Stakeholders Driving Payment Evolution and Digital Identity

March 2011 ACTion Newsletter

IN THIS ISSUE

1. Editorial - Call to action for governments and Canadians
2. EMV In The USA
3. Visa To Offer Canada's First Pre-Loaded Payment Card For Healthcare Spending Accounts
4. Scotiabank Cardholders Can Now Pay Securely For On-The-Go Purchases With Visa Paywave
5. NFC In 2011: Wells Fargo Tests Mobile Payments In San Francisco - Members Only Access
6. Shaping The Market
7. T-Mobile USA, Everything Everywhere and G&D Collaborate To Enable International M2M Deployment With Industry's First Embed
8. Apriva Teams Up With Evo Merchant Services To Introduce Mobile Payment Solution
9. Gemalto Mobile NFC Payment Application First In The World Certified By MasterCard
10. Starbucks Sees Success With Mobile Payments - Members Only Access
11. Call For Award Nominations
12. YESpay-Wallet Launched -Payment Gateways To Drive Penetration Of Mobile Wallets With Consumers
13. FIME To Deliver NFC Forum Certification
14. NFC Gains Traction As Google Eyes System With MasterCard, Citigroup
15. What Is Stopping Mobile Wallets - Members Only Access
16. Visa Moves Beyond The Point-Of-Sale - Delivers Personal Payments To U.S. Account Holders
17. Securekey Technologies Inc. Receives An Investment From Intel Capital
18. NetOne Deploys Gemalto's End-To-End Mobile Money Solution In Zimbabwe
19. BofA Takes Blackberry MicroSD Chips Out For A Spin - Members Only Acces

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
Gemalto ~ member since 2005
President's Choice Financial ~ member since 2008

GENERAL

BEA Transit Solutions Inc ~ new member
Citi Cards Canada ~ member since 2006
FIME ~ member since 2006
NBS Technologies ~ member since 2008

SME

NetSecure Technologies ~ member since 2008
SecureKey Technologies ~ member since 2009

ASSOCIATE

Blake, Cassels & Graydon LLP ~ member since 2007
VCS Technologies Inc ~ member since 2009

MEMBER ANNOUNCEMENT RE CAREER OPPORTUNITIES

SecureKey Technologies is rapidly becoming a leader in cutting-edge authentication and online payment products and services. SecureKey is looking for bright, experienced software developers and engineers for product development, client support and R&D.

See http://www.securekey.com/About/jobs.html for details on these positions.

Interac Association is seeking experienced payment professionals to help manage and grow our online, mobile, and card payment products. Positions are available in Product Management, Relationship Management, Fraud Programs, Marketing, and Project Management.

See http://www.interac.ca/careers.php for details on these positions. Applications should be sent to careers@interac.ca.

CALENDAR OF EVENTS

2011 Smart Card Alliance Annual Conference
May 2-5, 2011
Hyatt Regency - McCormick Place
Chicago, IL, USA
http://www.smartcardalliance.org

Cardware 2011: Payment Insights
Sheraton Fallsview Hotel & Conference Centre
Niagara Falls, Ontario, Canada
June 14-15, 2011
http://www.actcda.com
ACT Canada members receive substantial discounts

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

1. EDITORIAL COMMENT
Source: Catherine Johnston, President & CEO, ACT Canada (03/30)

Call to action for governments and Canadians

As you are reading this, we have reached an EMV milestone in Canada. After six years, we are in the final stages of significantly increasing payment security. Congratulations. Now, take a deep breath, because the next six years are going to be equally challenging and rewarding for all of us who work in either the payments or identity spaces.

Moving forward, many stakeholders will be driven by the desire to leverage existing EMV investments. There are many options, but when it comes to payment, it is increasingly difficult to tell whether new opportunities will bring in new revenue, cannibalize existing revenue or potentially cause existing customers to go elsewhere if the new options aren't offered.

We will also be driven by the criminals who need to mitigate their losses now that we have cut their profits from counterfeit payment cards. On the payment side we tackled the elephant and will continue to deal with remaining fraud issues. On the identity side we need to address the elephant known as identity fraud. Those who issue any form of identity card, or card that identifies the cardholder as having certain rights and/or privileges, must follow the lead of the financial sector and implement robust counterfeit resistant cards.

Most levels of government issue such cards and documents. At the federal level it would include Social Insurance cards and passports and many others. Passports, even though they already use state-of-the-art security measures, are moving to the highly secure e-passport standards. SIN cards are not. Provincially, health cards are not, even though health services account for a significant portion of most budgets.

While the federal election is underway, we need to make identity protection an issue, including the cost to each of us, individually when any of our cards are counterfeited and collectively when tax funded social benefits are defrauded. Make this a federal issue now so that provincial governments can also take heed.

When candidates come to your door, tell them fraud is unacceptable and it's time to invest in counterfeit resistant cards to protect Canadians and stop criminals!

2. EMV IN THE USA
Source: ACT Canada (03/30)

No longer are people asking whether EMV will roll out in the US. They aren't even asking when - but rather - how soon? To serve our members and the American stakeholders who are reaching out to us for information, we have launched http://www.emv-usa.com. This site provides information and an FAQ tab where people can ask questions. ACT Canada members will provide answers.

We are also pleased to announce our EMV for the US track at Cardware 2011: Payment Insights. On June 14th, Canadian stakeholders will help their American counterparts learn what worked during our 6 year conversion - and things we might do differently knowing what we now know! Click here for more information about Cardware 2011 and the EMV for the USA track.

3.VISA TO OFFER CANADA'S FIRST PRE-LOADED PAYMENT CARD FOR HEALTHCARE SPENDING ACCOUNTS
Source: Visa (03/23)

Visa Canada, together with Great-West Life, a leading Canadian group benefits provider, announced a new Visa-branded employee benefits payment card. The card will reduce the need for Great-West Life group plan members to pay out-of-pocket for health services and supplies covered by their benefits plan.

The card, called the Health SolutionsPlus Visa payment card, is issued by Peoples Trust, a Vancouver, BC-based financial institution, and will allow point of sale access to a group plan member's available healthcare spending account (HCSA) balance. Powered by the innovative card technology of Evolution Benefits�, Inc, the Health SolutionsPlus Visa payment card allows cardholders to conveniently purchase covered health services and supplies from authorized providers simply by swiping their card.

"Employee benefit cards such as the Health SolutionsPlus Visa payment card provide fast and convenient access to healthcare spending account balances while reducing the need to pay out-of-pocket and wait for reimbursements," says Mike Bradley, head of products, Visa Canada.

Great-West Life has become the first Canadian insurer to launch a Visa payment card for healthcare spending accounts. "The Visa payment card for HCSA claims will deliver an enhanced experience for plan members," says Brad Fedorchuk, Vice-President of Group Benefits Marketing for Great-West Life. "Additionally, we have launched new cost containment product options with Health SolutionsPlus that can help plan sponsors implement cost saving plan changes while maintaining plan member satisfaction."

The healthcare industry is witnessing a shift from cash and cheques to electronic payments. Consumers benefit from the convenience, security and transparency of payment cards when paying for healthcare expenses, while providers recognize the benefits of increased potential to collect on receivables and reduced administration.

"At Visa, we look at healthcare payments as a vertical segment," continues Bradley. "Healthcare spending accounts in Canada use comparable technology platforms to the health savings accounts and flexible savings accounts in the United States market, where this segment has grown by more than 35% a year over the past decade. We see payment card technology as the way of the future for Canadian HCSAs."

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

4. SCOTIABANK CARDHOLDERS CAN NOW PAY SECURELY FOR ON-THE-GO PURCHASES WITH VISA PAYWAVE
Source: PR Newswire (03/22)

Scotiabank is inviting Visa cardholders to 'wave and go' when making everyday purchases by adding Visa payWave, a contactless payment feature, to its line of credit cards. Visa payWave transactions make small purchases faster and easier, reducing the amount of time customers spend at the checkout. Visa payWave is a no-fee enhancement which is now available on select Scotiabank credit cards, including ScotiaGold Passport Visa, Scotia Momentum Visa and SCENE Visa.

With Visa payWave, cardholders no longer need to look for change, key in a PIN or sign receipts for small everyday purchases at participating Canadian merchants. Visa payWave cardholders can simply wave their card in front of a merchant terminal with the universal contactless symbol and they are on their way. Scotiabank cardholders will now be able to make secure contactless transactions at Petro-Canada, Rexall Pharma Plus pharmacies, Cineplex Entertainment movie theatres, Jean Coutu, Rabba Fine Foods, M&M Meat Shops, Second Cup, as well as other retailers.

"Visa payWave is changing the way people pay, and paving the way for new technologies to come," said Mike Bradley, Head of Products, Visa Canada. "It's convenient, secure, and as always, Scotiabank cardholders are protected by Visa's layers of security, including Zero
Liability."

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

5. NFC IN 2011: WELLS FARGO TESTS MOBILE PAYMENTS IN SAN FRANCISCO - 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. SHAPING THE MARKET
Source: ACT Canada (03/30)

Our Strategic Leadership Teams (SLTs) are driven by movers, shakers and future shapers in mobile, NFC, loyalty, secure payments, secure identity and leveraging EMV. As an expert SLT member, you have the chance to collaborate with other senior stakeholders in a neutral forum to help influence market growth and propel key initiatives - and your own initiatives - forward. We are pleased to announce 2 new SLTs; Prepaid and Secure Chip. If you would like information on either of these or our Mobile, Merchant or Identity Management SLTs, please click here and let us know which teams you would like to know more about

7. T-MOBILE USA, EVERYTHING EVERYWHERE AND G&D COLLABORATE TO ENABLE INTERNATIONAL M2M DEPLOYMENT WITH INDUSTRY'S FIRST EMBED
Source: Business Wire (03/23)

T-Mobile USA, Inc., in collaboration with Everything Everywhere Limited, the UK's largest communications company, and Giesecke & Devrient (G&D), announced the ongoing development of the industry's first embedded multi-mode international mobile subscriber identity (IMSI) SIM. Designed for cost-effective international machine-to-machine (M2M) deployment, the multi-mode solution will act as a local SIM when deployed in the U.S. and the UK. This unique "borderless" solution will offer M2M application providers the ability to deploy multiple global subscriptions for reduced roaming costs and improved coverage in areas outside of local networks.

"In today's increasingly competitive M2M marketplace, it is imperative we provide our customers with cost-effective solutions that best meet their global design requirements without any compromises," said John Horn, National Director of M2M at T-Mobile USA. "With the innovative multi-mode IMSI SIM, T-Mobile can help customers to significantly reduce the time and costs associated with the international redesign and redeployment of their telematics, telehealth, and asset management applications."

Marc Overton, Vice President of Wholesale and M2M at Everything Everywhere said, "We are pleased that our close collaboration with T-Mobile USA and G&D will result in this unique, 'borderless' M2M solution. Single-deployment connectivity will significantly improve the way international M2M customers of Everything Everywhere and T-Mobile USA operate across both sides of the Atlantic."

The embedded multi-mode IMSI SIM is expected to be available before the end of the year.

Giesecke & Devrient is a member of ACT Canada and a Cardware 2011 exhibitor; for more information please visit http://www.gi-de.com.

8. APRIVA TEAMS UP WITH EVO MERCHANT SERVICES TO INTRODUCE MOBILE PAYMENT SOLUTION
Source: Apriva (03/09)

Apriva announced a partnership with EVO Merchant Services, the largest privately-held credit card processor in the US and Canada to provide an EVO-branded payment processing application compatible with iPhone version 3G, 3GS and 4 devices, as well as with browser-based phones. The new application, EVO Mobile Pay, utilizes Apriva's successful AprivaPay mobile payment software. EVO Mobile Pay is available through EVO's sales channels. EVO also anticipates introducing an Android version of its EVO Mobile Pay application in the near future.

Designed for mobile businesses, EVO Mobile Pay is fully reliable and secure mobile payment application that allows merchants to conduct real-time credit card transactions from any location using their mobile device of choice. Based on the AprivaPay mobile payment software, EVO Mobile Pay provides merchants with a number of features suitable for swiped or keyed transactions, including signature capture, and printing receipts through optional reader/printers. EVO Mobile Pay's encryption/security meets or exceeds all leading standards, including PA-DSS.

"Like many other providers, we are looking to satisfy the growing interest that merchants are exhibiting for mobile payment software," said Jeff Rosenblatt, president of EVO. "Our challenge was to find a scalable software solution that provides all the functionality and security our customers expect, but gives us the flexibility to offer it as an EVO-branded product. AprivaPay gives EVO an opportunity to achieve these objectives. It is a robust, efficient, yet extremely intuitive payment solution that enables us to quickly deliver a branded solution directly to our sales partners."

Released in January, 2010, AprivaPay has earned high marks from channel partners, merchants and consumers for its ability to transform any smartphone or browser-based device into a mobile payment terminal. Highly regarded for its ease-of-use and robust security, AprivaPay is compatible with iPhone, Android, BlackBerry and Windows Mobile smartphones, as well as all browser-based phones.

"We are extremely pleased that EVO appreciates the traction that mobile payments are gaining in the marketplace. This rebranding effort is a result of our strong partnership with EVO and how they view EVO Mobile Pay, powered by Apriva, as the solution best-suited to gain more traction into this burgeoning market," said Stacey Finely Tappin, Apriva's vice president for North America sales. "We will continue to work closely with EVO in expanding the EVO Mobile Pay portfolio and empower even more merchants to process card payments quickly and securely from the field."

Apriva is a member of ACT Canada and a Cardware 2011 exhibitor; please visit http://www.apriva.com.

9. GEMALTO MOBILE NFC PAYMENT APPLICATION FIRST IN THE WORLD CERTIFIED BY MASTERCARD
Source: Gemalto (03/29)

Gemalto announced the world's first UICC-embedded software application compliant with Mobile MasterCard PayPass M/Chip 4, the brand new MasterCard payment specification designed for mobile near field communications (NFC). The software application and the UICC have both successfully achieved the compliance assessment and security testing certification in accordance with MasterCard's highest chip security requirements.

This major breakthrough paves the way for mass commercial rollouts of NFC payment across the world. In the UK, Gemalto is already partnering with a global, first-tier financial institution and a world leading mobile operator, to implement the new MasterCard certified mobile payment application and carry out the solution's first mass commercial roll out.

Gemalto's software application embeds the Trusted Service Management interface for PayPass. This feature enables mobile account issuance and over-the-air management. Its user-friendly handset interface makes mobile NFC payment extremely convenient, for example enabling consumers to easily manage the new payment means and check transaction history. It also allows consumers to define their mobile Personal Identification Number (PIN), a code of their choice, through their phone. The mobile PIN is a new cardholder verification method used notably to secure operations such as account top-up from the mobile phone.

The Gemalto mobile NFC payment application can be configured so as to cover all card portfolios including debit, credit and prepaid. In the latter case, the software application enables consumers to top-up their prepaid accounts directly from their mobile phone - the utmost convenience for prepaid customers.

"We are pleased to collaborate with Gemalto to broadly expand the use of mobile payment services," commented James Anderson, vice president, Mobile, MasterCard Worldwide. "Leveraging the interoperability of MasterCard PayPass, Gemalto's effort will enable cross-border mobile NFC payment, adding ease to the fast-paced lifestyles of more and more consumers across the world."

"This new certification from MasterCard makes Gemalto the first on the market for this mobile product and will enable banks and wireless operators to offer a secure, innovative and convenient payment means to their entire customer base," added Jean-Claude Deturche, senior vice-president of mobile financial solutions at Gemalto. "Gemalto is committed to supporting its customers in their large scale deployments of mobile NFC payment, with a complete mobile contactless offer."

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

10. STARBUCKS SEES SUCCESS WITH MOBILE 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.

11. CALL FOR AWARD NOMINATIONS
Source: ACT Canada (03/30)

The Board of Directors of ACT Canada is pleased to call for nominations for the 2011 Innovation and ACT Canada Awards. Click here (http://www.actcda.com/awards.doc) for the package and nomination paper request form. Awards will be made at Cardware 2011 Payment Insights, June 14th and 15th, Niagara Falls, Canada. Good luck to all the nominees.

12. YESPAY-WALLET LAUNCHED -PAYMENT GATEWAYS TO DRIVE PENETRATION OF MOBILE WALLETS WITH CONSUMERS
Source: YESpay (03/11)

YESpay has launched a free consumer mobile and web wallet service, that in the future will also support NFC (nearfield communication) based payments, once NFC smartphones become widely available.

"YESpay merchants perform millions of card payments per week, and now their card paying customers can create free personal wallets by going to https://www.yes-pay.net/cardholder-web/or www.yes-pay.comto get instant benefits such as card payment e-receipts, e-coupons and location based services", said Dr Chandra Patni, CEO of YESpay International Limited. Dr Patni further added, "YESpay-Wallet supports storage of personal Visa and MasterCard in the 'My Wallet' function which can be used to make payments at web, mobile and physical stores of YESpay merchants".

YESpay-Wallet for BlackBerry, iPhone and Android smartphones will shortly be available. YESpay-Wallet supports roll out of retail couponing, loyalty and location-based mobile advertising and marketing services, many of which will use NFC in the future. Standard Visa/MasterCard Payment applications are also supported via the wallet.

YESpay is encouraging its Web, EPOS and Kiosk solutions partners to promote YESpay-Wallet in particular as part of a bigger plan to introduce e-coupons, promotions and gift card services initiative. YESpay has now released its YESpay-Wallet web-services APIs for any partner to integrate web and mobile wallet functionality. Additionally its Store Manager�web-services API enablesmerchant head office/central systems to control set-up and distribution of e-coupons, promotions and location-based-services to the wallet holders. "Retailers must be assured of receiving real value if they are to promote mobile and web wallets," Dr.Patni said.

NFC phones will over the next few years be out with secure elements, as well as the SIM,as options for loading secure payment applets. To begin with,YESpay-Wallet running on an NFC phone will use a Point-to-Point encryption service using the phone secure element to securely transport the wallet login credentials together with the wallet holder chosen card payment method reference to the YESpay payment gateway(EMBOSSdatacentres) which will then extract the card details to perform a magnetic card emulation authorisation with the card issuer.

Will PayWave (Visa) or PayPass (MasterCard) payment applets be loaded into the embedded secure element chip or possibly the SIM card, the latter directly controlled by mobile operators? Will the phone OS manufacturer such as Google/Apple/BlackBerry hold the master keys and control the applet load function of the embedded secure chip in Android and other NFC phones? Assuming EMV payment applets will be easily loaded by card issuers into the smartphone, YESpay will aim to enhance the YESpay-Wallet Mobile App to initiate EMV payments by triggering these PayWave and PayPass applets which will use the NFC to communicate with the EMV capable contactless Point of Sale (POS).

YESpay-Wallet service enables consumers to create the wallets through participating merchants? websites, at YESpay www.yes-pay.com website or via the mobile smartphone applications to be launched in May, which supports a wallet-registration function.

Consumers will also be able pay for in-store purchases at YESpay merchants by launching their YESpay-Wallet mobile application, selecting the card from information stored in the wallet and holding the smartphone in front of a scanner that scans a barcode on the phone screen. The barcode image represents the payment card. YESpay convert the barcode image data into the card details at their PCI-DSS Level 1 certified data centres before forwarding the card authorisation request to the merchants card Acquirer. One drawback of using this barcode approach is that the Visa/MasterCard payment will be treated as a "keyed-in" purchase, which may cost merchants potentially as much as card-not-present transactions. (Depending on the acquirer, card-not-present Visa/MasterCard transactions are about 30 basis points higher than
card-present transactions.) The barcode payment method is ideal for merchants? own gift card program payments, which do not incur card acquirer processing fees.

Consumers making purchases online on the web or through a mobile website need to log in to the wallet, select the card and then confirm the payment.

YESpay mobile wallets will offer consumers several perks, such as the ability to create virtual versions of their credit or debit card that link to the card accounts. When consumers use the virtual card, the merchant processes the payment using the credit or debit card linked to the virtual card account. Virtual cards use an issuer identification number, a unique, six/eight-digit number that identifies a bank in electronic transactions. The issuer ID numbers belong to YESpay and are registered with the International Organization for Standardization. Because the virtual cards use a YESpay issuer ID number instead of a bank ID number, "they are safer to use on the Internet and in the mobile environment. Consumers do not have to provide their actual credit or debit card information to the merchant," Dr.Chandra Patni notes. For example, consumers may create a $100 virtual card tied to a Visa-branded credit card to transfer the virtual card to a friend or family member. The recipient of the virtual card then may use it at any of YESpay participating merchants.

YESpay is a member of ACT Canada and a Cardware 2011 exhibitor, MasterCard Canada and Visa Canada are members of ACT Canada; please visit http:// www.yes-pay.com; http://www.mastercard.ca & http://www.visa.ca.

13. FIME TO DELIVER NFC FORUM CERTIFICATION
Source: FIME (03/24)

FIME has achieved NFC Forum Authorization for its laboratories. This allows FIME to conduct the required tests that will confirm a device's compliance to the NFC Forum's technical specifications and attain certification from the industry body.

In 2010 the NFC Forum - a global association which advances the use of NFC technology - launched a certification program to support industry interoperability and provide device behavior assurances within the marketplace. As an Authorized NFC Forum Laboratory, FIME can now work with device manufacturers to enable them to achieve industry certification for their products, which will allow them to use and display the N-Mark*.

FIME's ISO 17025 accredited laboratories in Asia and Europe have been approved by the NFC Forum to provide certification testing.

Pascal Le Ray, CEO at FIME, comments: "It is an exciting time for the NFC marketplace as we see more and more contactless applications being deployed. To guarantee the longevity of this technology, however, we need to ensure that certain standards are established and maintained to create a secure, workable and sustainable infrastructure. Interoperability between NFC devices is key and the NFC Forum Certification Program gives increased assurances that certified products are compatible."

The NFC Forum Certification Program will advance as technical specifications evolve, with the next phase expected to be released in 2012. In addition to FIME becoming an Authorized Laboratory for current certification, it is actively contributing to the completion of the next phase by delivering technical writing services.

Le Ray adds: "FIME has been an active participant in the development of contactless and NFC solutions and services for a number of years, working with the transport sector as well as leading payment schemes. FIME is accredited by MasterCard and Visa for performing NFC evaluations amongst other activities. We are delighted to now be able to offer official NFC device certification which we recognize is a significant step forward for the industry."

FIME is a member of ACT Canada and a Cardware 2011 exhibitor; please visit http://www.fime.com.

14. NFC GAINS TRACTION AS GOOGLE EYES SYSTEM WITH MASTERCARD, CITIGROUP
Source: Computer World, (03/28)

Google, MasterCard and Citigroup are reportedly working together on Near-Field Communication technology inside of Android phones to allow quick, contact-less payments at 150,000 NFC-ready terminals in the U.S.

According to unnamed sources quoted by the Wall Street Journal , Google would not collect a portion of transaction fees, opting instead to use purchasing data from customers to target retailers' ads and discounts for mobile phone users.

The project is reportedly in its early stages, although the Google-backed system is expected to be released sometime this year. Citigroup would allow its debit and credit card customers to pay for purchases at train stations and retail shops using an app on various Android phones enabled by an NFC radio chip inside the phone.

Google's interest in NFC -- combined with other announcements involving Visa and American Express -- show that NFC "is the new holy grail for...credit card issuers who see the hundreds of millions of smartphone devices being equipped with the technology as ripe for the picking," said Jack Gold, analyst at J. Gold Associates. "No one wants to be left behind."

VeriFone Systems, which makes credit card readers used widely by merchants, is also reportedly involved in the Google project for NFC-capable Android phones.

There are about 150,000 contact-less NFC-based terminals already in McDonald's and DuaneReade drug stores and other locations in the U.S., and contact-less chips are already installed in many credit cards, unbeknownst to users.

A phone with an NFC chip installed or added through a special case would allow an application to be layered on over the NFC capability, even allowing person-to-person payments between two capable phones in close proximity, said Dave Wentker, senior leader of mobile product development at Visa.

Visa is working on four pilot NFC projects in San Francisco and New York with US Bank, Wells Fargo, Bank of America and Chase, Wentker said in an interview at International CTIA Wireless last week. MasterCard officials also held meetings, but its place in the race to offer NFC was unclear.

Wentker said the Visa trials, first announced in December, use BlackBerry and Android smartphones with special microSD cards installed. The trials also have used the iPhone 4 with a special case that switches the NFC antenna on and off.

Wentker said security is not seen as a major concern with NFC, partly because banks offer refunds for fraudulent payments, but also because the smartphone apps that use the NFC chips require passing the smartphone over a reader close by within 20 to 30 seconds of activation.

NFC technology has caught the attention of many consumers, partly because the Apple iPhone 5, expected later this year, is thought to include the technology. The iPhone would be backed by Apple's enormous iTunes customer base, where every customer has already registered for song and app purchases with a credit card.

Wireless carriers have also wanted to use their networks for processing transactions behind the NFC interaction. Verizon Wireless, AT&T and T-Mobile USA last year created Isis to allow smartphone-based NFC payments using Discover Financial Services to process the payments.

At Mobile World Congress in Barcelona in early February, carriers in Europe and Asia and smartphone makers, including BlackBerry-maker Research in Motion, described current efforts with NFC .

Samsung also has announced that its Galaxy S II smartphones will have NFC capability, while ZTE of China will be adding NFC chips to its mobile phones before July.

Juniper Research recently said there are about 10 million phones with NFC today, a number that will reach more than 450 million by 2015.

Gold said that the ability to use a smartphone as a mobile wallet won't supercede the credit card or PayPal or Google Payments any time soon. That said, with so many NFC devices coming out in the next 1-2 years, "its likely this will be a big business over time, even if a relatively small percentage of users make use of the services," Gold said.

Citi Cards Canada; MasterCard Canada & Visa Canada are members of ACT Canada; please visit http://www.citicards.ca; http://www.mastercard.ca & http://www.visa.ca.

15. WHAT IS STOPPING MOBILE WALLETS - 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. VISA MOVES BEYOND THE POINT-OF-SALE - DELIVERS PERSONAL PAYMENTS TO U.S. ACCOUNT HOLDERS
Source: PYMNTS.com (03/16)

Visa Inc. announced that consumers in the U.S. will soon be able to receive and send funds to any eligible Visa credit, debit or prepaid account, anywhere in the world. The breakthrough service extends the utility of Visa's network from enabling payments at the point of sale, to enabling consumers to pay one another.

The new Visa personal payments service, which eliminates the inefficiencies of cash and checks for payments between individuals, was made possible through technical enhancements to VisaNet, Visa's global payments processing network, and through the introduction of a new Visa transaction type that allows financial institutions to accept incoming funds.

Additionally, Visa announced strategic product agreements with CashEdge Inc. and Fiserv, Inc., two of the leading providers of electronic person-to-person payment, account transfer and bill payment services to U.S. financial institutions. Through the agreements, CashEdge and Fiserv will have access to VisaNet, enabling them to integrate the Visa personal payment service into their respective person-to-person platforms - Popmoney� and ZashPay�. This will allow a participating bank's customers to send money directly to a Visa account.

"For fifty years, Visa has worked to simplify payments at the merchant point of sale; we are now evolving our network capability to make it easier for our account holders to pay one another," said Jim McCarthy, global head of products at Visa Inc. "Through our agreements with Fiserv and CashEdge, we can accelerate the delivery of new and innovative Visa payments services, and better enable financial institutions to extend these services to customers."

How it Works
Bank customers of participating financial institutions will have the option to select a Visa account as the destination for funds when making a personal payment. By simply entering the recipient's 16-digit Visa account, email address or mobile phone number, consumers can send funds directly from their bank account to a recipient's Visa account. This makes sending money to a niece for her birthday or to a son in college simpler, faster, and more convenient than before.

"Providing a variety of fast, flexible payment options and establishing a large network through which consumers and small businesses can send and receive money are essential if we want them to trade checks and stamps for electronic payments," said Erich Litch, president of Digital Channels at Fiserv. "Partnering with Visa allows Fiserv to grow not only the number of consumers and small businesses we can reach with the ZashPay service, but the ways we can reach them."

Visa personal payments are already offered by financial institutions outside the U.S. with more than 70 programs around the world enabling consumers to send funds to Visa accounts. Availability of the service in the U.S. marks the first time a major payment network has introduced a global requirement for account issuers to accept incoming funds and thus enable a new generation of personal payment services.

The first U.S. financial institutions are expected to make Visa personal payments available to their customers through CashEdge and Fiserv by the second half of 2011.

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

17. SECUREKEY TECHNOLOGIES INC. RECEIVES AN INVESTMENT FROM INTEL CAPITAL
Source: SecureKey (02/14)

SecureKey Technologies Inc. announced an investment from Intel Capital, Intel Corporation's global investment organization. Terms of the investment were not disclosed.

SecureKey designs hardware and software solutions to enable the strong cryptographic capabilities of debit, credit and identity smartcards including those within NFC based phones to be used for online authentication and online purchases. "Contactless cards and the NFC movement is growing rapidly around the world." said George Thangadurai, General Manager of Intel's PC Client Services Group. "SecureKey's solutions provide a powerful user experience that can be delivered across platforms improving both the security and convenience of online transactions."

"We are thrilled with our association with Intel." said Greg Wolfond, CEO of SecureKey Technologies. "Intel is the world leader in providing the chips and technologies that power the computing devices we use every day."

SecureKey Technologies is a member of ACT Canada; please visit http://www.securekey.com.

18. NETONE DEPLOYS GEMALTO'S END-TO-END MOBILE MONEY SOLUTION IN ZIMBABWE
Source: Gemalto (03/15)

Gemalto announced that NetOne, a leading network operator in Zimbabwe, is deploying Gemalto's LinqUs solution for Mobile Money Transfer, which comprises of the server, user application, as well as system integration services. The offer, being marketed as the OneWallet service, works on 100% of the handsets and will enable all NetOne subscribers to perform secure and convenient money transfer using their mobile phone. In particular, it provides the unbanked with access to secure banking services.

The LinqUs solution's user-friendly interface enables NetOne subscribers to make secure and easy peer-to-peer money transfers, pay every-day bills and top up their prepaid phone cards. Expanding the possibilities of Mobile Money Transfer, it also enables NetOne's customers to have their salaries paid directly onto their phones - an innovative feature that greatly empowers the unbanked with a secure and convenient digital wallet solution.

This new success reinforces Gemalto leadership in Mobile Financial Services with already over 50 customers worldwide. The sector is growing rapidly, with the number of active users of mobile money services predicted to double in the next two years, exceeding 200 million by 2013(1). Nearly 40% of active users in 2015 will be in the Africa & Middle East region(2).

"Gemalto's ability to offer an end-to-end solution, coupled with their extensive software expertise, made it an easy choice for NetOne," commented Reward Kangai, Managing Director, NetOne "Mobile Money Transfer rollouts are long projects so we need a well established, trusted and future-proof technology partner to accompany us - Gemalto is exactly that."

"NetOne, with its excellent network coverage and evenly spread agent distribution structure, will bring banking services to even the most remote areas in Zimbabwe," added Philippe Vall�e, Executive Vice President, Gemalto. "We look forward to supporting NetOne in their efforts to revolutionize Zimbabweans' everyday lives in this and other future innovative projects."

NetOne also intends to work with the Government of Zimbabwe and Pension Fund schemes to allow the OneWallet to be used for pension payments and thus remove the need for traveling long distances for purposes of collecting pension payments.

NetOne's OneWallet is being presented during the Gemalto Mobile Money event held in Accra (Ghana) on March 15-17, where customers of Gemalto's in Africa are invited to debate topics related to Mobile Financial Services.

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

19.BOFA TAKES BLACKBERRY MICROSD CHIPS OUT FOR A SPIN - 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/

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.