Stakeholders Driving Payment Evolution and Digital Identity

June 2009 ACTion Newsletter

IN THIS ISSUE

1. Editorial Comment
2. Celebrating Success: the 2009 ACT Canada Award Winners
3. Zoompass Launches Mobile Payment Service In Canada
4. CPA Draft Long Term Payments Strategy Vision 2020
5. Testing The Limits Of New Banking Technology - Member Only Access
6. Gemalto Launches Unique Optical Reader For Online Banking
7. Cardholders Can Now Change EMV PINS Anywhere, Anytime
8. Stick-On RFID Drives Mobile Rewards Platform - Member Only Access
9. Ingenico Launches Next Generation Payment Security Whitepaper
10. Contactless Cards Making Inroads On Transit Systems - Member Only Access
11. Canadian Transit Agency To Test Smart Cards
12. Chase Paymentech Simplifies Chip And PIN Migration For Integrated Merchants
13. MasterCard Accredits Collis For Training And Consultancy
14. Oberthur Teams With Dyetron For EMV In Columbia
15. White House Report Calls For Identity Management
16. Gemalto Providing Personalization Service For Singapore NFC Pilot

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

GENERAL

HSBC ~ member since 2006
MEI inc. ~ member since 2006
Threshold Financial ~ member since 2007

GOVERNMENT

Royal Canadian Mint~ member since 2005

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.

An ACT Canada member is looking for the following:

  • New or used personalization equipment
  • A trainer for SIM programming

Please contact Mustafa Chafi from FlexCard/Flex Export at 514 914-4156.

PIN Management Opportunity
ACT Canada is looking for PIN Management solutions.
If you have products or services to deal with this, please email Catherine Johnston at catherinej@actcda.com.
Please put PIN Management in the subject line.

1. EDITORIAL COMMENT
Source: Catherine Johnston, President & CEO, ACT Canada (06/30)

It's all about motivation, communication and co-operation.

10 years ago we watched as some of our members hired teams of up to 40 people to pursue an opportunity. Today that just isn't likely to happen. I don't know anyone who isn't overworked, particularly as technology has made it possible for our work to follow us everywhere. Although technology is often a beneficial tool, sometimes the human interface is the best connection.

Motivation - All of us need to be told when we are doing a good job. At Cardware this month we presented awards to 15 individuals and teams. We needed to acknowledge their good work and in turn, we are motivated by their successes. (see Awards article).

Communication - I am still amazed by what happens every time we bring people together and ask them to discuss items of common interest. The result goes beyond an exchange of information. We see generosity, insights and a genuine desire to positively affect progress.

Co-operation - Canada is a small market, so relationships are very important. This means that we put extra effort in working together right up until the point where we need to compete. This year, I have seen an extraordinary amount of co-operation between our members who are working together in our strategic leadership teams. The time will come when each team disbands as they enter into the competitive stage of their initiatives. Until then, they all benefit from this co-operation, and most importantly, they have worked together in a way that will allow them to come together again for their mutual benefit.

Cardware 09 was a great success because of these three factors. In a year when conferences around the world are struggling, we saw growth. When we tabulated the evaluations, we scored over 4.3 out of 5 for quality of information, networking and meeting expectations.
It took delegates, speakers, exhibitors and sponsors to make this happen. Each and every one contributed to an event that helped everyone come closer to their personal and corporate objectives. In less than a week since Cardware, two of our strategic leadership teams have expanded their membership and made major moves toward their goals.

Thank you to everyone who participated. ACT Canada will continue to support your goals by facilitating communication and co-operation. Your response to Cardware is our motivation.

2. CELEBRATING SUCCESS: THE 2009 ACT CANADA AWARD WINNERS
Source: Catherine Johnston, President & CEO, ACT Canada (06/30)

Congratulations to all our winners:
For Canadian Innovation in an Application, Coinamatic for Coinamatic Laundry Services
For Canadian Innovation in Banking/Finance, SecureKey Technologies Inc. for One Tap
For Canadian Innovation in a Business Model, Interac Association/Acxsys Corporation for Interac Direct Payment and Shared Cash Dispensing
For Canadian Innovation in E-transactions, NetSecure Technologies Ltd. for Smart Swipe
For Canadian Innovation in Loyalty, Scotiabank International, for Price Smart Diamond MasterCard
For Canadian Innovation in Software, second place went to STJ Retail for EFTPlus and the winner was AJB Software for EPS Solution
Our 2009 Champions are Tracey Black, Michel Chalifoux, Michael Green and Allen Wright
For International Innovation in Banking/Finance, second place was a tie with Collis for their Collis Brand Test Tool and Oberthur Technologies for their FlyBuy Sticker. The winner in this category was Collis for the Collis Card Image Editor
ACT Canada's 2009 Hero's Award, was presented to Robert Hayhow, of TD Merchant Services

The economy ebbs and flows, but innovation and success steadfastly march on. They are the backbone of our work. Again, congratulations to all of this year's winners.

3. ZOOMPASS LAUNCHES MOBILE PAYMENT SERVICE IN CANADA
Source: Payment News (06/16)

Canada's three leading wireless operators, launched Zoompass, a breakthrough mobile money transfer and payment service. Zoompass gives Canadians a fast and convenient way to send and receive money securely using their mobile phone. The service is enabled through the Zoompass application on the mobile phone which combines an easy-to-use interface with an integrated contact manager that redefines how users send and receive money. Zoompass is a better way to pay than cash, cheque, or wire transfer.

Zoompass makes it easy to split a lunch bill, request money from parents, collect sports team fees, solicit money for a co-worker's gift, or even pay a babysitter - right from a mobile phone. With the groundbreaking launch of Zoompass, Canadians nationwide can expect to hear more people ask one another "Do you want me to Zoom you the money?"

Using a safe and secure Zoompass account, customers can link their personal bank account or credit card to make loading and transferring money simple and convenient. Customers can access Zoompass on their computer via the Internet, from the mobile web, or by downloading the Zoompass application right to their wireless phone. No matter how they choose to access Zoompass, customers can manage their account 24/7, anytime, anywhere and transfer money, request money, check their balance, review their transaction history and more, all in real-time.

Canada's three largest wireless phone companies decided to collaborate and launch the Zoompass service together with the vision that a common standard and interoperability for mobile money transfers across all networks would result in unprecedented convenience for consumers. The Zoompass service is available to mobile users on the Bell Mobility, Rogers, and TELUS networks as well as customers of their respective sub-brands and affiliates including Fido, PC Mobile, and Solo Mobile. Consumers can visit www.zoompass.com to enroll and start using the revolutionary money transfer service on their mobile device.

Zoompass transactions run on a highly secure payment system and are safeguarded by cutting-edge encryption technologies. During the registration process, users must choose a secure Personal Identification Number (PIN). Every Zoompass transaction is PIN-protected, making Zoompass a more secure payment method than cash or cheque. Customer financial information is stored on secure servers, not on the mobile phone, so even if the phone is lost or stolen, the user's Zoompass account remains secure.

The Zoompass mobile application combines a powerful user interface design and sophisticated features that allow users to send or request money with just a few keystrokes. The Zoompass application interfaces with the address book on select phones, allowing users to quickly send or request money from their contact list.

Another unique feature of the service is the ability for customers to make secure purchases in stores and on the Internet using the balance in their Zoompass account with the optional Zoompass Prepaid MasterCard® Card, issued by Peoples Trust. The Zoompass Prepaid MasterCard is enabled with PayPass™ technology which allows for contactless payments. To pay, customers simply tap their Zoompass Prepaid MasterCard at PayPass-enabled terminals across Canada. The Zoompass Prepaid MasterCard can be used at millions of locations worldwide wherever MasterCard cards are accepted, including approximately 1.5 million ATMs.

4. CPA DRAFT LONG TERM PAYMENTS STRATEGY VISION 2020
Source: CPA (06/24)

In May of 2009, the CPA launched a nation-wide consultation on its proposed Long-Term Payments Strategy, Vision 2020 - a draft strategy that sets forth a roadmap for personal, corporate and wholesale payments until the year 2020. Over the next five months, extensive public consultations will help shape the final direction for the CPA's Payment Strategy. Our goal is to ensure that the systems for payments, clearing and settlement continue to evolve to meet the needs of Canadians.

At this time, the CPA seeks to better understand your views on the current payment landscape to identify options for enhancing payment efficiencies and improving the payment experience for members, consumers, businesses, government and other interested parties. What is needed? How could the CPA's proposed changes in Vision 2020 impact the current system? What implications might these strategies have to your organization? Identifying issues and potential courses of action that balance all participant needs requires cooperation among the different parties involved in the payment marketplace. For this reason, your feedback is valuable to our policy development process.

In support of the written consultation exercise, the CPA hosted webinar sessions in June which provided an in-depth review of the CPA strategy and further socialized attendees with its vision.

The CPA will also be holding cross-country town-hall sessions in September, to discuss feedback received and points of interest raised.

To ensure that your views are heard and to learn from your industry counterparts, we encourage you to join us at the upcoming town-hall sessions and to take advantage of this timely and very exciting information package on the CPA's proposed Long-Term Payments Strategy, including:

Proposed Long Term Payment Strategy Vision 2020
International Research & Benchmarking Report Governance, Funding & Membership
International Research & Benchmarking Report Core Systems
Environmental Scan International Interoperability Standards

Please submit your comments and feedback to consultation@cdnpay.ca by August 28th, 2009. For more information regarding the town-hall sessions, please contact us at this same e-mail or stay tuned to the CPA's website.

The Canadian Payments Association is a member of ACT Canada; please visit http://www.cdnpay.ca.

5. TESTING THE LIMITS OF NEW BANKING TECHNOLOGY - 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. GEMALTO LAUNCHES UNIQUE OPTICAL READER FOR ONLINE BANKING
Source: Gemalto (06/24)

Gemalto announced commercial launch of Ezio Optical TAN, a unique optical authentication reader for online banking specially designed for the German market. The size of a credit card, the Gemalto reader fits in a wallet along with the banking card, to offer unmatched convenience and portability. Ezio Optical TAN is compliant with the latest German HHD* standard and leverages the security of the widely deployed SECCOS banking cards. With 30 million users, Germany has the largest number of online banking customers in Europe.

With Ezio Optical TAN, online customers can enjoy anytime, anywhere e-banking with utmost simplicity. Users just present the device in front of their computer screen and optical sensors capture the data they would normally enter from the reader keypad to carry out and sign online transactions. No software needs to be installed to use the device.

"Reinforcing e-banking services security has always been a priority for German banks and they were among the first in Europe to implement strong authentication solutions," commented Jacques Seneca, executive vice president of the Security Business Unit for Gemalto. "Gemalto's strong historical presence in Germany, particularly in the banking sector, has provided us with an in-depth understanding of local banks' specific needs. This resulted in the development of an authentication solution that is perfectly tailored for this very advanced market."

The Gemalto product is part of an extended family of authentication and digital signature solutions that includes notably readers, tokens, software and services. Gemalto has already successfully delivered Ezio authentication solutions to leading banks in Asia, Europe and the Americas.

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

7. CARDHOLDERS CAN NOW CHANGE EMV PINS ANYWHERE, ANYTIME
Source: SecureIDNews (06/16)

Dynamic Card Solutions has announced the availability of CardWizard easyPIN, its EMV PIN change solution that enables portable and remote changing of a cardholder's PIN.

Utilizing DCS' new software-based solution and associated unconnected smart card readers, issuers can now offer their cardholders the ability to perform EMV PIN management from their home, office or anywhere the customer has access to a Web browser or telephone.

Cardholders typically need to change their PINs because they either cannot remember a randomly assigned PIN, they want to use one PIN across multiple cards, or they have entered the wrong PIN multiple times and their card is now blocked. Traditional EMV PIN management methods require cardholders to physically go to their financial institution's chip-enabled ATM to change their PIN. With DCS' easyPIN, issuers do not a physical facility or ATM location to achieve the PIN change or to unblock a card.

DCS' easyPIN makes use of an Internet or phone connection and a small unconnected handheld smart card reader that is issued by the financial institution. Cardholders simply insert their EMV card into the smart card reader and follow the instructions that prompt them to change their PIN. This can be done through the online banking Web site, interactive voice response support or an optical interface.

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

8. STICK-ON RFID DRIVES MOBILE REWARDS PLATFORM - 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. INGENICO LAUNCHES NEXT GENERATION PAYMENT SECURITY WHITEPAPER
Source: Ingenico (06/04)

Ingenico announced the publication of its "End-to-End Security in an Open and Mobile World" whitepaper to coincide with its first International Security Forum which took place in Paris on June 4.

"Security is at the core of Ingenico's genes. It is the foundation on which we build our vision of an open and mobile world for the future of payment". Philippe Lazare, CEO Ingenico. With confidence and security key factors, the whitepaper identifies four essential principles at the very heart of the secure payments industry: confidentiality, authenticity, integrity and availability.

The report asserts that total security must take into consideration all elements of the transaction to eliminate risk of failure throughout the payment chain.

The demand for additional services at the point of sale is driving the development of new, function-rich payment devices - incorporating over-the-air administration tools, wireless and USB connectivity, colour screens and a more intuitive interface for the consumer. In addition, these terminals are increasingly incorporating open, standards-based technologies to allow third party application providers and merchants to create and deliver a host of new revenue generating services and applications.

This more complex, less proprietary and open environment requires the very highest levels of security. The paper investigates these new elements and discusses best practice to assure the very highest levels of security, right across the payment transaction value chain. This paper is available on the Ingenico web site.

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

10. CONTACTLESS CARDS MAKING INROADS ON TRANSIT SYSTEMS - 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. CANADIAN TRANSIT AGENCY TO TEST SMART CARDS
Source: ContactlessNews (06/04)

Some 200 University of Alberta, Canada employees who ride Edmonton's Light Rail Transit between the university's three campuses, will soon get to pilot a contactless transit card. The employees will be given preloaded, plastic cards that they can tap against readers installed at some of the stops.

Transit security will also be equipped with portable card readers, allowing them to scan the passengers' smart cards to insure they've paid for the trip. While the pilot can be expanded to include more LRT riders, it was noted that installing card readers in the city's buses would be expensive.

12. CHASE PAYMENTECH SIMPLIFIES CHIP AND PIN MIGRATION FOR INTEGRATED MERCHANTS
Source: Canada Newswire (06/08)
Chase Paymentech(TM) is pleased to introduce their Electronic Cash Register Interface (ECRi); a semi-integrated solution that is certified for EMV and is PCI compliant.

"Chase Paymentech is always looking for solutions that help merchants improve the way they accept payments and the customer experience. ECRi is the ideal solution for the retailer who wants to migrate to EMV with as little work and cost as possible," Bill Farris, Product Management, Chase Paymentech Beyond the benefits related directly to chip migration and PCI compliance, ECRi offers integrated merchants the option to leverage their existing Chase Paymentech point-of-sale (POS) solution and use the latest in payment technology for a fraction of the costs they would otherwise pay to certify their mag-stripe payment application.

Chase is a member of ACT Canada; please visit http://www.chasepaymentech.ca.

13. MASTERCARD ACCREDITS COLLIS FOR TRAINING AND CONSULTANCY
Source: Collis (06/08)

Collis announced successful completion of the MasterCard Chip accreditation program to provide chip-related training courses and consultancy services to both issuing and acquiring banks and other companies involved in the payment industry.

Collis offers professional training and consultancy services worldwide to the full card industry as well as professional test tools for cards (Payment, Mobile, e-ID). Collis has worked with MasterCard and its customers for more than a decade. Collis is very pleased that it has been accredited to the highest requirements of the rules set by MasterCard for both training and consultancy services. The MasterCard accreditation acknowledges the high quality of the services Collis pursues to leverage the business of its customers.

Because of this accreditation, parties involved in the payment industry now get the unique opportunity to directly involve MasterCard knowledge and expertise in their chip migration projects through Collis. Collis consultants and training experts will ensure up to date information through their relationship with the MasterCard Worldwide organization.

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

14. OBERTHUR TEAMS WITH DYETRON FOR EMV IN COLUMBIA
Source: SecureIDNews (06/12)

lOberthur Technologies and Dyetron S.A, a provider of smart card-based technology solutions for the transportation, communications, government and financial sectors, announced a partnership to provide EMV cards in Colombia.

Colombia's Superintendencia Financiera has imposed a January 1, 2010 deadline for issuers and merchants to migrate to EMV payment because of rising fraud rates from standard magnetic stripe debit cards. After this deadline, the liability over fraudulent transaction rests solely on the party that hasn't upgraded to EMV - whether it be the issuer or the merchant.

Dyetron will utilize Oberthur's common personalization system and will be integrated in the worldwide Oberthur network of over 30 services centers. This will enable local banks to migrate seamlessly to EMV and international banks to easily deploy their EMV strategy in Colombia.

Oberthur is a member of ACT Canada; please visit http://www.oberthur.com

15. WHITE HOUSE REPORT CALLS FOR IDENTITY MANAGEMENT
Source: SecureIDNews (05/29)

The Cyberspace Policy Review, requested by President Barack Obama, says one step that could be taken to improve the security of the Internet is identity management.

"We cannot improve cybersecurity without improving authentication, and identity management is not just about authenticating people," the report states. "Authentication mechanisms also can help ensure that online transactions only involve trustworthy data, hardware, and software for networks and devices."

The report calls on the federal government to work with the private sector to create an online identity management system that uses privacy-enhancing technologies. As a starting point the report suggested using the National Science and Technology Council's (NSTC's) Subcommittee on Biometrics and Identity Management report that was released in 2008.

The report also states that the federal government should continue to fund the implementation of HSPD-12 and extending the availability of the credentials to operators of critical infrastructure and others.

16. GEMALTO PROVIDING PERSONALIZATION SERVICE FOR SINGAPORE NFC PILOT
Source: ContactlessNews (06/17)

Gemalto announced that it is providing personalization services to Citibank and Visa in support of the Citi - M1 mobile - Visa payWave NFC pilot in Singapore. ?

More than 750 merchant locations across Singapore are participating in the three-month pilot, which was launched in May 2009. Up to 300 selected Citi M1 Visa Platinum card members have been invited to join. They are able to purchase items at Visa payWave merchants simply by waving their NFC-enabled phones in front of a contactless reader at the point of sale.?

Gemalto is providing the management and preparation of sensitive user information from Citibank and to perform secure Visa personalization services on the phones enabling subscribers to gain access to the Visa payWave service on Singapore M1's mobile network.?

The service is performed at Gemalto's certified personalization facility in Singapore as part of the Gemalto's global Trusted Services Management service offer.

Gemalto, Citi Cards Canada & Visa Canada are members of ACT Canada; please visit http://www.gemalto.com; http://www.citicards.ca & http://www.visa.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.