Engaging, Enabling and Evolving Commerce in Canada since 1989

March 2010 ACTion Newsletter

IN THIS ISSUE

1. Editorial Comment - What do consumers want?
2. Visa Works With CPI Card Group, INSIDE Contactless, Monitise Plc & NXP Semiconductors
3. Canada's Biometric Passport Promise Revived
4. Gemalto & Texas Instruments Collaborate To Deliver Secure Mobile Financial Services In Mobile Devices
5. Citi Sees Weak Demand For Mobile P2P Transfers, For Now - Members Only
6. Ingenico Debuts Innovative Mobile Commerce Applications
7. G&D Wins Cit Golden Card Award With Cell Phone Sticker For Contactless Payments
8. NBS Technologies Announces Its Latest Software Application To Personalize NFC-Enabled Devices For The Payment Industry
9. INSIDE Powers First Contactless Public Transit Payments In Latin America
10. Arkansas Adds Mobile-Payment Option For Some Services - Members Only
11. Pakistan To Issue Smart Identity Cards To Citizens
12. Level Four And Galitt Partner To Offer EMV Compliant ATM Testing In Canada
13. 2 New Canadian Mobile Payment Reports Available
14. Colorado Town Leading The Way With Contactless Payments, Reward - Members Only
15. Collis Welcomes Q-Card As A Value Added Reseller In The United States
16. MetroPCS Selects Gemalto To Provide LTE Universal Integrated Circuit Cards & Over-The-Air Platform
17. FIME launches A Range Of Services To Banks Worldwide With Their Consulting Offer

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

Credit Union Central of Canada ~ member since 1990

GENERAL

Canadian Banknote Ltd. ~ member since 2003
Citi Cards Canada ~ member since 2006
Dynamic Card Solutions ~ member since 2008
NBS Technologies ~ member since 2008

CALENDAR OF EVENTS

Smart Card Alliance 2010 Annual Conference
May 17 - 20, 2010
The Camelback Marriott Resort and Spa
Scottsdale, AZ, USA
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 (03/30)

What do consumers want?

Both EMV infrastructure and mobile phones provide opportunities for new payment products and services, but the question is, "what do consumers really want and what are they prepared to pay?"

A word of warning to issuers and research companies - be careful of the questions you ask.

Recent studies show that most Canadians don't see the need for more payment options. The credit, debit and cash options in their wallets meet most of their needs. What they have expressed interest in are products deemed to be more secure. In fact, for the first time in 20 years, we are seeing security surpass convenience as the top consideration related to consumer payment choices. Ubiquity also stays in the top four criteria, along with cost/value.

Your research questions must address all of these if you are going to get an accurate assessment of your opportunity. Lately we have been surveyed more than once about new payment options. One of the surveys was balanced, thorough and clearly the result of a lot of planning by the client and research company. At the end of it, I felt that the questions allowed me to provide objective answers. The other survey was poorly thought out. By the end of it, I concluded I had no interest in the product, based on the questions asked. The irony is that I know what the product is really designed for and can't wait to have it in my wallet!

Security, convenience, ubiquity and cost/value. Consumers can't know if they want your product or service until you tell them about all four of these.

2. VISA WORKS WITH CPI CARD GROUP, INSIDE CONTACTLESS, MONITISE PLC, AND NXP SEMICONDUCTORS
Source: ACT Canada Editor's Note (03/31)

Editor's note. Last month we ran a story entitled "VISA & DEVICEFIDELITY COLLABORATE TO ACCELERATE ADOPTION OF MOBILE CONTACTLESS PAYMENTS."

The final paragraph of the story disappeared between edits, but should have been:
In addition to DeviceFidelity, Visa is also working with key technology providers and strategic alliance partners to test and deploy this innovative mobile contactless payment technology, including CPI Card Group, INSIDE Contactless, Monitise plc, and NXP Semiconductors.

CPI Card Group, INSIDE Contactless; NXP Semiconductors and Visa Canada are members of ACT Canada; please visit http://www.cpicardgroup.com; http://www.insidecontactless.com; http://www.nxp.com & http://www.visa.ca.

3. CANADA'S BIOMETRIC PASSPORT PROMISE REVIVED
Source: The Star (03/04)

The Conservative government has vowed to press ahead with biometric passports for Canadians, two years after first promising to adopt a more secure electronic travel document by 2011.

A passport encrypted with biological information "will significantly improve security," one of several measures previously promised and highlighted under the title of criminal justice and national security improvements in Wednesday's throne speech.

First promised in the 2008 federal budget, the advent of a passport with encoded identification information, such as an iris scan, fingerprints, or facial recognition data, was delayed by questions over logistics, and how to cover costs.

In 2008, the federal Conservatives said the passports, when introduced, would be valid for 10 years - deemed too long by some for security reasons.

4. GEMALTO & TEXAS INSTRUMENTS COLLABORATE TO DELIVER SECURE MOBILE FINANCIAL SERVICES IN MOBILE DEVICES'
Source: Gemalto (03/22)

Gemalto announced collaboration with Texas Instruments Incorporated (TI) to enable Gemalto Mobile Financial Services on TI's OMAP platform and M-Shield security technology for mobile devices. The solution provides an integrated security platform for handset manufacturers and carriers to create a rich user experience for customers to securely conduct mobile financial transactions

"As mobile devices become increasingly personal, end users continue to share and access more sensitive information on the go, including mobile financial services," said Fred Cohen, Director, wireless OMAP ecosystem at TI. " TI's OMAP platform and Trusted Logic's Trusted Foundation software together provide a strong balance of security and functionality for manufacturers and operators to increase security, instill confidence in their offerings and protect customers' assets. This allows end users to experience rich mobile user interfaces in the secure application environment provided by our combined offering."

Gemalto's Mobile Financial Services runs on TI's OMAP platform trusted execution environment, which includes Trusted Logic's Trusted Foundations. This secure environment provides protection for financial based applications stored and used on leading smartphones built with the TI OMAP processor equipped with M-Shield security technology. Applications can be secured with strong two-factor authentication - verifying the user and the phone - which requires the user to enter securely a personal identification number (PIN) prior to gaining access to financial services applications.

Gemalto is a member of ACT Canada and a sponsor of Cardware 2010; please visit http://www.gemalto.com.

5. CITI SEES WEAK DEMAND FOR MOBILE P2P TRANSFERS, FOR NOW - 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. INGENICO DEBUTS INNOVATIVE MOBILE COMMERCE APPLICATIONS
Source: Ingenico (03/02)

Ingenico continues its innovative path to provide business owners and merchants with the most secure and scalable mobile commerce solutions. Today the company introduced Ingenico ROAM suite of mobile applications including ROAMpay and ROAMbuy to help sales agents, mobile workforce professionals, and merchants reach and service consumers on their own mobile phones.

"Ingenico's mobile applications work on virtually any mobile phone and allow merchants to leverage their existing investment in mobile technology without changing phones or networks," said Christopher Justice, president, North America. "Mobile Commerce represents the ultimate convenience for mobile users to conduct business anytime anywhere. Our products provide a robust and agile mix of mCommerce services including credit and debit payment acceptance, mobile storefront, and customized enterprise business applications to end users."

Recently Ingenico made a global strategic investment to work with ROAM Data Inc., a Boston-based mobile application service provider and their technology to deliver a breakthrough mobile commerce solution. ROAM's patented technology enables it to be the only provider to dynamically deliver business and payment applications to nearly 200 million US customers, regardless of carrier on hundreds of different devices from smartphones to feature phones running J2ME and Brew.

Ingenico ROAM offers merchants and mobile professionals complete freedom of choice to develop mobile commerce applications that work on the iPhone, BlackBerry, Google, and hundreds of other devices. Unlike static, device-specific applications that are costly and difficult to change, Ingenico ROAM is a scalable service that can be changed quickly and easily. For example, when Google released the nexus one™ phone, Ingenico had a working application released within two days. The ROAMpay application can be downloaded from the iTunes® App Store or directly accessed on Ingenico ROAM website at www.ingenico-us.com.

Ingenico is a member of ACT Canada and exhibitor at Cardware 2010; please visit http://www.ingenico.com.

7. G&D WINS CIT GOLDEN CARD AWARD WITH CELL PHONE STICKER FOR CONTACTLESS PAYMENTS
Source: Giesecke & Devrient (03/09)

Convego(R) Air Mobile, the sticker for contactless payment from Giesecke & Devrient (G&D), was a winner at this year's CIT Golden Card awards in the category of "most innovative payment card". Organized since 2002 by IIR, the Institute for International Research, the Golden Card awards set out to recognize excellence in the smart card industry. The awards are given in conjunction with the CIT Congress, Spain's leading smart card event, held annually in Madrid. This will take place on March 9-10 this year, when G&D will present its Convego Air Mobile card.

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(R) PayPass standard. The pay sticker is an important transitional technology on the way to contactless payment transactions by cellphone.

Giesecke & Devrient is a member of ACT Canada, sponsor and exhibitor at Cardware 2010; please visit http://www.gi-de.com.

8. NBS TECHNOLOGIES ANNOUNCES ITS LATEST SOFTWARE APPLICATION TO PERSONALIZE NFC-ENABLED DEVICES FOR THE PAYMENT INDUSTRY
Source: NBS Technologies (03/21)

NBS Technologies Inc announced the addition of a Near Field Communications ("NFC") application to its tried and tested suite of personalization software, UbiQPersoMaster.

NFC technology is a short-range wireless connectivity technology built upon existing contactless technology which can be built in to a variety of devices. NFC is both a "read" and "write" technology and provides communication between two NFC-compatible devices when they are brought within four centimeters of one another: a simple wave or touch can establish an NFC connection. NFC-enabled transactions are inherently secure because the transmission range is so short. The underlying layers of NFC technology follow universally implemented ISO, ECMA, and ETSI standards.

NBS's UbiQPersoMaster software application is aimed at the personalization of NFC devices to enable secure financial transactions.

"We felt that our foray into NFC-enabled personalization was a logical step for UbiQ Software, since we have had extensive success within the card personalization software business. It's very exciting," says Ron Stephenson, Director, UbiQ Software, "This new application allows your mobile phone to also be your credit card - it makes your cell phone almost the only thing you need to carry with you - a truly multi-purpose device for consumers."

Financial institutions utilizing this application can effectively personalize a customer's NFC-enabled mobile phone with their credit card information - similar to the current contactless credit card, a customer's mobile phone is now waved in front of the NFC-enabled POS terminal and the purchase registers on the customer's account.

NBS Technologies is a member of ACT Canada and an exhibitor at Cardware 2010; please visit http://www.nbstech.com.

9. INSIDE POWERS FIRST CONTACTLESS PUBLIC TRANSIT PAYMENTS IN LATIN AMERICA
Source: INSIDE Contactless (03/30)

INSIDE Contactless announced that its award-winning MicroPass® 4003 contactless intelligent payment processor is powering the MasterCard® PayPass contactless payment technology recently launched in Rio de Janeiro, Brazil. Housed in a convenient key fob form factor and employing a unique antenna design, the MicroPass 4003 is the first contactless payment technology introduced in Latin America that people can use to pay their fare on public transportation systems.

MasterCard cardholders in Rio de Janeiro can use their MicroPass-powered key fobs to quickly and easily pay at the Pão de Açúcar (Sugarloaf Mountain) lift, Supervia train stations, UCI cinemas, McDonald's fast food restaurants and Estapar/Riopark parking lots throughout the city, and will soon be able to use them at the Rio de Janeiro Metro system. Redecard, the Brazilian acquiring company, plans to add more PayPass merchant acceptance locations in the near future.

G&D's key fobs are manufactured using a specially designed inlay based upon the MicroPass 4003 contactless payment platform, which was designed from the ground up to support MasterCard PayPass contactless payment application, and employs a special high performance antenna design that fits within the small form factor.

INSIDE Contactless is a member of ACT Canada; please visit http://www.insidecontactless.com. Giesecke & Devrient is a member of ACT Canada, sponsor and exhibitor at Cardware 2010; please visit http://www.gi-de.com.

10. ARKANSAS ADDS MOBILE-PAYMENT OPTION FOR SOME SERVICES - 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. PAKISTAN TO ISSUE SMART IDENTITY CARDS TO CITIZENS
Source: ICMA (03/19)

Pakistan's National Database Regulatory Authority (Nadra) is introducing chip-based technology soon to make computerized national identity cards (CNIC) for every adult citizen. Nadra will start issuing what it calls 'smart cards' to citizens in December 2010, which will replace the CNICs. After the introduction of the smart cards system, piracy of the CNICs will become impossible. Nadra deputy chairman Tariq Malik said that the smart cards will bring an economic and social change in the country, adding that the existing CNIC holders will be issued new smart cards.

12. LEVEL FOUR AND GALITT PARTNER TO OFFER EMV COMPLIANT ATM TESTING IN CANADA
Source: PR Newswire (03/02)

Level Four announced that the company will be extending its partnership with GALITT for transactional systems and EMV cards into the Canadian market. The partnership combines Level Four's ATM test solution, BRIDGE:test, with GALITT's KaNest-ICC(TM) EMV card simulator to provide a comprehensive testing solution for EMV compliant ATM networks.

The partnership will enable Canadian-based banks to benefit from the combination of best of breed solutions in their respective areas. As migration to EMV continues worldwide, Level Four and GALITT will build on their success in France to promote their joint offering in Canada.

GALITT is a member of ACT Canada; please visit http://www.galitt.ca.

13. 2 NEW CANADIAN MOBILE PAYMENT REPORTS AVAILABLE
Source: ACT Canada (03/31)

Mobile payments has been one of the hottest topics in global financial services over the past few years, however the Canadian market has yet to see the launch of a widely available mobile payments service despite three major pilot projects to explore its viability.

ACT Canada is pleased to announce significant member discounts on 2 new reports. They are an in-depth look at the topic to analyze the trends and opportunities in the Canadian Mobile Payments marketplace and provide the most recent Canadian research on consumer interest, mobile payment services, the evolving ecosystem as well as potentially disruptive business models.

Canadian Consumer Mobile Payments
IDC Financial Insights surveyed 1000 Canadian consumers to assess consumer interest in mobile payments in the context of current payment and mobility patterns. Findings include a consumer segmentation model that classifies market interest in mobile payments and highlights opportunities and challenges.

Canadian Mobile Payments Ecosystem
42 Canadian executives from the mobile payments ecosystem, including issuers, mobile network operators, merchants, associations, acquirers and payment infrastructure manufacturers and software providers were interviewed. From these interviews IDC determined that a preferred mobile payments structural model dominates in Canada and that both merchants and consumers play an integral role in the evolution of Canada's mobile payments marketplace.

This report identifies the preferred business model, the consumer and business transactions most likely to drive mobile payments, critical factors for success, technological issues, and IDC Financial Insights perspectives on the path forward for Canadian Mobile Payments.

For more information on the reports or ACT member discounts, please contact ACT Canada.

14. COLORADO TOWN LEADING THE WAY WITH CONTACTLESS PAYMENTS, REWARDS - 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. COLLIS WELCOMES Q-CARD AS A VALUE ADDED RESELLER IN THE UNITED STATES
Source: Collis (03/25)

Q-Card has become the latest Value Added Reseller to Collis' strong network of distributors throughout the world. It is seen as a key step for Collis in reaching out to new customers within the United States. Q-Card will concentrate on selling the products from the Issuing portfolio which includes such state-of-the-art tools as the Collis EMV PVT, Collis Card Image Editor, Collis Card Simulator and Collis Card Spy to name a few. They will also focus on promoting Collis Training Academy which includes training courses such as Contactless and Mobile, EMV and ePassport Training.

Collis is a member of ACT Canada and an exhibitor at Cardware 2010; please visit http://www.collis.nl.

16. METROPCS SELECTS GEMALTO TO PROVIDE LTE UNIVERSAL INTEGRATED CIRCUIT CARDS & OVER-THE-AIR PLATFORM
Source: Gemalto (03/16)

Gemalto announced MetroPCS has selected Gemalto to provide a Long Term Evolution (LTE) over-the-air platform and Universal Integrated Circuit Cards for its 2010 fourth generation LTE broadband service launch. Gemalto's technology will enable MetroPCS to provide its subscribers with high speed Internet access from their mobile devices. MetroPCS, the fifth largest facilities-based carrier in the United States, offers unlimited, flat-rate, no signed contract wireless services to its more than 6.6 million subscribers.

Gemalto's over-the-air remote management platform will help MetroPCS manage wireless devices and subscriber service delivery in its combined LTE and CDMA network. The LTE authentication is provided by the Universal Integrated Circuit Card (UICC), a next generation SIM card that will be used by MetroPCS in LTE mobile devices to identify subscribers and their services and manage secure access to the wireless network.

Gemalto is a member of ACT Canada and a sponsor of Cardware 2010; please visit http://www.gemalto.com.

17. FIME LAUNCHES A RANGE OF SERVICES TO BANKS WORLDWIDE WITH CONSULTING OFFER
Source: FIME (03/31)

With the introduction of EMV chip technology in the payment industry new and important interoperability issues have appeared causing a major shift from the pre-EMV payment world. Banks now find themselves confronted with three types of migration: the move from smartcard to EMV smartcard, the evolution from EMV smartcard to new technologies such as NFC (Near Field Communication), or even the jump directly from previous technology to NFC technology.

FIME's consulting services cover the implementation of new technologies such as contactless or NFC solutions. Depending on the region of the world, issuers may have already implemented an EMV compliant solution, but are confronted with new challenges such as providing their customers with contactless payment solutions (not to mention the growing trend for dual-interface - contact and contactless - card issuance). FIME's consultants help banks make the right choice for their market, by providing assistance throughout a project's lifecycle. FIME accompanies banks from A to Z of a migration project.

FIME consultants provide a number of services to banks, including but not limited to MasterCard's CPV Services (Card Personalization and Validation) and TIP (Terminal Integration Process). For each of these specific needs FIME has a team of dedicated consultants that take care of both the administrative and technical aspects of the project.

FIME is a member of ACT Canada and an exhibitor at Cardware 2010; please visit http://www.fime.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.