Stakeholders Driving Payment Evolution and Digital Identity

February 2009 ACTion Newsletter

IN THIS ISSUE

1. Editorial Comment
2. Canadian Tire Deploys Postilion Solution To Enable EMV Chip Program
3. Visa Provides Contactless For Second Cup
4. Contactless Cards May Pave Way For EMV In The U.S. - Member Only Access
5. Gemalto, NXP And Infineon Demonstrate World's First Mifare Compatible SIM-Based Solution For Mobile NFC Services
6. British Consumers Driving Adoption Of Contactless & Mobile Payments
7. GSMA Selects Visa As Provider For Mobile Money Transfer Solutions
8. Oberthur Technologies And NXP Move Ahead With NFC Deployment Compatible With Mifare Infrastructure
9. Half Of M-Coupons Redeemed By New Customers - Member Only Access
10. Canadians Get Air Miles For Yahoo! Searches
11. Singapore Moves Towards Interoperable NFC Infrastructure For M-Payments
12. No Slowing Down For Biometrics - Member Only Access
13. LaserCard And Gemalto Sign Card Supply Agreement For New Phase Of Saudi Arabia National ID Card Program
14. Outsourced Gift Cards 'A Retail Opportunity'
15. NAB To Explore Commercialization Of M-Payments After Trial Shows Strong Consumer Support - Member Only Access

ACT Canada Partners

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

PRINCIPAL

ATB Financial ~ upgraded
Citi Cards Canada ~ upgraded
Giesecke & Devrient ~ member since 1990
Home Trust Company ~ new member
HSBC ~ upgraded

GENERAL

NBS Technologies ~ member since 1995
Ombudsman for Banking Services and Investments ~ new member
President's Choice Financial ~ member since 2008

SME

SICPA Securlink ~ new member 

ASSOCIATE 

Lenny Hanson ~ new member

CALENDAR OF EVENTS

Cardware Connections Meeting + Inaugural Meeting of our New Strategic Leadership Team
March 23, 2009 (morning)
OBA Conference Centre
Toronto, ON, Canada
Visit www.actcda.com for more details

Collis EMV Chip Seminar
March 25-26, 2009
The Toronto Board of Trade - First Canadian Place, Suite 350
Toronto, ON, Canada
ACT Canada members receive a 15% discount - visit our online calendar of events for more details

2009 CTST/Smart Card Alliance Annual Conference & Expo
May 4-7, 2009
Ernest N. Morial Convention Center
New Orleans, LA, USA
http://www.ctst.com
ACT Canada members receive discounts - please contact andrea(AT)actcda.com for details

Cardware 09: Payment Insights
Financial & Retail Sectors Conference
June 17-18, 2009
White Oaks Conference Centre
Niagara-on-the-Lake, ON, Canada
Visit www.actcda.com for more details

Cardware 09 Secure ID Insights
Government Sector Event
September 16, 2009
Hellenic Centre
Ottawa, ON, Canada
Visit www.actcda.com for more details

1. EDITORIAL COMMENT
Source: Catherine Johnston, President & CEO, ACT Canada (02/24)

2009 - Glass half full or half empty?

By now you know that I'm inclined to see the positive side of things. Life is easier that way. While some are concerned about the prospects for 2009, I can see one area where the economic downturn could play in our favour.

For the past two years, we have been busy preparing for the roll out of EMV. It hasn't allowed much time to plan for new initiatives. We've been so busy in the financial sector, that it has been hard to engage all the stakeholders. 2009 gives us a window where we can briefly think about how we might have done things differently if more stakeholders had been involved. Then, we can use this year to develop a framework for applications such as mobile payment, prepaid, and NFC. We can think through issues such as multi-application to find the profitable approach. We can think through potential for new interfaces and form factors. Most importantly, we can get input and feedback from other stakeholders to ensure best case scenarios.
In 2009, ACT Canada will continue to focus on stakeholder relations to provide value to our members. Each of the following teams brings stakeholders together in a neutral forum to facilitate dialogue and progress.

Merchant Strategic leadership team: identifying and filling information and support gaps related to EMV

Mobile Payment Strategic Leadership team: building the roadmap for Canadian stakeholders. Join us March 23rd as we launch this team!

Government Strategic Leadership team: understanding impediments and identifying strategies for identity management
PIN Management Strategic Leadership team: formulating best of breed solutions as we roll out Chip and PIN

With their approval of our annual plan, the board has also paved the way for our members and other stakeholders to access information and foster discussions through Cardware 09: Financial Insights, focusing on growth opportunities in threatening times (June). For the public sector we will open the dialogue on identity management to a broader group of government decision makers at Cardware 09: Identity Management Insights (September).

Every executive will tell you: You can have time or you can have money. With budgets short of money, let's use the time to our best advantage. ACT Canada will help!

2. CANADIAN TIRE DEPLOYS POSTILION SOLUTION TO ENABLE EMV CHIP PROGRAM
Source: PR Newswire (02/05)

Postilion announced that Canadian Tire Corporation has implemented Postilion for Retailers to enhance in-store transaction security, simplify operational management, and provide the foundation for EMV chip acceptance.

The Postilion solution enables payments from Canadian Tire Retail's 473 stores to be seamlessly integrated with retail functionality at the POS. All aspects of EMV chip and PIN payment processing will be handled by the integrated solution, standardizing the payment capture mode across the store network. Transactions will be submitted to a centrally located payment switch for online authorization via the integrated POS.

Postilion for Retailers can deliver faster transaction processing times than those associated with older technologies, and eliminate the need for dial-up lines. The solution is PABP certified, thus simplifying PCI DSS compliance programs.

Canadian Tire is a member of ACT Canada, please visit http://www.canadiantire.ca.

3. VISA PROVIDES CONTACTLESS FOR SECOND CUP
Source: Greensheet.com (02/02)

Visa Inc. announced in Canada that Second Cup has joined a growing roster of Visa payWave(TM) contactless payment enabled merchants, which will allow consumers to simply "wave and go" when making every day transactions like purchasing coffee.

Contactless payments deliver speed and convenience to participating merchants and Visa(R) cardholders while offering the security benefits inherent in chip technology. 360 Second Cup stores in Canada will be equipped with Visa payWave enabled terminals by March 31, 2009.

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

4. CONTACTLESS CARDS MAY PAVE WAY FOR EMV IN THE U.S. - 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.

5. GEMALTO, NXP AND INFINEON DEMONSTRATE WORLD'S FIRST MIFARE COMPATIBLE SIM-BASED SOLUTION FOR MOBILE NFC SERVICES
Source: Gemalto (02/16)

Gemalto, NXP and Infineon announced they are demonstrating the first mobile contactless solution compliant with the Single Wire Protocol (SWP) standard and compatible with MIFARE™* infrastructures. NXP's MIFARE contactless technology is widely deployed for transport networks and access management worldwide. Being compatible with MIFARE, in addition to all the ISO 14443 contactless infrastructures, the solution will enable users to benefit from any contactless service on his/her mobile phone. For example, users will be able to travel across various cities, pay in shops, access their company premises and benefit from loyalty programs by simply tapping their mobile phone.

Gemalto will be demonstrating this universal mobile contactless solution at Mobile World Congress in Barcelona. The handset is embedding an NFC controller from NXP and complemented by Gemalto's secure SWP SIM card incorporating an Infineon flash microcontroller compatible with MIFARE Classic technology.

Gemalto; Infineon and NXP are member of ACT Canada; please visit http://www.gemalto.com; http://www.infineon.com & http://www.nxp.com.

6. BRITISH CONSUMERS DRIVING ADOPTION OF CONTACTLESS & MOBILE PAYMENTS
Source: PublicTechnology.net (02/18)

Convenience, rather than security, will be the driving force behind the UK adopting new payment methods, according to an independent survey of 1,000 British consumers. The research, commissioned by payment solutions provider Ingenico, found that contactless cards and mobile handset technology are popular with shoppers already and could prove a viable alternative for cash.

Respondents were questioned on their experiences with contactless pre-paid cards, contactless debit or credit cards and mobile handset payments. Whilst the actual figures of people using the technologies are relatively low (13, eight and four percent respectively), almost half of all respondents would consider using or would definitely use the technology. This is likely to increase dramatically as awareness of the benefits for cardholders increases.

Although the current limit for contactless payments in the UK is set at £10, the survey found that shoppers are happy for this figure to rise to an average of £35.10. With mobile handset payments, the average was £32.10. However, with the average person carrying £29.30 in cash, this opens the door for these more convenient payment methods to eventually replace 'pocket money'.

Mobile handset technology has received the most exposure with British consumers, with 20 percent of respondents having heard of it. Of the 41 percent of people who would consider using or would definitely use the technology, the top three benefits were cited as convenience, a reduction in queuing times and a preference to carry less cash and cards around. Interestingly, only 12 percent of respondents saw the improved security of mobile payment as a benefit.

"Adoption of contactless and mobile payments in the UK is going to be fascinating to watch, as it is being consumer-driven," said Gregor Rankin, marketing manager of northern Europe at Ingenico. "British shoppers want speed and convenience at the till and they see how these new payment methods meet their needs. Retailers can also expect to benefit, as increased footfall is one of the recognised advantages of implementing contactless."

Ingenico is a member of ACT Canada; please visit http://www.ingenico.com.

7. GSMA SELECTS VISA AS PROVIDER FOR MOBILE MONEY TRANSFER SOLUTIONS
Source: Business Wire (02/18)

Visa Europe and Visa Inc. announced plans to work with the GSMA to advance the delivery of mobile financial services around the world.

As part of the continuing collaboration between the two organizations, the GSMA has selected Visa as a provider for mobile money transfer solutions globally, and is working to execute an agreement to formalize participation terms. Visa is already a leading provider of money transfer solutions with active programs in 14 countries in Europe, the Middle East and Asia.

This announcement was made at the GSMA Mobile World Congress, the leading event for the mobile communications industry, where Visa is showcasing a range of mobile payment innovations.

A key aspect of the collaboration between Visa and GSMA will be the creation of standards for mobile money transfer, mobile payments and related services. This collaboration will allow carriers and financial institutions to deploy mobile payments more rapidly and limit market fragmentation. Standardization also benefits consumers by promoting interoperability among carriers and institutions, ensuring a consistent and reliable experience and promoting faster adoption of the technology.

Ongoing Collaboration Delivers Results
Today's announcement marks the latest development in the ongoing collaboration between Visa and the GSMA. Recently, as part of the GSMA Pay-Buy-Mobile initiative, Visa and several GSM mobile network operators launched mobile payment trials in Canada, Switzerland, France and the UK, and completed successful trials in Australia, Malaysia and Taiwan, which are all designed to advance the development of mobile payments at the point of sale. Importantly, many of these trials embed the Visa payment application into the SIM card enabling Visa account holders to easily switch the application from one handset to another.

Covering more than a thousand test users and select merchants, all of these trials demonstrated the ability to download and personalize payment software over the air and make mobile payments using the same point of sale equipment already in place at merchants to accept contactless card transactions.

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

8. OBERTHUR TECHNOLOGIES AND NXP MOVE AHEAD WITH NFC DEPLOYMENT COMPATIBLE WITH MIFARE INFRASTRUCTURE
Source: Oberthur Technologies (02/18)

Oberthur Technologies and NXP announced the completion of interoperability tests between Oberthur Technologies' Opera FlyBuy NFC (Near Field Communication) SIM Cards and NXP's PN544 NFC Controller. Opera FlyBuy NFC SIM Cards from Oberthur Technologies can be used in conjunction with NXP's PN544 to design NFC mobile devices compatible with MIFARE(TM)* Classic technology in existing infrastructures.

"With its multi-application and remote management capabilities, Opera FlyBuy NFC SIM cards from Oberthur Technologies offer the highest level of flexibility to mobile network operators (MNO) and convenience of contactless technology to the end-customers. With this MIFARE-compatible SIM card on the mobile phone, anyone travelling from Beijing to London will have the convenience of using transport services where MIFARE technology has been deployed," said Xavier Drilhon, Managing Director, Card Systems Division at Oberthur Technologies.

"We are pleased to get this interoperability validation from NXP and support the industry in making mobile contactless a reality, and ensure our MNO customers take the lead in mobile convergence through our NFC solution."

Oberthur Technologies & NXP are members of ACT Canada; please visit http://www.oberthur.com & http://www.nxp.com.

9. HALF OF M-COUPONS REDEEMED BY NEW CUSTOMERS - 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. CANADIANS GET AIR MILES FOR YAHOO! SEARCHES
Source: The Wise Marketer (02/03)

Yahoo! Canada has begun aggressively pursuing a greater search engine market share through a new partnership with the Air Miles Rewards Programme, by issuing Air Miles collectors a number of reward miles for conducting online searches through Yahoo!. In a three-way agreement that also involves browser toolbar provider FreeCause, the new AIR MILES Toolbar software is being offered for free via the Air Miles web site, allowing Canadians to earn reward miles for everyday searches. The toolbar offers 5 reward miles for every 50 searches conducted through the AIR MILES Toolbar (up to a maximum of 360 reward miles per year), as well as displaying the member's account balance. The toolbar also helps to ensure that Air Miles collectors earn their reward miles when shopping with the programme's 100+ online sponsors via AirMilesShops.ca.

Air Miles is operated by LoyaltyOne, a member of ACT Canada; please visit http://www.loyaltyone.com.

11. SINGAPORE MOVES TOWARDS INTEROPERABLE NFC INFRASTRUCTURE FOR M-PAYMENTS
Source: Finextra (02/24)

Authorities in Singapore have outlined plans to work with banks, telcos and payment processors to set up an interoperable infrastructure for contactless mobile transit and payments.

The move comes after the Infocomm Development Authority of Singapore (IDA) set up a roundtable in January 2008, bringing together 11 industry players as well as government agencies to look into establishing an infrastructure for NFC services that works across telcos and banks.

Roundtable participants - including MobileOne, SingTel, StarHub, DBS, OCBC, UOB, BCS, EZ-Link, NETS, MasterCard and Visa, as well as the Ministry of Finance, Monetary Authority of Singapore and Land Transport Authority - have now agreed to collaborate on a system through a Trusted Third Party (TTP) infrastructure.

The TTP is expected to be appointed by next year and will act as a neutral party delivering interoperability by providing a single point of contact for all banks, payment providers and telcos, helping eliminate the duplication of infrastructure and satisfying the trust requirements for payment services.

The IDA claims ubiquitous consumer access will spur businesses to deploy NFC services.

The authority cites a study it commissioned from Consult Hyperion which suggests a fully interoperable NFC environment would generate a market size approximately eight times that of a non-interoperable environment.

It is estimated that in the early stage of NFC adoption, the annual revenue from mobile payments and advertising alone will amount to S$60 million for Singapore.

The IDA suggests that as the technology matures, NFC will be have an increasingly wide range of uses, such as helping consumers redeem e-coupons and even open doors by tapping their phones on contactless readers. Businesses can also create interactive posters that come with integrated NFC-enabled chips to allow for up-to-the-minute or customised information to customers.

Ronnie Tay, CEO, IDA, says: "NFC offers tremendous potential because of the many services it can bring to consumers. To realise its fullest potential, IDA sees interoperability as a key success factor for NFC and is pleased that all the NFC Roundtable members share the same conviction."

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

12. NO SLOWING DOWN FOR BIOMETRICS - 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. LASERCARD AND GEMALTO SIGN CARD SUPPLY AGREEMENT FOR NEW PHASE OF SAUDI ARABIA NATIONAL ID CARD PROGRAM
Source: LaserCard Corporation (02/26)

LaserCard Corporation announced the execution of a Card Supply Agreement with Gemalto for the supply of chip-ready optical memory cards for issuance as Saudi Arabian National ID Cards.

The agreement, valued at approximately $6 million, marks the start of a new phase of the program where card issuance is expected to migrate from the regions of Saudi Arabia to a new centralized personalization facility in the Kingdom's capital city, Riyadh. Gemalto previously supplied and installed the centralized card personalization system in Riyadh and is responsible for processing the optical cards to embed a Gemalto supplied contact chip.

The agreement calls for purchase order releases for shipments beginning immediately and continuing through December 2009. LaserCard anticipates combined deliveries this calendar year of $11.2 million of Saudi Arabian National ID Cards for this and a previously announced contract.

Gemalto & LaserCard are members of ACT Canada; please visit http://www.gemalto.com & http://www.lasercard.com.

14. OUTSOURCED GIFT CARDS 'A RETAIL OPPORTUNITY'
Source: The Wise Marketer (02/06)

Gift cards represent a big opportunity during the recession for the UK's retailers, despite often being seen as an expensive investment in revenue generation and marketing, according to Rohit Patni from gift card solutions provider YESpay.

Patni explained that retailers can already invest in gift card technology with minimal capital investment and still gain useful insights into customer behaviour by outsourcing these solutions. For example, they can adopt online merchant gift card solutions that enable them to issue, load, and accept closed-loop gift card payments within their own retail environment. These require little capital investment and have low ongoing service costs.

While large retailers can often easily identify and understand their customers, small businesses find it more difficult to not only know who their customers are, but to find out about their spending habits. However, the adoption of an outsourced gift card programme can provide smaller merchants with the ability to assess the shopping patterns of their customers, allowing them to subsequently target the right customers for special offers and promotions.

Gift cards provide an effective way to encourage customers to come back, helping to build brand loyalty along the way. According to YESpay, electronic gift cards also tend to have a higher perceived value among consumers than paper vouchers or cash incentives, and they can often help to increase store footfall and impulse purchase behaviour.

Moreover, gift cards can also give retailers an extra chance to interact with customers and build a stronger ongoing relationship, by giving regular shoppers the chance to top-up their balance online, or transfer value from one card to another.

Finally, the integration of transaction handling across channels (i.e. at the point of sale, on the web site, and at in-store kiosks) means that the same gift card can be used in all areas of the retail operation, providing an easier and more consistent overall customer experience.

YESPay is a member of ACT Canada; please visit http://www.yes-pay.com.

15. NAB TO EXPLORE COMMERCIALIZATION OF M-PAYMENTS AFTER TRIAL SHOWS STRONG CONSUMER SUPPORT - 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.