Stakeholders Driving Payment Evolution and Digital Identity

May 2010 ACTion Newsletter

IN THIS ISSUE

1. Editorial Comment - Are Payments Really Global?
2. Ingenico's New Payment Device For Unattended & Petro Payment Terminals Receives Certification Under Interac Association's Requirements
3. Toronto's Smart Card System Goes Live
4. 1st US Issuer (United Nations Credit Union) Issuing EMV Cards
5. Wal-Mart: "It's Time For Chip-And-Pin In The U.S." - Members Only
6. DeviceFidelity & Visa To Bring Contactless Payment Services To Apple iPhone
7. Collis EMV PVT Online & Collis Test Tools Validated By MasterCard For New M-Tip Implementation
8. ICCSimTMat Selected By Chase Paymentech To Perform Merchant Certification In Canada & ICC Solutions Receives Qualification From MasterCard For M-Tip Testing
9. YESpay Becomes Canada's First Fully EMV Chip And Pin Certified Card Payment Service With Chase Paymentech
10. The Race To Own Mobile Commerce - - Members Only
11. MasterCard Announces Pilot Of New NFC Mobile Payment Solution Addressing Multiple Handsets
12. Multos Reaches Sales Of 120 Million EMV Chips
13. Level Four & Galitt Partner To Offer EMV Compliant ATM Testing In Canada
14. Will The Apple Fall Far From The (Contactless) Tree? - - Members Only
15. HDFC Bank Kicks Off Commercial Migration Of EMV Credit Cards
16. INSIDE Contactless Micropass Shipments Top 200 Million Units

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

Interac Association ~ member since 1995
MBNA ~ member since 2009
Watchdata Technologies ~ new member

SME

UseMyServices Inc. ~ new member

ASSOCIATE

Osler, Hoskin & Harcourt LLP ~ member since 2005

CALENDAR OF EVENTS

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 (05/31)

Fundamental Change

Sometimes incremental change is best and it is almost always easiest, but incremental change brings only incremental benefits.

RIM, Apple, Microsoft, and Google brought fundamental changes to the world market. All four delivered products that gave consumers a new and desired experience...and they reaped the profits. From these innovations we will see years of incremental change from these companies.

Today, chip provides the environment for fundamental change. It adapts to many form factors, be it cards, mobile phones or others. Now it is our turn to stand back and give thought to how consumers would want to use the power of chip. To do that, we can't look at it from our perspective; be it user, acquirer, supplier, merchant or regulator.

Our fundamental challenge is to view chip as consumers, because indeed, each of us is a consumer.

Then we need to bring our professional capabilities to the exercise. We have the responsibility to ensure local and systemic security, privacy and acceptance. That requires each stakeholder group to come to the table because anything systemic becomes harder and much more expensive when done incrementally. But we all know that.

The key message is to look at chip in terms of the products and services you would pay for, and only then design the supporting systems. We all know that too, but it is easier said than done. Good luck and good profits! See you at Cardware.

2. INGENICO'S NEW PAYMENT DEVICE FOR UNATTENDED & PETRO PAYMENT TERMINALS RECEIVES CERTIFICATION UNDER INTERAC ASSOCIATION'S REQUIREMENTS

Source: Ingenico (05/11)
Ingenico announced that their new i9780UPT fuel and unattended device has received certification under Interac Association's requirements for security. Interac Association sets the security standards for all terminal devices that are connected to this network and used by its members across the country.

According to the certification, the i9780UPT meets the strict Interac Association Chip Unattended compliance requirements, PCI PED and EMVCo L1 and L2 security standards.

The i9780UPT device is built as a full payment terminal for integration into island card readers. It accepts smart, contactless and magnetic cards and has an internal barcode reader to accept print or virtual coupons on cell phones. This rugged device offers a perfect alternative to existing terminals for outdoor payment in petroleum and unattended self-service applications. The i9780UPT device is available for distribution in Canada as of May 2010.

Ingenico is a member of ACT Canada & a Cardware 2010 exhibitor; please visit http://www.ingenico.com. Interac is a member of ACT Canada a Cardware 2010 sponsor; please visit http://www.interac.ca.

3. TORONTO'S SMART CARD SYSTEM GOES LIVE
Source: Contactless New (05/11)

The Greater Toronto Area (GTA) has finally launched its long-anticipated smart card transit system, according to thestar.com. After four years of waiting, contactless Presto cards are now being accepted at the Oakville GO station, which sees about 12,000 passengers a day, and will soon be implemented in the rest of Go Transit's Lakeshore West corridor.

Under the new system, users can load money onto their Presto cards and pay for fares by tapping them against green readers installed in stations and on buses.

According to thestar.com, Toronto transit officials are still considering other fare systems, including one that would allow riders to pay using credit cards. "The TTC is having another conversation about an open payment system. We're moving ahead with the Presto system and if at a later date there's interest in new technology we can have that conversation," Transportation Minister Kathleen Wynne said at the system's inauguration.

The entire system is expected to be in place by late 2011.

4. 1st US ISSUER (UNITED NATIONS CREDIT UNION) ISSUING EMV CARDS
Source: Contactless News (05/13)

Gemalto announced it has been selected by the United Nations Federal Credit Union (UNFCU) to deliver a U.S. issued, globally compliant microprocessor payment card. UNFCU recognized the need of its members, who reside and frequently travel to more than 210 countries and territories, to have a more convenient and secure payment option when traveling internationally.

Partnering with Gemalto, credit union will be able to provide a globally compliant EMV standard-based Dynamic Data Authentication contact and contactless dual interface card that can be used anytime - anywhere their members travel. UNFCU anticipates introducing the program in the second half of 2010.

UNFCU is the first U.S. card issuer to provide a globally compliant payment card option to their members. UNFCU is taking advantage of Gemalto's World Traveler program in which Gemalto will provide UNFCU with complete issuance services including full card design and production, personalization data preparation and personalization of the dual interface card, ensuring global acceptance and forward compatibility for both online and offline payment transactions.

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

5. WAL-MART: "IT'S TIME FOR CHIP-AND-PIN IN THE U.S." - 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. DEVICEFIDELITY AND VISA TO BRING CONTACTLESS PAYMENT SERVICES TO APPLE IPHONE
Source: Trends Update (05/18)

Visa has teamed up with DeviceFidelity to provide the Apple iPhone with a unique gift, that of a payment case, where in the users will be able to make use of their iPhones to make payment via credit cards. This service would be most suitable for places and retail stores, where there is no means of swiping the credit cards. This all new incredibly helpsul called, In2Pay greatly simplifies contactless transactions and uses microSD technology and a supported case designed and developed by DeviceInfidelity.

The entire procedure is based on a removable In2Pay microSD, that needs to be inserted into the protective case and thus enables the users to make payments at a variety of venues including retail stores, unattended kiosks and transit ticket counters. This entire concept is the culmination of Visa's contactless payment technology called, Visa paywave and In2Pay technology, thereby making the iPhone 3G and iPhone 3GS more useful than ever and taking a giant leap into mobile contactless payment. The In2Pay system from DeviceFidelity is said to be one of the most secure and user friendly payment methods and the package also comes with a micro USB, that allows the user to synchronize and even charge their phones.

Visa Canada is a member of ACT Canada & a Cardware 2010 sponsor; please visit http://www.visa.ca.

7. COLLIS EMV PVT ONLINE & COLLIS TEST TOOLS VALIDATED BY MASTERCARD FOR NEW M-TIP IMPLEMENTATION
Source: Collis (05/25) & (05/20)

Collis is proud to announce the launch of the Collis EMV Personalisation Validation Tool (PVT) Online, an innovation excellence in software Test Tools. Collis EMV PVT Online is Collis' latest innovation and one we are extremely proud of. The 1st of its kind in the market, it enables personalisation validation of smart cards online! Subscribe; pick up your smart card and start your smart card reader and you're ready to go. It's that simple!

Users of Collis EMV PVT Online can now log on anywhere in the world, with any web browser, and validate their smart cards! This product provides all the functionality of the award winning Collis EMV PVT including the Visa?confirmed and MasterCard?qualified modules. This means that users now have access to the latest personalisation requirements 24/7. It can be used with any smart card reader (contact/contactless) installed in the user's system.

In other Collis news, Collis announced that MasterCard has qualified both the Collis Brand Test Tool and Collis Card Simulator as M-TIP Validation Tools

Collis has implemented the MasterCard Terminal Integration Process (M-TIP) Subset in both the Collis Brand Test Tool and Collis Card Simulator. Both these test tools are used to test the behaviour of a terminal according to the payment scheme rules without the need of physical test cards. The M-TIP subset has been implemented in the Collis Test Tools following MasterCard's announcement to its customers that the current Terminal Integration Process (TIP) will be phased out and replaced by M-TIP for EMV contact chip terminal deployment. Using the M-TIP Subset will be mandatory from 1st of July 2010 for all MasterCard customers initiating a first time chip migration. Customers that have already started deploying chip will have until 1st of January 2011 to migrate to M-TIP.

The Collis Brand Test Tool and Collis Card Simulator can simulate any EMV card (contact & contactless) and can be used with MasterCard card applications such as M/Chip and also with other international Payment Systems. They can simulate errors (failures) to test the system's response to an error. As a result, interoperability issues can be detected before terminals are deployed in the field. These tools can be used with new ATMs equipped with anti-skimming mechanisms (please contact Collis for any compatibility questions). The Collis Brand Test Tool and Collis Card Simulator have both been qualified by MasterCard as Validation Tools for the formal M-TIP certification process. This means that the log files generated by the validation tools can be sent directly to MasterCard for M-TIP certification.

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

8. ICCSIMTMAT SELECTED BY CHASE PAYMENTECH TO PERFORM MERCHANT CERTIFICATION IN CANADA & ICC SOLUTIONS RECEIVES QUALIFICATION FROM MASTERCARD FOR M-TIP TESTING
Source: ICC Solutions (05/10) & (05/20)

ICC Solutions Limited is delighted to announce that Chase Paymentech has selected a customized ICCSimTMat test package to perform Chase Paymentech merchant certification of point of sale (POS) terminals deployed in Canada.

The customized ICCSimTMat test package has been developed to provide a powerful yet user-friendly environment enabling efficient test campaigns featuring automated analysis of the test results and supports POS terminal certification for American Express, Interac Association, MasterCard and Visa.

The Chase Paymentech certification process helps to ensure that transactions generated by merchant POS equipment connected to the Chase Paymentech network are processed according to EMV standards. Chase Paymentech will also have access to special negotiated pricing for a wide range of test tools from ICC Solutions.

In other ICC Solutions news, they announced the immediate availability of ICCSimTMat: MC TIP test packages and upgrades supporting the new MasterCard Terminal Integration Process (M-TIP) qualified by MasterCard. TIP Qualified Test Tools supporting M-TIP will be used as part of a phased replacement instead of Subset 1 for formal approval testing.

ICC Solutions will offer new ICCSimTMat test packages supporting M-TIP as well as M-TIP upgrade packages for existing customers. This will enable both new and existing customers to benefit from the same level of automation and operational efficiency as experienced in the existing NIV and TIP for MasterCard test packages which are also qualified by MasterCard.

ICCSimTMat: MC TIP test packages supporting M-TIP will enable more efficient testing of the interoperability of MasterCard branded cards in an international cross-border context. Acceptance of the Application Identifiers scheme (e.g. AIDs for MasterCard or Maestro), CVM and CAM policy, and fallback rules are all examples of scheme-related requirements that are tested.

ICC Solutions is a member of ACT Canada & a Cardware 2010 exhibitor; please visit http://www.iccsolutions.com.

9. YESPAY BECOMES CANADA'S FIRST FULLY EMV CHIP AND PIN CERTIFIED CARD PAYMENT SERVICE WITH CHASE PAYMENTECH
Source: PRWeb.com (05/11)

YESpay International Ltd has completed the EMV certification of its EMBOSS card payment service with Chase Paymentech(TM) as the first fully hosted EMV Chip and PIN payment service in Canada with Chase Paymentech.

The formal certification conducted by Chase Paymentech included end-to-end EMV Chip and PIN testing with Interac, MasterCard and Visa using the Verifone Vx810 pinpad. This enables YESpay to provide its secure credit and debit card payment acceptance services for retail, MOTO (mail order telephone order) and e-commerce to main street and web merchants in Canada.

EMBOSS already has a proven track record as a generically certified IP-based payment processing service used by major retailers in Europe for the past 5 years and has been fully end-to-end certified to Payment Card Industry Data Security Standards (PCI DSS) Level 1 as mandated by the payment brands since 2006.

Through EMBOSS, merchants can fast track the implementation of integrated EMV card payments acceptance solutions for their electronic cash register, kiosks and hospitality payment systems. It can also enhance their websites for on-line payments with minimal capital investment and low on-going services costs. EMBOSS reduces business and technical issues of outsourcing payment services and helps merchants avoid lengthy timescales and high costs of EMV certification and PCI compliance of their retail environments. Fully scalable, EMBOSS can address the needs the single location merchant as well as larger chains.

Chase Paymentech and YESpay are members of ACT Canada & YESpay is an exhibitor at Cardware 2010; please visit http://www.chasepaymentech.ca & http://www.yes-pay.com.

10. THE RACE TO OWN MOBILE COMMERCE - 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. MASTERCARD ANNOUNCES PILOT OF NEW NFC MOBILE PAYMENT SOLUTION ADDRESSING MULTIPLE HANDSETS
Source: Express Computer (05/21)

MasterCard Worldwide has announced a collaboration with Gemalto to pilot a Near Field Communications (NFC) device equipped with the Gemalto Upteq N-Flex Solution that supports MasterCard PayPass. The Upteq N-Flex solution is an industry first as it is able to function on multiple mobile handsets, helping provide a path to ubiquitous handset support for NFC. The solution is also the first of its kind conforming to the Single Wire Protocol (SWP) as endorsed by the GSM Association (GSMA).

The Upteq N-Flex wafer-thin device can be inserted into an array of existing handsets to transform them into a payment device.

The initial trial of this mobile payments solution has kicked off in Singapore, as MasterCard collaborates with DBS Bank, EZ-Link Pte Ltd, and StarHub.

Both Gemalto and MasterCard Canada are members of ACT Canada & sponsors at Cardware 2010; please visit http://www.gemalto.com & http://www.mastercard.ca.

12. MULTOS REACHES SALES OF 120 MILLION EMV CHIPS
Source: Multos (04/27)

Multos International announced that it has reached the milestone of 120 million pieces of their secure MULTOS and MULTOS step/one smartcard products delivered into the global banking market for EMV migration. 786 views 0 comments

This is a significant achievement and highlights the continued growth in shipments of MULTOS technology, working with banking customers and card manufacturing partners around the world.

Richard Cusson, Managing Director of Multos International said "We are excited with this achievement, but it really is an indication of the success of our Issuer customers and their respective EMV migration projects. The level of activity with many of our customers is an encouraging sign of increased opportunities ranging from standard contact EMV issuing, to more advanced multi-application and contactless functionality. We look forward to continuing to offer our customers some of the best technology available in the smartcard industry backed up by our renowned support".

Multos is member of ACT Canada & a Cardware 2010 sponsor; please visit http://www.multos.com.

13. LEVEL FOUR AND GALITT PARTNER TO OFFER EMV COMPLIANT ATM TESTING IN CANADA
Source: Galitt (05/07)

Level Four announced that the company will be extending its partnership with GALITT. The partnership combines Level Four's ATM test solution, BRIDGE:test, with GALITT's KaNest®-ICC 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 Canada is a member of ACT Canada & a Cardware 2010 exhibitor; please visit http://www.galitt.ca.

14. WILL THE APPLE FALL FAR FROM THE (CONTACTLESS) TREE? - 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. HDFC BANK KICKS OFF COMMERCIAL MIGRATION OF EMV CREDIT CARDS
Source: Giesecke & Devrient (05/19)

HDFC Bank, one of India's premier banks, has become one of the first Indian banks to supply credit cards compliant with the global EMV standard to its premium-segment customers nationwide. The 500,000 smart cards for the commercial launch phase that will run until March 2011 are being supplied by the Indian subsidiary of security technology specialists Giesecke & Devrient (G&D). This initiative significantly boosts the Indian subcontinent's migration to EMV, from standard magnetic stripe formats to chip-based smart cards. These cards are based on complex and advanced technology and will provide the highest standard of security. This further enhances the security of electronic payment systems.

HDFC Bank has started its migration to the EMV standard with credit and forex prepaid smart-card products on the Visa platform. HDFC Bank also plans to issue EMV smart debit cards in the near future. Going forward, these smart cards will also serve as a multi-application platform. Applications being considered include a customer loyalty program and an electronic purse.

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

16. INSIDE CONTACTLESS MICROPASS SHIPMENTS TOP 200 MILLION UNITS
Source: INSIDE Contactless (05/11)

INSIDE Contactless announced that shipments of its award-winning MicroPass intelligent payment platform have surpassed the 200 million unit mark, with production volume doubling in the 18 months since reaching 100 million units in November 2008. Since its introduction at CARTES 2005 in Paris, the MicroPass platform has become regarded as the gold standard for contactless payments, and has made steady gains in new applications, in new form factors and new markets as the use of contactless technology becomes more widespread. MicroPass is available from all major bank card brand certified manufacturers in North America and now powers more contactless bank cards than any other core technology available in the market.

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