Stakeholders Driving Payment Evolution and Digital Identity

November-December 2009 ACTion Newsletter

IN THIS ISSUE

1. Editorial Comment
2. Government of Canada Introduces Proposed Code of Conduct for Canadian Credit and Debit Card Industry
3. Scotiabank Partners With M-Com to Bring Mobile Banking To Canadians
4. MasterCard Canada Brings PayPass(TM) Payments to BlackBerry Smartphones
5. 1 In 6 Mobile Subscribers To Own NFC-Enabled Handsets By 2014 - Members Only
6. Hypercom Delivers Unified EMV Level 2 Implementation Across Optimum and Artema Product Platforms
7. Cellphone Sticker For Contactless Payments
8. Oberthur Technologies Launches Smart Lumiere Light-Emitting Payment Card
9. Organisations Collaborate To Launch Cross Industry Certification Model For Smart Cards With Post Issuance Functionality
10. Gartner Identifies The Top 10 Consumer Mobile Applications For 2012 - Members Only
11. Gemalto Launches Electronic European Residence Permit in Portugal
12. Threshold Financial Technologies Provides Critical Processing Services to ATB Financial
13. FIME Is Now Referenced By The AFSCM For The Validation Of Mobile NFC Applications For The "Nice, NFC City" Project
14. Panel Calls For National ID Vetting Standards - Members Only
15. STJ Retail Joins ACT Canada
16. Introducing Convego - The New Umbrella Brand Name For Payment Solutions From Giesecke & Devrient
17. Jersey Post Adopt First Self-Service Postal Kiosks In Europe With YESpay And Fujitsu

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

Scotiabank ~ member since 1997

GENERAL

Canadian Payments Association ~ member since 1998
IBM Canada ~ rejoined
STJ Retail ~ new member

SME

CanCard ~ member since 2008

ASSOCIATE

Smart Strategies ~ new member

CALENDAR OF EVENTS

ACT Canada presents Cardware 2010: Payment Insights
June 22-23, 2010
Sheraton Fallsview, Niagara Falls, ON, Canada
50% of the booth space is now reserved

1. EDITORIAL COMMENT
Source: Catherine Johnston, President & CEO, ACT Canada (11/26)

Wisdom

This is the last editorial for the year and certainly not the one I thought I might have to write as we started the year. 2009 started with a great deal of concern for many of our members, but the association was cautiously optimistic.

As it turned out, the Canadian market saw both challenges and progress, but for ACT Canada it was our best of 20 years. This was because our members turned to us to help them overcome many of their challenges, using our services in new ways.

It has been an exhausting, but satisfying year as these new activities were in addition to all our normal programs.

So what do we see for 2010 - the year of the liability shift in secure payment? And what will we see in secure identity management and cyber security?

Many issuers will find a solution to their PIN Management situation. Issuers in general will start to look at the complexities and possibilities of multi-application cards. The debate between NFC and mobile payment will continue throughout the year, with stickers and trusted service managers at the heart of the debate. Cross border fraud will continue to plague Canadian issuers.

Many merchants will struggle to meet the shift date and US merchants will look to their Canadian counterparts for information.

Acquirers will have their hands full helping merchants.

Perhaps the most interesting thing in the secure payment space is the number of non-bank players who are planning to launch products and services to leverage the EMV infrastructure.

In the secure identity management and cyber security area we see many well intentioned people and organizations, but will 2010 provide a mechanism for them to work together to deal with escalating threats?

And for ACT Canada - we will continue to bring stakeholders together in both these areas, for the benefit of our members.

For 2010, I wish you a prosperous year, one full of wise choices. And as this year passes and you look back, I hope that you have been in a position to make choices that support your long term prosperity.

2. GOVERNMENT OF CANADA INTRODUCES PROPOSED CODE OF CONDUCT FOR CANADIAN CREDIT AND DEBIT CARD INDUSTRY
Source: Department of Finance (11/19)

The Honourable Jim Flaherty, Minister of Finance, released for public consultations a proposed Code of Conduct for the Credit and Debit Card Industry in Canada.

"This proposed Code is intended to promote fair business practices and ensure merchants and consumers clearly understand the costs and benefits of credit and debit cards," said Minister Flaherty.

The proposed Code of Conduct released today is based on ongoing discussions with merchant and consumer associations across Canada. Once adopted, the proposed Code would respond to their views by:

- Ensuring that merchants are fully aware of the costs associated with accepting credit and debit card payments.
- Providing merchants with increased pricing flexibility to encourage consumers to choose the lowest-cost payment option.
- Allowing merchants to freely choose which payment options they will accept.

The proposed Code of Conduct is being circulated for a 60-day comment period. During this period, stakeholders are invited to submit their views on how best to monitor compliance with the proposed Code. Comments can be submitted to codeconsult@fin.gc.ca.

The recently released credit card regulations complement this initiative in protecting credit card users by making clearer and more transparent information available to them.

Additional details can be found at http://www.fin.gc.ca/n08/data/09-109_1-eng.asp

3. SCOTIABANK PARTNERS WITH M-COM TO BRING MOBILE BANKING TO CANADIANS
Source: Canada Newswire (11/24)

Scotiabank announced a new partnership with M-Com, an international mobile banking and payments solution provider, that will bring mobile banking to Scotiabank customers in the spring of 2010.

"With more than 22 million cell phone subscribers in Canada, wireless phones are among the fastest growing consumer products in history*," said Mike Henry, Senior Vice-President, Sales & Service, Scotiabank. "Canadians rely on the convenience of mobile devices to help them manage their busy lifestyles, and having the ability to do their banking from their mobile devices will simplify their lives that much more.

Scotiabank's mobile banking service will provide personal and small business customers with easy access to their Scotiabank accounts from their mobile device, regardless of their mobile service provider. Customers will be able to view balances and transaction history, pay bills and make transfers.

Scotiabank is a member of ACT Canada; please visit http://www.scotiabank.com.

4. MASTERCARD CANADA BRINGS PAYPASS(TM) PAYMENTS TO BLACKBERRY SMARTPHONES
Source: Canada Newswire (11/26)

n partnership with BMO Bank of Montreal and Research In Motion, MasterCard Canada is bringing mobile payments to BlackBerry(R) smartphones through its MasterCard(R) PayPass(TM) 'tap and go' contactless payment technology. The four-month trial brings contactless payments via mobile devices a step closer to Canadians.

In this trial, participants will use PayPass(TM) Mobile Tag-equipped BlackBerry smartphones to make secure purchases at any of the 8,500 merchant locations in Canada that accept MasterCard PayPass.

For the first time, the mobile payment will integrate with the device, with a confirmation email of each transaction sent to the BlackBerry smartphone, including purchase details such as the amount, retailer and date of transaction.

The mobile payments in this trial are made possible through a PayPass Mobile Tag, a self-adhesive device that may be attached to a BlackBerry smartphone to add MasterCard PayPass contactless payment capability. The Mobile Tag contains the same chip and antenna found in a regular PayPass card, with the addition of special material to reduce interference between the Mobile Tag and the phone to which it is attached.

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

5. 1 IN 6 MOBILE SUBSCRIBERS TO OWN NFC-ENABLED HANDSETS BY 2014 - 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. HYPERCOM DELIVERS UNIFIED EMV LEVEL 2 IMPLEMENTATION ACROSS OPTIMUM AND ARTEMA PRODUCT PLATFORMS
Source: Hypercom (11/17 & 11/16)

Hypercom Corporation announced that it is now delivering a common, unified EMV Level 2 implementation across its major product lines. Effective immediately, the company's Optimum and Artema product platforms, both of which are EMV 4.2a Level 2 type approved, are using the exact same software kernel. The implementation includes Optimum and Artema countertop, mobile and unattended terminals. This initiative ensures a consistent user experience globally using these newly certified products with faster certification, streamlined application development and quicker time to market.

In other Hypercom news, Hypercom Corp. announced it has been awarded the prestigious Sesame Award at Cartes 2009 for its HyperSafe Remote Key System (HRKS).

Hypercom's Remote Key System is the industry's first standards-based remote key injection product that allows retailers to quickly and securely initiate on-site, in-store payment terminal key injection at the point-of-sale. The system offers a fast and highly secure alternative to the industry's traditional secure room key injection process.

Hypercom is a member of ACT Canada; please visit http://www.hypercom.com.

7. CELLPHONE STICKER FOR CONTACTLESS PAYMENTS
Source: Giesecke & Devrient (11/09)

Giesecke & Devrient (G&D) is providing a completely new form factor for debit cards. Convego® Air Mobile is a sticker which enables the user to pay contactlessly. The sticker contains the full functionality of a credit or debit card. Once the thin and pliable foil has been affixed to a cellphone or PDA the device can be used to pay bills at all cash terminals and ticket machines supporting the worldwide contactless MasterCard PayPass standard. The pay sticker is an important transitional technology on the way to contactless payment transactions by cellphone.

The G&D payment sticker is certified for MasterCard PayPass and can be used on all payment terminals which support contactless payment using MasterCard PayPass. Convego Air Mobile is already being used in several pilot projects by various banks in Europe and North America.

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

8. OBERTHUR TECHNOLOGIES LAUNCHES SMART LUMIERE LIGHT-EMITTING PAYMENT CARD
Source: The Paypers (11/06)

Oberthur Technologies has rolled out the Smart Lumiere light-emitting contactless card. The card is available both in dual contactless EMV and in pure contactless configuration. Smart Lumiere emits light when it is entered in the field of a contactless reader in order to inform the cardholder when a transaction is taking place.

Smart Lumiere comprises a translucent plastic core, antenna and illuminating light apparatus and is compliant with the ISO 14443 dual interface contactless payment standards.

For the cardholder, Smart Lumiere provides a visual cue to the cardholder that their contactless payment transaction has taken place, thus assisting issuers in reinforcing trust in contactless technology as a secure, convenient and rapid way to pay.

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

9. ORGANISATIONS COLLABORATE TO LAUNCH CROSS INDUSTRY CERTIFICATION MODEL FOR SMART CARDS WITH POST ISSUANCE FUNCTIONALITY
Source: Mobile Europe (11/24)

EMVCo, GlobalPlatform and the GSM Association (GSMA) have announced plans to develop a common, cross-industry certification model for secure elements with post-issuance capabilities. The aim is to simplify and speed up testing processes for pre-certified applications and certified UICC platforms, when they are redeployed.

The EMV standards body EMVCo, the international smart card infrastructure body GlobalPlatform, and global telecoms association the GSMA, have agreed to work together to define functional and security requirements for a common certification process. The resulting document will enable Mobile Network Operators (MNOs) and the payments industry to develop cross-industry certification schemes, for mobile platforms and payments applications respectively.

When fully developed and operational, the schemes will work together to ensure that any certified payment application will work with any certified UICC platform, reducing the incidence of certification failures when new application/platform combinations are subsequently added for testing.

The result will be significantly reduced testing and development costs and a faster time to market, it is claimed. Also, no further certifications will be necessary when loading applications with less stringent security requirements onto new UICC platforms.

10. GARTNER IDENTIFIES THE TOP 10 CONSUMER MOBILE APPLICATIONS FOR 2012 - 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. GEMALTO LAUNCHES ELECTRONIC EUROPEAN RESIDENCE PERMIT IN PORTUGAL
Source: ICMA Industry News (11/11)

Gemalto announced that Imprensa Nacional-Casa da Moeda (INCM), the Portuguese Mint and National Printing Office, has started issuing its Sealys Resident cards, compliant with the electronic European Residence Permit (eERP) specifications and the latest ICAO Extended Access Control standards. Gemalto is delivering 150,000 cards per year as of 2009 and over the next two years and supplied INCM with its Coesys Issuance personalization solution. The smart card permits dramatically improve document security and by deploying them, Portugal is fulfilling the European Union (EU) recommendation that requires all 27 Member States to roll out the eERP in 2010.

The electronic European Residence Permit card provides temporary residence entitlement for non-EU citizens for any stay over three months, and for some shorter work-related stays. It embeds a contactless chip which securely stores facial image and two fingerprints, simplifying residency entitlement verification. As defined in the eERP specifications, the contactless interface is mandatory and meets the same EU standards as biometric e-passports do. The permit also stores id-numbers such as social security and taxpayer identifiers.

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

12. THRESHOLD FINANCIAL TECHNOLOGIES PROVIDES CRITICAL PROCESSING SERVICES TO ATB FINANCIAL
Source: Threshold (11/24)

Threshold Financial Technologies Inc. (Threshold) is pleased to announce that it has been contracted to provide multi-faceted transaction processing services to Alberta-based ATB Financial (ATB). Threshold has completed the first phase of the project which entails driving ATB's ATM network, and providing transaction processing for all their ATM transactions. The second phase will involve Threshold providing enterprise card management and issuer processing services, including EMV processing. In addition, Threshold has been engaged to handle all ATM hardware and software maintenance support services for ATB's network.

With a network of more than 240 ATMs and more than 660,000 customers, ATB is the largest Alberta-based financial institution. Threshold is one of Canada's largest providers of ATM management and transaction processing services, offering unique solutions designed specifically for Canadian financial institutions.

ATB Financial and Threshold Financial Technologies Inc. are member of ACT Canada; please visit http://www.atb.com & http://www.threshold-fti.com.

13. FIME IS NOW REFERENCED BY THE AFSCM FOR THE VALIDATION OF MOBILE NFC APPLICATIONS (CARDLETS AND MIDLETS) FOR THE "NICE, NFC CITY" PROJECT
Source: : FIME (11/17)

FIME is now recognised by the AFSCM (The French Association for Mobile Contactless technology) as an independent entity for the validation of mobile NFC applications.

"FIME is showcasing our unique approach to NFC service providers for the city of Nice thanks to our skills that are twofold: a real strength is our expert knowledge in the process of validation tests and the expertise of an ITSEF lab. This reference is the crowning achievement in a year where FIME has substantially developed in the NFC domain. It brings our functional and security evaluation offers even closer together''.said Vincent POTY, Head of Strategy and Corporate Development for FIME.

The first stage of the ''Nice, NFC City'' project will see mobile operators providing equipment to at least 3000 clients, starting in 2010. These clients will be able to load and validate public transport tickets supplied by the Urban Community and used on the network operated by Veolia. This is made possible thanks to an initial operational deployment in Europe of a new generation of mobile phones and SIM cards known as ''contactless''. This means they are used as a secure element that stocks contactless services. Nice will be the first city in Europe to benefit from this technology.

This project is the fruit of several initiatives that aim to allow each one of us to use a mobile telephone to interact with our environment thanks to NFC. This contactless technology (Near Field Communication) is already the basis of services that have been successfully launched in Asia, notably in Japan (since 2004) and in South Korea.

FIME is a member of ACT Canada; please visit http://www.fime.com.

14. PANEL CALLS FOR NATIONAL ID VETTING STANDARDS - 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.

15. STJ RETAIL JOINS ACT CANADA
Source: STJ Retail (11/11)

STJ Retail, a leader in integrated retail payments solutions, announced that they have joined ACT Canada giving them general level member status. ACT Canada is internationally recognized as a reliable source of information on secure payment, secure identity management and advanced card technologies and applications, and is an authority on the Canadian marketplace.

"We believe that ACT Canada is a neutral forum for consumers, merchants and the media to learn about the Canadian payment marketplace and offers independent advice and insight to all stakeholders," said Dave Mahr, VP Sales & Marketing for STJ Retail. "We are looking forward to working with the executive team from ACT, as well as the other member organizations to assist in providing retailers with the guidance they require."

STJ Retail has a fully integrated EMV solution, across three card schemes (Visa, MasterCard and American Express), Interac and contactless. This solution is certified and has been in production for over a year. Several tier 1 retailers have chosen STJ's solution, EFT Plus™ to address Canadian EMV compliance.

"I am pleased to have STJ Retail join our association," said Catherine Johnson, President & CEO of ACT Canada. "They have spent a great deal of time educating retailers on payment card technologies and I believe strongly that their knowledge, perspective and enthusiasm will be a great addition to our membership."

STJ Retail is a member of ACT Canada; please visit http://www.stjretail.com.

16. . INTRODUCING CONVEGO - THE NEW UMBRELLA BRAND NAME FOR PAYMENT SOLUTIONS FROM GIESECKE & DEVRIENT
Source: : ICMA Industry News (11/19)

Giesecke & Devrient (G&D) is consolidating its Payment division's complete portfolio of products, systems and services under the international umbrella brand name Convego with immediate effect. This transition to a consistent nomenclature will give the company a more coherent market presence. The new Convego product family was unveiled at the CARTES international trade show in Paris (November 17-19, 2009).

The Convego umbrella brand covers all the product lines in G&D's payment portfolio. Convego Factors, for example, refers to card bodies in all their various forms, while Convego Air groups together all the products that allow a user to make payments using contactless technology. The Convego System and Convego Service product lines encompass the systems and solutions provided by G&D's Payment division.

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

17. JERSEY POST ADOPT FIRST SELF-SERVICE POSTAL KIOSKS IN EUROPE WITH YESPAY AND FUJITSU
Source: YESpay (11/26)

Jersey Post is the first postal operator in Europe to introduce radically new self-service post and pay kiosks supported by YESpay's payment processing service, throughout 3 of their sites. The introduction of the kiosks in Jersey Post's Broad Street and Central Market post offices was provided in partnership with Fujitsu.

Previously, the Channel Isle of Jersey's national postal operator was using bank-owned terminals to accept credit and debit card payments once customers had weighed their packages and parcels. With the introduction of the Fujitsu Postal kiosks and on-board self service application, integrated with YESpay's payment processing service, customers are now able to weigh, stamp and pay for packages to be posted quickly and efficiently, all at one small space-saving kiosk.

In addition to the postal capabilities, the Fujitsu postal application has an additional function of allowing customers to pay electricity and water bills, whilst reducing a huge amount of customer and staff time. This has lead to a fourth kiosk being introduced at the Jersey Electricity Company's Power House store in the island's capital, St Helier.

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