Engaging, Enabling and Evolving Commerce in Canada since 1989

July 2010 ACTion Newsletter

IN THIS ISSUE

1. Editorial Comment - Why are you doing that?
2. Major Canadian Payment Processors Support American Express Chip Cards
3. Home Trust Of Canada Selects Gemalto For EMV Migration
4. Toronto Board Of Trade Urges TTC To Stick With Presto
5. Global Mobile Payments Users To Exceed One Billion By 2014 With Over $1 Trillion In - Members Only Access
6. Canada Post To Introduce PIN Services In Post Offices
7. Edmonton Eyes All-In-One Smart Card System
8. MasterCard PayPass Sees 49% Growth In Q1
9. NXP, Toppan Release NFC Module For Integration Into PCS
10. Starbucks Plans To Expand Mobile-Payments System - Members Only Access
11. CSC & Brinqa Announce Strategic Reseller Agreement To Deliver Risk And Compliance Cybersecurity Solutions To Canadian Government Market
12. Samport, Hypercom & Structab Bring EMV Payments To Taxi Stockholm In Sweden
13. Giesecke & Devrient Sets Up Its Own Foundation
14. Industry Leaders Establish Mifare4mobile Industry Group
15. Creditcall Launching First Chip-And-Pin Mobile Payment Application - Members Only Access
16. Bristol Airport Adopts YESpay For E-Parking Payment Processing
17. Kasikornbank, AIS & Gemalto Bring NFC To Mobile Users In Thailand
18. Bling Sees Paypal Deal Opening Doors At Big Merchants - Members Only Access

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

ATB Financial ~ member since 2006
TD Merchant Services ~ member since 1996
VanCity ~ member since 2008

GENERAL

Collis ~ member since 2006
Mohawk Council of Akwesasne ~ new member
Open Solutions ~ rejoined
Threshold Financial ~ member since 2009

RETAIL

Suncor Energy Inc ~ new member

CALENDAR OF EVENTS

Smart Card Alliance 2010 Government Event
November 16-19, 2010
Washington, DC, USA
http://www.smartcardalliance.org

CARTES & IDentification 2010
December 7-9, 2010
Paris-Nord Villepinte Exhibition Centre
Paris, France
http://www.cartes.com

1. EDITORIAL COMMENT
Source: Catherine Johnston, President & CEO, ACT Canada (07/28)

Why are you doing that?

Are you working fewer hours than last year? Do you have peaks and valleys of activity throughout the year? Not likely. Why is that? It is technology - ironically the same technology that was supposed to reduce our work time. But is it the problem, or are we?.

I remember pc's being introduced into the office and I couldn't possibly imagine why I would want one in my home. "Homework" was something I stopped when I left school, but today technology allows us to take our work everywhere and we don't want to use the "off" button. The problem is so serious that governments have had to legislate to prevent us from emailing and texting while we drive!

So why are we so busy? Technology also allows us to pursue new business opportunities at a dizzying pace. As an executive, I can tell you that we are under pressure to pursue as many opportunities as possible. We are judged not only on the success of those we undertake, but also work under a cloud of suspicion that the ones we didn't follow might have been profitable.

Many companies have already hit the wall, with employees working 18 hours a day, seven days a week with the aid of technology. Until executives are allowed to selectively pursue business opportunities, to build and implement strategic plans, we will continue to marginalize our results and stress our employees. We can change this! Driving profit this (and every) quarter is important, but planning for and investing in future growth also leads to profit. We need to reserve time and resources for that.

We've seen the downside of "just in time" policies and procedures that delivered huge but unsustainable profits. We all need to use the off button to give ourselves time to ponder, to plan and to re-energize. I wish you every success.

2. MAJOR CANADIAN PAYMENT PROCESSORS SUPPORT AMERICAN EXPRESS CHIP CARDS
Source: Canada Newswire (07/02)

American Express has struck agreements with major payment processing providers, Chase Paymentech, Global Payments and Moneris Solutions to rollout American Express Chip & PIN services for Canadian merchants and Cardmembers.

"American Express has made significant investments to ensure that our Canadian network is ready for Chip technology. Many merchants and processors have already upgraded to Chip & PIN for American Express and our Cardmembers from international markets are using Chip & PIN at thousands of merchant locations across Canada today," said Howard Grosfield, President and CEO, Amex Bank of Canada. "As a global leader in emerging payments products, we are able to leverage our international experience to ensure a smooth transition for our merchants and Cardmembers, so they can take advantage of the added security features that Chip cards provide."

As a global card issuer and acquirer of payment transactions, American Express has extensive experience in Chip & PIN technology and has been investing in Chip & PIN capability for more than a decade. American Express Chip Cards are currently issued in over 25 international markets.

American Express is a member of ACT Canada; please visit http://www.amex.ca.

3. HOME TRUST OF CANADA SELECTS GEMALTO FOR EMV MIGRATION
Source: Gemalto (07/27)

Gemalto announced that it has been chosen to manage Home Trust Company's migration from magnetic stripe credit cards to EMV (Chip and PIN) smart payment cards. Home Trust is a Canadian Visa Issuer and one of Canada's leading trust companies, focusing on consumers who typically do not meet all the lending criteria of traditional financial institutions.

Gemalto is providing microprocessor payment cards, as well as data preparation, card personalization and fulfillment at Gemalto's state-of-the-art facility in Burlington, Ontario. Gemalto's consulting service is engaged with the project providing guidance in how to interact with all members of the payments ecosystem to ensure Home Trust is prepared to meet the Canadian EMV requirements. Gemalto will also train the Home Trust team extensively on all activities associated with EMV migration.

Gemalto and Home Trust Company are members of ACT Canada; please visit http://www.gemalto.com & http://www.hometrust.ca.

4. TORONTO BOARD OF TRADE URGES TTC TO STICK WITH PRESTO
Source: Contactless News (07/23)

The Toronto Board of Trade (TBT) is urging the Toronto Transit Commission (TTC) to stick with its plan of implementing Presto's smart cards instead of an open payment system for The Greater Toronto Area's public transit, according to thestar.com.

If implemented, Presto would allow commuters to tap on to all public transit systems in the GTA, Hamilton, or Ottawa using one singe card.

The TBT is concerned that an open payment system, which would accept smart cards, tokens, cash and even mobile payment, would end up costing the TTC more than it can afford.

A TTC report last fall quoted the price of rolling out Presto at $400 million, reports The Star. Of this sum, the Ontario government says it will pay $173 million, but the rest is up to the TTC.

The TBT also argues that a unified single card system would do more to promote regional transit systems than an open system with disparate payment methods.

5. GLOBAL MOBILE PAYMENTS USERS TO EXCEED ONE BILLION BY 2014 WITH OVER $1 TRILLION IN TRANSACTIONS TAKING PLACE IN THAT YEAR - 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. CANADA POST TO INTRODUCE PIN SERVICES IN POST OFFICES
Source: Canada Post (06/21)

Beginning in November 2010, Canadians will be able to reset or change their personal identification number (PIN) at no charge on select chip-enabled credit cards at most post offices across the country.

"At Canada Post, we have experience in protecting consumer information through our mail service and online with epostTM. Adding PIN services to our retail network provides chip cardholders with a secure convenient location to personalize their PIN number ensuring uninterrupted card use," said Mary Traversy, Senior Vice President of Transaction Mail at Canada Post.

Finding a location where PIN numbers can be changed and personalized can be a challenge for credit card holders as not all financial institutions have a physical location that is convenient or accessible to their cardholders. Through the Canada Post retail network, financial institutions can enable their customers to manage their PIN information easily and free of charge, thereby limiting transaction abandonment and reducing calls to customer call centres.

"With more than 6,500 post offices nationwide, Canada Post operates the largest retail network in the country. Financial institutions can benefit from this market reach and ensure their customers use and protect their credit cards," added Traversy.

Canada Post is a member of ACT Canada; please visit http://www.canadapost.ca.

7. EDMONTON EYES ALL-IN-ONE SMART CARD SYSTEM
Source: ContactlessNews (07/05)

The city of Edmonton, Canada is considering adopting a smart card system for transit, public libraries, parking, recreational facilities and other municipal services, according to CBC News.

In February, Edmonton's transportation and public works committee approved a report from city staff on the card for the Edmonton Transit System, which detailed plans for a debit-like smart card that would grant citizens access to multiple city services.

A more detailed proposal is expected to make it to the council for the 2012-14 capital budget discussions in the fall, says CBC News.

Recent figures suggest that the system would cost $23 million to implement, with a $6.9 million net return by 2025.

8. MASTERCARD PAYPASS SEES 49% GROWTH IN Q1
Source: Contactless News (06/28)

MasterCard's PayPass has recorded 49% growth in the first quarter of 2010 compared to the same period last year, according to bernama.com.

MasterCard says a major contributing factor to this growth is the high level of consumer satisfaction with the contactless payment service, with 94% of PayPass customers reporting they are "satisfied" to "very satisfied."

MasterCard also says it is "accelerating" its NFC mobile payment efforts by working with industry leaders, including Gemalto, to introduce new mobile "Tap & Go" style solutions. One such solution, called the Upteq N-Flex, is a wafer-thin device that can be inserted into virtually any mobile phone to turn it into a payment device. It is currently being piloted in Singapore with DBS Bank, EZ-Link and Starhub.

There are currently 75 million PayPass cards and devices in circulation worldwide accepted at 230,000 merchant locations.

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

9. NXP, TOPPAN RELEASE NFC MODULE FOR INTEGRATION INTO PCS
Source: NFC News (07/07)

NXP Semiconductors and Toppan Forms announced that their jointly developed NFC reader/writer module "TN33MUE002L" has been adopted by Lenovo in three ThinkPad laptop models for the global market: the T410, T510 and W510.

When built into a PC or a peripheral device, the module solution supports a variety of security and convenience features enabling transactions such as online banking, e-commerce, e-government online access and secure log-in for PCs.

According to NXP, the device is the first of its kind to be released to global markets. It is based on NXP Semiconductors' PN533 NFC IC, a microcontroller transmission module for contactless communication at 13.56 MHz.

The solution is compatible with the leading contactless smart cards in the market today, including MIFARE and FeliCa, the contactless card system used in Japan for transportation and electronic payment applications.

The module solution is also compatible with open standard-ISO 14443 types A and B-cards, used worldwide in many banking, government and public deployments, such as e-passports and Japanese drivers licenses, as well as with Windows XP, Windows Vista and Windows 7.

The module driver is available through Toppan Forms' NFC Software Development Kit for PC/SC, a program designed to expedite the production of contactless card-enabled applications.

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

10. STARBUCKS PLANS TO EXPAND MOBILE-PAYMENTS SYSTEM - 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. CSC & BRINQA ANNOUNCE STRATEGIC RESELLER AGREEMENT TO DELIVER RISK AND COMPLIANCE CYBERSECURITY SOLUTIONS TO CANADIAN GOVERNMENT MARKET
Source: CSC (07/28)

CSC and Brinqa announced a strategic agreement to bring Brinqa's risk and compliance software solutions to Canadian government customers of Computer Sciences Canada, Inc., a wholly owned subsidiary of CSC. CSC has exclusive rights to sell Brinqa's Threat and Risk Assessment module for information technology (IT) systems.

The Canadian government mandates that its federal departments and agencies conduct threat and risk assessments of their IT systems in accordance with the Harmonized Threat and Risk Assessment methodology, a primarily manual process. There is a strong demand to standardize the platform for information system security risk management to drive efficiencies in the assessment process, increase standardization and quality, and obtain better insight into the department's risk profile through the aggregation and analysis of risk information, which was previously not possible with paper-based reports.

The Brinqa platform provides comprehensive reports and dashboards that increase customer visibility into current risk posture, enabling informed decisions on future IT investments. Products offered by CSC under this partnership will include the Brinqa GRC Platform, Brinqa Risk Manager, Brinqa Privacy Manager, Brinqa Vendor Risk Manager, Brinqa Business Continuity Manager and Brinqa IAM Governance. Organizations can choose either an enterprise deployment or hosted solution.

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

12. SAMPORT, HYPERCOM AND STRUCTAB BRING EMV PAYMENTS TO TAXI STOCKHOLM IN SWEDEN
Source: Hypercom (07/21)

Hypercom Corporation announced that Samport Payment Services AB and Structab AB will supply 1,600 Hypercom Optimum M4100 EMV mobile payment terminals to Taxi Stockholm AB cabs transporting over 40,000 customers per day. The rollout is already underway in Stockholm and is expected to be completed before the end of the year.

"Taxi Stockholm is recognized for its first class and highly reliable service in transporting hundreds of thousands of commuters, visitors and other travelers. We are pleased to join with payment security experts Samport and Hypercom to support this leading transportation company's move to EMV," said Mikael Andersson, CEO, Structab AB.

With Structab AB's state-of-the-art MegTax taximeter and Hypercom's high security Optimum M4100 "Blade", the driver simply hands the M4100 to the customer with the amount of the fare already entered. The customer is prompted to proceed in the local language or in English, enters a gratuity in the local currency if desired, swipes or inserts a payment card for authorization, enters a PIN and receives a printed receipt.

"This deployment strengthens our position in the taxi vertical, expands our footprint in Europe's transportation sector, and brings new levels of speed, security and convenience to the taxi cab drivers and their passengers," said Peter Vesco, Managing Director, Hypercom Northern Europe.

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

13. GIESECKE & DEVRIENT SETS UP ITS OWN FOUNDATION
Source: Giesecke & Devrient (07/13)

The international technology provider Giesecke & Devrient (G&D) has set up its own foundation in Munich, Germany. Christoph Hillenbrand, District President of Upper Bavaria, will tofficially hand over the deed of foundation. The G&D Foundation will primarily focus its efforts on the fields of education, international understanding, and the printing arts.

It underscores the importance the company places on corporate social responsibility. The family-owned company Giesecke & Devrient is streamlining and stepping up its corporate citizenship activities by establishing a charitable foundation. The G&D Foundation is based in Munich and has been furnished with principal assets of 20 million euros. The annual returns from investment of this capital will be channeled into the foundation to enable it to carry out its work, while the capital itself must remain untouched. This will ensure that the foundation takes a sustainable approach to promoting the public good.

The foundation will primarily focus its efforts on the fields of education, international understanding, and the printing arts. In terms of education, the G&D Foundation plans to support existing projects and programs for children and young people while also setting up its own initiatives.

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

14. INDUSTRY LEADERS ESTABLISH MIFARE4MOBILE INDUSTRY GROUP
Source: NXP (06/30)

Seven leading players in the Near Field Communication (NFC) ecosystem, Ericsson, Gemalto, NXP, Oberthur Technologies, STMicroelectronics, Venyon, a company in the Giesecke & Devrient group, and ViVOtech, joined forces to form the MIFARE4Mobile™ Industry Group. The aim of the group is to enable its members to collaborate and work together to standardize and advance the uniform management of MIFARE™ applications on NFC-enabled secure elements, such as SIM cards, and mobile phones.

MIFARE has become the most widely adopted contactless technology on the market today and is an essential element in public transportation schemes, ticketing systems and access management around the world. MIFARE4Mobile is a technology, which has been developed by NXP and is used to manage MIFARE-based services in NFC mobile devices, from the over-the-air installation to the end-user interaction via the user interface of the mobile phone. By bringing together some of the key players in the NFC ecosystem, the group will act as a platform to provide future direction, discuss experiences and share best practices to ensure evolution, interoperable development and implementation of the MIFARE4Mobile technology.

Over the next few months, the MIFARE4Mobile industry group will further develop the specifications supporting MIFARE DESFire™ technology and multiple Trusted Service Managers, following the initial MIFARE4Mobile release from late 2008 supporting MIFARE Classic technology. Licenses for the MIFARE4Mobile Interface specifications are free of charge.

The current version of the MIFARE4Mobile interfaces specifications, released by NXP, is available under http://www.mifare.net/products/mifare4mobile/ and has been licensed more than 200 times by major industry players around the world.

Gemalto, Giesecke & Devrient, NXP and Oberthur Technologies are members of ACT Canada; please visit http://www.gemalto.com, http://www.gi-de.com, http://www.nxp.com & http://www.oberthur.com.

15. CREDITCALL LAUNCHING FIRST CHIP-AND-PIN MOBILE PAYMENT APPLICATION - 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.

16. BRISTOL AIRPORT ADOPTS YESPAY FOR E-PARKING PAYMENT PROCESSING
Source: Contactless News (07/23)

Bristol Airport in the UK has switched to YESpay International's EMBOSS payment service to manage its online, Web-based parking transactions.

With EMBOSS, Bristol Airport is now able to perform high-speed secure authorization and settlement of large-volume contact/contactless credit and debit card payments.

EMBOSS features a secure cardholder authentication payment mechanism for e-commerce transactions, known as Verified-by-Visa (VBV) and MasterCard SecureCode (MSC), collectively referred to as 3D Secure. This is effectively equivalent to an online version of Chip and PIN, says YESpay.

Additionally, the service is fully pre-accredited by Barclaycard and other major UK acquirers and is also certified to Payment Card Industry Data Security Standards Level 1, according to YESpay.

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

17. KASIKORNBANK, AIS AND GEMALTO BRING NFC TO MOBILE USERS IN THAILAND
Source: Gemalto (07/20)

Gemalto announced it will provide its Trusted Services Management (TSM) service to support the launch of Near-Field Communication (NFC) applications in Thailand. The service is the first pan-Asian deployment for Gemalto's certified TSM center in Taiwan. This pioneering project has Gemalto partnering with KASIKORNBANK, the country's second largest bank, and with Advanced Info Services (AIS), the nation's largest telecommunications operator.

Mobile NFC opens up an entire new dimension in digital freedom for Thai consumers, transforming their mobile phones into contactless devices for touch-and-go applications, such as payment at retail outlet partners. Since starting in July 2010, selected customers simply collect their phone from KASIKORNBANK to enjoy mobile NFC services.

Gemalto is entrusted with the management and preparation of sensitive user information from KASIKORNBANK to operate secure over-the-air (OTA) personalization services that enable mobile subscribers to gain access to NFC payments and AIS services.

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

18. BLING SEES PAYPAL DEAL OPENING DOORS AT BIG MERCHANTS - Members Only Access

Available in the ACT Canada Members Only section of our web site. Click on the link below to access this section.
http://www.actcda.com/members-only/members-only-news/

If you are a member of ACT Canada but do not have your login details please contact me - andrea@actcda.com.

For more information, please contact Andrea McMullen at 1 905 426-6360 ext 124 or email andrea@actcda.com.

Please forward any comments, suggestions, questions or articles to andrea@actcda.com. Please note that articles contained in this newsletter have been edited for length, and are for information purposes only.