chip technology. EMV technology provides increased protection against counterfeiting and skimming fraud as the encrypted data on an EMV chip card is virtually impossible to copy. Visa payWave transactions will be processed through the same reliable Visa payment network used for all Visa card transactions.

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

3. TIM WILSON NAMED AS HEAD OF VISA CANADA
Source: RT News (04/10)

Visa Inc. announced that it appointed Tim Wilson as Head of Visa Canada, effective May 30, 2008. He succeeds Derek Fry, who recently announced his retirement after serving as President of Visa Canada for twelve years.

Wilson most recently served as Head of Sales for Visa Canada, which allowed him to focus on strengthening key business relationships. He joined Visa Canada two years ago as Senior Vice President, Strategy, Finance and Administration. He was active in shaping Visa Canada's strategic direction as part of an ongoing and focused evaluation of Visa's operations, structure, governance and business strategy.

The San Francisco, Canada-based company noted that Derek Fry, during his tenure as President of Visa Canada, led the Canada region through a period of transition. He played a major role in Visa's transition to a publicly traded company. In addition, the company noted that he spearheaded the Canadian migration to chip card technology.

Joseph Saunders, Chairman and CEO of Visa Inc. said, "Strong regional presence continues to be at the foundation of Visa's global strength. I thank Derek for his many years of service, and am pleased that we will continue to have strong leadership in Canada. Tim brings an excellent knowledge of the Canadian marketplace, strong relationships and a solid background in business, strategy and finance."

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

4. NEW PRESIDENT APPOINTED TO GIESECKE & DEVRIENT CANADA
Source: ICMA Daily News (04/16)

In order to successfully implement Canada's EMV migration, the Management Board of Giesecke & Devrient (G&D) has appointed Mr. Erwin Diekemper as president of G&D Canada.

Mr. Diekemper joins the Canadian operation from G&D's headquarters in Munich, Germany; bringing with him more than 30 years of experience in the card industry and international experience in the G&D global network.

"I am pleased to join G&D Canada during such a groundbreaking year," said Mr.
Diekemper. "As Canada moves to EMV standard chip-enabled payment technology throughout 2008, G&D Canada will continue be a trailblazer, offering innovative and secure payment solutions."

G&D's secure card solutions are also in use by government in Canada. The new high security Ontario Driver's licence recently rolled off the G&D production line. This new card was designed to prevent product tampering and counterfeiting, and provide Ontario residents with increased protection against identity theft.

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

5. CANADIAN TIRE MONEY GOES CONTACTLESS
Source: The Wise Marketer (04/24)

In 2007 Options MasterCard card members earned more than Can$92m in Canadian Tire 'Money' on their cards. Now, an improved card incorporates MasterCard's PayPass contactless payment technology, enabling customers to simply tap the card on a terminal to complete a payment transaction. The card has also been redesigned with a new look that is intended to remind cardholders that they can earn Canadian Tire Money at more than 24 million locations worldwide. More than 3 million of the new cards have already been issued.

Canadian Tire Financial Services & MasterCard Canada are members of ACT Canada; please visit http://www.ctfs.com & http://www.mastercard.ca.

6. COLLIS ANNOUNCES APPROVAL OF THE COLLIS INTERAC TERMINAL FUNCTIONAL TEST TOOL (FTT)
Source: Collis (04/04)

Collis is pleased to announce that the Collis INTERAC Terminal Functional Test Tool has been approved by Interac Association. With this approval, Collis is now able to certify Interac Direct Payment (IDP) and Shared Cash Dispensing (SCD) Terminals to the Interac Association's IDP/SCD Terminal Specifications, as well as to the Interac Association's Integrated Circuit Card Specifications for debit cards.

Guy Berg, President of Collis America, comments: "We are very pleased to be able to offer this additional product to the Canadian market and to continue to lead the Canadian chip migration process. We gladly share our knowledge and expertise by assisting members of Interac Association in their efforts to migrate to chip."

Collis and Interac Association are members of ACT Canada; please visit http://www.collis.nl & http://www.interac.org.

7. PAYPAL LAUNCHES ITS FIRST MOBILE SERVICE ON A DOWNLOADABLE APPLICATION - Members Only Access

Available in the ACT Canada Members Only section of our web site. Click on the link below to access this section.
http://www.actcda.com/members-only/members-only-news/

If you are a member of ACT Canada but do not have your login details please contact me - andrea@actcda.com.

8. GEMALTO ROLLS OUT ELECTRONIC SOCIAL SECURITY PROGRAM NATIONWIDE IN ALGERIA
Source: ICMA Daily News (04/01)

Gemalto announced that it has started the nationwide roll-out of Algeria's first electronic healthcare project. Following the success of the pilot phase comprising 700,000 cards in five regions, this pioneering healthcare program in Algeria is poised for nationwide roll-out over the coming two years. Gemalto is prime contractor for the program, handling end to end implementation of the system for issuing and managing the seven million smartcards used by healthcare beneficiaries and providers.

Gemalto's solution enables healthcare institutions to manage patient records securely and to verify patient benefits, while maintaining data confidentiality. For healthcare beneficiaries, this new social security smartcard (known as Chifa) simplifies administrative procedures and eliminates paperwork from the submission of claims to the authorities. The high level of transaction security and faster reimbursement represent additional advantages for smartcard users.

Boualem Touati, IT director at CNAS, commented: "The pilot phase proved that the entire system works from one end of the chain to the other. Healthcare beneficiaries, doctors, pharmacists, healthcare organizations, such as social security agencies, can already reap the benefit of the solution implemented with Gemalto. For instance, claim reimbursement times have been cut from 30 to 5 days, and the complete modernization of CNAS' processing chain will pave the way for a major reduction in operating costs."

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

9. BELL ID GETS FIPS201 APPROVAL
Source: SecureID News (04/17)

lBell ID's ANDiS4FIPS201 Card & Application Management solution has been placed on the GSA Approved Products List in recognition of its compliance with the FIPS 201: Electronic Personalization standard.

ANDiS4FIPS201 has been tested and approved as an electronic card personalization product which generates and loads mandatory and optional objects to a PIV Card, as defined by the National Institute of Standards and Technology.

Bell ID's ANDiS4FIPS201 offers U.S. government agencies a card and application management system enabling them to manage the life cycle of the card and the PIV application it holds. The ten different containers on the card are managed individually by ANDiS, enabling items with different lifecycles to be held on the same card. In addition, ANDiS4FIPS201 supports open source interfacing, which allows for swift and seamless integration with other components of the PIV card-issuing infrastructure.

Bell ID is a member of ACT Canada; please visit http://www.bellid.com.

10. GLOBALPLATFORM RELEASES SECURITY MANAGEMENT SPECS
Source: Contactless News (04/23)

GlobalPlatform, the international smart card specification organization, has finalized its Device Application Security Management Specification for terminals, including mobile phone handsets and EFT-POS devices, based of GlobalPlatform device technology.

This specification defines how multiple actors within a device environment, such as issuers and third-party application providers, can exchange and manage secure data when downloading applications either pre or post issuance.

The DASM Specification is three documents. The first - the DASM Concepts and Descriptions Specification - was introduced in May 2007 and defines the roles and responsibilities of different actors and specifies the data that needs to be shared in the application download process. The final two documents, which have just been published on the GlobalPlatform website, are:

The DASM Key and Certificate Management Specification - This document details the keys, signature scheme and certificate infrastructure that must be applied to ensure that all actors active within the device environment are verified as trustworthy.

The DASM Provisioning Specification - This document specifies the data format required to install an application and set up a security configuration on GlobalPlatform systems.

GlobalPlatform is a member of ISCAN, the International Smart Card Associations Network; please visit http://www.globalplatform.org.

11. CANADA CHIP CARD TRIAL SEEING SUCCESS AT MIDPOINT
Source: ePaynews.com (04/17)

Canada's first trial of EMV chip-and-PIN cards has had positive results so far, according to the Canadian payments card industry. Participants in the trial in Kitchener-Waterloo, Ontario, say it is proving a success.

"We're pleased with the feedback from merchants and consumers as chip-and-PIN cards are used more widely," says Tracey Black, program director for the Kitchener-Waterloo trial.

Launched in October 2007, the trial began with a small rollout stage in which technical interoperability issues were tested and improved. The early testing was followed by a wider rollout of chip-enabled cards and terminals in Kitchener-Waterloo.

Currently, around 200,000 local residents have received chip-enabled debit and credit cards. Local merchants have installed over 2,300 chip-enabled point-of-sale terminals, and 65 percent of ATMs have been updated to support chip card technology. All financial institutions in Kitchener-Waterloo now offer chip-enabled ATMs.

"In the trial's next stage, issuers and acquirers will educate consumers and merchants in the use of PINs for credit card payments," Black tells ePaynews. "Canadians are already familiar with using PINs for Interac debit card payments, so they don't have any difficulty doing the same for credit card payments."

For more information on the trial, please visit http://www.chipmigration.ca.

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

12. JORDANIAN BANK INSTALLS BIOMETRIC AUTHENTICATION - Members Only Access

Available in the ACT Canada Members Only section of our web site. Click on the link below to access this section.
http://www.actcda.com/members-only/members-only-news/

If you are a member of ACT Canada but do not have your login details please contact me - andrea@actcda.com.

13. DHS ORDERS LASERCARD'S NEW ENCODING SOLUTION FOR GREEN CARDS
Source: SecureID News (04/10)

LaserCard Corp. has received a purchase order to supply a next generation card encoding solution for the Department of Homeland Security's U.S. Permanent Resident Card, or Green Card, Program. LaserCard will supply 40 next generation encoders, associated software and services. The new solution will replace "Green Card" personalization equipment which is more than a decade old. The encoders and software, valued at approximately $170,000, are expected to be delivered over the next six months.

LaserCard's personalized Embedded Hologram is unique among all data storage technologies used on cards in that it permanently marks the digital recording medium with eye visible data, in this case the facial image of the cardholder.

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

14. VIVOTECH ENABLES CONTACTLESS PAYMENTS FOR KIOSK SYSTEMS
Source: Contactless News (04/18)

ViVOtech is extending its ViVOpay line of contactless readers into the kiosk market by introducing the ViVOpay Kiosk contactless payment module. The new technology is certified to work with all major contactless payment programs and allow third-party Kiosk host systems to accept contactless payments without requiring lengthy and costly compliance re-certifications.

ViVOpay Kiosk is an add-on contactless payment module that bolts onto existing and new Kiosk systems to enable the functionality. The ViVOpay Kiosk designed for indoor and outdoor environments is compatible with all major worldwide contactless payment programs and works with upcoming NFC mobile phone payment technologies for ticketing, promotions, and coupons redemption applications

ViVOtech is a member of ACT Canada; please visit http://www.vivotech.com.

15. MONERIS BUYS KEYCORP CANADA
Source: Market Wire (04/04)

Canadian processor Moneris Solutions has signed an agreement to buy Keycorp Canada (KCI) from its Australian parent. The deal is expected to close at the end of April 2008, Moneris says.

Montreal-based KCI employs around 300 people and provides point-of-sale terminal service and support to small and large customers across Canada. It also provides technical service and support to several Canadian acquirers, solution providers and merchants.

Moneris plans to integrate KCI's service offerings into its own portfolio of payment services, the firm says.

Keycorp is a member of ACT Canada; please visit http://www.keycorp.net.

16. CORESTREET PIVMAN SOLUTION NOW AVAILABLE FOR ELECTRONIC ACCESS CONTROL AT DOD FACILITIES
Source: CoreStreet (04/28)

Driven by Department of Defense (DoD) regulations, as well as Homeland Security Presidential Directive 12 (HSPD-12) goals, CoreStreet, the leader in credential validation solutions, announced that its CoreStreet PIVMAN Solution now provides rapid electronic authentication and validation of Common Access Cards (CAC) for securing physical access to Department of Defense (DoD) facilities worldwide.

The CoreStreet PIVMAN Solution encompasses software for handhelds and PCs and a management station to manage the link to the existing DoD infrastructure. The DoD Robust Certificate Validation Service (RCVS) can be leveraged directly for CAC validation-only requests, or Commands/Services/Agencies (C/S/A) can establish local attribute infrastructure similar to the capability used by the Pentagon Force Protection Agency (PFPA).

With the CoreStreet PIVMAN Solution, DoD facilities can now perform rapid electronic validation of identity and associated attributes (even in power out and communications out situations), automatic dynamic updates when a connection is available, and capture of activity information for auditing purposes. Extending beyond the DoD, the CoreStreet PIVMAN Solution also allows for the validation of any federal, state or local credentials issued from FIPS-201 compliant or interoperable infrastructures, and of legacy credentials such as drivers' licenses.

CoreStreet is a member of ACT Canada; please visit http://www.corestreet.com.

17. GEMALTO SELECTED FOR E-PASSPORT ROLL OUT IN COTE D'IVOIRE
Source: Gemalto (04/14)

Gemalto announced it has been selected as sole supplier of the digital security technology to be used in electronic passports for Ivorian citizens. Under the 5-year contract, Gemalto will supply system integrator Zetes with its Sealys eTravel Inlays, the secure devices embedding its advanced secure electronic passport software technology. Over one million passports are currently in use in Cote d'Ivoire and the government intends to roll out the first electronic passports from June 2008 onwards, with a view to renewing all of them by end 2009. The Ivorian authorities plan to incorporate the electronic capability in all new travel documents.

This initiative illustrates the major effort the Ivorian government is putting forth to combat identity fraud and provide its citizens with increased security. The Gemalto technology includes Sealys eTravel, a highly secure operating system with advanced cryptographic features running on a large capacity contactless microprocessor. In addition to the identity information already displayed on the first page, this eTravel Operating System also features the passport holder's digitized photograph.

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

18. . MOBILE PAYMENTS: THE SAGA CONTINUE - Members Only Access

Available in the ACT Canada Members Only section of our web site. Click on the link below to access this section.
http://www.actcda.com/members-only/members-only-news/

If you are a member of ACT Canada but do not have your login details please contact me - andrea@actcda.com.

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.