Engaging, Enabling and Evolving Commerce in Canada since 1989

June 2011 ACTion Newsletter

IN THIS ISSUE

1. Editorial - Strength in numbers
2. Interac Flash to Be Accepted At Petro-Canada Locations Across Canada
3. Canadian Bookstore Chain Adopts Contactless Payments
4. Collis Releases Test Tools Approved By American Express for the Canadian Market
5. Calls Mount to Make Mobile Phone Payments More Secure - Members Only Access
6. MasterCard Names A TSM Partner For Its Provisioning Service
7. U.S. Bank First in United States to Issue Dual EMV Chip And Contactless Payment Solution For International Travelers
8. Visa Acquires Fundamo Mobile Payments Service
9. Retail Payments from Mobile Phones to Be Trialled
10. Will The Ubiquitous Handset Become The ID Of The Future? - Members Only Access
11. CPI Card Group Introduces a New Secure Dual Interface EMV Solution with NXP Semiconductors
12. Apriva Helps Android Devices Meet Government Security Regulations with New SDK
13. Starbucks Extends Smartphone Payment App to Android Devices
14. Deutsche Telekom Chooses G&D as Development Partner for SIM Card Solution in NFC Mobile Phones
15. Google Launches Places Test with Japanese Wallet Phones In Tokyo - Members Only Access
16. FIME Plays a Key Role in the Valeo NFC Access System Project
17. INSIDE Secure and ZTE Working To Bring NFC Phones To GSM And 3G Networks
18. Austin to Be Launch Market for Isis Mobile-Payments Technology
19. Gemalto and Orange Group Extend Collaboration on NFC with Rollout of Poland's Largest Mobile Contactless Program
20. The Future of Payments - Members Only Access
21. Collis Successfully Accredited To Deliver MasterCard Formal Approval CPV, M-Tip and PayPass Tip Services
22. A Pilot Project with NFC Phones Shows Great Potential For Mobile Keys
23. Allied Irish Banks (AIB) Deploys Gemalto Online Banking Solution

ACT Canada Partners

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.

 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.

ACT CANADA THANKS OUR NEW & RENEWING MEMBERS

PRINCIPAL

ATB Financial ~ member since 2006

GENERAL

Apriva ~ member since 2009

GOVERNMENT

Canada Post Corporation ~ member since 2006
Royal Canadian Mint ~ member since 2005

RETAIL

Carlson Marketing ~ member since 2010
Suncor Energy Inc ~ member since 2010

SME

Quintin Manus Marketing Group ~ new member
TechTrex Inc. ~ member since 2009

CALENDAR OF EVENTS

The 10th Annual Smart Card Alliance Government Conference - Smart Strategies for Secure Identity
November 1-4, 2011
Washington, DC, USA
http://www.smartcardalliance.org

CARTES & IDentification 2011
November 15-17, 2011
Paris-Nord Villepinte Exhibition Centre
Paris, France
http://www.cartes.com

2012 Payments Summit, A Smart Card Alliance conference event
February 7-9, 2012
Salt Lake City, UT, USA
http://www.smartcardalliance.org

1. EDITORIAL COMMENT
Source: Catherine Johnston, President & CEO, ACT Canada (06/29)

Strength in numbers

Last month I wrote about information overload and the impact that has on our productivity. Let's look at it from a different viewpoint. Information can be most valuable when it is a part of a dynamic conversation between 2 or more people and less valuable when it is static. How often have the words, "well, now that you say that, it makes me think�" resulted in an even better idea? Brainstorming sessions are designed to take advantage of dynamic thoughts that come from human interaction.

At Cardware, we saw that positive interaction between delegates, speakers, exchange place experts and the results were wonderful. A record number of attendees gave us a 52% growth over last year's conference, but more importantly it provided a highly charged and positive exchange of information and insights. Many of the conversations will lead to new initiatives and working relationships, as we all apply ourselves to the goals at hand over the next 12 months. Delegates took away new elements for their strategies and some cautions as well.

If you were there you know that there are exciting new possibilities for loyalty and that multi-app smart cards are a reality. You know that EMV for the US is a necessity that must be moved forward this year, with many Canadian stakeholders prepared to pitch in. You know that mobile and NFC needs much more work before we will be able to build robust business cases, but the will of the market is there to do it. You know that 6 Gen Y'ers are concerned about payment security related to m-commerce, but what you may not know is that these 6 were not handpicked for that reason; they were part of a much larger group - all of whom expressed the same concerns. You also know that innovation continues to flourish in Canada and abroad. If you were there; thank you for being an active payments stakeholder.

ACT Canada was pleased to present the Innovation awards at Cardware 2011, please click here for a complete list of winners.

2. INTERAC FLASH TO BE ACCEPTED AT PETRO-CANADA LOCATIONS ACROSS CANADA
Source: Canada Newswire (06/08)

Interac Association announced that Suncor Energy will accept Interac Flash contactless debit transactions in store at its participating Petro-Canada locations across Canada toward the end of this year, with national rollout in early 2012. Interac Flash, which is an enhancement of Interac Debit, is the first contactless debit technology to be offered in Canada.

Canadians will soon be able to gas up quickly and conveniently by paying directly from their bank account with Interac Flash - all without having to insert their debit card or enter their PIN. With the flash of their card in front of an Interac Flash-enabled contactless reader, cardholders will be able to pay for gas and a variety of other products and services offered by Petro-Canada inside the store.

"With Suncor Energy offering the innovation of Interac Flash at Petro-Canada locations across Canada, cardholders can pay for everyday items using debit faster than ever before," said Mark O'Connell, President and CEO, Interac Association/Acxsys Corporation. "Interac Flash will deliver speed and convenience for both merchants and consumers at check-out, while offering the security features of chip technology."

Interac Flash enabled cards will start to be rolled out through participating financial institutions this year.
Interac and Suncor Energy are members of ACT Canada; please visit http://www.interac.ca & http://www.suncor.com.

3. CANADIAN BOOKSTORE CHAIN ADOPTS CONTACTLESS PAYMENTS
Source: Contactless News (06/23

Indigo Books & Music, Canada's largest book retailer, is partnering with MasterCard Canada to roll out PayPass contactless payment technology in all stores across the country.

Indigo's 249 book stores, including 96 superstores, 'The World's Biggest Bookstore,' and 151 small format stores, have already installed more than 1,000 PayPass point-of-sale payment terminals, according to the company.

The technology will allow customers with a PayPass-enabled MasterCard credit card or mobile phone to pay for their purchases with a simple tap on a PayPass point-of-sale payment terminal.

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

4. COLLIS RELEASES TEST TOOLS APPROVED BY AMERICAN EXPRESS FOR THE CANADIAN MARKET
Source: Collis (06/09)

Collis announces that it has developed Collis Brand Test Tool for EMV POS Terminal Certifications to process American Express.

Collis has developed Collis Brand Test Tool (Collis BTT) according to the American Express ICC Payment Specification (AEIPS) for the Canadian market. All card images and test cases required for the American Express EMV Test Plan are included within Collis BTT.

Collis BTT enables acquirers and vendors to validate the American Express payment brand testing of their EMV POS terminals. Brand testing is a core component in the overall certification process designed to facilitate problem free acceptance of cards from payment card networks such as American Express.

Collis BTT can simulate any EMV card and can simulate errors (failures) to test a terminal's response to that error. As a result, interoperability issues can be detected before terminals are deployed in the field.

"American Express continues to expand our Chip & PIN program in Canada, and we are pleased to partner with Collis" said Colin Temple of Head of Merchant Services, American Express Canada. "With Collis Brand Test Tool, our merchants and industry partners have a new option for EMV Terminal Certifications that will allow them to complete this process quickly and with ease".

Berend van Geffen, Chief Commercial Officer, adds: "Collis is very pleased to enable American Express brand testing and terminal certification for Canada. Collis BTT ensures customer satisfaction through successful card payments. The ultimate goal of Collis BTT is to have EMV-compliant and American Express-certified terminals which can perform trouble-free transactions within the entire payment infrastructure."

Amex Bank of Canada and Collis are members of ACT Canada; please visit http://www.amex.ca & http://www.collis.nl.

5. CALLS MOUNT TO MAKE MOBILE PHONE PAYMENTS MORE SECURE - 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. MASTERCARD NAMES A TSM PARTNER FOR ITS PROVISIONING SERVICE
Source: NFC Times, by Dan Balaban (06/07)

MasterCard Worldwide announced its first partnership with a trusted service manager, Cassis International, to support its "streamlined" system to personalize PayPass contactless applications on NFC phones from various issuers.

The provisioning system, which MasterCard calls MOTAPS, sets up a standardized way to gather up customer payment account data to be delivered directly over the air to secure elements in NFC phones.

That is designed to make it easier for consumers with MasterCard branded credit, debit or prepaid accounts to request to have PayPass applications personalized over the air to their phones, said MasterCard.

It would avoid snags that MasterCard and banks hit during NFC trials, in which personalization bureaus had to manually set up the account data to be downloaded to phones. Working with trusted service managers hired by mobile operators often was difficult, as well.

"MOTAPS was created to simplify the process of mobile issuance," James Anderson, MasterCard's senior vice president for mobile product development, told NFC Times in a statement. "Without it, handset personalization could still happen directly with TSMs. However, this will be a lengthy, difficult and costly process for banks."

Cassis is the first trusted service manager that MasterCard has announced is working on MOTAPS, which is short for Mobile Over-the-Air Provisioning Service. Cassis would take the account data from a MasterCard service center, probably one located in St. Louis, and deliver it securely to the secure chips, either SIM cards, embedded chips or possibly other secure elements in NFC phones.

MasterCard is working with other TSMs, too, said Anderson, though did not name any of them. And in May, the card network announced that prepaid and mobile transaction processor Carta Worldwide of Switzerland had integrated its system with MOTAPS and would use the system for contactless prepaid issuance.

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

7. U.S. BANK FIRST IN UNITED STATES TO ISSUE DUAL EMV CHIP AND CONTACTLESS PAYMENT SOLUTION FOR INTERNATIONAL TRAVELERS
Source: Business Wire (06/10)

U.S. Bank, in partnership with Visa and Oberthur Technologies, announced its release of a dual interface payment solution that offers enhanced acceptance and compatibility with credit cards systems worldwide. The new U.S. Bank FlexPerks Travel Rewards Visa credit card combines Visa payWave, EMV chip, and magnetic stripe technologies, enabling customers to have the best experience possible wherever they use their cards.

U.S. Bank first in the United States to issue dual EMV chip and contactless payment solution

"U.S. Bank is pleased to be the first issuer in the United States to provide dual interface EMV cards that can be conveniently used anywhere - whether it be a chip-card reader with a merchant overseas or a contactless payment terminal or magstripe reader here in the United States," said Cliff Cook, chief marketing officer for U.S. Bank Retail Payment Solutions. "While we believe EMV is important for our international travel cardholders, we are committed to driving contactless mobile payments in the United States."

Visa payWave employs the latest contactless technology for sending payment information to a secure reader at the point of sale. Similar to EMV, a special computer chip is embedded in the card, allowing the customer to simply 'wave and go' when making a purchase. Transactions are processed through the same, reliable payment network as magnetic stripe transactions and offer the same multiple layers of security protection. U.S. Bank provides zero fraud liability for unauthorized transactions.

Oberthur Technologies and Visa Canada are members of ACT Canada; please visit http://www.oberthur.com & http://www.visa.ca.

8. VISA ACQUIRES FUNDAMO MOBILE PAYMENTS SERVICE
Source: Zdnet (06/09)

Visa is continuing to gain ground in the mobile payments market with the acquisition of Fundamo, a service that is already prevalent in at least 40 developing markets.

Basically, the merger brings together Fundamo's mobile financial services platform for customers with little to no access to a bank account with Visa's global payments network, VisaNet. The gain for Fundamo users would be a higher level of security when making mobile payments, and Visa gets a bigger consumer base abroad.

Additionally, Visa reaffirmed an agreement with Monitise, which offers new services (i.e. mobile payments, person-to-person payments, mobile transaction alerts, etc.) to Visa account holders on mobile phone.

Visa has already announced plans for an NFC-enabled digital wallet service for North America, set to launch this fall. However, it already looks behind in the game considering MasterCard garnered attention for its involvement on Google Wallet. Nevertheless, if Visa gains control of mobile payments abroad (especially in developing countries where these services are becoming the norm), then they could end up with the worldwide lead.

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

9. RETAIL PAYMENTS FROM MOBILE PHONES TO BE TRIALLED
Source: Voxy.co.nz (06/13)

MasterCard Worldwide and ANZ announced their plans to conduct a trial enabling retail payments with a mobile phone.

Utilising near field communication (NFC) contactless payment technology, this will be the first time this technology will be available for trial in New Zealand. The trial will see a select trial group of ANZ staff issued with either a contactless sticker or a memory card enabled with MasterCard's contactless technology, PayPass.

In addition to the 311,000 merchant locations already accepting PayPass throughout the world, ANZ will have MasterCard PayPass enabled terminals available at major merchant locations from July which includes Hell Pizza, St Pierre's Sushi and Corporate Cabs. More merchants are expected to be announced over the coming months. These retailers will join Westpac Stadium and Eden Park, which were the first retail locations to introduce the technology in New Zealand.

The PayPass sticker can be attached to any phone type, while the microSD memory card will be inserted into Blackberry devices. This technology will allow participants to use their mobile phone to make purchases of up to NZ$80 by simply tapping the device in front any MasterCard PayPass terminal.

The NFC trial complements MasterCard's Roadmap, a five-year plan designed to grow and reinforce the integrity of the payments system in New Zealand. It enforces a key commitment to merchants, cardholders and customer banks to facilitate the acceptance of payments in a quicker, safer and more efficient way.

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

10. WILL THE UBIQUITOUS HANDSET BECOME THE ID OF THE FUTURE? - 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. CPI CARD GROUP INTRODUCES A NEW SECURE DUAL INTERFACE EMV SOLUTION WITH NXP SEMICONDUCTORS
Source: PRWEB (06/14)

CPI Card Group has chosen NXPs payment solution for its latest dual interface product. "Our proven, reliable and secure contactless solutions will help facilitate the migration to EMV systems in North America, providing greater financial security for consumers", said Karsten Danziger, director of banking solutions for NXP Semiconductors. The migration also provides an opportunity for banks to provide additional consumer benefits such as advanced services and applications. NXP is uniquely positioned, with our market leadership in mobile payments, near field communication, smart ticketing and infrastructure solutions, to lead this innovation.

CPI is also proud of being the only manufacturer in North America offering the Smart Packaging Solutions (SPS) reliable technology for the dual interface card construction. "Our unique dual interface solution based on the electromagnetic coupling concept is the ideal platform for a large volume of high quality and secured cards as the banking market requires," said Ivan Peytavin, area sales director, Americas - West of Europe & Pacific for SPS. We have had a longstanding and successful relationship with CPI and are pleased that they have decided to use SPS solution for their dual interface cards production, especially with this new product dedicated to VISA issuers.

CPI is very pleased with the NXP and SPS partnership as it will help us offer our customers a new alternative. Our first target market will be in Canada, where our Toronto facility is fully certified in producing and personalizing EMV cards, said Benoit Guez, Director of Smart Cards and New Technology. CPI is also offering dual interface cards to EMV markets in the U.S., Europe and Latin America, providing full support to financial institutions with their EMV strategies.

The CPI qualified solution is based on the NXP SmartMX dual interface solution with 12K EEPROM memory. NXPs portfolio of SmartMX products has been vetted by independent evaluation labs in numerous Common Criteria and EMVCo certifications. The devices feature advanced security concepts including the patented GlueLogic design methodology, dedicated hardware firewalls to protect software and data, and a comprehensive suite of technologies addressing attack scenarios with light and lasers. In addition, the ICs provide faster reading and writing capabilities due to optimized hardware and software. NXPs SmartMX products have also passed Cryptography Research Incs stringent DPA Countermeasure Validation Program for smartcards.

Over the last five years, CPI Card Group has become the largest global manufacturer of financial contactless cards, having delivered over 110 million contactless financial cards to the North American market. With the emergence of EMV in North America, CPI stands ready to assume the same leadership position in delivering EMV solutions to its customers.

CPI Card Group & NXP Semiconductors are members of ACT Canada; please visit http://www.cpicardgroup.com & http://www.nxp.com.

12. APRIVA HELPS ANDROID DEVICES MEET GOVERNMENT SECURITY REGULATIONS WITH NEW SDK
Source: SecureIDNews (06/01)

Apriva, a provider of end-to-end wireless transactions and secure information solutions, has announced the release of a software development kit (SDK) enabling Android devices to be compliant with HSPD-12 security regulations.

The company says the Android SDK is meant to address a growing demand from the Executive Office of the President, the Office of Management and Budget, the Department of Homeland Security and the Department of Defense (DOD) to accelerate compliance with HSPD-12 beyond Windows Mobile and BlackBerry mobile devices.

"Prior to the release of this SDK, Android devices were not able to meet the fundamental requirements of HSPD-12 and DOD directives," says Jeff Ford, Apriva's Information Security Systems (ISS) division president.

Android device manufacturers and application developers can leverage Apriva's SDK at no cost with a signed license agreement and employ it to integrate with the Apriva portable Bluetooth smart card reader. According to Apriva, the SDK includes all of the software, drivers, libraries, and interfaces needed to extend smart card operations into new or existing platforms and applications.

Additionally, Android device manufacturers can provide "STIG capable" platforms with the SDK, enabling add-on middleware and applications to be in compliance with government security policies. Apriva's SDK is designed to handle the complexity of using and managing PKI smart cards, while providing a simple way to add the PKI-based encryption and identity management to new Android applications and platforms

Apriva is a member of ACT Canada; please visit http://www.apriva.com.

13. STARBUCKS EXTENDS SMARTPHONE PAYMENT APP TO ANDROID DEVICES
Source: Computerworld, By Matt Hamblen (06/14)

Starbucks has felt the caffeine buzz from its bar code-based mobile payment app for the iPhone and BlackBerry smartphones for several months. Beginning Wednesday, the app will be extended to include the Android platform.

The coffee giant also plans to add mobile payment capabilities to Starbucks shops in 1,000 Safeway stores, bringing the number of places where mobile payments work to nearly 9,000 in the U.S. That number includes 6,800 company-owned Starbucks and another 1,000 locations inside of Target stores, said Chuck Davidson, category manager for innovation on the Starbucks card.

Davidson said that Starbucks has done so well with its mobile payment app -- a reader in the store scans barcodes displayed on smartphone screens - that it doesn't make sense to wait for the arrival of Near Field Communication (NFC) mobile payment technology.

"Having NFC readers [inside stores] is not the issue; it's [having enough] NFC [chips] in the phones, which we believe is two-and-a-half to three years out," Davidson said in a conference call with reporters.

Davidson said Starbucks saw 3 million mobile payment transactions in just nine weeks when the iPhone and BlackBerry apps were launched earlier this year, though he didn't provide more detailed information. "That's a big number in a short period of time, which we achieved with no complaints and no training issues," he added.

Starbucks did plenty of preparation for the mobile payment system, building on its successful Starbucks card, he said. The card originally began as a gift card and now allows users to pay by phone quickly at a bar code scanner. It can also be used to reload dollars to the card from any major credit card and to check Starbucks Rewards for winning a free drink and finding nearby Starbucks locations.

Davidson said Starbucks has been the mobile payment innovator in the U.S. and has found that Americans will pay with their phones. "We're it, we're the test case, and we're seeing tremendous value," he said.

Moving to the Android is important because "Android is huge," he said.

Originally, Starbucks surveyed customers and found they wanted to be able to use an iPhone or BlackBerry for mobile payment; now they're clamoring for that capability for Android. Noting that the smartphone market changes almost monthly, he said, "Android is a huge growth opportunity for all mobile, so we're happy to be part of that now."

Along those lines, Davidson said Starbucks thought at first that "only trend folks with iPhones" would use the mobile app to buy drinks and food. "But we see now it's kids, old folks -- all over the map," he added. "We're surprised to see how broad the usage has been."

Davidson has visited many stores and watched as soccer moms and office workers paid by phone. "They don't have to dig around in a purse," he said.

He declined to disclose many details about mobile payments at Starbucks, including how many customers use the service or what the average purchase is by smartphone.

While he wouldn't disclose future plans for the system, he did say the retailer has considered allowing smartphone users to form a separate line to pay. Today, all customers line up together to order and pay.

Davidson said that paying by mobile is faster than by other methods, and demonstrated how fast the free Android app is to use. Users will touch a button on the screen of the phone to pay, then scan a bar code that is presented on the phone display and then click once more to finish when they will see the total left on the Starbucks Card on the phone display.

With the assistance of MFoundry, Starbucks was able to build a completely different app for Android that works with Android 2.1 devices and above across various hardware manufacturers, Davidson said. The Android app is not a duplicate of the app on the iPhone he said, although it functions in a similar way.

"On Android, we have to make sure it worked efficiently with the home button and back button, optimizing what we had," he said.

14. DEUTSCHE TELEKOM CHOOSES G&D AS DEVELOPMENT PARTNER FOR SIM CARD SOLUTION IN NFC MOBILE PHONES
Source: Giesecke & Devrient (06/27)

Giesecke & Devrient (G&D) was commissioned by Deutsche Telekom AG to develop a new SIM card solution for mobile phones with contactless Near Field Communication (NFC) technology. The functionally expanded SIM card will be used in Deutsche Telekom's networks in future. This is the first time that a contactless technology is being introduced across markets and implemented using a universal SIM card. The solution will go beyond the standardized NFC functions to meet Deutsche Telekom's additional global integration requirements. What is more, by way of this solution the company is laying the foundations for future contactless payment and service offerings.

Giesecke & Devrient was awarded this contract following an international tender. Deutsche Telekom intends to offer novel NFC services based on this SIM card solution in various countries in future.

New SIM cards with NFC functionality are the key element in future mobile phone payment functions. NFC is a new data transmission technology which allows contactless short-range transfers of data. NFC uses a wireless interface that has a range of several centimeters. G&D's next-generation SIM card operating system SkySIM CX is a secure platform for a variety of contactless applications.

In future, thanks to NFC technology, it will become easy, quick and secure to make payments using mobile phones. The technology is also suited to electronic travel tickets, customer-oriented voucher systems, solutions for logistics and access systems, as well as for signature-based security applications.

By using the latest card technologies (based on Global Platform and ETSI standards), G&D is ensuring that services can be integrated securely both into mobile network operators' system infrastructure and into the networks of participating payment systems. The SIM card's security functions make use of the latest cryptographic methods.

Giesecke & Devrient is one of the world's leading NFC providers and has taken part in numerous field trials of this technology. As part of its suite of future-oriented solutions, G&D also offers TSM and wallet systems which, together with the NFC SIM, turn mobile phones into electronic wallets.

As a full-line provider, G&D offers not only innovative SIM cards but also comprehensive solutions for the cost-effective management of related solutions via wireless networks.

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

15. GOOGLE LAUNCHES PLACES TEST WITH JAPANESE WALLET PHONES IN TOKYO - 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. FIME PLAYS A KEY ROLE IN THE VALEO NFC ACCESS SYSTEM PROJECT
Source: FIME (06/20)

FIME has contributed its expertise to a virtual car key access system using NFC technology launched by Valeo and Orange Business Services. The solution makes it possible to temporarily transfer a car key to a mobile phone, manage a booking system online and finally, open the car door and start the car using this mobile phone.

FIME has offered its application development capabilities to the innovative project being delivered by Valeo, a provider of components, systems and modules for the automotive industry, and Orange Business Services, an entity within the France T�l�com Group dedicated to global business telecommunications.

The solution is based on mobile phone and web technology and can be used by a company or privately by a group of friends. The process works as follows:

1. The owner of the vehicle featuring NFC technology logs in to the car sharing site.
2. They build up their user community by inviting participants to the scheme using SMS. Once the invitation has been accepted, the participant's mobile phone can be used as a virtual key.
3. The participant reserves a time slot using their mobile device to access the vehicle. Once the slot has been confirmed, they will receive a one-time virtual, temporary key on their mobile phone.
4. The participant brings the handset close to the vehicle door and dashboard featuring Valeo NFC readers to open and start the car.

FIME's role during the project has been to develop the application software that resides in the end-users mobile phone. This technology manages and stores a car's virtual key once the booking on the car-share application has taken place. The key can only be received for the time slot requested by the user, with the vehicle owner's permission, and is fully encrypted to deliver the highest security standards possible.

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

17. INSIDE SECURE AND ZTE WORKING TO BRING NFC PHONES TO GSM AND 3G NETWORKS
Source: INSIDE Secure (06/28)

INSIDE Secure announced it has expanded its partnership with ZTE Corporation to integrate INSIDE's near field communication (NFC) technology into ZTE's GSM and next-generation TD-SCDMA smartphone platform, which is based on the Android OS. The NFC solution INSIDE and ZTE are creating is based on the INSIDE MicroRead NFC controller and the companion Open NFC� protocol stack. It will enable consumers in China and elsewhere to use ZTE 3G smartphones for a broad range of secure NFC applications, including payments, transportation, loyalty, ticketing and access control.

"We are very pleased to cooperate with a well-known brand handset maker such as ZTE for NFC deployment worldwide," said Remy de Tonnac CEO of Inside Secure. "Based on our advanced NFC technology, we believe that we can provide an excellent NFC solution to ZTE in China and globally."

"Today's announcement is the latest result of our long-term relationship with ZTE in developing NFC solutions for their handset offerings, which now cover GSM 2G and TD-SCDMA 3G networks," said Simon Hu, chief representative and general manager, Greater China for INSIDE Secure. "We look forward to strengthening our partnership with ZTE to provide best-of-breed NFC solutions as they develop more high-value handsets and continue to expand their operations throughout China and other regions."

Now one of the top five handset vendors globally, China's ZTE Corporation recently indicated that it had sold 90 million handsets in 2010. ZTE has recently started making inroads in Western Europe, where ZTE reported its fastest growth, as well as in Japan and the U.S.

"Both Smartphones and feature phones are essential to our long-term success in the global handset market, and NFC is quickly becoming an important component of these platforms," said Wang Yongzhong, general manager of GSM and UMTS handset products at ZTE Corporation. "Our ongoing partnership with INSIDE Secure gives us access to mature, proven NFC technologies and superior support that enables us to bring our handsets to market quickly and cost effectively."

A third-generation product that sets a new standard for ease of integration, the MicroRead NFC controller offers a broad range of NFC options and provides the capacity to implement any secure element, including SIM, SE or SD card, to support any business model.

Winner of the prestigious SESAMES Innovation Award, Open NFC has received significant industry support from a broad array of participants in the NFC ecosystem.

INSIDE Secure is a member of ACT Canada; please visit http://www.insidesecure.com.

18. AUSTIN TO BE LAUNCH MARKET FOR ISIS MOBILE-PAYMENTS TECHNOLOGY
Source: AMERICAN-STATESMAN, By Brian Gaar (06/22)

Starting next year, Austinites will be able to use their smartphones to pay for purchases at a variety of local merchants.

A joint venture among three major U.S. wireless carriers - AT&T Mobility, Verizon Wireless and T-Mobile USA - will test mobile payment technology in Austin and Salt Lake City next year before a nationwide launch.

The venture known as Isis should roll out in Austin in the first half of 2012, officials said.

In fact, the technology behind mobile payments - known as near-field communication - is about a decade old, Abbott said. Businesses that currently accept "contactless payments" - meaning that customers can tap their credit card against a device, rather than swipe it - will be able to accept mobile payments, Isis officials said.

Mobile payments are mainstream in other parts of the world but aren't yet common in the U.S. Isis officials expect that to change, citing research predicting that the mobile payment market, which was $5.2 billion in 2009, will jump to $56.7 billion in 2015.

Other businesses are also making forays into the space. Austin company Tabbedout has designed an app that allows customers to close their restaurant or bar tabs using their smartphones. The company recently signed a deal that will bring its technology to thousands of venues across the country.

Isis is in talks with major credit card companies about integrating their systems with its technology. Isis also plans to release apps on the iPhone, Android and Blackberry platforms. Officials said the Isis system will allow consumers to store debit and credit card information on their phones, in addition to loyalty card information, gift cards and coupons.

In deciding on test markets, Abbott said Isis examined 35 to 40 cities, looking for demographics such as youth and high education levels.

Officials with the venture are working with local merchants to encourage adoption of the new system. Isis officials demonstrated the technology to Austin merchants Tuesday at the Alamo Drafthouse theater on South Lamar Boulevard.

19. GEMALTO AND ORANGE GROUP EXTEND COLLABORATION ON NFC WITH ROLLOUT OF POLAND'S LARGEST MOBILE CONTACTLESS PROGRAM
Source: Gemalto (06/21)

Gemalto announces that PTK Centertel, an Orange group affiliate, is deploying the largest NFC program in Poland, with a commercial offer targeting several thousand users. This new initiative reinforces Gemalto's active role in Orange Group's NFC expansion strategy with deployments already in the UK, France and now Poland.

This program, the first commercial NFC pilot in the country, brings PTK Centertel's customers the convenience of using their mobile phone to securely pay for goods and services at a wave of their handset. Consumers will benefit from Poland's well established contactless infrastructure of approximately 35,000 acceptance points, notably in fast food restaurants, cinemas, supermarkets and numerous retailers.

Gemalto provided an end-to-end solution that includes NFC software and user interface applications securely embedded on an NFC SIM, and the Trusted Service Management (TSM) services. PTK Centertel and its partnering bank have entrusted Gemalto with the operation of the TSM platform, to securely personalize and manage the payment application in the device over the air.

"With already a number of large-scale rollouts around the world, Gemalto is definitely the trusted reference for mobile NFC implementation," said Krzysztof Sieczkowski, Product and Content Development Director, PTK Centertel. "We need a complete solution to speed up our time-to-market, and leverage the strong contactless payment network already existing in Poland to make our consumer the first to benefit from the NFC experience."

"Gemalto is committed to assisting Orange Group with its NFC strategy with best-in-class technology and services for mobile contactless payments," added Jean-Claude Deturche, senior vice-president of mobile financial solutions at Gemalto. "We have proven our success in France and the UK, and in Poland too our expertise in interconnecting all players in the NFC ecosystem - including the mobile operators, financial institutions and transit companies, will greatly facilitate the delivery of a superior user experience. "

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

20. THE FUTURE OF PAYMENTS - Members Only Access

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

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

21. COLLIS SUCCESSFULLY ACCREDITED TO DELIVER MASTERCARD FORMAL APPROVAL CPV, M-TIP AND PAYPASS TIP SERVICES
Source: Collis (06/01)

Collis is proud to announce that the Collis Test Centre has been successfully accredited by MasterCard Worldwide to deliver CPV & (M-)TIP MasterCard Formal Approval Services mandated by MasterCard.

The Collis Test Centre is very pleased that it is now a service provider accredited by MasterCard Worldwide to deliver chip implementation services for MasterCard� Card Personalisation Validation (CPV) and Terminal Integration Process (TIP & M-TIP) services.

Accreditation for Formal Approval Services combined with prior accreditation for delivering chip-related training & consulting services in the Guidance and the Technical Support categories and a range of Collis Test Tools qualified by MasterCard Worldwide, enables Collis to extend its portfolio of solutions for issuers and acquirers worldwide and strengthens its commitment to provide them with high-quality services, tools, and training. All in all, Collis is capable of giving issuers and acquirers a competitive edge in bringing the best products to market quickly while reducing costs and risks.

Collis' services for MasterCard Formal Approval CPV Services include the use of the Collis EMV Personalisation Validation Tool (PVT) which is qualified by MasterCard Worldwide for card personalization validation by the issuer in preparation of the formal CPV service. The Collis Brand Test Tool (BTT) incorporates the Collis Card Simulator qualified by MasterCard Worldwide and supports an acquirer in Contact TIP Validation and Contact NIV Validation.

MasterCard Formal Approval Services for CPV, M-TIP and PayPass TIP test that card and terminal products carrying MasterCard brands, or accepting MasterCard branded M/Chip & PayPass payment applications, meet the minimum quality and interoperability requirements specified by MasterCard. MasterCard mandates that issuers and acquirers introducing a new card or terminal to go through CPV or TIP Formal Approval Services of MasterCard Worldwide. This enables early detection of issues which reduces further costs and the time-to-market.

Collis and MasterCard Canada are members of ACT Canada; please visit http://www.collis.nl & http://www.mastercard.com.

22. A PILOT PROJECT WITH NFC PHONES SHOWS GREAT POTENTIAL FOR MOBILE KEYS
Source: Giesecke & Devrient (06/08)

The world's first pilot using NFC-enabled mobile phones to check in and out of hotel rooms, replacing room keys, is now completed. A survey shows that all guests in the trial appreciated not having to wait in line at the hotel reception. Almost all stated that they would use the mobile key solution if it were available today.

ASSA ABLOY, Nordic Choice Hotels, Giesecke & Devrient, TeliaSonera and VingCard Elsafe have completed a joint pilot project to replace hotel room keys with NFC-enabled mobile phones. During an eight-month long pilot at the Clarion Hotel Stockholm in Sweden, about 30 hotel loyalty guests checked in to the hotel via a mobile key application. After the check-in, the hotel key was sent directly to the mobile phone. Upon arrival the room could be directly accessed without the need to wait in line at the hotel reception. The check-out was also managed through the mobile key service.

A survey was conducted with the participating loyalty guests. It showed that not having to wait in line at the reception to check in and check out was highly appreciated by all participants. Almost all of the guests said that it saved time not having to check in at the reception, more than half said they saved 10 minutes or more. Almost all of the loyalty guests would use mobile keys for their hotel stays if NFC-compatible cell phones were available today and their phone supported the service.

- The pilot has been a success. A broad majority of the guests claim that the service made their hotel stay more pleasant. This shows that technology that helps people save time will be appreciated and used. The pilot also confirms that using mobile keys to open all kinds of doors will be one of the most popular NFC applications, said Daniel Berg, Vice President and General Manager ASSA ABLOY Mobile Keys.

The hotel loyalty guests stayed at the hotel frequently during the pilot period which meant that they used the application repeatedly. This gave the guests the familiarity with the service needed to give valuable feedback on the user experience. When asked what other NFC applications they believed in, most of the guests replied paying for food, drink and hotel services. A majority also believed in getting information about the hotel and the hotel services such as map, room service menus, the spa and gym and information about restaurants, bars and public transport available via the NFC service.

- Mobile keys are a great way to enhance the guest experience and add value to hotel loyalty applications, also it is environmentally friendly, said Marcus Majewski, General Manager, Clarion Hotel Stockholm. We get a closer relationship with our guests and can add information on promotions and events. The survey shows that 60 percent are positive to getting information about hotel offerings using the service.

- The pilot has verified user's interest in these types of services and the potential and suitability of using the SIM card to securely store important information as the hotel key. With this real life implementation, based on standards developed during the last years, we have jointly taken important steps towards commercial NFC based services and solutions, said Johan Wickman, Head of Innovation Management at TeliaSonera Mobility Services.

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

23. ALLIED IRISH BANKS (AIB) DEPLOYS GEMALTO ONLINE BANKING SOLUTION
Source: Gemalto (06/07)

Gemalto announces Allied Irish Banks, p.l.c. (AIB) is deploying the Ezio solution to provide additional security features to its online banking services. As part of the multi-year contract, Gemalto is delivering the complete, future-proof Ezio solution including strong authentication software, Ezio Club EMV card readers as well as consulting services. The driver behind the upgrade is to further develop AIB's online offering with new and enhanced financial services for the benefit of customers.

In addition to generating One-Time-Passwords the Ezio Club reader is used to verify and sign transaction details, such as amount transferred and account credited. This added layer of "sign-what-you-see" security ensures the authenticity of the Internet Banking session, whilst enhancing the user's protection.

"Simplicity and convenience for our customers were determining factors in our selection of Gemalto's solution," said Diarmuid Hanrahan, Head of Payments and eChannel Development, AIB. "The Ezio solution flexibility enables us to evolve our eBanking security strategy over time with multiple strong authentication devices."

"More than 50 million online banking customers worldwide use and trust Gemalto's Ezio technology and we are leveraging this experience to support AIB's project," added Philippe Regniers, Senior Vice President, Gemalto

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