Stakeholders Driving Payment Evolution and Digital Identity

January 2008 ACTion Newsletter

IN THIS ISSUE

1. Editorial Comment
2. Visa payWave Coming To TD Visa Cards; TD Merchant Services To Deploy Visa payWave Readers
3. National Bank Of Canada Completes Smart Card Transactions
4. LaserCard Signs Secure Foreign Resident ID Management System Contract For Costa Rica
5. Giesecke & Devrient To Supply SIM Cards For Turkcell And Garanti Bank NFC Pilot Project
6. Bell ID Launches Stand-Alone EMV Scripting Product
7. ICC Solutions Awarded Visa "Smart Star" Status
8. Gemalto To Provide Yemen's National Electronic ID System
9. Payphone-ATM Use Blocked In UK Town - Members Only Access
10. CPI Card Group Acquires Didier
11. Canadian Province Requires ID Theft Alert Option - Members Only Access
12. E-Health Card Terminal From SCM Microsystems Receives Gematik Certification
13. INSIDE Contactless NFC Chip Powers Payment Transactions For Most Handsets In GSMA Pay-Buy-Mobile Trials
14. January 31st Webinar On EMV Implementation Challenges & Testing Solutions
15. Smart Cards Come To Montreal Transit - Members Only Access
16. Italy Issues RFP Relating To Nationwide Infrastructure For National Citizen ID Card Program
17. Ottawa To Benefit From Contactless For Transit - Members Only Access

ACT CANADA THANKS OUR NEW & RENEWING MEMBERS

GENERAL

ACI Worldwide (Canada) Inc. ~ member since 1998
Bell ID ~ new member
Canadian Tire Financial Services ~ member since 2006
Coinamatic ~ member since 2005
CoreStreet ~ member since 2006
CPI Card Group ~ rejoining
CUETS ~ member since 1990
ICC Solutions ~ member since 2003
INSIDE Contactless ~ new member
NBS Technologies Inc. ~ rejoining
TranSend Payments Ltd.~ new member
ViVOTech ~ new member

1. EDITORIAL COMMENT
Source: Catherine Johnston, President & CEO, ACT Canada (01/29)

New Year - New Market - New Successes and Newer Association

Is it advanced card technology that helps you meet your business goals, or is it applications, transactions, change or convergence? We have always thought it was all of the above, but that isn't what our association name suggests.

As we enter our 19th year, we are dropping the words "advanced card technology" from our name so that the A, the C and the T can reflect the broader interests of our members.

It will be a busy year. In February we will hold our first meeting of the Merchant Forum, our newest Strategic Leadership team. Merchants from across Canada are eligible to join the team to articulate their EMV conversion thoughts, needs and position: as well as to learn more about their short and long term options.

Our government team is currently working on a global e-government scan to help Canadian governments learn what their international peers are doing, as well as to understand how those initiatives impact Canada.

Following up on our consumer research on chip in the Canadian market, we are planning a new research initiative aligned with our members' interests for 2008/2009. More on that next month...

Cardware 08 is in the planning stages, with focus group interviews underway with our members. The Kitchener Waterloo EMV trial and new competitive payment opportunities will be the focus for the financial sector and e-government for the public sector.

The new market is the one where the focus has shifted from technology to business opportunities. Success for the vendors/suppliers will be based on how well they can present their products and services in terms of business impact. For the financial sector, one measure of success will depend on their ability to leverage new technologies to supply innovative and competitive products to consumers. For merchants it will be the ability to leverage EMV to meet their own goals.

For us at ACT Canada, we seek to drive recognition and acceptance of the fact that the association is a most cost-effective mechanism to advance members' goals in the Canadian market. The stronger the association, the stronger the benefits for each member. We are off to the strongest start of any year since our inception and invite you to join us for the benefits!

If you are not yet a member, call me at 1 905 426-6360 extension 23 to find out how you can benefit this year. If you are one of our valued members, look for a letter from me in the coming weeks.

2. VISA PAYWAVE CONTACTLESS FEATURE COMING TO TD VISA CARDS; TD MERCHANT SERVICES TO DEPLOY VISA PAYWAVE READERS
Source: ICMA Daily News (01/29)

TD Canada Trust announced the Visa payWave contactless payment feature will be added to TD Visa chip Cards issued in Kitchener-Waterloo as part of the ongoing market trial of chip-enabled debit and credit cards. The Visa payWave feature gives cardholders the option of paying for small dollar purchases - typically under $25 - simply by waving their credit card near a Visa payWave reader. Select TD Visa Cardholders in Kitchener-Waterloo will receive their new 'dual interface' chip and Visa payWave-enabled Card beginning in April.

Also announced, TD Merchant Services has begun installing Visa payWave secure contactless readers at merchant locations in the Kitchener-Waterloo area including participating Dairy Queen and A&W Restaurants; over 300 additional Visa payWave readers will be installed at merchant locations across the trial area in the months to come. TD Merchant Services is the first payment processor in Canada certified by Visa Canada to offer Visa payWave acceptance to its merchants.

Within Canada, the Visa payWave payment platform is unique because it is based on EMV(TM) chip technology which is widely used in other parts of the world. This 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-enabled 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. NATIONAL BANK OF CANADA COMPLETES SMART CARD TRANSACTIONS
Source: ASCRIBE NEWS via COMTEX (12/21)

National Bank of Canada announced that it has completed its first national and international transactions with its new credit card with smart card technology. The purchases were made at POS terminals equipped to handle the new National Bank MasterCard embedded with a chip. A personal identification number (PIN), which replaces the signature, adds an extra level of protection against fraud and counterfeiting.

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

4. LASERCARD SIGNS SECURE FOREIGN RESIDENT ID MANAGEMENT SYSTEM CONTRACT FOR COSTA RICA
Source: ICMA Daily News (01/02)

LaserCard Corporation announced the award of a contract by the government of Costa Rica. The agreement, valued at approximately $1.7 million, is for the supply of an ID Management System for the country's Foreign Resident program.

LaserCard will supply a suite of demographic and biometric data collection and card issuance equipment and software solutions to assist the Costa Rican government to manage the issuing of highly secure optical memory based Foreign Resident Cards. The applications include the centralized enrollment of legal foreign residents, automatic fingerprint identification to prevent the issuance of duplicate cards, optical memory encoding and card printing servers, quality assurance and card issuance controlled by LaserCard's biometric verification system. The issuance process will also include biometric identification of workstation operators and strict card auditing processes.

Installation of the system is expected to be completed in the spring of 2008.

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

5. GIESECKE & DEVRIENT TO SUPPLY SIM CARDS FOR TURKCELL AND GARANTI BANK NFC PILOT PROJECT
Source: ContactlessNews (01/17)

Turkcell, the leading mobile communication provider in Turkey, and Garanti Bank, one of the largest financial institutions in the country, have selected E-Kart as their technology partner for a trial beginning in autumn 2007 for mobile payments using Near Field Communication (NFC) technology. E-Kart, a leading provider of smart card solutions in Turkey, is working in collaboration with Giesecke & Devrient (G&D) to supply NFC-enabled SIM cards. In addition, the solution for the secure uploading and administration of the payment application and the user data is provided by Venyon, a joint venture between G&D and Nokia. Venyon specializes in the secure management of NFC applications over the mobile network, i.e. over the air (OTA).

The pilot project is part of the "Pay-Buy-Mobile" initiative of the GSM Association, which wants to support the SIM card-based worldwide introduction and application of NFC technology. Mobile devices should be interoperable and securely linked to already existing payment and contactless systems.

In the trial, some 100 Turkcell and Garanti employees and customers will be provided with an NFC-enabled mobile phone that they can use to make payments quickly and simply by holding the phone to an NFC reader. NFC is a wireless radio frequency technology through which mobile phones and other mobile devices function as contactless credit cards or tickets, i.e. data is sent to a reader on a contactless and secure basis. However, data on a contactless chip can also be read by an NFC mobile device.

Applications with higher security requirements, such as a credit card function, can ideally be put on the SIM card as a secure storage element. In the Turkcell and Garanti Bank pilot project the contactless MasterCard PayPass credit card application is stored and enabled on the SIM card from G&D. The SIM card is linked to the NFC chip in the mobile device via the single wire protocol.

The PayPass application and the customer data required for the payment function are loaded flexibly on the SIM card via the mobile network, i.e. using the secure OTA service of Venyon, without the user of the service having to visit a Turkcell or Garanti branch. Also potential updates and life-cycle management can be performed at any time using the same user-friendly and secure method.

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

6. BELL ID LAUNCHES STAND-ALONE EMV SCRIPTING PRODUCT
Source: SecureIDNews (01/10)

Bell ID is pleased to announce the release of a stand-alone EMV scripting product - the ANDiS Script Delivery System.

The ANDiS Script Delivery System (SDS) operates with or without the ANDiS card management system, offering banks maximum flexibility when managing their EMV cards. The ANDiS SDS is fully integrated with other systems, as well as with Bell ID's own ANDiS Card and Application Management System (CAMS) as part of the ANDiS4EMV solution offering.

The new stand-alone ANDiS SDS makes the management and delivery of scripts simple and cost effective, and has been designed for fast and easy integration with external systems. The new product targets existing EMV issuers and service bureaus that are planning to take full advantage of their EMV card portfolio.

To date, most EMV cards are issued with fixed on-card applications and risk parameters. EMV scripting enables post-issuance updating or changing of risk parameters, blocking and unblocking of applications, as well as changing or blocking of the offline PIN.

Scripting forms part of the EMV specifications, and is therefore supported internationally by online-capable EMV cards and terminals for all major EMV card schemes. EMV scripting helps card issuers reduce EMV card re-issuance and enables additional functionalities for cardholders.

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

7. ICC SOLUTIONS AWARDED VISA "SMART STAR" STATUS
Source: ICC Solutions (01/23)

ICC Solutions is delighted to announce that it has been awarded the prestigious "Smart Star" award from Visa International. This award acknowledges ICC Solutions' significant contributions towards Visa International's EMV chip implementation and deployment goals helping enable successful migration and adoption of EMV technology.

According to Suzan Suer, senior vice president of Vendor Partnership and Management, Visa, "Visa recognizes the commitment and technical innovation provided by ICC Solutions over the past 10 years." Suer added "During this period, ICC Solutions has developed certification test solutions to support successful EMV chip technology implementations and helped ensure that reliable and interoperable test solutions were made available to both Visa and the payment industry at large".

Dave Maisey, Managing Director / CEO at ICC Solutions commented: "ICC Solutions is extremely honoured to receive this award which is in recognition of contributions made by all employees since 1996". Dave continued, "The goal at ICC Solutions has always been to deliver powerful and cost effective test solutions to meet Visa's requirements. Indeed, we are committed to continue in that vein, supporting new technology advances, such as contactless and dual interface, by offering innovative test solutions".

ICC Solutions is a member of ACT Canada; please visit http://www.iccsolutions.com.

8. GEMALTO TO PROVIDE YEMEN'S NATIONAL ELECTRONIC ID SYSTEM
Source: Gemalto (01/09)

Gemalto announced that it has been selected to deliver the electronic ID cards solution commissioned by the Ministry of Interior of Yemen for the next national elections. Under the contract, Gemalto will implement the whole solution including enrollment processes, creation of a secure biometric national registry, maintenance, local support, training and integration services, as well as provide the 10 million smart ID cards that will see Yemen step in the digital security era. The first cards will be delivered to the Yemeni citizens during first half of 2008, and the program will reach completion by 2009 when the population is to vote for the new Parliament.

Gemalto's secure personal device, the size of a credit card, will be the official ID document for Yemen citizens above 16. It stores personal credentials such as name, address, digital photograph and fingerprints. In the future, the Yemen national ID card might also integrate e-government applications as the government wishes to leverage this technology to simplify its relationship with the population. In addition the new electronic ID document has been designed to ensure compatibility with e-government standards developed by the Gulf Cooperation Council neighbouring countries.

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

9. PAYPHONE-ATM USE BLOCKED IN UK TOWN - 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.

10. CPI CARD GROUP ACQUIRES DIDIER
Source: CPI Card Group (01/15)

CPI Card Group announces that it has acquired Didier Printing Company, a privately owned secure card manufacturer based in Fort Wayne, Indiana.

This acquisition will allow CPI Card Group to expand the services offered to its customers with highly flexible and responsive customer card solutions. The combined business will have three state-of-the-art manufacturing sites (Colorado, Nevada and Indiana).

The executive management team from Didier-Jim Galliher, Gary Smythe, Bill Lynch and Andy Sappenfield-will remain with the company

CPI Card Group is a member of ACT Canada; please visit http://www.cpicardgroup.com.

11. CANADIAN PROVINCE REQUIRES ID THEFT ALERT OPTION - 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.

12. E-HEALTH CARD TERMINAL FROM SCM MICROSYSTEMS RECEIVES GEMATIK CERTIFICATION
Source: SCM Microsystems (01/15)

SCM Microsystems, Inc. announced that its eHealth100 health card terminal has received certification to be used as an MKT+ terminal (multi-functional terminal) from GEMATIK, the organization overseeing the implementation of the electronic health card program in Germany. The German e-Health card program is the largest electronic healthcare project in the world to date, with planned deployment of 82 million electronic health insurance cards and thousands of health provider cards over the next few years.

As MKT+ certified devices, SCM's eHealth100 health card terminals can be used by healthcare providers in Germany to read both currently existing health insurance cards (KVK) and soon to be deployed health care cards (eGK) of patients.

Additionally, the terminal can be used as a SICCT terminal (Secure Interoperable Chip Card Terminal) that can be integrated into the local network of healthcare providers to ensure secure data communication within the German eHealth program's planned secure network, or "telematics" infrastructure. Hence, the eHealth100 addresses the card reader requirements of the German electronic health card program at every stage of its development - now; in the transition period when electronic cards are deployed but the telematics platform is not yet operational; and in the future, when all parts of the system are complete and fully activated.

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

13. INSIDE CONTACTLESS NFC CHIP POWERS PAYMENT TRANSACTIONS FOR MOST HANDSETS IN GSMA PAY-BUY-MOBILE TRIALS
Source: ContactlessNews (01/28)

Over the next few months, 12 mobile operators will run trials of contactless mobile payment services in Australia, France, Ireland, Korea, Malaysia, Norway, The Philippines, Singapore, Taiwan, Turkey and the U.S. as a precursor to commercial launches. The MicroRead NFC chip from INSIDE Contactless, a leading provider of advanced, open standard contactless chip technologies, will power the critical contactless payment transactions in most of the handsets to be used in the trials under the Pay-Buy-Mobile initiative.

The trials form part of the GSM Association's Pay-Buy-Mobile initiative, which is designed to provide a single global approach to enabling contactless payments using a mobile phone. Consumers will be able to use their handsets to quickly, easily and securely pay for goods and services in shops, restaurants and train stations. 35 mobile operators representing 1.3 billion customers are participating in the initiative.

The technology implemented by INSIDE will allow the mobile operators to quickly deploy SIM-based applications, thanks to a direct link between the NFC chip and the SIM card via the standard SWP protocol.

One of the characteristics of INSIDE's MicroRead technology is the capacity to behave as a router in the phone rather than just a simple modem, establishing secure connections between different devices, and giving phone manufacturers flexibility to address various market applications and regions.

INSIDE's MicroRead NFC chip can communicate with existing contactless payment systems to deliver a wide range of secure, interoperable and transparent services such as credit and debit payments.

INSIDE Contactless is a member of ACT Canada; please visit http://www.insidecontactless.com.

14. WEBINAR JANUARY 31 ON EMV IMPLEMENTATION CHALLENGES & TESTING SOLUTIONS
Source: Paragon Application Systems (01/28)

If you are a financial institution, merchant, or processor struggling with Integrated Chip Card implementation and its EMV standard, you are well aware of the challenges of upgrading and validating your transaction processing software. You must test and retest the compliance of your POS or ATM terminals and your interconnections with your payment gateway, card associations, and with your national switches

Learn about EMV Implementation Challenges and how to address them in Paragon Application Systems' webinar EMV Implementation Challenges and Testing Solutions on Thursday January 31st at 1:00 PM. In this free interactive webinar presented by EMV technical experts from Paragon Application Systems, you'll discover how to overcome some key EMV project management, development and QA implementation challenges. We'll address challenges for financial institutions, merchants, card issuers, acquirer terminal drivers, and switch processors including:
How to test without physical EMV cards
Verifying and Reproducing Cryptograms (ARQC, ARPC, PIN, MAC)
Regression and Fraud Testing
Issuer Scripting
ATM Terminal Configuration and Testing

To sign up for the EMV Implementation Challenges and Testing Solutions webinar contact marketing@paragonedge.com. In case you are unable to attend the webinar, it will be recorded for viewing after the event. To request your link to the webinar, email marketing@paragonedge.com

Paragon Application Systems is a member of ACT Canada, please visit http://www.paragonedge.com.

15. SMART CARDS COME TO MONTREAL TRANSIT - 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.

16. ITALY ISSUES RFP RELATING TO NATIONWIDE INFRASTRUCTURE FOR NATIONAL CITIZEN ID CARD PROGRAM
Source: ICMA Daily News (01/16)

LaserCard Corporation reported that on January 4, 2008, a Request for Proposal (RFP) was issued by Italy's state printer, Istituto Poligrafico e Zecca dello Stato S.p.A. (Poligrafico), inviting interested parties to submit their qualifications to bid on an anticipated follow-on RFP for up to €60 million (approximately $88 million) in key components and installation and support services for the national infrastructure required to roll out the Italian Citizen ID Card program. This important step follows the December 2007 government decree confirming the government's commitment to rolling out the ID program for 2008 and beyond.

The RFP specifies a requirement for more than 9,000 enrollment workstations to be installed and supported nationwide in regional and city-based service centers. The RFP also specifies installation and support services for about 1,300 secure optical memory card encoders which LaserCard believes Poligrafico will request it to supply via a separate solicitation.

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

17. OTTAWA TO BENEFIT FROM CONTACTLESS FOR TRANSIT - 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.