Stakeholders Driving Payment Evolution and Digital Identity

October 2008 ACTion Newsletter

IN THIS ISSUE

1. Editorial Comment
2. The Votes Are In & The Winners Announced
3. Canadian Chip Card Market Trial A Success
4. Interac Chip Transition Goes National
5. CPI Card Group Expands Into The Canadian Market
6. Gemalto's Personalization Solution Selected For France's New Biometric Passports
7. Turkey Plans Multi-Bank, Multi-Operator NFC Trial - Member Only Access
8. Bell ID Reports North American Bank Contract Win
9. Is There A Future For Biometrics In Retail? - Member Only Access
10. Collis Asia & Datacard Form EMV Migration Partnership
11. Giesecke & Devrient To Supply Austria's E-Card For A Further Five Years
12. Multiple Loyalty Cards On A Single Mobile Phone- Member Only Access
13. CPI Selects Micropass From Inside To Create First Contactless Open-Loop Payment Stickers
14. Visa Europe & Collis BV Announce The Release Of The Visa payWave Test Tool
15. Oyster Could Be Replaced By Mobile Phones Or Bank Cards - TfL- Member Only Access
16. Deadline Day For HSPD-12
17. 'Wave & Pay' Travel On Way To Liverpool

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.

Visa

Visa operates the world's largest retail electronic payments network and is one of the most recognized global financial services brands. Visa facilitates global commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses and government entities.

ACT CANADA THANKS OUR NEW & RENEWING MEMBERS

GENERAL

Davis & Henderson ~ member since 2006

GOVERNMENT

Canada Post ~ member since 2007

CALENDAR OF EVENTS

CARTES & IDentification 2008
November 4-6, 2008
Paris, France
http://www.cartes.com

1. EDITORIAL COMMENT
Source: Catherine Johnston, President & CEO, ACT Canada (10/29)

How Do The Hard Things Get Done?

Your mother knew the answer. Do the right thing. Take it one step at a time. If it is worth doing, it is worth doing right and last but not least, there are no shortcuts to success. Remember?

Every day I hear reasons why things don't get done, but I rarely hear why they can't get done. Why is it that some people can do the hard things and others can't? I think a large part of the answer is because so many people in today's workforce are not held accountable and are not challenged.

When a question is asked, too often the first answer is accepted without follow up questions being asked. If I'm told that we can't achieve something, shouldn't I ask if there is something close to it that is achievable? When told that we've tried something in the past and it failed, shouldn't I ask whether conditions have changed since then or if a different approach would work?

Champions get things done. They see questions and challenges as tools, not as reasons to stop progress. As we continue to struggle through hard times we will all need to be champions. We must hold ourselves and others accountable for progress, because only those who can get things done will be of value in the workplace. Mother was right!

2. THE VOTES ARE IN AND THE WINNERS ANNOUNCED
Source: ACT Canada (10/29)

No, not the election votes - the Cardware awards… On October 8th, ACT Canada presented the Lorne Boates award for achievements in the development of an outstanding new technology and/or application using advanced card technologies. First place was awarded to INSIDE Contactless for MicroPass. The second place winner was Collis for their Card Spy product.

Past recipients include the Royal Bank, ACI Worldwide., Les Boutiques San Francisco and Fédération Québécoise de Soccer.

This year two champion's awards were presented. This award, founded in 1997, recognizes individuals who have had a significant impact in expanding our industry and marketplace. Just being nominated is an honour bestowed upon the nominees by their peers.

Jeff Stroud, Director of Advanced Payments, MasterCard Worldwide was acknowledged as a champion. Last week, in Washington DC, Mike Butler, Director, Access Card Office, GSA received his Champion's award.

Cardware 08 also drew acclaims from participants. Securing Payment in KW was the best attended Cardware since 1991. Over 80% of delegates rated the conference at a 4+ (out of 5) for usefulness in providing information and effective networking. Delegates have been surveyed to identify topics for Cardware 09 to be held in June. Join us then as we continue to celebrate success through our awards and provide the information needed to support our members' goals in the Canadian market.

3. CANADIAN CHIP CARD MARKET TRIAL A SUCCESS
Source: Canada Newswire (10/28)

Members of the payment card industry - Interac Association, MasterCard Canada, Inc., Visa Canada and many of their respective card issuers and payment processors - released positive insight and observations from the industry trial of chip technology being conducted in Kitchener-Waterloo.

Chip technology is a new generation of payment cards which contain embedded microchips giving debit and credit cards the ability to securely store and process transaction information, making an already safe payment system even more secure.

"The chip trial allowed participants to assess customer and merchant communications and monitor awareness and adoption of chip technology," said Tracey Black, program director, Kitchener-Waterloo Industry Chip Trial. "Each organization will take away learnings from the trial to support their chip implementation plans across Canada."

According to research conducted in Kitchener-Waterloo, the majority of consumer respondents (88 per cent) indicated that chip cards are as easy to use as existing magnetic stripe cards, and 85 per cent of respondents indicated that the information received from their financial institution about their new chip card was easy to understand. Kitchener-Waterloo merchants also had a positive experience transitioning to chip-enabled store terminals, with 75 per cent of front line employees indicating that processing chip card transactions is as easy or easier than processing magnetic stripe transactions.

Each financial institution and payment processor has its own timeline in place for distributing cards and terminals across Canada. Given the vast number of cards, terminals and ABMs that must be converted, the migration to chip is expected to take a number of years. Chip cards will continue to be issued with a magnetic stripe to allow all payment cards to be used throughout Canada during the migration, as well as in those countries that have not yet transitioned to chip technology.

More information about the chip market trial, as well as a list of some participating organizations can be found at the Kitchener-Waterloo Industry Chip Trial website at www.chipmigration.ca.

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

4. INTERAC CHIP TRANSITION GOES NATIONAL
Source: Canada Newswire (10/28)

INTERAC, Canada's national debit network and leading payment brand, announced the start of the national rollout of chip technology, a new generation of payment card technology that will combat debit card fraud and the production of counterfeit cards.

"INTERAC is committed to providing the most secure and innovative financial services network," said Mark O'Connell, President and CEO, Interac Association. "By putting the power of a computer onto the debit card, chip technology will enhance security and enable new INTERAC product offerings that continue to keep Canadians connected to their money."

Beginning this fall, members of the Interac Association will begin to distribute chip debit cards to their customers. As well, members will continue to replace Automated Banking Machines (ABMs) and retail terminals with chip-enabled devices, a process currently underway. Each financial institution and payment processor has its own timeline in place for the distribution of cards and terminals across Canada.

The complete migration to chip technology will take a number of years, given the vast number of debit cards, ABMs and store terminals across Canada that must be upgraded. Interac Association has set transition requirements to ensure that the majority of Canadians will be able to fully benefit from this new technology by 2010, at which point the majority of ABMs and debit cards will be converted.

"Interac Association has put appropriate deadlines in place for the transition to occur in normal business cycles," said O'Connell. "Magnetic stripe transactions will no longer be accepted at ABMs after 2012 and at store terminals after 2015. These timelines will ensure a timely transition, while also ensuring a smooth transition for our members and for merchants."

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

5. CPI CARD GROUP EXPANDS INTO THE CANADIAN MARKET
Source: CPI Card Group (10/03)

CPI Card Group (CPI)is expanding its presence in the Canadian marketplace by acquiring a Canadian facility formerly known as Metaca, located in Concord, Ontario, part of the greater Toronto area. The Canadian financial card landscape is changing quickly with the rollout of EMV, Dual Interface and contactless chip technology. CPI's focus is to provide the Canadian customers with innovation, flexibility and delivery to help them better compete in their market sectors.

The new full service bureau facility will be named CPI Card Group - Canada and will be led by well-known card industry executive Anna Rossetti as President. Rossetti, who was formerly president of Giesecke & Devrient (G&D) in Canada, states, "The Canadian market has unique requirements that CPI has experience with, and local customers have asked us to provide full services which include manufacturing, personalization and fulfillment. They are also looking for flexibility and innovation of products which we have today. Given Canada's acceptance of contactless technology and other form factors, CPI is well positioned to be a partner of choice for the Canadian marketplace."

Rossetti adds, "I am excited to be joining CPI as we expand our products and services to our Canadian customers and provide them the choices they deserve. CPI Card Group - Canada is committed to the Canadian marketplace, and this stability is further supported by its position as a Tricor portfolio company, which is one of Canada's leading private equity firms."

In other CPI Card Group new, CPI announced its certification for a full range of Dual Interface MasterCard solutions using the MULTOS Operating System and PayPass.

CPI developed a unique method that allows superb reading distance and the greatest durability in the market for third and fourth line embossing card requirements. Its suite of solutions for Dual Interface includes the 8K Step One, the 36K Multos I4F and the 80K Multos I4F.

Bob Clarke, Vice President of Sales for CPI, states, "We are extremely excited to offer this product to international MasterCard issuers who want to combine EMV contact smart card technology with contactless technology. Our dual interface cards offer some of the best performance in the field, and we have no doubt that financial institutions worldwide will take advantage of this manufacturing technology. This new product line combines MULTOS with the traditional PayPass contactless cards we have offered for over five years." Source: ICMA Daily News (10/14)

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

6. IMPRIMERIE NATIONALE SELECTS GEMALTO'S PERSONALIZATION SOLUTION FOR FRANCE'S NEW BIOMETRIC PASSPORTS
Source: ICMA Daily News (10/23)

Gemalto announces it has been selected by Imprimerie Nationale (the French public printing office) to provide its Coesys Issuance solution intended to personalize the second-generation biometric passports to be issued in France. These new passports contain digital biometric information, notably the holder's fingerprints. This success strengthens Gemalto's position as a leading player in the field of secure healthcare and identity documents personalization, where the company has already deployed 25 systems worldwide.

By adopting second-generation travel documents, France is complying with the European Commission directive that requires all Member States to include digital biometric information into passports issued from June 2009 onwards. With a personalization system available as of now, France is in a position to meet this deadline. Five pilot regions (Nord, Oise, Aube, Gironde and Loire-Atlantique) will start issuing the new biometric passports this fall. Imprimerie Nationale, which currently issues around 3 million passports per year, will gradually replace existing documents.

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

7. TURKEY PLANS MULTI-BANK, MULTI-OPERATOR NFC TRIAL - 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. BELL ID REPORTS NORTH AMERICAN BANK CONTRACT WIN
Source: Bell ID (10/21)

Bell ID announced that it has contracted with one of the top 10 banks in North America for the provision of its ANDiS4EMV smart card and application management system.

Bell ID will implement and support its ANDiS solution, enabling the bank to migrate its base of approximately 20 million credit and debit cards from magnetic stripe to EMV chip cards. The ANDiS4EMV solution is a powerful life cycle management tool, enabling the bank to track every step in the life of the EMV cards and the keys, certificates and applications stored in the chip.

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

9. IS THERE A FUTURE FOR BIOMETRICS IN RETAIL? - 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. COLLIS ASIA AND DATACARD FORM EMV MIGRATION PARTNERSHIP
Source: Collis (10/23)

Collis and Datacard Group announced that they have joined forces to offer customers end-to-end EMV migration & e-ID related products & solutions. Collis & Datacard Group will deliver solutions and expertise in the following areas: EMV, e-ID & Mobile industries.

As part of the solutions, testing tools are available from Collis: EMV Personalisation Validation Tool (EMV PVT), EMV PVT Production Test Tool, e-Passport Personalisation & Functional Testing Tools and many more. Combined with Datacard Group proposals, a comprehensive range of testing tools and services are available for customers in the Asia Pacific Region.

Collis testing tools and consulting services are used by financial institutions (banks), government (research) departments and by Telco's as well as card and terminal vendors. Collis' product portfolio includes Personalisation and Validation tools for Cards, Terminals, Devices and Host Systems. Datacard Group are experts in secure ID and card personalisation solutions.The company's portfolio includes systems for high-volume card issuance, card delivery, secure ID issuance and passport production, plus extensive service and supply offerings.

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

11. GIESECKE & DEVRIENT TO SUPPLY AUSTRIA'S E-CARD FOR A FURTHER FIVE YEARS
Source: Giesecke & Devrient (10/27)

The Main Association of Austrian Social Insurance Institutions (HVB) has extended its contract with Giesecke & Devrient (G&D) for an additional period of five years. Under the terms of the new contract, worth approximately 20 million euros, the company has been entrusted with the production, personalization and delivery of a total volume of around nine million electronic social insurance cards (the e-card) from 2010 onward. Deliveries of the latest-generation Austrian e-card, which combines the functions of a health insurance card and a citizen card for e-government applications, will commence in early 2010.

Distribution of the next generation of the e-card to Austria's citizens is due to start in 2010. The cryptographic security levels of the new e-card have been adapted to meet future requirements. As an option, the new card can also be supplied for the first time with a photo and lettering in Braille. It will also serve as an electronic key enabling cardholders to access their medical records online. The card contains the holder's master data such as name, title, date of birth and social insurance number. G&D will produce the cards, personalize them optically and electronically with the cardholder's individual data, and ship them to the citizen's home address. The contract also includes the professional version of the card (the o-card) used by physicians to gain authorized access to the system.

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

12. MULTIPLE LOYALTY CARDS ON A SINGLE MOBILE PHONE - 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. CPI SELECTS MICROPASS FROM INSIDE TO CREATE FIRST CONTACTLESS OPEN-LOOP PAYMENT STICKERS
Source: Business Wire (10/14)

CPI Card Group (CPI) and INSIDE Contactless announced a partnership to create the industry's first contactless sticker product for open-loop (branded bank card) payments. CPI anticipates volume production of the stickers, which are based upon INSIDE's new MicroPass® payment sticker technology.

INSIDE's sticker technology, which was announced last week, combines the flexible MicroPass 4003 contactless payment processor with a tuned RF antenna in a compact, shielded prelam for payment sticker applications. INSIDE's innovative shielding design improves performance by protecting the chip and antenna inside the sticker from interference that might be caused by the metals and radio signals within mobile phones and other electronic devices. CPI has established a scalable operational process for producing these payment stickers based upon MicroPass prelams delivered from INSIDE. The sticker devices are delivered from CPI already pre-cut from ID1 card devices and pre-personalized to allow for fulfillment using traditional card fulfillment equipment and processes.

CPI Card Group and INSIDE Contactless are members of ACT Canada; please visit http://www.cpicardgroup.com & http://www.insidecontactless.com.

14. VISA EUROPE AND COLLIS BV ANNOUNCE THE RELEASE OF THE VISA PAYWAVE TEST TOOL
Source: Collis (10/02)

Visa Europe in conjunction with Collis BV has announced the development of a new Visa payWave Test Tool.

To ensure that contactless terminals conform to Visa specifications and can indeed accept any Visa payWave card, all terminals undergo a certification process. This ensures that terminals bearing the Visa payWave indicator are certified to set Visa specific standards.

The Visa payWave Test Tool is a portable test tool, capable of being used in the field at merchant locations, test sites, vendor facilities or acquiring bank locations. It is designed to be used by Visa Europe member banks, vendors and field engineers. The test tool is capable of performing all the tests and scripts documented in the latest Visa payWave Test Procedures.

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

15. OYSTER COULD BE REPLACED BY MOBILE PHONES OR BANK CARDS - TFL - 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. DEADLINE DAY FOR HSPD-12
Source: SecureID News (10/27)

It's deadline day. More than four years ago HSPD-12 mandated that government agencies issue secure credentials to government employees on Oct. 27, 2008. While all government employees will not have the credentials by the end of business progress has been made, says Mike Butler, program manager for the managed service office at the General Services Administration, though he is hesitant to estimate how many credentials will be out there. "Not everybody will be done, but everybody did get the message and they are working on it, the numbers will show that," he says. "I know they're out there because when I get on the Metro you can see the cards hanging on people's necks."

The GSA, which is handling credentials for 70 agencies, is supposed to issue around 800,000 credentials. All told, including the U.S. Department of Defense that has till 2011 to issue the new IDs, 4 million total credentials are expected to be issued to all federal employees. As of late September the GSA had activated 96,489 credentials and enrolled 287,512 government employees.

Even though the number of credentials activated might not be where some want it, Butler says the move forward is significant. "This is a huge project and to get a working credential into the hands of government employees is no small thing," he says. "It may not be pretty but it's getting done."

As of early October the GSA was focused on activating credentials more than enrolling employees because it was the activation numbers that the White House Office of Management and Budget, the agency overseeing the program, would be looking at, Butler says. "We're enrolling around 2,000 people a day," he says.

Butler says there are many agency success stories when it comes to issuing the credentials. The United States Department of Agriculture has activated 16,338 credentials and is getting its employees new laptops so the cards can be used for logical access, Butler says. The agency is also using the card for physical access control in some of its buildings, too.

The progress of credentialing has picked up tremendously this summer, but the systems still have problems, including vendor issues. "I wish the vendor community had their act more together than they do," Butler says, adding that the government remains the quality control medium to impact vendor performance.

17. 'WAVE AND PAY' TRAVEL ON WAY TO LIVERPOOL
Source: Zdnet.co.uk (10//22)

'Wave and pay' technology of the kind seen in London's Oyster card is now on its way to Liverpool. Liverpudlians are set to use contactless bankcards on a number of buses in Merseyside, following the announcement of a pilot of the technology by Stagecoach, MasterCard and The Royal Bank of Scotland.

As part of the trial, MasterCard PayPass cardholders will be able to pay for any ticket under £10 by tapping their NFC-enabled bankcard against an on-board reader, as well as paying for small purchases at any retailers that carry the PayPass reader.

The Liverpool trial, scheduled to last for a year, will see 200 buses from 11 routes fitted with contactless-card technology.

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

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.