Stakeholders Driving Payment Evolution and Digital Identity

May 2008 ACTion Newsletter

IN THIS ISSUE

1. Editorial Comment
2. MasterCard Canada Trials Mobile Payment
3. Canadian Airport Worker ID Card Awarded
4. ICC Solutions Receives MasterCard Qualification For TIP Testing
5. Capital One Offers PayPass Contactless Technology
6. Collis Rolls Out New NFC Chip Authentication Application
7. RIM, RBC & Thomson Reuters To Anchor $150 Million Blackberry Partners Fund - Members Only Access
8. Gemalto Supports TIMs Deployment Of First NFC Program In Italy
9. Brunei Launches Biometric Passport
10. Alternative Payments Make Gains Among Mid-Size Web Merchants - Members Only Access
11. INSIDE Contactless Passes 50 Million Unit Milestone
12. Analysts See 'Huge' Adoption Barriers For NFC Payments - Members Only Access
13. Open Solutions Canada Selects Hypercom's Hbnet For ATM & POS Networks
14. Dynamic Card Solutions Releases Cardwizard 4.0
15. Fraud Undermines European Card Payments Market - Members Only Access
16. Atos Origin & Integri Partner In New European Payment Standard Testing
17. Collis CPV Test Tool Qualified By MasterCard
18. Fraud Accelerates Latin America EMV Shift - Members Only Access
19. JPMorgan, First Data Dissolving Paymentech Venture

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

TD Merchant Services ~ new member

GENERAL

Canadian Payments Association ~ member since 1998
Citi Cards Canada ~ member since 2006
Interac Association ~ member since 1995

SME

Carta Solutions ~ member since 2007

CALENDAR OF EVENTS

ACT Canada's Annual General Meeting & Cardware Connections Networking Session
June 23, 2008
OBA Conference Centre
Toronto, Canada

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 (05/29)

Rally Round the Flag - Enhanced Drivers Licences

I looked out from my hotel room in Ottawa last night to see a Canadian flag atop a building, lit from below and flying in the night winds. It was beautiful. Around the world we look at our flags and see them as a symbol of all that is good about our countries, but nations are a work in progress, subject to making both good and bad decisions. Today I'd like to recognize and applaud a good decision made the privacy guardians of Canada. Our commissioners and ombudsmen issued a resolution on February 5th that provides a clear framework within which provincial governments could issue a privacy protective enhanced driver's license (EDL). They also raised serious concerns about how an EDL could cost Canadians from both a privacy and financial perspective, if technologies, procedures or policies were not carefully considered.

10 years ago, when the government of Canada was conducting consultations on privacy and emerging technologies, I asked that clear rules and expectations be made available to suppliers, because technology changes rapidly, whereas Canadians' expectations of privacy rarely change by more than a few degrees. If suppliers know the rules, they will gladly design privacy protection into their products and services for many reasons, not the least of which is the cost and complexity of retrofitting when a problem is identified.

Due to work by privacy advocates here and abroad we have a clear set of rules and much of the industry finds itself in the strange position of having to call upon governments in North America to "rally around the (privacy) flag" when it comes to cross border ID. Enhanced drivers' licenses, e-passports, proximity RFID and vicinity RFID are all good, but only when the right technology is used for the right application. It is ironic that our Privacy Commissioners and the people supplying technology have to remind government.

ACT Canada is pleased to be working with ITAC (Information Technology Association of Canada) on their RFID forum. For more information, please contact me.

Let me end by saying "thank you" to all of Canada's privacy commissioners and ombudsmen.

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. MASTERCARD CANADA TRIALS MOBILE PAYMENT
Source: Canada Newswire (05/27)

MasterCard Canada is testing Near Field Communications (NFC)-enabled phones with MasterCard PayPass capability on Bell Mobility's wireless network. The four-month trial is the next major step in bringing contactless payments via mobile phones to the Canadian market.

During the closed trial, PayPass enabled phones will be used to make secure purchases at any merchant location in Canada that accepts MasterCard PayPass. The technology enables a secure, fast transaction whenever the phone is "tapped" against a PayPass enabled point-of-sale payment terminal.

MasterCard will be testing secure over-the-air (OTA) provisioning of payment card credentials and the security of transactions made using mobile phones.

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

3. CANADIAN AIRPORT WORKER ID CARD AWARDED
Source: SecureIDNews(05/07)

The Canadian Air Transport Security Authority (CATSA) has awarded Unisys Canada Inc a contract to deploy and manage an identification management system, using fingerprint and iris biometric technology to verify the identities of airport workers at 29 airports throughout Canada.

The new system will replace the existing application used in CATSA's Restricted Area Identification Card (RAIC) system. The RAIC system is designed to enhance aviation security by verifying the identities of airport workers via biometrics and making sure that only those workers with security clearance are permitted to enter restricted areas. It also enables CATSA to update the security clearance status of all 100,000 airport workers instantly at all airports across the country.

The RAIC system uses contactless smart cards, fingerprint and iris readers located at entry points to restricted areas and enrollment equipment which communicates with the airport's access control systems. Airport workers scan smart cards in readers, which extract the biometric data. The user then undergoes a fingerprint or iris scan which is matched against the data on the card.

4. ICC SOLUTIONS RECEIVES QUALIFICATION FROM MASTERCARD FOR TIP TESTING
Source: ICC Solutions (05/23)

ICC Solutions is delighted to announce the immediate availability of two test solutions featuring the test cases mandated for MasterCard Terminal Integration (TIP) certification testing. The MasterCard TIP test script pack is available to run on the ICCSimTM Terminal Test Tool, which is also recognised by EMVCo for EMV Level 2 type approval testing. A cost effective stand-alone solution ICCSimAT MC, dedicated to running the MasterCard TIP test scripts, is also available.

Christian Delporte, Head of Chip Product Development at MasterCard Worldwide said "We are pleased that the tool offered by ICC Solutions, a recognized player in the chip testing market, is qualified as part of the MasterCard program. This qualification broadens the offer of test tools available to MasterCard acquirers for use in the Terminal Integration Process. We are confident that MasterCard acquirers will directly benefit from this qualification. MasterCard will inform its customers about qualified test tools via the MasterCard OnLine website."

According to Dave Maisey CEO / Managing Director at ICC Solutions "These new MasterCard TIP test solutions will enable efficient, reliable and cost effective TIP testing for MasterCard member banks and suppliers benefiting also from early availability of future updates."

ICC Solutions and MasterCard Canada are members of ACT Canada; please visit http://www.iccsolutions.com & http://www.mastercard.ca.

5. CAPITAL ONE OFFERS PAYPASS CONTACTLESS TECHNOLOGY TO HELP CONSUMERS SAVE TIME
Source: Canada Newswire (05/20)

A new survey by Capital One Canada shows that individual Canadians spend more than 115 hours - almost five days - each year waiting in line and paying for daily purchases. While these small purchases are part of their daily routines, frustration becomes an added cost for their morning coffees, daily newspapers, gas, movie rentals and similar items for even the stereotypically patient Canadians. In fact, more than one-third (38%) of Canadians report being frustrated waiting for the person in front of them to pay.

Nearly another quarter (24%) said that they abandon their purchases and leave the store. This study demonstrates the value that Canadians place on their time and highlights the need for improved consumer spending experiences.

Capital One Canada is equipping cardholders with MasterCard PayPass technology to help cardholders save time when making small everyday purchases. According to MasterCard research, PayPass technology offers a 40% reduction in wait time at drive-thru and quick service restaurants and a 15-20% reduction in wait time at stores.

Capital One Canada and MasterCard Canada are members of ACT Canada; please visit http://www.capitalone.ca & http://www.mastercard.ca.

6. COLLIS ROLLS OUT NEW NFC CHIP AUTHENTICATION APPLICATION
Source: ContactlessNews (05/14)

Collis has introduced an NFC Two-factor Asymmetrical Chip Authentication application called NFC-2ACA-or NFC two-factor asymmetrical chip authentication. The application has been developed by integrating 2ACA into the contactless payment card protocols and the Near Field Communication protocol.

Collis has developed the 2ACA application that enables third-party authentication based on standard EMV implementations. Collis has enhanced this contact chip based 2ACA authentication scheme by integrating 2ACA into the contactless payment card protocols and the NFC protocol.

This will enable banks and mobile network operators to increase the customer value of their standard contactless products such as EMV cards, NFC-capable mobile phones and SIM cards. Functionality is offered for single sign-on on corporate networks, secure building access, strong authentication, e-mail signing and remote network access using the security of EMV like asymmetrical cryptography.

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

7. RIM, RBC & THOMSON REUTERS TO ANCHOR A $150 MILLION BLACKBERRY PARTNERS FUND FOCUSED ON INVESTING IN MOBILE APPLICATIONS AND SERVICES - 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 SUPPORTS TIM'S DEPLOYMENT OF FIRST NFC PROGRAM IN ITALY
Source: Gemalto (05/27)

Gemalto announced that it has been selected by TIM (Telecom Italia Mobile), the leading telecom operator in Italy, to support the launch of an unprecedented NFC (Near Field Communication) program in Trento. Gemalto provides TIM with transport applications embedded in the SIM cards to allow TIM customers to use their mobile phone as a convenient access device to take public transportation.

Gemalto and TIM are together paving the way for the mobile contactless deployment in Italy. Thanks to mobile contactless, travelling becomes easier and faster. With Gemalto's technology, ticket issuance becomes more efficient and interactive. Users are able to purchase tickets from anywhere at anytime through their mobile phone. And travelers can validate their transport pass even when the battery of their mobile phone is off.

Gemalto acts as a facilitator, providing its trust sharing services and its expertise accumulated worldwide in order to deploy innovation in the best way. As a well recognized trusted services company Gemalto ensures transport operators that their ticketing and transportation services rights will be securely distributed and managed over-the-air by the mobile services operators for their customers.

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

9. BRUNEI LAUNCHES BIOMETRIC PASSPORT
Source: SecureIDNews (05/06)

lCitizens from Brunei will soon have biometric passports, according to BruneiDirect.com. The $7.1 million e-passport project, run by the Immigration and National Registration Department, replaces the country's existing machine readable passport.

The ePassport is compliant with International Civil Aviation Organisation standards and contains a 72-kilobyte chip, facial and fingerprint images. The project is a joint undertaking between Information Technology Protective Security Service and German company Giesecke & Devrient.

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

10. ALTERNATIVE PAYMENTS MAKE GAINS AMONG MID-SIZE WEB MERCHANTS - 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.

11. INSIDE CONTACTLESS PASSES 50 MILLION UNIT MILESTONE FOR MICROPASS PAYMENT
Source: INSIDE Contactless (05/14)

INSIDE Contactless announced that shipments of its revolutionary MicroPass intelligent payment platform for contactless payment cards has surpassed 50 million units. The MicroPass platform has achieved its unprecedented success by continuing to deliver superior performance, flexibility, and is now the platform of choice for certified card manufacturers around the world.

Approved by Visa, MasterCard, and Discover Network - including all required functional, analog, performance, and security requirements compliance - the award-winning MicroPass platform is the most broadly available core technology for contactless payments, powering more than 50 million bank cards from over 30 card issuers worldwide.

In other news, in a move to meet the growing demand for smart cards in Canada, INSIDE Contactless strengthened its position in the market and announced that it has joined ACT Canada. Having already delivered more than five million of its intelligent MicroPass contactless payment chips for MasterCard PayPass deployments in just the past six months, INSIDE Contactless has quickly established itself as the leading provider of contactless payment technology to the Canadian market, and is now poised to deliver technology to aid in the convergence with EMV and other non-contactless applications.

"We welcome INSIDE Contactless to ACT Canada and look forward to their contributions to the rapidly emerging Canadian smart card market," said Catherine Johnston, president and CEO of ACT Canada. "Advanced card technologies like those offered by INSIDE Contactless strengthen the Canadian smart card market by providing security, convenience and ease of use for Canadians. As infrastructure is deployed for EMV we expect Canadians will want a broad range of smart card applications." (05/21)

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

12. ANALYSTS SEE 'HUGE' ADOPTION BARRIERS FOR NFC PAYMENTS - 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. OPEN SOLUTIONS CANADA SELECTS HYPERCOM'S HBNET FOR ONE OF CANADA'S LARGEST OFF-PREMISE ATM AND POS NETWORKS
Source: Open Solutions (05/21)

Open Solutions Inc. and Hypercom Corporation announced HBNet, Inc., a Hypercom subsidiary, will provide high speed transaction transport services for Open Solutions Canada, the Canadian subsidiary of Open Solutions, which operates one of Canada's largest off-premise ATM and point-of-sale networks. Open Solutions is a leading provider of integrated enabling technologies for financial service providers across the United States, Canada and internationally.

The use of HBNet will enhance Open Solutions Canada's ability to smoothly and securely process millions of ATM and POS transactions each month to financial institutions.

Open Solutions Canada is a member of ACT Canada; please visit http://www.ca.opensolutions.com.

14. DYNAMIC CARD SOLUTIONS ANNOUNCES THE RELEASE OF CARDWIZARD 4.0
Source: Dynamic Card Solutions (05/27)

Dynamic Card Solutions (DCS) announced its latest software application release, CardWizard 4.0. This release-the result of extensive research and development-is the newest and most robust software application that creates flexible instant card issuance for debit, ATM, credit and prepaid cards.

With the latest version of CardWizard 4.0, financial institutions will be better able to serve their customers with a more personalized, innovative, convenient and secure plastic card.

CardWizard 4.0 continues to provide unmatched flexibility and user-friendly design, and enables significant new functionality and capabilities to enhance security, delivery and overall customer experience. Highlights of CardWizard 4.0 include:

o Complete CHIP Personalization - Capitalizing on one of the industry's new growth opportunities, DCS now offers PayPass/payWave contactless personalization that allows financial institutions the benefit of offering ease and convenience to consumers. The system will be able to instantly issue cards with both contactless chips and magnetic stripes allowing them to remain usable with a variety of existing merchants' payment systems. This adds upon CardWizard's existing contact chip and EMV personalization.

o Custom Background Selection - CardWizard 4.0 will allow further customization capabilities that produce a fully personalized, thermally printed, unembossed card in real-time for cardholders. This includes the immediate transmission of all card personalization information such as the cardholder's name, account number, expiration date, CVV or CVC 2 security codes along with front and back card images. During this process, personalization information is printed onto association branded blank cardstock, producing a fully personalized, thermally printed unembossed card instantly.

Other features of CardWizard 4.0 include: Expanded camera support for photo capture; Expanded key injection security and support for contactless cards; New, rewritten Batch Input component & Improved font capabilities for unembossed cards

In other news, Dynamic Card Solutions announced that it has joined ACT Canada - the international association for the advancement of card applications and technologies.

Furthering its commitment to the Canadian financial services market with EMV instant issuance solutions, DCS became a member of the organization in March 2008.

Catherine Johnston, President & CEO of ACT Canada welcomes Dynamic Card Solutions into the membership, pointing out that, "Canada is in the process of embracing advanced card platforms for secure payment and secure ID. DCS brings solutions to our market that will let us move forward quickly, as well as support the market's ability to leverage infrastructure that is rolling out for EMV. In turn this will promote market growth." (05/13)

Dynamic Card Solutions is a member of ACT Canada; please visit http://www.globalinstantissue.com.

15. FRAUD UNDERMINES EUROPEAN CARD PAYMENTS MARKET- 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. ATOS ORIGIN & INTEGRI PARTNER IN NEW EUROPEAN PAYMENT STANDARD TESTING
Source: Integri (05/07)

Atos Origin and Integri announce a partnership for providing a complete SEPA test service to Belgian banks. This service will allow banks to test their system for compliance with the SEPA Credit Transfer and Direct Debit requirements followed by Card Transactions in the near future.

With the introduction of the SEPA initiative, all electronic payments in Europe will be considered as a single domestic payments market making payment transactions easy and more efficient for bank customers. The new directive, however, increases the complexity of a bank's ICT operations. It is a critical task to reach compliance to the new directive rapidly as it impacts their payment products as well as the electronic processes that run in the back office.

Integri is a member of ACT Canada; please visit http://www.integri.com.

17. COLLIS CPV TEST TOOL QUALIFIED BY MASTERCARD
Source: Collis (05/06)

Collis announces that MasterCard has qualified Collis' new MasterCard Card Personalisation Validation (CPV) module within the Collis EMV Personalisation Validation Tool (Collis EMV PVT).

Professional testing of personalised MasterCard EMV/PayPassTM cards is essential to ensure worldwide acceptance of cards. Collis' newly developed module checks if MasterCard cards are correctly personalised according to MasterCards's CPV test specifications.

Collis and MasterCard Canada are members of ACT Canada; please visit http://www.collis.nl & http://www.mastercard.ca.

18. FRAUD ACCELERATES LATIN AMERICA EMV SHIFT - 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.

19. JPMORGAN, FIRST DATA DISSOLVING PAYMENTECH VENTURE
Source: ePaynews.com (05/28)

JPMorgan Chase and First Data have agreed to end their global payments and merchant acquiring joint venture, Chase Paymentech Solutions, by the end of 2008.

JPMorgan will retain 51 percent of the joint venture's assets, including most of its employees and its Canadian and European operations. The bank will name its payments and merchant acquiring business Chase Paymentech and retain the joint venture's Dallas, Texas headquarters.

First Data will continue to provide transaction processing and data commerce services through its existing technology platforms. It will take over management of the joint venture's full-service ISO (independent service organization) and Agent Bank unit. In addition, First Data will integrate 49 percent of the joint venture's assets and a portion of the joint venture's employees into its existing merchant acquiring business.

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.