Stakeholders Driving Payment Evolution and Digital Identity

September 2010 ACTion Newsletter

IN THIS ISSUE

1. Editorial - Canadian EMV Liability Shift Date Extension
2. Toronto Names Short List of Operators for Open Fare System
3. Gemalto Expands Canadian Personalization Facility for Enhanced EMV Migration Services
4. MasterCard Names Betty K. Devita, President
5. The Fed Gets Involved with EMV - Members Only Access
6. Canada's Surcharge-Free ATM Network Migrates to EMV
7. Defense Department Seeking Info on Adding Payments to CAC
8. Global Payments First to Bring Verifone Payware Mobile for iPhone to Canada
9. Launch Bank Cards Faster with FIME's New Personalization Test Tool
10. Western Union, Enstream Announce Strategic - Members Only Access
11. Ingenico Reveals New Line of Contactless PIN Terminals
12. Introducing Collis SWP and HCI Test Suites
13. Pivotal Payments Teams with Hypercom to Roll Out Optimum Terminals
14. Dynamic Card Solutions Enhances CardWizard Perso-To-Go Instant Issue Mobile Payments Platform with Support for NFC MicroSD Cards
15. Report Finds End-To-End Encryption Relieves Costly PCI Compliance Burden - Members Only Access
16. Visa Opens Mass Transit Payments in New York and Los Angeles
17. Spanish City Launches Europe's Largest Mobile Wallet Trial
18. IRN Payments Systems Chooses Roam Mobile Payments Solution from Ingenico
19. Sweden Considers Cashless Society - 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

Canadian Tire Financial Services ~ member since 2006

GENERAL

Infineon Technologies ~ member since 1998
Ingenico ~ member since 1990

ASSOCIATE

Card Resource Group ~ new member
GFH Group ~ member since 2007

CALENDAR OF EVENTS

Cardware Connections & AGM
October 25, 2010
Toronto, ON, Canada
Our next Cardware Connections Roundtable Networking event will feature guest speaker Pat Meredith, Chair of the Task Force for the Payments System Review. The roundtable questions will focus on the Canadian payments landscape. Our annual general meeting will wrap up the morning's agenda. ACT Canada members will receive further details in the coming week.
http://www.actcda.com

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 (09/30)

Canadian EMV Liability Shift Date Extension

Since last week's announcement, I've frequently been asked whether I view this as a positive or negative development. I see this as a highly responsible and commendable decision by Visa and MasterCard.

Over the past months, a number of things have come to light that were not evident in the pilot or in other regions that have already rolled out EMV. This is not surprising because all EMV implementations are affected by market conditions at the specific time of rollout. Environmental conditions at the point of sale can also be a factor. In my career, I've seen occasional "regional" considerations affect card rollouts; fluctuating power levels and supplies, telecommunication reliability, extreme humidity and extreme cold conditions.

The issues we are currently watching are not widespread, but we are headed into one of the busiest seasons for most retailers, so providing this extra time is considerate. Most consumers are beginning to adapt to PIN, but I'm still seeing some problems at the point of sale, so this provides issuers and retailers more time for consumer and cashier education. It also lets more retailers work with their acquirers to complete their certifications.

The original goal of EMV was to increase systemic security and provide a platform for new products and services, so taking the time needed to do it right truly shows commitment to EMV.

No implementation is without problems, so ACT Canada has an Issues Alert team to heighten members' awareness of emerging issues and to help them pursue solutions in a neutral, non-competitive environment. By having access to information in the early stages, members can reduce their risks and costs related to these issues.

2. TORONTO NAMES SHORT LIST OF OPERATORS FOR OPEN FARE SYSTEM
Source: ContactlessNews (09/15)

The Toronto Transit Commission (TTC) has released a short list of 11 firms vying for the contract to the city's proposed open fare public transit payment system, according to The Globe and Mail.

Chief among the candidates are Visa Canada, South Korea's LG, a Xerox subsidiary and San Diego's Cubic Transportation Systems, which is responsible for London's contactless Oyster card system.

Earlier this year, Cubic landed $370-million deal to provide electronic fare services for Sydney's transportation authority, according to The Globe and Mail. The company claims to rake in $50 million in transit fare revenues every day.

The TCC will spend the next two weeks deciding which candidate, if any, will be awarded the contract, according to The Globe and Mail.

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

3. GEMALTO EXPANDS CANADIAN PERSONALIZATION FACILITY FOR ENHANCED EMV MIGRATION SERVICES
Source: Gemalto (09/30)

Gemalto announced the expansion of its state-of-the-art facility in Burlington, Ontario, to serve its growing EMV customer base in Canada. The investment will double the capacity and accommodate the need for delivering additional cardholder services. The site is the first in Canada to personalize dual-interface smart banking cards that enable both contactless and contact payment.

Gemalto's Burlington facility provides EMV payment cards as well as complete data preparation, card personalization and fulfillment services for numerous financial institutions throughout Canada. Drawing on its global EMV migration and consulting experience, Gemalto also provides high-quality consulting for a smooth transition to microprocessor cards.

"Moving an entire nation to EMV technology requires strong companies that can respond to and grow with the industry's ever-changing needs," said Catherine Johnston, president and CEO ACT Canada. "Gemalto's Canadian expansion is a clear indicator that they are aligned with market demands and their customers."

"For over five years, Gemalto has been focused on accompanying our Canadian customers in their EMV migration, to ensure the complete success of their project," said Jack Jania, Vice President and General Manager of Secure Transactions, Gemalto North America. "In this fast-evolving market, Gemalto is focused on enabling its customers to successfully launch innovative products and services like the EMV contactless payment card."

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

4. MASTERCARD NAMES BETTY K. DEVITA, PRESIDENT, MASTERCARD CANADA
Source: Canada Newswire (09/13)

MasterCard Worldwide announced it has appointed Betty K. DeVita, president, MasterCard Canada. DeVita will assume the role effective September 15, 2010. DeVita has been Chairman and CEO of Citibank Canada for the past three years accountable for the US$1.8 billion franchise and its 5000 employees across all lines of business. At MasterCard Canada, she will oversee regional strategy, business development, acceptance expansion, operations, regulatory, marketing and product introductions with a mandate for delivering continued growth and innovation in the market.

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

5. THE FED GETS INVOLVED WITH EMV - 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'S SURCHARGE-FREE ATM NETWORK MIGRATES TO EMV
Source: Threshold Financial (09/14)

Threshold Financial Technologies Inc. (Threshold) and FICANEX Services Limited Partnership (Ficanex), operator of THE EXCHANGE network in Canada, jointly announced today that EMV capability has been implemented on THE EXCHANGE network, allowing transaction processing of chip enabled debit cards. THE EXCHANGE network is a full-function ATM network supporting nationwide surcharge-free access in Canada, with a membership of over 225 financial institutions across the country.

As part of the EMV implementation, Threshold has architected PIN change functionality on THE EXCHANGE network, allowing members' cardholders to use any enabled ATM on the network to complete a PIN change on their chip card, in addition to being able to visit their own institution to perform this function. Most service providers who connect ATMs to THE EXCHANGE network are expected to enable their ATMs for PIN change over the coming months, with full access expected by mid-2011. THE EXCHANGE network is the first network in Canada to provide PIN change service to its cardholders.

"We are very pleased to have been able to support Ficanex in delivering this service to its members," commented Matthew McIver, President of Threshold. "This particular accomplishment is part of our organization's broader strategy to support its client base in achieving EMV support, and is one of many facets of our environment that is EMV enabled. Many of our clients will issue chip debit cards by year end, and with the majority of them being members of THE EXCHANGE network, having access to these services will be invaluable to them."

Threshold Financial is a member of ACT Canada; please visit http://www.threshold-fti.com.

7. DEFENSE DEPARTMENT SEEKING INFO ON ADDING PAYMENTS TO CAC
Source: SecureID News (09/28)

The U.S. Department of Defense is requesting information on adding payment capabilities to the Common Access Card, according to documents released by the agency. The Agency wants EMV-compliant prepaid solution.

The idea of adding an electronic purse and transit application to the CAC was brought up at the Smart Card Alliance Conference. The agency is seeking information from vendors on how to add this functionality to the credentials, which could eventually be deployed on PIV credentials throughout government.

"Under this RFI, DOD is exploring options to provide an end-to-end enterprise solution by adding electronic payment functionality to identity cards using commercially-adopted, standards-based systems to enable the CAC/PIV card to act as an open loop, pre-paid, payment card. Further, this payments solution could be federated across the Government and cascade throughout the entire PIV family of cards," the document states.

The Defense Department wants an application that can work as a prepaid solution, funded from single or multiple sources. "The payment solution must be EMV-compliant on both the contact and contactless interfaces and fully functional at all EMV point of sale terminals or ATMs world-wide, where EMV is adopted," the document states.

8. GLOBAL PAYMENTS FIRST TO BRING VERIFONE PAYWARE MOBILE FOR IPHONE TO CANADA
Source: Scottrade (09/15)

VeriFone Systems, Inc. announced that Global Payments Inc, will distribute and support VeriFone's PAYware Mobile secure card payment system in Canada. Global Payments is the first payment processor to offer Canadian customers VeriFone's unique card processing solution for the iPhone mobile digital device.

Global Payments will begin immediately to make the PAYware Mobile card encryption sleeve available to merchants. VeriFone's sleek and durable card reader slips over iPhone 3G and 3GS to accommodate secure card swipes and allow individuals and businesses with new or existing merchant accounts to qualify for lower-cost "card present" transaction fees.

9. LAUNCH BANK CARDS FASTER WITH FIME'S NEW PERSONALIZATION TEST TOOL
Source: FIME (09/22)

FIME is pleased to announce the launch of its new test tool Perseval On Demand. This tool enables bank card manufacturers to validate the personalization of MasterCard and Visa cards before starting a laboratory evaluation.

The 'On Demand' version of Perseval was created to adapt to the occasional nature of card manufacturers needs, before they launch certification campaigns. Manufacturers can now optimize their budget by purchasing a licence for short term use depending on the timetable of their planned certification.
The key advantages of Perseval On Demand are:

  • Its simplicity: Perseval On Demand is totally user friendly and very easy to understand. (A free demonstration is available on request.)
  • Its efficiency: the tool enables the user to obtain the very latest profile updates right when they are really needed before sending the cards to the testing laboratory.
  • Its adaptability: available on demand, depending on the users' needs.

Perseval enables the user to compare internal data on the personalized card with the reference card images extracted from the test authorities' specifications. Therefore any errors that are detected upstream can be corrected before submitting the cards to laboratory testing.

FIME is a member of ACT Canada; please visit http://www.fime.com.

10. WESTERN UNION, ENSTREAM ANNOUNCE STRATEGIC ALLIANCE TO LAUNCH INTERNATIONAL MOBILE MONEY TRANSFER SERVICE - 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. INGENICO REVEALS NEW LINE OF CONTACTLESS PIN TERMINALS
Source: ContactlessNews (09/13)

Ingenico has announced the launch of its new iPP300 line of contactless-compliant PIN pads.

The iPP320 (monochrome screen) and iPP350 (color screen) PIN pads are designed to manage hundreds of thousands of transactions every day with numerous payment card formats, including credit cards, debit cards, loyalty cards, electronic purses, contactless cards and more, says Ingenico.

Both PIN pads feature a magnetic stripe card reader, an EMV smart card reader, and MasterCard PayPass and Visa PayWave-approved integrated contactless technology.

According to Ingenico, the devices can be connected to any type of payment system via a RS232, USB and Ethernet/IP serial ports, making them compatible with all types of connection required for the retail market.

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

12. INTRODUCING COLLIS SWP AND HCI TEST SUITES
Source: Collis (09/01)

Collis is delighted to announce the launch of the Collis SWP & HCI Test Suites. A must have set of tools for mobile network operators and card vendors.

Collis SWP and HCI Test Suites are an innovative set of tools to test the compliance of SWP enabled devices based on the most recent ETSI specifications. The suites for handset testing are based on ETSI TS 102 695-1 & TS 102 695-3 and for UICC testing on ETSI TS 102 694-2. Collis SWP and HCI Test Suites include a fully-functional, scriptable test environment. All system functionality and API's are fully documented. The test suites provide an excellent debugging and development platform. They also consist of a collection of scripts sufficient for modifications and additions to be made by developers and testers.

The Collis SWP and HCI Test Suites combine all of the benefits of Collis' easy-to-use approach with Collis Test Manager. The Collis Test Manager consists of a user-friendly Test Management Application with the powerful Conclusion Test Engine and provides a logical path in creating & managing an entire test project. Users of the Collis SWP and HCI Test suites will now be able to configure test execution and report results in a flexible manner.

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

13. PIVOTAL PAYMENTS TEAMS WITH HYPERCOM TO ROLL OUT OPTIMUM TERMINALS
Source: Hypercom (09/23)

Hypercom Corporation announced that Pivotal Payments has begun to purchase and is deploying up to 33,000 Optimum countertop and mobile card payment terminals to merchants throughout Canada over the next 36 months.

The multi-million dollar rollout is believed to represent one of the largest in the country, and significantly strengthens Hypercom's high security product footprint in Canada.

Hypercom's high security Optimum 4200 product family for North America consists of powerful 32-bit multi-application devices that share the same platform, user interface, and software toolkit to maximize efficiency, application portability, and offer customers a broad range of options to serve any market need.

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

14. DYNAMIC CARD SOLUTIONS ENHANCES CARDWIZARD PERSO-TO-GO INSTANT ISSUE MOBILE PAYMENTS PLATFORM WITH SUPPORT FOR NFC MICROSD CARDS
Source: Dynamic Card Solutions (09/14)

Dynamic Card Solutions (DCS) announced it has expanded the capabilities of its mobile payments personalization platform-CardWizard Perso-to-Go-to support personalization of near-field communication (NFC) Micro SD cards.

DCS' Perso-to-Go platform is a fully integrated solution that conveniently personalizes cardholder information onto various NFC payment form factors at the branch level. This includes embedded NFC chips in mobile phones, various contactless stickers, key fobs, and now Micro SD cards. No over-the-air (OTA) personalization is required, and because Perso-to-Go provides instant activation capabilities, the personalized device can be immediately used for contactless point-of-sale purchases.

"Research has stated that there are currently 4.6 billion mobile phone subscriptions worldwide, and that number is projected to increase," said Ron Zanotti, senior vice president of DCS. "Now is the ideal time for issuers to quickly and conveniently capitalize on the latest contactless technologies as a compliment to their card issuance programs and to turn mobile phones into an interactive wallet."

DCS' Perso-to-Go is the only instant personalization tool for contactless payments that offers issuers instant activation of the device in both the financial institution's core application and the network switch. The technology meets worldwide security requirements for both EMV and MSD contactless specifications and complies fully with all Visa and MasterCard security recommendations.

Dynamic Card Solutions is a member of ACT Canada; please visit http://www.instantissuance.com.

15. MERCATOR REPORT FINDS END-TO-END ENCRYPTION RELIEVES COSTLY PCI COMPLIANCE BURDEN - 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. GLOBAL PAYMENTS FIRST TO BRING VERIFONE PAYWARE MOBILE FOR IPHONE TO CANADA
Source: Scottrade (09/15)

VeriFone Systems, Inc. announced that Global Payments Inc, will distribute and support VeriFone's PAYware Mobile secure card payment system in Canada. Global Payments is the first payment processor to offer Canadian customers VeriFone's unique card processing solution for the iPhone mobile digital device.

Global Payments will begin immediately to make the PAYware Mobile card encryption sleeve available to merchants. VeriFone's sleek and durable card reader slips over iPhone 3G and 3GS to accommodate secure card swipes and allow individuals and businesses with new or existing merchant accounts to qualify for lower-cost "card present" transaction fees.

17. SPANISH CITY LAUNCHES EUROPE'S LARGEST MOBILE WALLET TRIAL
Source: NFC News (09/29)

The Spanish resort city of Sitges is participating in Europe's largest mobile wallet trial, with 1,500 residents using their mobile phones to pay for everyday purchases, according to ZDnet.

To complete a transaction, participants simply pass their NFC-enabled Samsung Touch Star phones over a contactless reader at the point of sale, and the amount is automatically deducted from their existing bank accounts.

According to ZDnet, this trial signifies a more "commercially realistic" endeavor than previous NFC payment trials, which have largely involved the use of pre-loaded credit as opposed to a true mobile wallet.

18. IRN PAYMENTS SYSTEMS CHOOSES ROAM MOBILE PAYMENTS SOLUTION FROM INGENICO
Source: Ingenico (09/15)

Ingenico and IRN Payments Systems (IRN) announced that IRN has chosen Ingenico's ROAM Mobile Payments solution to offer to its merchants.

Ingenico will supply IRN with the PCI-DSS certified ROAM mobile payments application along with the ROAMpay Swipe card reader that operates off the merchant's phone audio jack. This device agnostic mobile software, combined with the encrypted card reader, will turn merchants' smartphones into cost-effective mobile Point-of-Sale (POS) devices. The Ingenico ROAM Mobile Payment software and swipe card reader can be used on a wide variety of mobile devices including BlackBerry, Android, iPad, and iPhone (2G, 3G, and 4G).

Ingenico ROAM Mobile Payment solution is powered by ROAM Data, Ingenico's mCommerce solutions provider and strategic partner. With this solution mobile devices do not require additional programming and certification. The Ingenico ROAM Mobile Payment solution provides secure transactions through ROAM's PCI-certified payment gateway.

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

19. SWEDEN CONSIDERS CASHLESS SOCIETY - 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.