Stakeholders Driving Payment Evolution and Digital Identity

September 2009 ACTion Newsletter

IN THIS ISSUE

1. Editorial Comment
2. ACT Canada Announces New Board Of Directors
3. Oberthur Technologies To Provide Contactless Transit Cards For Montreal's Public Transport System
4. Interac And Pulse Collaborate To Provide Cash Access In Canada For Diners Club, Discover And Pulse Cardholders
5. 'Alternative' NFC Devices Face Price, Distribution Challenges: Report - Members Only
6. CPI Card Group Receives EMV Certification
7. Dynamic Card Solutions Announces Partnership With Threshold Financial Technologies To Deliver EMV Solutions In Canada
8. EMV Prospects For U.S. Appear Brighter, Card Group Says - Members Only
9. Canadian Tire Financial Services Launches Innovative New MasterCard Card
10. Starbucks Test Of Mfoundry System A Mobile-Pay Boost - Members Only
11. 'You'll Find It All' At Jean Coutu And Check-Out Faster With Visa payWave
12. Transportation Security Administration Awards CSC Contract For It Infrastructure Services
13. Gemalto's Trusted Services Management Solution Certified By MasterCard
14. NFC Mobile Payments To Exceed $30bn By 2012, Supported By Revenues From Mobile Coupons And Smart Posters - Members Only
15. France Awards Grants For NFC Projects
16. INSIDE Supplies Mobinear With Key NFC Technology
17. Former ACT Canada Director Named New Ombudsman For Banking Services And Investments

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

TD Canada Trust ~ member since 1996

GENERAL

Acsys/Interac Association ~ member since 1995
American Express ~ member since 2008
LoyaltyOne ~ member since 2008

GOVERNMENT

Canada Post ~ member since 2008

SME

A LA CARD ~ member since 2004
Carta Solutions ~ member since 2007

ASSOCIATE

FlexCard ~ member since 2008
Mike Vaselenack ~ new member
PJE Consulting ~ member since 2005

CALENDAR OF EVENTS

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

1. EDITORIAL COMMENT
Source: Catherine Johnston, President & CEO, ACT Canada (09/29)

Tipping Points for Identity Management and Secure Payment

Four years ago this month, I wrote about tipping points related to secure payment. I noted that Visa Canada had provided the first with their announced commitment to EMV and that the second was increased stakeholder interest and activity. Today we have more than 10 million highly secure credit and debit cards in the Canadian market, with more rolling out daily. Financial institutions are increasing security for their customers, and providing a platform for new services and conveniences. Merchants, consumer advocates, regulators and law enforcement have all be key stakeholders in the process. To bring these groups together on behalf of Canadians is a remarkable accomplishment that should be noted and applauded. So what about secure identity management?

In September 2005 the editorial also said, "Governments face the same situation; the need to increase Canadians' security and the desire to provide enhanced service delivery. As with the financial sector, it starts with a great deal of background work and planning before any announcements are made. We see work being done that could lead to announcements - the first tipping point for governments. The question we must ask is what can we do to support and accelerate those moves?"

This summer the Government of Canada issued a Directive on Identity Management. In order to fulfill the directive, federal government departments will have to follow a path similar to the one that Canadian financial institutions forged to deliver secure payment. It will make sense for provincial governments to do likewise.

There is a need to accelerate a move to secure identity management, because fraud always looks for the weak spot. As payment security increases, identity will become an increasingly attractive vulnerability. We can help by bringing stakeholders to the table, sharing information and best practices. ACT Canada takes a non-partisan approach to all issues and facilitates cooperation among and between all stakeholder groups.

On October 14th we invite senior bureaucrats to join us in Ottawa for a peer workshop on secure identity management. If you are a federal or provincial bureaucrat working on identity management files, please contact us at catherinej@actcda.com for an invitation.

2. ACT CANADA ANNOUNCES NEW BOARD OF DIRECTORS
Source: ACT Canada (09/29)

Following ACT Canada's Annual General Meeting on September 21st, we are pleased to announce the following Directors have been acclaimed to the Board:

  • Nino Di Teodoro, Vice President, Internet & Emerging Technologies, Citi Cards Canada Inc. - elected as Treasurer
  • Sharon Fisk, Director, Business Innovation & Support, ATB Financial
  • Catherine Johnston, President & CEO, ACT Canada
  • Sharon MacAlpine, Vice President - Strategy & Development, HSBC Credit Card Services - elected as Vice-Chair
  • Susan Reynolds, Director, Business Services, Coinamatic Canada Inc. - elected as Corporate Secretary
  • Didier Serra, General Manager & EVP Sales Americas, INSIDE Contactless
  • Allen Wright, Vice President, Product Management, Interac Association
  • Paul Zatychec, Director, EWA-Canada Ltd - elected as Chair

We congratulate all of our Directors and look forward to working with them in the coming year.

3. OBERTHUR TECHNOLOGIES TO PROVIDE CONTACTLESS TRANSIT CARDS FOR MONTREAL'S PUBLIC TRANSPORT SYSTEM
Source: PRNewswire (09/24)

Oberthur Technologies has been selected by STM (Societe de Transport de Montreal) to supply contactless cards for use throughout the Montreal region's public transport network.

As the sole supplier to STM, Oberthur Technologies will deliver the e-ticketing smart cards over the next four years, which can be used on buses, the subway and commuter trains throughout the Greater Montreal area and Quebec City, and can be recharged at automated fare vending machines or points of sale.

Made of highly durable PET-F plastic, the card is fully compliant with the Calypso(TM) international e-ticketing standard for smart cards and provides both a contact and contactless interface.

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

4. INTERAC AND PULSE COLLABORATE TO PROVIDE CASH ACCESS IN CANADA FOR DINERS CLUB, DISCOVER AND PULSE CARDHOLDERS
Source: Interac (08/31)

INTERAC and PULSE today announced an agreement to provide Diners Club, Discover and PULSE cardholders the ability to withdraw money from ABMs of participating Acquirers in Canada.

"The agreement with PULSE builds on INTERAC's commitment to expand international use of the payment network through relationships with other networks," said Mark O'Connell, President and CEO, Acxsys Corporation, architects of the INTERAC network.

Similar to INTERAC's Cross Border service, the PULSE and INTERAC connection eliminates network setup and ongoing costs for Canadian Acquirers.

PULSE, one of the largest ATM/debit networks in the United States, is part of Discover Financial Services. The relationship with PULSE is expected to drive incremental transaction volume for Canadian Acquirers.

"This collaboration demonstrates our commitment to serving the needs of our clients by bringing them innovative services to support and grow their businesses," said O'Connell. "The agreement will allow Canadian Acquirers to evolve their ABM service offerings by extending their services to additional cardholders travelling in Canada."

Access to the service was initiated for Diners Club cards in July. ABM acceptance for Discover and PULSE cards on the INTERAC network is scheduled for October 2009.

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

5. 'ALTERNATIVE' NFC DEVICES FACE PRICE, DISTRIBUTION CHALLENGES - 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. CPI CARD GROUP RECEIVES EMV CERTIFICATION
Source: ICMA Industry News (09/16)

CPI Card Group announced that its Canadian facility has been certified by Visa and Interac to manufacture and personalize EMV financial cards.

This latest certification adds to the existing MasterCard certification achieved by the Toronto location.

"We're pleased that CPI has met all of the Interac Association requirements to perform the function of a Card Personalization Bureau to support EMV chip card services for Interac Association members," says Allen Wright, VP, Product Management, Interac Association.

"We are passionate about supporting all our customers with innovative and flexible card products and services to help them better compete in the marketplace. We are ushering in a flexible and open platform technology that gives our financial institutions choices for their EMV solution," says Anna Rossetti, President of the Canadian facility.

CPI provides end-to-end solutions from manufacturing to data preparation, personalization and fulfillment of cards at their Toronto location. CPI serves the financial services, government, and commercial markets, including the gift, loyalty and membership; telecommunications; insurance and entertainment market segments of the commercial market.

CPI Card Group, Interac Association, MasterCard Canada & Visa Canada are members of ACT Canada; please visit http://www.cpicardgroup.com; http://www.interac.ca; http://www.mastercard.ca & http://www.visa.ca.

7. DYNAMIC CARD SOLUTIONS ANNOUNCES PARTNERSHIP WITH THRESHOLD FINANCIAL TECHNOLOGIES TO DELIVER EMV SOLUTIONS IN CANADA
Source: Dynamic Card Solutions (09/28)

CDynamic Card Solutions announced a partnership with Threshold Financial Technologies Inc. to offer financial institutions a comprehensive EMV PIN change and card issuance solution using DCS' patented CardWizard® software.

Threshold provides payment processing, fully managed ATM and card issuing solutions to over 65 financial institutions throughout Canada. The partnership between Threshold and DCS means Threshold's card issuing clients can transition from magnetic stripe cards to Chip and PIN cards, offering their cardholders convenient in-branch PIN selection, PIN change and instantly personalized chip cards. This is the first major in-branch EMV card issuance and PIN management initiative of its kind in Canada, potentially reaching several hundred branch locations.

Threshold's issuers can enable their cardholders to select or change the PIN when the card is first issued or anytime thereafter by simply visiting a branch location. Additional benefits include the ability to immediately replace lost or stolen cards on the spot. DCS' CardWizard software can fully personalize cards, program the chip, encode the magnetic stripe, and print or emboss cardholder details in real time, and can optionally activate the card for immediate usage. In-branch card issuing and PIN management eliminates the cost, risk and delay associated with the traditional PIN mailer and card delivery methods. CardWizard complies with issuing guidelines from numerous card brands including Interac, VISA and MasterCard.

In other news, Dynamic Card Solutions announced the appointment of Guy Berg as director of advanced payment technologies. In this role, Berg will help lead product development of DCS' smart card instant issuance and PIN change solutions. (09/22)

Dynamic Card Solutions, Interac Association, MasterCard Canada, Threshold Financial Technologies & Visa Canada are members of ACT Canada; please visit http://www.instantissuance.com; http://www.interac.ca; http://www.mastercard.ca; http://www.threshold-fti.com & http://www.visa.ca.

8. EMV PROSPECTS FOR U.S. APPEAR BRIGHTER- 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. CANADIAN TIRE FINANCIAL SERVICES LAUNCHES INNOVATIVE NEW MASTERCARD CARD
Source: Canadian Tire (09/29)

Canadian Tire Financial Services and MasterCard Worldwide are introducing a uniquely shaped credit card with contactless technology featuring cash back rewards, tailored to young professionals. The new Canadian Tire Curve MasterCard with the PayPass feature has no annual fee, offers valuable cash rewards on new purchases made at more than 29 million merchants around the world.

"The Curve MasterCard offers our customers cash back rewards and lots of flexibility at a time of life when they really need it," says Jim Kozack, vice president, Marketing, Canadian Tire Financial Services Limited.

"The card's fun, distinct shape is merged with secure contactless PayPass technology delivered by Giesecke & Devrient and is the first of its kind in Canada," commented Willis Morettin, senior vice president Sales & Marketing, Giesecke & Devrient Canada. "We are proud to play our part in delivering cutting-edge technology that is both remarkable and relevant."

Canadian Tire; Giesecke & Devrient and MasterCard Canada are members of ACT Canada; please visit http://www.ctfs.com; http://www.gi-de.com & http://www.mastercard.ca.

10. STARBUCKS TEST OF MFOUNDRY SYSTEM A MOBILE-PAY BOOST - 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. 'YOU'LL FIND IT ALL' AT JEAN COUTU AND CHECK-OUT FASTER WITH VISA PAYWAVE
Source: Visa (09/29)

Visa Inc. announced in Canada that The Jean Coutu Group, one of Canada's leading drugstore chains, is the latest retailer to offer its customers the speed and convenience of Visa payWave(TM) contactless payments. With Visa payWave, customers can simply "wave and go" when purchasing everyday items like the high quality health, hygiene and beauty products found in Jean Coutu stores.

Jean Coutu locations in Canada will be equipped with Visa payWave terminals to help increase speed at the cash register, which is an important feature in a busy drugstore.

The use of Visa payWave enabled Visa cards and point-of-sale terminals in Canada is closely aligned with Visa Canada's migration to chip card technology. Visa employs a layered approach to its fraud prevention efforts, meaning both the payWave card and the terminal have built-in measures to help heighten security efforts.

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

12. TRANSPORTATION SECURITY ADMINISTRATION AWARDS CSC CONTRACT FOR IT INFRASTRUCTURE SERVICES
Source: CSC (09/28)

CSC announced that the Transportation Security Administration (TSA) awarded the company a task order to support the Information Technology Infrastructure Program (ITIP). The task order, which falls under the Department of Homeland Security (DHS) Enterprise Acquisition Gateway for Leading Edge Solutions (EAGLE) contract, has a one-year base period and four one-year options with an estimated five-year contract value of $493 million.

Under the terms of the task order agreement, CSC will provide IT infrastructure services in support of the TSA. The ITIP services will support each of the TSA Office of Information Technology divisions for IT security, solutions delivery, business activities and operational effectiveness throughout the nation, including all U.S. airports.

The objective of the DHS EAGLE program is to provide an acquisition vehicle for a full range of IT services, technical and management expertise and solution-related enabling products.

CSC is a member of ACT Canada; please visit http://www.csc.com.

13. GEMALTO'S TRUSTED SERVICES MANAGEMENT SOLUTION CERTIFIED BY MASTERCARD
Source: Gemalto (09/17)

Gemalto announced it has achieved MasterCard certification for its TSM (Trusted Services Management) offer. The achievement demonstrates Gemalto's readiness for supporting commercial launches of mobile contactless payment programs, according to MasterCard's security requirements. This certification immediately applies to Gemalto's Taiwan-based data center and enables the company to support financial institutions in the deployment of their Near Field Communications (NFC) services on mobile phones. NFC technology is the wireless connectivity standard endorsed by the industry for data transfer over the mobile phone.

Gemalto's services allow for the secure deployment and management of contactless mobile payment. The certification establishes that MasterCard recognizes and endorses the company's ability to manage personal user information for banking transactions. For financial institutions, this is assurance that they can rollout their payment services on mobile phones with the highest level of security and data confidentiality.

"The role of the Trusted Services Manager is to provide independent, secure channels for service providers to conveniently engage their customer base into the mobile world," added Tan Teck Lee, President of Gemalto Asia. "It is a role built on security, interoperability and trust, which facilitates business between mobile network operators and service providers. We are very proud to receive this certification from MasterCard, which acknowledges Gemalto's ability to fulfill this role."

Gemalto and MasterCard Canada are members of ACT Canada; please visit http://www.gemalto.com & http://www.mastercard.ca.

14. NFC MOBILE PAYMENTS TO EXCEED $30BN BY 2012, SUPPORTED BY REVENUES FROM MOBILE COUPONS AND SMART POSTERS - 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. FRANCE AWARDS GRANTS FOR NFC PROJECTS
Source: CardLine Global (09/14)

France has awarded grants worth "several million euros" for 13 projects involving contactless technology, including Near Field Communication, according to press reports and a government statement. The grants were announced by Christian Estrosi, France's minister of industry and the mayor of Nice, a city set to see "precommercial" launches early next year of the short-range wireless technology for contactless payments, couponing and information downloads (CardLine Global, 12 June). The exact amount of funding was unclear Monday, and immediate comment from the French government was not available. The funding projects will include efforts to bring NFC ticketing to the Nice area; an effort backed by French card vendor Gemalto to enable cafeteria payments and building access for corporate employees; and an NFC campus card project at the University of Nice-Sophia Antipolis, according to United Kingdom-based Near Field Communications World and other sources. Transit agencies, retailers, issuers, mobile-phone operators and other organizations have conducted dozens of NFC tests around the world, and some observers expect the first large rollouts in 2010.

16. INSIDE SUPPLIES MOBINEAR WITH KEY NFC TECHNOLOGY
Source: INSIDE Contactless (09/29)

INSIDE Contactless announced a technology partnership to provide critical NFC technology to MobiNear, a world-leading provider of proximity mobile communications solutions. Through this cooperation, INSIDE is providing NFC reading capabilities to enhance the MobiNear Box kiosk, which will now be able to let people use their contactless transportation cards and NFC-enabled mobile phones to access MobiNear's PayGO platform for a broad range of payment, loyalty, access control and identification services.

"The MobiNear Box kiosk is our first solution to include NFC in addition to Bluetooth, BlueNFC and Wi-Fi interfaces, and we chose to work with INSIDE because they are the world leader in NFC technology," said Christian Chabrerie, founder and CEO of MobiNear. "INSIDE's NFC reader module provided a turnkey solution we were able to easily integrate into our MobiNear Box. This significantly reduced the development time and cost required to add NFC capabilities to our platform."

INSIDE's NFC reader module is a low-cost, low-power, multi-standard, 13.56-MHz proximity contactless coupler with a small, optimized footprint that makes it easy to incorporate into small devices to provide contactless capability. It is compatible with ISO 14443 A/B/B' and ISO 15693 protocols, and compliant with the Sony FeliCa protocol.

INSIDE Contactless is a member of ACT Canada; please visit http://www.insidecontactless.com.

17. FORMER ACT CANADA DIRECTOR NAMED NEW OMBUDSMAN FOR BANKING SERVICES AND INVESTMENTS
Source: ACT Canada (09/28)

Dr. Peggy-Anne Brown, Chair of the Board of Directors of OBSI, has announced the appointment of Douglas Melville as Ombudsman and CEO effective August 25, 2009.

Mr. Melville joined OBSI in early 2006 as Senior Deputy Ombudsman for Banking Services. Prior to this he held increasingly senior positions in the financial industry and was engaged in public and government sector projects in Canada and overseas as a policy analyst and consultant. He holds a B.A. from Carleton University, a law degree and an MBA from the University of Western Ontario, and a Master of Laws from Osgoode Hall Law School at York University. He has served on the boards of numerous financial industry bodies and not-for-profit organizations in the fields of anti-poverty policy and financial literacy, international development, and the performing arts.

As the Senior Deputy Ombudsman, Mr. Melville has presented at Cardware 08 and Cardware 09 for the financial sector. Catherine Johnston, President & CEO of ACT Canada reacted to the appointment, "This is a most relevant choice. Not only has Doug demonstrated his qualifications during his time at OBSI, he has an excellent understanding of emerging payments activities and technologies. This will serve all stakeholders well."

OBSI is a member of ACT Canada; please visit http://www.obsi.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.