Stakeholders Driving Payment Evolution and Digital Identity

July 2009 ACTion Newsletter

IN THIS ISSUE

1. Editorial Comment
2. Interac Partners With Global Leader Inside To Bring Contactless Debit To Canada
3. Canadian Tire Rolls Out Chip Card Technology Across The Country
4. ICC Solutions Receives Qualification From MasterCard For NIV Testing
5. 5. Europe To Eye Mag-Stripe Ban - Members Only
6. Ingenico Launches The First Colour Contactless Mobile Payment Terminal
7. MasterCard Qualifies Collis' New Version Of The MasterCard Card Personalisation Validation (CPV) Module
8. Network Solutions Was PCI Compliant Before Breach - Members Only
9. As Canadians Prepare For Summer Vacation, Giesecke & Devrient Delivers High Security RFID Enhanced Border Crossing Cards
10. Contactless Payment Tech In All Phones Next Year, Says Ericsson Boss - Members Only
11. NXP, Trusted Logic Team To Accelerate NFC Deployment
12. Visa Alliance With Monitise To Advance Global Deployment Of Mobile Payments And Related Services
13. Gemalto To Provide A New Queensland Driver License In Australia
14. Dynamic Card Solutions & Verient Announce Instant Issuance Of Customized Payment Products
15. Visa Paywave Makes Shopping At M&M Meat Shops Even More Convenient
16. LaserCard Gets Green Light To Supply Secure Credentials For Angola's National ID Program
17. Obstacles, Opportunity For The Mobile Wallet - Members Only

ACT Canada Partners

 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.

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

Visa Canada ~ member since 1995

GENERAL

CSC ~ new member
Ingenico ~ member since 1990
INSIDE Contactless ~ member since 2006

ASSOCIATE

Gillman & Gillman ~ new member

CALENDAR OF EVENTS

Collis EMV Chip Seminar
September 28-29, 2009
Toronto, ON, Canada
http://www.collis.nl

Cardware 09 Government Insights
October 14, 2009
Hellenic Centre, Ottawa, ON, Canada
http://www.actcda.com

Smart Card Alliance 8th Annual Smart Cards in Government Conference 2009
October 27-30, 2009
Washington, DC, USA
http://www.smartcardalliance.org

CARTES & IDentification 2009
November 17-19, 2008
Paris, France
http://www.cartes.com

PIN Management RFP
ACT Canada will be issuing an RFP for PIN Management solutions. If you have products or services to deal with this, and have not already done so, please email Catherine Johnston at Catherine@actcda.com. Please put PIN Management in the subject line.

New Market Info
ACT Canada is very pleased to announce that presentations from the financial track at Cardware 09 were captured as full audio and PowerPoint webinars, providing delegates with a superior level of post conference access to information. For those who missed Cardware, these will be available for purchase in the coming weeks.

Membership Benefit Reminder
All ACT Canada members, who do not currently subscribe to the Nilson report, are entitled to a 10% discount. Also, all members receive significant discounts for Cardware 09.

1. EDITORIAL COMMENT
Source: Catherine Johnston, President & CEO, ACT Canada (07/29)

"A few words in the right place can work wonders."

Careers are like houses, built one brick at a time. Usually many tradesmen work on it. Each contributes their skill and knowledge and all contribute to the final vision of the architect.

In our careers, the skilled tradesmen are the people we deal with, whether they are peers, superiors or subordinates. They work in our companies and in others. Sometimes they provide information we need. Other times it is insight, enthusiasm, or inspiration. They challenge our assumptions or ideas. Sometimes they appear to slam doors in our faces, forcing us to look for new ways to move ahead. The latter account for some of the hardest, but best lessons, I've learned in my career.

All these people help build our careers and contribute to the success of our projects and companies.

So why do we sometimes resist the opportunity to talk with others? I can think of a number of valid reasons, but the one I keep hearing that leaves me cold is, "We don't need to talk with any other stakeholders". It is usually said by someone who actually does need other stakeholders to deliver, use or regulate their end product. Thankfully, this isn't the case with our Mobile Strategic Leadership team.

Within months of establishing the team, we have issuers, telco's, acquirer's, payment associations, consultants and other stakeholders at the table. They come from Canada, the UK and the US, bringing a level of knowledge that is used to help all understand the tricky parts of moving mobile payment ahead in the Canadian market. Their progress has been remarkable. This is also true of our Merchant Strategic Leadership team and our PIN Management group. Our newest team is focused on Secure Identity Management.

Bringing people together to help our members achieve their goals is one of ACT Canada's primary goals. Join us, join the dialogue, help your career and help your organization.

2. INTERAC PARTNERS WITH GLOBAL LEADER INSIDE TO BRING CONTACTLESS DEBIT TO CANADA
Source: : Interac Association (07/15)

Interac Association, Canada's leading payment network, announced a partnership with INSIDE Contactless to develop chips containing the specifications for INTERAC's contactless payment service. This partnership will enable Interac Association and its members to offer their debit card users a "next generation" retail payments solution.

"We have sought out and are leveraging the best technology expertise available globally," said Mark O'Connell, President & CEO, Interac Association. "By partnering with INSIDE, we will be able to incorporate fundamental policies, strong consumer protections, which is a vital tenet for the Canadian market, and key features, all of which are unique to INTERAC."

"The small-ticket purchase segment in Canada, which is still dominated by cash and coin, represents green field territory for card payments, and although this market has been targeted time and again, it has been difficult to penetrate due to the lack of the right technology solution delivered at the right cost" said Shyam Krishnan, Industry Analyst at Frost & Sullivan. "The partnership between Interac Association and INSIDE Contactless goes a long way towards creating a viable solution, providing the technology and value proposition necessary to break the barriers to this market."

Interac Association & INSIDE Contactless are members of ACT Canada; please visit http://www.interac.ca & http://www.insidecontactless.com.

3. CANADIAN TIRE ROLLS OUT CHIP CARD TECHNOLOGY ACROSS THE COUNTRY
Source: Canada Newswire (07/13)

Canadian Tire reinforced its commitment to providing the most secure and convenient payment options for its customers when it announced the completion of the rollout of new point-of-sale terminals in Canadian Tire Retail stores across the country. With the rollout now complete, Canadian Tire is the largest retailer in the country to complete a national rollout, ensuring that the 475 stores in its network are chip card compatible.

Working closely with MasterCard Canada and Moneris Solutions Corporation, Canadian Tire is the first Canadian retailer to rollout chip compatible point-of-sale terminals across the country.

"Canadian Tire Financial Services continues to be focused on safeguarding the security and enhancing the trust of our customers," said Jim Kozack, vice president, Canadian Tire Financial Services. "After successfully testing chip-enabled Canadian Tire Options MasterCard credit cards in the Kitchener market, we decided to roll-out the chip card payment platform nationally and later this year will begin rollout of our new MasterCard chip cards across the country."

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

4. ICC SOLUTIONS RECEIVES QUALIFICATION FROM MASTERCARD FOR NIV TESTING
Source: ICC Solutions (07/27)

ICC Solutions is delighted to announce the immediate availability of ICCSimTMat: MC NIV being a dedicated test package simulating the full set of ETEC cards in subset 3. This package is fully validated by MasterCard for Network Integration Validation (NIV) as an alternative to ETEC subset 3 card pack. Subset 3 is designed for use during the network testing and certification of the single-message and dual-message interfaces between the acquirer host debit/credit application and MasterCard International network systems. This subset is used when upgrading magnetic stripe-based systems to additionally support ICC-based operations.

ICC Solutions is the only test tool vendor able to offer fully validated test packages for EMV Level 2 type approval and all payment scheme terminal certifications. The extensive range of ICCSimTMat test packages includes EMV Level 2 type approval, INTERAC, TIP for MasterCard (featuring ETEC subset 1 plus field interoperability and UK Maestro subsets) and Visa ADVT.

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

5. EUROPE TO EYE MAG-STRIPE BAN- 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.

6. INGENICO LAUNCHES THE FIRST COLOUR CONTACTLESS MOBILE PAYMENT TERMINAL
Source: Ingenico (07/10)

A genuine technological powerhouse developed by the world leader in payment solutions, the EFT 930 Mobile "Color Contactless" payment terminal from Ingenico combines two key innovations: "contactless" technology and a color screen, opening the way to the development of new point-of-sale services. Able to handle smart cards, magnetic stripe cards and now "contactless" cards indiscriminately, this is the first contactless mobile payment terminal to receive Visa payWave and MasterCard PayPass certification, meeting all of the latest performance and security requirements.

As the latest in Ingenico's EFT930 range, the EFT930 Mobile "Color Contactless" terminal is equipped with a graphical backlit color screen offering excellent visibility of transactional messages for both customers and merchants, in addition to an improved user experience.

As a lightweight and extremely compact portable terminal, the EFT930 Mobile "Color Contactless" natively incorporates contactless payment technology without requiring the addition of an additional external module, ensuring that it remains practical and easy to handle while guaranteeing optimal performance.

The EFT930 Mobile "Color Contactless" terminal meets the latest security standards. This is the first terminal in its category to be certified in accordance with the two standards required by the banks prior to the deployment of terminals on the market Visa payWave & PayPass from MasterCard.

With the EFT930 Mobile "Color Contactless" offering users the very best of technology and innovation, Ingenico is significantly extending its leadership in the strategic mobile payment terminals segment.

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

7. MASTERCARD QUALIFIES COLLIS' NEW VERSION OF THE MASTERCARD CARD PERSONALISATION VALIDATION (CPV) MODULE
Source: Collis (07/13)

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

The MasterCard CPV module in Collis' Personalisation Validation Tool has been qualified by MasterCard to ensure that the tool complies with the latest MasterCard CPV test specifications version 2.0 as well as the PDS 2008 and PayPassTM PDS 1.3. This qualification offers a test tool available to perso bureaus and MasterCard issuers to prepare for the formal Card Personalisation Validation session. The MasterCard CPV module is part of a range of modules in Collis' Personalisation Validation Tool that have been confirmed and used by other major international payment scheme owners.

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

8. NETWORK SOLUTIONS WAS PCI COMPLIANT BEFORE BREACH - 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.

9. AS CANADIANS PREPARE FOR SUMMER VACATION, GIESECKE & DEVRIENT DELIVERS HIGH SECURITY RFID ENHANCED BORDER CROSSING CARDS
Source: Canada Newswire (07/08)

Giesecke & Devrient (G&D) announced the issuance of an Enhanced Identification Card for Manitoba Public Insurance (MPI), and an Enhanced Driver's Licence for the Ontario Ministry of Transportation (MTO). This is the beginning of a new, 10 year partnership with Manitoba Public Insurance and a continuation of the current partnership with the Ontario Ministry of Transportation. Since the Western Hemisphere Travel Initiative came into effect on June 1, 2009, the United States Government requires that all Canadian citizens entering the U.S. by land or water, present a valid passport or other approved secure document that denotes the bearer's identity and citizenship.

The Enhanced Driver's Licence and Enhanced Identification Card were developed by G&D in conjunction with MPI and MTO as a passport alternative. Residents in the provinces of Ontario and Manitoba who are Canadian citizens may now use this card when entering the United States. Getting one of these enhanced cards is strictly voluntary but both governments have seen indications of very strong demand and expect to receive hundreds of thousands of applications.

A Radio Frequency Identification (RFID) chip is embedded into the card and is encoded with a unique identification number. No personal information is stored or encoded in the chip. At the U.S. port of entry, a U.S. Customs and Border Protection (CBP) RFID reader retrieves this unique number and transmits it to the Canadian Border Services Agency. (CBSA). CBSA then queries its database in Canada and the information about the traveler is securely transmitted back to CBP.

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

10. CONTACTLESS PAYMENT TECH IN ALL PHONES NEXT YEAR, SAYS ERICSSON - 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. NXP, TRUSTED LOGIC TEAM TO ACCELERATE NFC DEPLOYMENT
Source: EETimes (07/20)

NXP BV and Trusted Logic SA announced they have concluded an agreement to drive NFC middleware integration.

Under the terms of the agreement, Trusted Logic said it will distribute and market the NFC middleware, which embeds the NXP Reference Implementation, directly to end customers, under its Trusted NFC offering, and provide support for the integration. The French company also intends to enhance the solution with its Java Specification Request 257 implementation (JSR257) to enable NFC technology in Java Micro Edition environments (J2ME).

NXP claimed that the NXP Reference Implementation, comprising the NFC Forum and ETSI specifications, facilitates both the interconnection of NFC devices and seamless interoperability with the existing contactless infrastructure. While interfacing the NXP PN544, the NFC middleware, integrated in a baseband or in an application processor, is said to deliver the complete software solution required to build an NFC-enabled device.

NXP is a member of ACT Canada; please visit http://www.nxp.com.

12. . VISA ALLIANCE WITH MONITISE TO ADVANCE GLOBAL DEPLOYMENT OF MOBILE PAYMENTS AND RELATED SERVICES
Source: Visa (06/30)

Visa Inc. announced that it has entered into a strategic alliance with Monitise plc to facilitate the delivery of Visa mobile payments and related services to consumers around the world. Concurrent with the strategic alliance, Visa has agreed to make a minority equity investment in Monitise, subject to Monitise shareholder approval. Monitise is a recognized expert in mobile financial services that operates payments and mobile banking services for some of world's leading financial institutions.

The alliance provides Visa with a strategic development partner for its comprehensive suite of mobile services, including mobile payments, mobile money transfer, mobile transaction alerts and mobile marketing offers. Monitise delivers unique expertise that facilitates customized development of mobile financial services for a broad range of handsets that exist in the marketplace, ensuring an optimized user experience. Through detection of phone make, model, screen size, browser type and multimedia capabilities, Monitise can optimize the user experience for Visa mobile payments and related services. The two companies will work together to increase speed to market of unique payment and related services including mobile user enrollment services, application development and channel management.

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

13. GEMALTO TO PROVIDE A NEW QUEENSLAND DRIVER LICENSE IN AUSTRALIA
Source: ICMA Industry News (07/09)

Gemalto announces that it will together with Prime Contractor Placard Pty Ltd provide several million Sealys electronic driving licenses to the Department of Transport and Main Roads in Queensland, Australia over a five year period with implementation commencing in 2010.

Currently, just over 3 million drivers in Queensland hold laminated driver licenses on which personal data is printed. The new cards will significantly improve the security and privacy of personal data by securely storing driver information electronically. This will make the new license difficult to copy and counterfeit and thereby minimizes the potential for identity theft.

The Department of Transport and Main Roads also plans to use this secure technology for the Adult Proof of Age, Marine Licence Indicator and Industry Authority cards.

The Department's Land Transport and Safety Executive Director Judy Oswin says moving to this technology will place Queensland at the forefront of delivering sophisticated, and secure technology, bringing together a range of applications that will ensure a state of the art product is delivered.

Gemalto's Sealys eDriver License solution is compliant with ISO 24727 standard and the Smartcard Framework and Smartcard License Interoperability Protocol (SLIP), which is the standard referenced to by the drivers license project.

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

14. DYNAMIC CARD SOLUTIONS & VERIENT ANNOUNCE INSTANT ISSUANCE OF CUSTOMIZED PAYMENT PRODUCTS
Source: ICMA Daily News (07/15)

lDynamic Card Solutions (DCS) and Verient announced a technology integration that allows financial institution customers a more convenient and secure way to create an advanced payment customization program. By combining DCS' CardWizard instant issue software and Verient's flagship InfiniPAY payment customization platform, financial institutions can now instantly offer their customers highly tailored multiple payment products from a single cardholder account.

DCS' patented CardWizard software and Verient's patent-pending InfiniPAY platform can be securely integrated into financial institutions' card management systems and online banking portals. Consumers can simply sign on to their banking website and, through Verient's software application, create a "Made-to-Order" payment product with the features and parameters they require. Customers will be able to use any of their accounts, such as credit card, checking, savings or home equity line of credit, and can create multiple payment products in a variety of form factors, including a physical card, contactless sticker or NFC chip on a mobile phone.

Delivery of the "Made-to-Order" payment card is simple. Once the payment controls and parameters have been set up by the customer, Verient's InfiniPAY platform works in conjunction with DCS' CardWizard instant issue software and associated hardware to instantly issue the card or other payment form factor at the branch location. DCS' CardWizard software interacts with Verient's InfiniPAY platform to securely transfer all the data and then personalize it onto an associated plastic, fob, sticker or other NFC-chip enabled device. Customers can simply walk into their full service location and immediately receive their payment product.

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

15. VISA PAYWAVE MAKES SHOPPING AT M&M MEAT SHOPS EVEN MORE CONVENIENT
Source: Canada Newswire (07/08)

Visa Inc. announced in Canada that M&M Meat Shops has joined a growing roster of Visa payWavecontactless payment enabled merchants. Contactless payments allow consumers to simply "wave and go" when making every day transactions like purchasing any of hundreds of meal ideas at M&M Meat Shops.

Visa payWave delivers speed and convenience to participating merchants and Visacardholders while offering the security benefits of chip technology. More than 470 participating M&M Meat Shops across Canada will be equipped with Visa payWave enabled terminals this summer.

The deployment of Visa payWave-enabled Visa cards and point-of-sale terminals is closely aligned with Visa's migration to chip card technology in Canada. Visa employs a layered approach to its fraud prevention efforts, including technology on the card itself as well as on Visa's processing network to help heighten security efforts.

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

16. LASERCARD GETS GREEN LIGHT TO SUPPLY SECURE CREDENTIALS FOR ANGOLA'S NATIONAL ID PROGRAM
Source: ICMA Industry News (07/23)

LaserCard Corporation announced that the Angolan government has officially approved the design of its new national ID card, triggering production start-up by LaserCard for the initial supply of secure optical memory cards for the country's national ID program. Issuance of cards to Angola's adult citizens is scheduled to begin in Luanda, the nation's capital, by this fall.

Delivery of the $8.8 million card backlog will begin this quarter and is scheduled to be completed this fiscal year. The cards will be issued as secure wallet-size ID credentials to citizens nationwide and will store personal data including personal and biometric identification. The cards are based on the same tamperproof, highly counterfeit-resistant optical memory technology used in the U.S. Department of Homeland Security's "Green Card" program.

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

17. OBSTACLES, OPPORTUNITY FOR THE MOBILE WALLET - 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.