Engaging, Enabling and Evolving Commerce in Canada since 1989

January 2010 ACTion Newsletter

IN THIS ISSUE

1. Editorial Comment
2. Saskatoon To Launch Contactless Transit System
3. Major Smart Card Players Join Forces To Advance Open And Secure Public Transport Smart Card Applications
4. Interac Contactless Terminal Interoperability & Confidence Test Package
5. iPhone In 2010: Mobile Commerce, Social Networking Star - Members Only
6. Gemalto Offers Fix For German Payment Card Date Bug
7. Visa Europe & RATP Test Potential Means To End Queuing At Ticket Booth With Visa Contactless
8. Ingenico & Orpak Agree To Partner To Sell New Outdoor Payment Terminal For Enhanced Security At Unattended Gasoline Stations & Convenience Stores
9. Oberthur Technologies Acquires Dyetron
10. Different Technologies Vie To Protect Payments - Members Only
11. Best Buy Makes Good On Threats To Visa Contactless
12. Arcot Supports Mastercard To Lower Cost, Increase Convenience Of Securing E-Banking And E-Commerce
13. G&D Buys Nokia's Share In Venyon
14. Mobile Banking Faces Uphill Battle In Mature Markets - Members Only
15. Gemalto Buys Xiring's Banking Group
16. Apriva, Visa Partner For Cashless Payment Solutions
17. Russian Mobile Network Operators To Run Joint NFC Pilots From 2010 - Members Only
18. ICCSIMTMAT Approved By EMVCO For Entry Point Approval Process
19. Forget Coins, Coca-Cola's New Olympic Vending Machines Take Visa

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

GENERAL

Canadian Western Bank ~ new member
Coinamatic ~ member since 1995
Galitt Canada ~ new member 2010
ICC Solutions ~ member since 2003
Multos International ~ member since 2007
NetSecure ~ member since 2008
Oberthur Technologies ~ member since 2005

ASSOCIATE

SICPA ~ member since 2009

CALENDAR OF EVENTS

ACT Canada's Mobile Strategic Leadership Team (MoSLT) Meeting
February 17, 2010
Toronto, ON
For more details please contact andrea@actcda.com.

Smart Card Alliance 2010 Payments Summit
February 23-25, 2010
Marriott City Center Hotel
Salt Lake City, UT
http://www.smartcardalliance.org

Cardware 2010: Payment Insights
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
http://www.actcda.com/calendar

1. EDITORIAL COMMENT
Source: Catherine Johnston, President & CEO, ACT Canada (01/27)

Microfinance and Humanitarianism: A win-win

The outpouring of donations for Haiti relief has been heartening, but we all accept that the long term needs are even greater than the immediate requirements.

Now is the time to prove that micro financing loans benefit everyone. Last fall, ACT Canada and the Women in Payments networking group raised enough money to sponsor two people in Haiti for a year, to start or grow their businesses.

We were amazed to hear from Linda Wolfond of FINCA Canada just how little money it takes to start a chain of positive change. As little as $2 a day helps grow a business. That leads to more growth, better lives, and often more education. This is a ripple effect that continues to pay back forever. It spreads from a person to a family, to a community, to a country, to the entire world. The loan repayment rate exceeds 98%, and in addition to building their own businesses, the loan recipients gain many other skills.

Microfinance is the right thing to do - it's good business - and in the end we all benefit. Let's do it!

If you would like to know more about FINCA International please visit www.villagebanking.org. If you are interested in our Women in Payments networking group, please email us at .

2. SASKATOON TO LAUNCH CONTACTLESS TRANSIT SYSTEM
Source: Contactless News (2009/12/09)

Beginning February 2010, the city of Saskatoon in Saskatchewan, Canada is launching a $2.9 million initiative to install contactless smart card technology on its entire bus fleet, according to The Star Phoenix.

Under the new system, riders will exclusively use smart cards called Go-Passes to pay for bus fare. As of Jan. 20, paper money and tickets will no longer be accepted as forms of payment.

Installation of the new fare boxes on buses began in November, but the system isn't set to kick off until Feb. 1, by which time the transit department will have launched an ad campaign teaching the Saskatonians how to operate their new cards.

3. MAJOR SMART CARD PLAYERS JOIN FORCES TO ADVANCE OPEN AND SECURE PUBLIC TRANSPORT SMART CARD APPLICATIONS
Source: Giesecke & Devrient (01/26)

Giesecke & Devrient (G&D), Oberthur Technologies, Infineon Technologies, and INSIDE Contactless announced they have launched an industry initiative to provide a new security solution for next-generation smart card based public transport applications. The solution will build on an open standard now being implemented by the four partner companies, which will eventually be governed by an independent body. Companies active in the smart card arena - providers of chips, smart cards, application-specific operating software, reader devices and transportation systems - are invited to join the initiative for the advancement of more secure public transportation applications.

The new standard promises to bring a number of key benefits to both public transport agencies and smart card industry players, including higher performance and advanced system security for public transport applications, as well as the availability of multiple sources for chip products. Through independent testing, the open standard will also provide optimized interoperability to enable simple and fast integration into public transport schemes. The first emulation chips and transportation smart cards using this standard are scheduled to be available by the end of 2010.

Giesecke & Devrient, Infineon Technologies, INSIDE Contactless and Oberthur Technologies are member of ACT Canada; please visit http://www.gi-de.com; http://www.infineon.com; http://www.insidecontactless.com & http://www.oberthur.com.

4. INTERAC CONTACTLESS TERMINAL INTEROPERABILITY AND CONFIDENCE TEST PACKAGE
Source: ICC Solutions (2009/12/12)

ICC Solutions is delighted to announce the immediate availability of INTERAC Contactless Terminal Interoperability and Confidence Test Package. This test package is used to check compliance of a combined or integrated contactless terminal application and reader against the criteria outlined in the corresponding test guide.

Terminals and Readers will have been through the certification process with an Interac Association Laboratory (for contactless) and an EMVCo laboratory (for contact) potentially at different times (and only certified at that time for one or the other interface). The objective is to ensure that both contact and contactless interfaces are functioning correctly prior to deployment.

This test package is built on the industry recognised ICCSimTMat test platform which is also used to test compliance with the test cases defined in the INTERAC Contactless Terminal Application Certification Guide. ICC Solutions contributed to the development of the INTERAC Contactless Terminal Interoperability and Confidence Test Guide.

ICC Solutions and Interac Association are members of ACT Canada; please visit http://www.iccsolutions.com & http://www.interac.ca.

5. IPHONE IN 2010: MOBILE COMMERCE, SOCIAL NETWORKING STAR - 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 OFFERS FIX FOR GERMAN PAYMENT CARD DATE BUG
Source: PC World (01/13)

Smart card vendor Gemalto said it is distributing a software fix to banks for a programming glitch that caused millions of German payment cards to stop working.

But it may be several weeks before the software is fully deployed by the banks, according to Rémi Calvet, Gemalto spokesman.

"It will take a bit of time," Calvet said. "We have done our best to work with our banking customers to ensure the security issue is addressed."

The programming problem, discovered last week, was related to an end-of-year date change to 2010. Up to 20 million ATM cards, known as Girocards or EC cards in Germany, and 3.5 million credit cards are affected, the German Savings Banks and Giro Association (DSGV) said.

DSGV approved Gemalto's software fix on Jan. 7. The software fix will in part be implemented as people put their cards into ATMs and point-of-sale devices, although Calvet said he could not release further details.

The software fix avoided the need to replace payment cards, which could have been expensive for banks.

Gemalto estimated that the payment card fiasco could cost the company between €6 million to €10 million (US$8.7 million to $14.5 million).

Gemalto couldn't say exactly how many cards were affected. Most of the cards were issued by German financial institutions. DSGV has recommended that people keep enough cash on hand just in case their cards don't work

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

7. VISA EUROPE AND RATP TEST POTENTIAL MEANS TO END QUEUING AT TICKET BOOTH WITH VISA CONTACTLESS
Source: SmartCardTrends (2009/12/16)

Visa Europe and Régie Autonome des Transports Parisiens (RATP) have signed a Memorandum of Understanding, regarding the introduction of a system never before seen in Europe, which will allow passengers to use their Visa contactless cards as tickets for the Paris Metro. The agreement focuses on conducting a proof of concept which aims to pave the way for direct payments to access gates.

The main aim of this new system is to make travel simpler for tourists passing through the capital: these visitors will now be able to use their Visa contactless cards as travel tickets. More broadly the aim is to reduce queues at RATP ticket counters, and offer an additional service to holders of these cards, who will now be able to use this one item for several purposes: making payments and travelling.

At the beginning of 2010, the new system will be tested on a few stations in Ile de France. Tests will involve employees of RATP. This test will be conducted in collaboration with La Banque Postale and allow the processing of a full end to end Visa contactless card payment transaction at the RATP gates. "This will be an important milestone in our relationship with RATP, and will demonstrate that contactless bank cards can make operations simple for RATP while improving the customer experience," said Jean-Marie Dragon, Head of Means of Payments at La Banque Postale.

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

8. INGENICO AND ORPAK AGREE TO PARTNER TO SELL NEW OUTDOOR PAYMENT TERMINAL FOR ENHANCED SECURITY AT UNATTENDED GASOLINE STATIONS & CONVENIENCE STORES
Source: Ingenico (01/12)

Ingenico and Orpak Systems Ltd., the leading provider of end-to-end solutions for the automation of fuel stations, announced today a partnership to distribute an affordable and secure unattended outdoor payment terminal for petro merchants and unattended retail operations.

Orpak will provide the terminal using Ingenico's secure operating system, making it one of the most protected and cost-effective ruggedized payment devices available today. Ingenico is the preferred distributor for the new terminal across North America.

Responding to the rising costs of fraud and the demand for a higher degree of transaction security, payment card companies are pushing North American gas station and convenience store owners to adopt PCI-PED-approved and EMV-capable unattended payment terminals.

The first new terminal to be delivered, according to this agreement, the i9780UPT, accepts EMV, contactless and magnetic swipe cards and easily integrates into current fuel pump configurations. Using tripleDES technology, these are the most secure devices available and are certified for the latest payment security standards: EMV L1 & L2 and PCI-PED approved.

Major benefits:

  • Reduce risk of PCI-compliance fines and penalties
  • Reduce brand damage associated with security violations
  • Improved deployment of services to the pump and increased functionality of the device
  • Complements the enterprise solution as the same application runs in the store and on the pump
  • Front loading paper eliminates vulnerabilities

The co-branded petro payment terminals are flexible and available in modular forms to allow for a variety of installation options either in the pump dispenser, next to the dispenser, or in standalone mode. The payment terminal will provide a cost-effective alternative solution to existing pay at the pump payment and other open-air retail options.

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

9. OBERTHUR TECHNOLOGIES ACQUIRES DYETRON
Source: Datamonitor (01/15)

Oberthur Technologies has acquired the payment card personalization assets of Dyetron, a provider of smart card-based technology solutions.

Oberthur Technologies and Dyetron formed a partnership in June of 2009, utilizing Dyetron's local presence and Oberthur's common personalization system, to create a service center that could assist with Colombia's migration to EMV.

Oberthur is now leasing the Colombia-based, MasterCard and Visa certified service center. The service center, which will operate under the name Oberthur Technologies offers migration for local banks and EMV deployment for international banks with customers in Colombia.

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

10. DIFFERENT TECHNOLOGIES VIE TO PROTECT PAYMENTS - 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. BEST BUY MAKES GOOD ON THREATS TO VISA CONTACTLESS
Source: Contactless News (01/08)

Best Buy announced that it has officially stopped accepting Visa's contactless cards due to the high fees associated with its usage. Even after months of receiving threats from Best Buy, Visa insists chains accept a more expensive signature authorization as opposed to the more retail-friendly PIN, according to Storefrontbacktalk.com. Visa's lack of a PIN option results in those transactions having a much higher interchange rate.

The $35 billion company began removing its acceptance of Visa contactless cards in October, completing the cutoff in November, said one Best Buy executive involved in the decision.

The cards were perceived as more convenient than mag-stripe, when in fact the time needed to wave the card was not significantly less than the time needed to swipe it. It is hard to say if this along with the high fees will cause other companies to follow Best Buy's suit.

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

12. ARCOT SUPPORTS MASTERCARD TO LOWER COST, INCREASE CONVENIENCE OF SECURING E-BANKING AND E-COMMERCE
Source: PRNewswire (01/13)

Arcot announced a new EMV authentication solution for cardholders to authenticate "Card Not Present" transactions using their mobile phones. This new solution -- ArcotOTP -- lowers the cost of providing EMV authentication and increases the convenience for cardholders on the go.

ArcotOTP can be used by the hundreds of millions of EMV cardholders and allows them to use their mobile phones to secure e-banking, e-commerce, telephone orders or a whole host of other transactions where the customer is not face-to-face with the bank or merchant. The new ArcotOTP mobile application, combined with the Chip Authentication Program (CAP) solution from MasterCard, increases security, reduces the risk of fraud and makes it easy for cardholders to shop or bank online no matter where they are in the world.

The ArcotOTP mobile solution extends the range of devices available for MasterCard CAP authentication and provides customers with the ability to authenticate with an application that runs on their mobile phones. Because ArcotOTP is compliant with MasterCard CAP, it can be used in conjunction with other EMV authentication devices. For instance, a consumer may authenticate with a personal card reader at home but use the mobile ArcotOTP while on the go.

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

13. G&D BUYS NOKIA'S SHARE IN VENYON
Source: Giesecke & Devrient (2009/12/01)

Giesecke & Devrient (G&D) and Nokia announced that G&D has become the sole shareholder in Venyon Oy by acquiring the shares held by Nokia. G&D held a majority of the shares before the acquisition. Since its creation in 2006, Venyon has established itself as one of the leading trusted service managers (TSM) on the mobile near field communication (NFC) market.

"This move to acquire full ownership of Venyon is another key milestone in G&D's strategy. It will enable us to continue to expand our position as a provider of secure mobile phone solutions - from SIM and secure microSD cards through software to the secure administration of critical applications on the mobile phone," emphasized Karsten Ottenberg, CEO of Giesecke & Devrient. "The market for NFC solutions is expected to develop steadily. Venyon has built up leading service expertise in the NFC ecosystem, which will also be useful to us in other business sectors."

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

14. MOBILE BANKING FACES UPHILL BATTLE IN MATURE MARKETS - 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. GEMALTO BUYS XIRING'S BANKING GROUP
Source: SecureID News (01/16)

Gemalto and XIRING announced that they have completed exclusive negotiations and signed a binding contract related to the acquisition by Gemalto of the XIRING banking activity for more than $20 million. ?

XIRING is a provider of EMV-based strong authentication solutions for e-banking and e-commerce with more than 12 millions already deployed in Europe. ?

The transaction concerns all of the current activities of the banking business unit of XIRING dedicated to EMV-based strong authentication solutions for e-banking and e-commerce. The contract includes the transfer of the technical and commercial team and all the associated products, IP and technologies, on Dec. 31.?The transaction has no impact on XIRING non-banking activities or on other activities of Gemalto.

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

16. APRIVA, VISA PARTNER FOR CASHLESS PAYMENT SOLUTIONS
Source: Contactless News (01/21)

Apriva announced that it is partnering with Visa to introduce cashless payment technologies to US-based vending machine owners and operators.

Through the partnership, Apriva expects to integrate VISA payWave with Apriva's own wireless payment processing solution, giving vending machine owner and operators a turnkey approach to conduct cashless and contactless payment processing from vending machines.

Apriva and Visa Canada are members of ACT Canada; please visit http://www.apriva.com & http://www.visa.ca.

17. RUSSIAN MOBILE NETWORK OPERATORS TO RUN JOINT NFC PILOTS FROM 2010 - 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.

18. ICCSIMTMAT APPROVED BY EMVCO FOR ENTRY POINT APPROVAL PROCESS
Source: ICC Solutions (01/15)

ICC Solutions is delighted to announce the immediate availability of ICCSimTMat: Entry Point which is approved by EMVCo, and used by accredited test laboratories, for debug and quality assurance testing in connection with the EMVCo Terminal Type Approval Contactless Entry Point approval current process.

This test package is built on the industry recognised ICCSimTMat test platform which is also approved by EMVCo for EMV level 2 type approval used by terminal manufacturers and accredited test laboratories worldwide for development, debug, quality assurance and certification testing.

ICC Solutions Limited is able to offer a complete set of fully qualified test packages for all formal Payment Association certifications (INTERAC, MasterCard TIP, Visa ADVT and ADVT qVSDC Device Module) in addition to EMVCo Level 2 type approval. Additionally, these test tools can also be used during the development phase and internal quality assurance testing in readiness for the formal certification process.

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

18. FORGET COINS, COCA-COLA'S NEW OLYMPIC VENDING MACHINES TAKE VISA
Source: Vancouver Sun, By Kelly Sinoski (01/14)

Olympic sponsor Coca-Cola will be equipping 550 vending machines with the new Visa payWave contactless terminals, allowing customers to simply "wave and go" when buying a Coke.

No swiping or inserting, and in most instances neither a signature nor a PIN is required.

The majority of the machines will be placed at venues for the Olympic and Paralympic Games as well as at training centres in Vancouver and Whistler.

Visa Canada is a member of ACT Canada; please visit 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.