Stakeholders Driving Payment Evolution and Digital Identity

September 2011 ACTion Newsletter

IN THIS ISSUE

1. Editorial - EMV - Who are you going to call?
2. BMO First Major Canadian Bank To Roll Out 'Tap And Go' Payment Solution For Mobile Phones
3. Scotiabank Unveils Scene Scotiacard With Interac Flash
4. Only One In Five Consumers Feel Protected From Fraud During Mobile Banking, Survey Finds - Members Only Access
5. Collis Terminal Functional Test Tool (FTT) Qualified By Interac Association For Dual Interface (DI)
6. ING Belgium Secures ebanking For Nearly One Million Customers With Gemalto's EZIO End-To-End Authentication Solution
7. Google, Paypal Present Competing Visions For Replacing Cards With Mobile Devices - Members Only Access
8. Canada Readies epassport Launch
9. Visa Europe To Provide Banks A Mobile-Pay Option
10. Report Predicts How The U.S. Terminal Base Will Migrate To EMV And Mobile Payments - Members Only Access
11. Collis Launches Mobile Test Centre
12. MasterCard Clarifies EMV Policy Rumors
13. MasterCard Certifies FIME Test Suite For Paypass 3.0
14. CPI Card Group Embraces Recent Visa Inc. Announcement By Accelerating EMV Card Production To Meet Growing Demand
15. Rogers Seeks Bank Licence - Members Only Access
16. Aconite Publishes EMV Migration Advice For US Issuers And Plans Seminars
17. Apriva Releases Secure Communication Suite (SCS) For Mobile Communications
18. Oberthur Technologies Announces Lte CSIM Card Availability
19. Collis Test Tools Qualified By MasterCard For Paypass Tip Implementation
20. Square Coo: NFC Will Not Become Mainstream In U.S. - Members Only Access
21. RBI Asks Banks To Beef Up Security For E-Transactions
22. Gemalto Provides First Multi-Application EMV Cards In Colombia
23. With Seven Device Makers Now On Board, ISIS Readies For Its Dual Pilots In 2012 - 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.

ACT CANADA THANKS OUR NEW & RENEWING MEMBERS

PRINCIPAL

Gemalto ~ member since 2005
Giesecke & Devrient ~ member since 1990
Ingenico ~ member since 1990
Vancity Savings Credit Union ~ member since 2008
Visa Canada ~ member since 1995

GENERAL

KPMG Management Services LP ~ new member
YESpay ~ member since 2008

LOOKING FOR GOOD PEOPLE?

There is a lot of movement in the market, so if you are looking for new employees, we are always aware of some great people. Please contact Catherine Johnston for more details - catherinej@actcda.com.

UPCOMING ACT EVENTS

  • Cardware Connections & Annual General Meeting
    Chip raises the bar for payment security, putting pressure on criminals to find new avenues for fraud. As the supply chain in other industries is being attacked, what do we need to think about in terms of protecting ours? Join us for an ACT Canada member's only briefing, November 4th, as Michael Moore, Director of Security; Huawei Technologies Canada Co., Ltd talks about this critical stakeholder issue.

    A leading global ICT solutions provider, Huawei's core business is in Telecom Network Infrastructure, Applications and Software, Professional Services and Devices. In Canada, their major customers include Bell, TELUS, SaskTel, and Wind Mobile. Huawei and their customers are vested stakeholders in mobile commerce.

  • Cardware 2012: Payment Insights
    June 19th & 20th,
    Marriott Gateway on the Falls, Niagara Falls

CALENDAR OF EVENTS

3rd Mobile Contactless Payments Summit
October 17-18, 2011
Chicago, IL, USA
http://www.paymentinnovations.net
ACT members will receive a $300 discount - please contact andrea@actcda.com for details.

ACT Canada presents Cardware Connections & Annual General Meeting
The Security of the Supply Chain
Our guest speaker is Michael Moore, Director of Security; Huawei Technologies Canada Co., Ltd
November 4, 2011
OBA Conference Centre
Toronto, ON, Canada
http://www.actcda.com
Open to members only

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

NFC Solutions Summit 2012
co-presented by the Smart Card Alliance and the NFC Forum
May 22-24, 2012
San Francisco, CA, USA
http://www.smartcardalliance.org
ACT Canada members are eligible for a 20% discount. Please contact andrea@actcda.com to get the discount code

Cardware 2012: Payment Insights
June 19-20, 2012
Marriott Gateway on the Falls
Niagara Falls, Ontario, Canada
http://www.actcda.com
ACT Canada members receive substantial discounts

1. EDITORIAL COMMENT
Source: Catherine Johnston, President & CEO, ACT Canada (09/29)

EMV - Who are you going to call?

While 20 of us were in a planning meeting to discuss our members' goals related to EMV in the US, we got word that the Reserve Bank of India (RBI) has directed banks in India to implement fraud risk management services by September 30, 2012 and migrate to EMV chip cards and PIN-based cards by June 30, 2013. My first reaction was "that's good", but it was quickly followed by the realization that this would create an even greater demand for an already limited pool of resources.

Because EMV supports a number of options, it is not plug and play. It also leads to a fundamental change to each market. A move to chip requires issuers, merchants, processors and others to know more about each other's payment related processes than was the case with mag stripe. A failure to develop that understanding has resulted in some level of delays and unnecessary expenditures in every region where EMV has been launched.

In several regions, stakeholders have been brought together via pilots and project management offices to build this knowledge. The sheer size of the US and India markets might make one question the possibility of bringing stakeholders together, but the speed with which these two markets are moving makes it prudent. Both markets will need to find a way to "pull" the information from each stakeholder group and a new way to "push" to all the others. Not an easy challenge, but I believe it can be accomplished.

A greater challenge is in finding the external resources stakeholders will need, from test tools, chip providers, consultants, certification labs, POS suppliers, middleware developers�and the list goes on.

Here is my best advice:
- Don't wait - start to educate your staff so that they can build your strategic and operational plans
- Line up your external resources as soon as you identify your needs because the demand will likely exceed the supply
- Don't assume that everyone offering EMV "expertise" can do the job for you. We already see a broad range of services being offered, some better than others.
- Ask lots of questions, internally and externally

But back to that meeting we were in when we heard about India - we were planning a roadshow to the US to share with our peers lessons we've learned in Canada and other countries. Although the implementation in the US will not be a direct match with ours and although there are market differences, there are also a great many similarities and opportunities to save time and money. Watch our web site for details.

2. BMO FIRST MAJOR CANADIAN BANK TO ROLL OUT 'TAP AND GO' PAYMENT SOLUTION FOR MOBILE PHONES
Source: BMO (09/13)

BMO Bank of Montreal launched its Mobile PayPass Tag, a technology that allows BMO personal credit card customers to make purchases through a sticker affixed to their mobile phone and receive an instant email verification of each transaction.

By making the PayPass technology available for use on mobile devices, consumers no longer need to carry cash or coin, or even a purse or wallet, with them to make small-dollar-value purchases. They can just tap their mobile phone over the PayPass reader at the point of sale and the transaction is instantly processed to their BMO credit card account. For purchases under $50, no Personal Identification Number (PIN), swipe or signature is required.

Through MasterCard's inControl platform, BMO's Mobile PayPass Tag users can easily monitor their spending by opting to receive email notifications that report the merchant and exact location of each PayPass purchase they make with their tag. The tag and email notification services are free to BMO MasterCard cardholders. PayPass technology is already embedded in more than seven million of BMO's MasterCard credit cards. The PayPass tag for mobile devices simply makes using PayPass that much easier -- you don't even have to pull your card out of your wallet.

"We know that Canadians' use of cash for smaller-value purchases is based on their desire to get in and out quickly when buying day-to-day items like gas, a quick lunch or a coffee," said David Heatherly, VP, Payment Products, BMO Bank of Montreal. "PayPass is part of the movement toward a 'cashless' society. It's faster and more convenient than cash or debit, which requires a swipe and PIN."

Along with speed and convenience, PayPass tag users have the same zero-liability purchase protection and anti-fraud capabilities available on all BMO MasterCard products. And they can collect the same rewards that they earn on their BMO MasterCard credit card, which means PayPass users earn rewards on their total spend and collect more rewards faster.

Merchant Acceptance of PayPass Technology Growing Quickly
"Canadians tell us they prefer simplified, electronic payment methods. Given the prevalence of smartphones, and a quickly expanding network of PayPass merchants, we think mobile PayPass is poised to take off as a popular payment method for Canadians," said Scott Lapstra, Vice President, Emerging Payments, MasterCard Canada.

According to Mr. Lapstra, PayPass transactions account for nearly 10 per cent of all MasterCard credit card transactions in Canada, with the average PayPass transaction at just over $40 - and close to 50 per cent of those transactions being for purchases of $25 or less.

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

3. SCOTIABANK UNVEILS SCENE SCOTIACARD WITH INTERAC FLASH
Source: Canada Newswire (09/13)

Interac Association and Scotiabank are pleased to announce that Scotiabank is now issuing Interac chip debit cards with Interac Flash functionality. Interac Flash is an enhancement of Interac Debit and Canada's first contactless debit payment option. Interac Flash gives cardholders the choice of paying for smaller value items using debit faster than ever before by simply 'flashing' the card at a point-of-sale reader that supports Interac Flash. This increased speed also helps merchants improve customer throughput at point-of-sale by spending less time processing payments, particularly by shortening the time it might otherwise take to handle cash.

"We are extremely pleased that Scotiabank is starting to issue Interac chip debit cards with Interac Flash functionality," said Mark O'Connell, President and CEO, Interac Association. "The Interac brand is a brand Canadian consumers and merchants trust and value so we are thrilled to be the first to provide a contactless debit payment solution to the market."

"We are excited to be able to offer our customers the convenience of Interac Flash on their SCENE ScotiaCards," said Brian McCabe, Scotiabank Vice-President of Day-to-Day Banking. "We are always looking for ways to improve our customers' banking and shopping experiences; with Interac Flash our customers can save time at the checkout by simply flashing their debit card to pay for everyday items at participating merchants."

Interac Flash builds on the security of global EMV standards; existing chip debit infrastructure; strong consumer protections and other features unique to Interac Association; as well as leveraging the trusted Interac brand. Cardholders are protected from unauthorized transactions under the Interac Zero Liability Policy and merchants continue to receive the benefits of secure and non-refutable transactions associated with PIN-based Interac Debit.

Interac Association is a member of ACT Canada; please visit http://www.interac.ca.

4. ONLY ONE IN FIVE CONSUMERS FEEL PROTECTED FROM FRAUD DURING MOBILE BANKING, SURVEY FINDS - 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.

5. COLLIS TERMINAL FUNCTIONAL TEST TOOL (FTT) QUALIFIED BY INTERAC ASSOCIATION FOR DUAL INTERFACE (DI)
Source: Collis (09/29)

Collis Terminal FTT has been successfully qualified for the implementation of the "Reader Terminal Interoperability and Confidence Test Guide". The objective of the guide is to ensure that a terminal supporting both contact and contactless interfaces is compliant with the Dual Interface (DI) specifications promulgated by Interac Association. Interac Association members wanting to implement DI have to comply with these specifications.

Collis Terminal FTT incorporates all the tests specified in the guide. As a result, it detects the interoperability issues before a terminal is deployed in the field and reduces the time to market. This qualification means that the log files generated by the Collis Terminal FTT can be sent directly to Interac Association for DI certification. Collis Terminal FTT continues to support the "Acquirer Test Package" and the "Terminal Application Tests" for contact interface.

Allen Wright, Vice President, Products and Services Management, Interac Association comments: "We are pleased that Collis Terminal FTT has successfully qualified. This qualification broadens the range of test tools available to Interac Association members. With Collis Terminal FTT, our members have a new option for DI certification."

"We are very pleased to be able to facilitate the Interac Association DI certification with our newly enhanced and qualified Collis Terminal FTT. The ultimate goal of Collis Terminal FTT is to have Interac Association DI compliant terminals which can perform trouble-free transactions within the entire payment infrastructure, thus ensuring customer satisfaction through successful card payments. This qualification reinforces our image as a recognized player in the chip testing market and offers Interac Association members an easy solution to ensure quality, optimise resource investment as well as reduce time-to-market", adds Dirk Jan van den Heuvel, CEO Collis.

Collis and Interac Association are members of ACT Canada; please visit http://www.collis.nl & http://www.interac.ca.

6. ING BELGIUM SECURES EBANKING FOR NEARLY ONE MILLION CUSTOMERS WITH GEMALTO'S EZIO END-TO-END AUTHENTICATION SOLUTION
Source: Gemalto (09/01)

Gemalto announces that ING Belgium is deploying its Ezio suite of end-to-end strong authentication solutions to deliver increased security to circa one million online banking customers. The Ezio solution builds on Gemalto's strong authentication platform, security software and Ezio devices to deliver enhanced eBanking protection. Gemalto also provided a full set of complementary services including server integration, packaging and direct delivery of the Ezio Classic card readers to ING Belgium customers anywhere in the world.

The Ezio Classic reader makes use of the smart banking cards that the ING customers already have, to easily generate a One-Time-Password for secure access to their bank account online as well as signing online transactions. This way, ING Belgium fully complies with the strict Belgian regulation for online security and pro-actively keeps its online security in line with the ever evolving online threat levels. At the same time, it provides ING's customers with an easier way to start banking online and the possibility to bank from anywhere from any device with an Internet connection.

"We have selected the flexibility and scalability of Gemalto's Ezio server, because it can easily support multiple strong authentication devices, and expand into the mobile phone and optical reader technology," said Quinten Fraai, General Manager, Direct Channels, ING Belgium.

"This is an important success which also embodies our vision to deliver convenience for online consumers without compromising security," added Philippe Regniers, eBanking Sales Vice President at Gemalto. "With the end-to-end software and service solution, Gemalto ensured ING Belgium a complete implementation."

ING Belgium is a subsidiary of ING Group, a global financial institution serving more than 85 million customers worldwide. Both the Ezio reader and server are compliant with the MasterCard Chip Authentication Program and Visa Dynamic Passcode Authentication standards. They also conform to R4-EMV, the EMV standard implementation in Belgium.

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

7. GOOGLE, PAYPAL PRESENT COMPETING VISIONS FOR REPLACING CARDS WITH MOBILE DEVICES - 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.

8. CANADA READIES EPASSPORT LAUNCH
Source: Contactless News (09/14)

Passport Canada CEO Christine Desloges has announced that Canada will start issuing e-passports by the end of next year, according to Citytv.com.

Speaking at a conference at the Montreal HQ of the United Nations International Civil Aviation Organization, Desloges declared, "Canada is on track for the full-scale delivery of its e-passport. Next year we will roll out the full issuance."

In the works since 2004, the e-passports have been delayed due to an overhaul of the passport application process, according to a spokesperson for Passport Canada.

According to Citytv.com, the new passports will feature a chip containing the owner's face-recognition data in order to make it easier for border guards to screen threats and detect fraudulent passports.

Canada will now join the rest of the G8 nations in issuing e-passports, along with nearly 100 other countries around the world.

9. VISA EUROPE TO PROVIDE BANKS A MOBILE-PAY OPTION
Source: American Banker, By David Heun (09/28)

Borrowing money from a friend for a taxi ride, splitting the restaurant bill among a group of diners or sending funds to a student at college could become an easier and faster task through a new mobile-payment option Visa Europe is launching this week.

Responding to what it calls a growing demand for mobile payment, Visa Europe has created an application to enable Visa cardholders to send funds to other Visa cardholders from their mobile phones, the card association announced Sept. 28.

Visa Europe plans to make Visa Mobile Person-to-Person, which works on any mobile phone that uses Google Inc.'s Android operating system, available to member banks on Oct. 1, spokesperson Saphie Jones says.

Each bank in the Visa Europe network would determine individually whether to make the service available to customers, who would then register, Jones says.

In the initial launch, funds transfers in euros will be available through an English-language Android application, Jones says. As consumer demand grows, Visa Europe plans to develop applications for use on other phone systems and in other languages, and it will add the ability to transfer multiple currency types, Jones adds.

The mobile-payment application enables registered users to transfer funds to any Visa cardholder in Europe from any Android mobile phone, backed up by the security systems in place for Visa Europe payment processing, a Visa Europe press release said.

The application enables consumers to transfer funds by using the mobile phone's address book contacts, another mobile phone number, or a specific Visa credit, debit or prepaid card number, regardless of whether the recipient is registered with the service, the press release said. More specific details on how the process works were not immediately available.

Visa Europe says it developed the software with Monitise PLC, a London-based mobile-payments company.

In the press release, Visa Europe Chief Executive Peter Ayliffe indicated the new application represents just the beginning of changes in the European payment system.

"The way we pay is changing, driven by new technologies and growing consumer demand for more flexible payments," he said. "Today's announcement is the first in a series of new products and services that Visa Europe will be launching in the coming months."

How significant the demand is for a mobile-payment option in Europe is difficult to gauge, but the mobile-payment trend is growing rapidly, observers say.

"I don't think anyone is screaming for it, but then we as consumers often don't know that we want something until we see it," says Zil Bareisis, a London-based senior analyst for research firm Celent. "Visa, as a central scheme, certainly is in the position to provide a [service] without fragmenting the market unnecessarily."

Ayliffe's announcement that the application was the first of many new developments "indicates Visa Europe is taking mobile seriously and is investing to position itself as a player that can provide relevant services to its banking community," he says.

Patricia A. Sahm, managing director at Auriemma Consulting Group, views 2011 as a "tipping point year" for mobile payments because of the growing number of smartphone users.

"Players like Visa Europe are setting up their partnerships for mobile infrastructure now so that when consumer demand grows, they will be ready to serve it," Sahm says.

"I view 2012 as the year in which we'll see significant traction for mobile payment, and there are certain segments, like younger people, who can't wait," she adds.

Besides the mobile-pay option, consumers also may sign up for Visa Alerts. Through the service, the bank sends customers an email or mobile text alert whenever someone uses their Visa card to make a purchase or cash withdrawal, Jones says

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

10. REPORT PREDICTS HOW THE U.S. TERMINAL BASE WILL MIGRATE TO EMV AND 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. COLLIS LAUNCHES MOBILE TEST CENTRE
Source: Collis (09/19)

As mobile commerce is gaining momentum with concepts such as Trusted Service Manager (TSM) and Near Field Communication (NFC) technology, the need for compliance is rising. The Collis Mobile Test Centre offers the necessary testing services to every stakeholder in the NFC eco-system to comply with a standard to achieve the goal of widely accepted and interoperable NFC-TSM infrastructures.

The system only works if consumers have the compatible handsets (supporting NFC technology), Secure Elements (SEs), as well as acceptance infrastructure. More importantly, NFC-TSM infrastructure depends very much on the conformance of all the components to the existing standards; to achieve the goal of a widely accepted and interoperable NFC-TSM infrastructure.

"The keyword is trust. A TSM can only be thrust-worthy if the underlying infrastructure is. There are many stakeholders involved in an NFC-TSM eco-system implementation. Not all components are necessarily visible to all stakeholders, and no direct trust relation exists between all of them. In order to bridge the gaps, Collis Mobile Test Centre offers the necessary testing services to every stakeholder in the eco-system, with clear definition of domains and components involved. And this is the key to our success. As an independent single point of contact we facilitate a so called one-stop-shop for testing of all mobile components and streamline the trust relation between stakeholders," says Dirk Jan van den Heuvel, CEO at Collis.

Collis Mobile Test Centre covers testing services according to the specifications set by standardization bodies such as MasterCard, VISA, GlobalPlatform, SIMalliance, ETSI/3GPP, GCF/PTCRB and NFC Forum and EMVCo,. In the coming time we expect to adopt our (white-labeled) offering to specific NFC-TSM initiatives around the globe (in collaboration with the parties behind). We will do this also in joint collaboration with AT4 Wireless from Spain. So, Collis can assist in constructing interoperable, reliable and secure NFC-TSM infrastructures.

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

12. MASTERCARD CLARIFIES EMV POLICY RUMORS
Source: ATM Marketplace (09/08)

According to the Credit Union Times, Aite Group Analyst Julie Conroy McNelley announced yesterday that she heard from multiple sources that, effective April 2013, MasterCard will require member bank ATMs to accept EMV cards.

"MasterCard is trying to take a market-leading position," McNelley said. "The EMV freight train is picking up steam."

In the Credit Union Times article, MasterCard Worldwide spokesperson Seth Eisen said the U.S.-based ATMs will have to take EMV cards as of April 19, 2013.

"We are continuing to collaborate with issuers on EMV in the U.S. We are collaborating on timelines," Eisen said, who also indicated no firm decisions had been made.

Eisen offered further clarification in an email:

On September 1, MasterCard announced it will extend its existing EMV liability shift program for inter-regional Maestro ATM transactions, as part of an effort to align technology efforts to prevent and manage fraud.

The liability shift will cover both the United States and Asia-Pacific regions and will be effective on April 19, 2013, with the exception of Australia and New Zealand, where the liability shift will become effective on December 31, 2015. South Asia (Bangladesh, Bhutan, India, Maldives, Nepal and Sri Lanka) will continue to be excluded from the inter-regional ATM EMV liability shift program. It should be noted that liability shift already applies for Europe, Canada and the Middle East and Africa and will be completed for Latin America by end of October 2012.

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

13. MASTERCARD CERTIFIES FIME TEST SUITE FOR PAYPASS 3.0
Source: ContactlessNews (09/13)

FIME has announced that its EVAL Test Suite has received MasterCard PayPass 3.0 qualification. According to FIME, the suite can now be used to test contactless terminals designed to meet the payment system's latest specifications for accepting high value contactless transactions.

The EVAL Test Suite has also received qualification from the EMV standards body, EMVCo, to certify that terminals meet its latest Level 2 contactless specifications - EMVCo Book B Entry Point. According to FIME, this makes the suite ideal for terminal manufacturers that need to align to the next generation of EMV mandatory contactless terminal standards, as well as preparing for the future introduction of MasterCard PayPass 3.0 certification requirements.

In addition to the sale of the tool, FIME's ISO 17025 global laboratories now use the EVAL Test Suite as part of its official certification activity for both EMVCo and MasterCard.

Christian Delporte, Head of Chip Engineering at MasterCard, comments: "MasterCard terminal vendors now have one more opportunity to test the compliance of their terminals in-house during the development stage. This reduces time to market by ensuring products are designed in line with these latest specifications, and there are no unforeseen delays at the certification stage."

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

14. CPI CARD GROUP EMBRACES RECENT VISA INC. ANNOUNCEMENT BY ACCELERATING EMV CARD PRODUCTION TO MEET GROWING DEMAND
Source: ICMA Industry News (09/22)

CPI Card Group announced that it is poised and ready for the increased demand brought on by the recent EMV announcement. CPI has produced several million EMV cards in the last year alone and is currently working on pilot programs with major U.S. banks and credit unions for traveler's cards. CPI is offering EMV card support and solutions to the financial institutions and is one of the first to provide EMV card production and personalization in multiple North American sites, providing security and disaster recovery options to EMV card issuers.

"We've always been on the leading edge of card technologies and we are proud to be the largest smart card manufacturer in North America with a wide range of products from contact, contactless and dual interface cards," said Steve Montross, CEO of CPI Card Group. "As such, we fully understand how the adoption of dual-interface chip technology will help prepare the U.S. payment infrastructure for the arrival of mobile payments. We continually invest in research and development to provide smart card solutions and our world-class card production facilities provide the necessary support to meet the growing smart card demand."

Visa's recent announcement stating it wants the U.S. EMV market to catch up with the rest of the world comes as some banks are starting to offer EMV-enabled credit cards, mainly for affluent customers who travel internationally. PSCU Financial Services, the nation's largest credit union service organization (CUSO), has partnered with CPI to equip its member credit unions with an EMV card program targeted at members who live, work or travel overseas.

"Thanks to our partnership with CPI, we're one of the first in the credit union market to offer EMV technology," said Michael Kelly, president and CEO, PSCU Financial Services. "We are eager to equip our credit unions with EMV cards that offer improved convenience and enhanced security for members who travel internationally."

One of the many strengths of CPI is the ability to work with chip and inlay suppliers to craft an EMV solution that meets the unique needs of each issuer. Earlier this year, CPI Card Group introduced one solution with the certification of a new dual interface EMV product for Visa issuers. This cost-effective dual interface solution based on the NXP SmartMX(TM) secure microcontroller IC has a successful track record with over one billion units shipped and meets all Visa requirements in EMV countries. Banks implement secure, high-performance dual interface microcontroller ICs in order to reduce card fraud.

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

15. ROGERS SEEKS BANK LICENCE - 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. ACONITE PUBLISHES EMV MIGRATION ADVICE FOR US ISSUERS AND PLANS SEMINARS
Source: Aconite (09/26)

Visa Inc's plans to accelerate migration to EMV card technology in the United States and prepare the ground for NFC-based mobile payments will enable significant changes in the US card payments market. Within Visa's broad roadmap, banks have many options - some good and some less good - for the timing and method of migration. Based on its experience and understanding of EMV migration, gained over many successful migration projects for banks around the world, Aconite has published initial advice and guidance, outlined below, to US banks and will be presenting EMV seminars developing these themes. Aconite's aim is to help issuers to achieve cost-effective migration and maximize the benefits from EMV.

Merchants have an incentive to install contact and contactless chip and NFC enabled terminals. From October 2012, merchants handling 75% of their Visa traffic thru such terminals will not need to validate their compliance with the PCI Data Security Standard. Issuers benefit from October 2015 when the fraud liability shift takes effect (when merchants without contact terminals will be liable for any fraud on contact chip cards that they accept) but Aconite says issuers can benefit from starting their EMV migration well before then. Some of the key reasons Aconite cites for this are:

  • High risk of accelerating increases in fraud losses: with the rest of the world rapidly adopting EMV, fraudsters are increasingly targeting US magnetic stripe cards as the soft option. Just as Ireland suffered when fraud migrated from the UK after the UK's adoption of EMV, the US is already experiencing rising card fraud as Canada and Mexico issue more EMV cards.
  • Reduction of existing card fraud losses: as the number of EMV terminals in the US rises, an issuer that replaces magnetic stripe cards with EMV cards will experience tangible reductions in fraud levels. (Issuers bear 57% of fraud for all transaction types according to the Federal Reserve Board's 2010 Debit Interchange Fees report). Visa Inc's Chief Enterprise Risk Officer, Ellen Richey, has emphasized the role that dynamic authentication with EMV data plays in fighting fraud. (Aconite's experience in Dynamic Data Authentication caused it to be commissioned to develop and provide DDA courseware for a leading card scheme in Europe).
  • Issuing EMV cards to cross-border travelers improves acceptance and customer service: magnetic stripe cards are not now accepted at many locations. JP Morgan Chase, Wells Fargo and US Bank have already taken this course and Citi has recently announced co-branded and corporate EMV cards. In its first year, the United Nations Federal Credit Union EMV card posted impressive performance statistics, including members' revolving balances up 20% and purchases up 15%. The ongoing EMV migrations in Canada and Mexico will strengthen business case for an EMV traveler's card even further.
  • Migrating a niche segment of the overall card portfolio can provide valuable experience to de-risk migration of the much larger mass market element of the portfolio.
  • Planning the move to EMV well ahead of the liability-shift allows an issuer time to identify the optimum approach for the bank. Leaving matters to the last minute has seen issuers in other countries adopt sub-optimal approaches in order to migrate close to liability shift dates. What seems the quickest and easiest route to migration can prove to be an evolutionary dead-end, which prevents the issuer from gaining the full benefit of its investment in EMV. The old saying that "failing to plan is planning to fail" was never truer than in relation to EMV migration.
  • EMV cards offer opportunities to market added-value services and innovative products, such as display cards that can, for example, show account balances, loyalty point balances and security codes. New and updated applications can be added to cards in the field. It is important to consider such future requirements when planning migration in order to avoid going down a developmental dead-end street, which can be expensive to fix.

Aconite also points to the possible downside of EMV migration and how to avoid it. Fraud can migrate between categories - in particular from "cardholder present" to "cardholder not present" (CNP) transactions. Issuers need to look at shoring up their defenses against CNP fraud when they migrate to EMV. EMV has a role to play in securing CNP transactions, through MasterCard's Advanced Authentication for Chip and Visa's Dynamic Passcode Authentication programs.

Patrick Regester, Aconite's SVP Sales & Marketing, said "We will shortly be announcing details of our EMV seminars, for US card issuers. Our range of EMV software and consulting services, allied with global depth and breadth of experience with EMV projects, enables us to offer tailored solutions to each issuer. Our web site, www.aconite.net, offers much related information. We're looking forward to further engaging with US issuers following initiatives started at the Smart Card Alliance's conference in Chicago earlier this year".

Aconite is a member of ACT Canada; please visit http://www.aconite.net.

17. APRIVA RELEASES SECURE COMMUNICATION SUITE (SCS) FOR MOBILE COMMUNICATIONS
Source: Apriva (09/28)

Apriva announced that its Apriva ISS division has released the Apriva Secure Communication Suite (SCS), an advanced solution that provides highly secure voice, email, and data communications for mobile environments. Using Apriva's strong encryption and authentication technologies, the Secure Communication Suite helps ensure the identity of users and that communications are hardened against interception or compromise.

"In both the government and private sectors, concerns about keeping sensitive information secure have taken on the highest of priorities," said Jeff Ford, president of Apriva ISS. "Interception and eavesdropping of mobile communications is an increasing threat, and the damages can be incalculable when sensitive information, whether it's government secrets or corporate financials, are snatched out of the airwaves. Organizations have invested heavily in securing data communications and are now looking for the same level of security for their voice communications. SCS provides a tightly integrated secure voice and data communications solution."

With the Secure Communication Suite, Apriva has taken its highly secure authentication, voice technology, and mobile S/MIME email and created a seamless end-to-end secure solution that can address the mobile security needs of businesses and all levels of government.

The solution's authentication technology ensures the identity of the user, and that only authorized individuals have access to data stored on the mobile device or the systems and networks accessed from the mobile device. Apriva's authentication technology helps organizations meet the demands of privacy laws and compliance with stringent government HSPD-12 (Homeland Security Presidential Directive 12) security regulations including Public Key Infrastructure (PKI).

Apriva Voice, the secure Voice over IP solution, enables interoperability with existing government secure telephones (SCIP 231 Protocol, utilizing Suite B cryptography) in addition to other devices equipped with Apriva Voice. A smartphone using Apriva Voice can call any PSTN or mobile phone anywhere in the world without the use of add-on devices. And, when calling another SCIP enabled secure phone or another Apriva Voice client, the call can negotiate to the For Official Use Only (FOUO) level.

AprivaMail, Apriva's proven full-featured mobile S/MIME mail application, rounds out the SCS solution by ensuring email and email attachments are transmitted using strong Suite B encryption. AprivaMail is the same secure mail application that is used by US government classified devices that are certified for up to secret and top secret communications.

"Being able to access secure networks and resources from a mobile phone is a fundamental necessity in today's world," added Ford. "However, for the very reason that networks employ firewalls and internal security measures, communications from smartphones and other mobile devices need to be authenticated, encrypted, and reliable. The Secure Communication Suite serves this purpose by delivering the benefits of full mobile access without compromising sensitive information or network security."

According to Brent Iadarola, global research director for Frost & Sullivan's Mobile & Wireless Communications practice, the Apriva Secure Communication Suite is well suited to address needs in several vertical markets.

"Businesses that operate in the health care, financial services, energy and transportation sectors are facing significant pressure to bolster security in both their data and voice communications infrastructure," explained Iadarola. "Apriva's Secure Communication Suite is a cost-effective and easily deployable solution for these organizations that must handle sensitive data and voice communications as part of everyday operations."

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

18. OBERTHUR TECHNOLOGIES ANNOUNCES LTE CSIM CARD AVAILABILITY
Source: Oberthur Technologies (09/21)

Oberthur Technologies announced the commercialisation of its multimode CSIM[1]/ USIM[2] cards for CDMA2000[3] and LTE networks. This card is able to handle authentication with current major network technologies such as: GSM, UMTS, CDMA2000 and of course LTE networks.

Oberthur Technologies collaborated with Qualcomm Incorporated to validate interoperability of its new LTE CSIM cardwith Qualcomm's MDM9600 and simultaneous voice and data over LTE (SVLTE) solutions.

The multimode CSIM/USIM card is a state-of-the-art smartcard that allows maximum connectivity to end-users. With such a card end-users will be able to connect to all GSM, UMTS, CDMA2000 or LTE networks thus benefiting from maximum roaming capabilities and best communication rates.

This card can either be used in a CDMA2000/LTE phone to access CDMA2000 and LTE networks or in an UMTS/LTE phone to access UMTS and LTE networks. When used in a multimode CDMA2000 / UMTS / LTE phone, referred to as "World Phone", the card truly becomes a universal tool to access any available networks.

"Following the successful tests byQualcomm, Oberthur Technologies is proud to commercially launch its multimode CSIM / USIM cards. This product has been designed to support operators in their migration to LTE and in parallel to enhance end-users' rich media experience", said Cedric Collomb, General Manager Cards and Services, Card Systems Division at Oberthur Technologies.

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

19. COLLIS TEST TOOLS QUALIFIED BY MASTERCARD FOR PAYPASS TIP IMPLEMENTATION
Source: Collis (09/01)

The Collis Card Simulator and the Collis Brand Test Tool have successfully been qualified by MasterCard WorldWide during the formal MasterCard PayPass Terminal Integration Process (TIP). These tools are used to test the behaviour of the PayPass enabled reader/terminal according to the MasterCard rules, without the need of physical test cards.

The Collis Card Simulator and the Collis Brand Test Tool can simulate any card (contact & contactless) and can be used with MasterCard card applications such as M/Chip, PayPass M/Chip and also with other international payment systems. It can simulate errors (failures) to test the system's response to an error. As a result, interoperability issues can be detected before the readers/terminals are deployed in the field. The Collis Card Simulator and the Collis Brand Test Tool have been qualified by MasterCard as Validation Tool for the formal PayPass TIP certification process. This means that the log files generated by the validation tools can be sent directly to MasterCard for PayPass TIP certification.

Christian Delporte, Head of Chip Engineering at MasterCard Worldwide commented:
"We are glad that yet more tools developed by Collis have passed qualification. As Collis is a recognized player in the chip testing market, I am pleased they have enhanced their qualified TIP test tools to support PayPass TIP requirements. This qualification broadens the offer of test tools available to MasterCard acquirers for use in the PayPass Terminal Integration Process (TIP). We are confident that MasterCard acquirers will directly benefit from Collis Brand Test Tools for PayPass TIP. "

"Collis continues to provide high quality test tools for evolving markets such as contactless payment. We are confident that our customers will benefit from this qualification as it will help them with reducing the time to market and improve their confidence during the contactless PayPass implementation," adds Dirk Jan van den Heuvel, CEO at Collis.

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

20. SQUARE COO: NFC WILL NOT BECOME MAINSTREAM IN U.S. - Members Only Access

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

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

21. RBI ASKS BANKS TO BEEF UP SECURITY FOR E-TRANSACTIONS
Source: Business Standard BS Reporter / Mumbai (09/23)

The Reserve Bank of India (RBI) has asked banks to strengthen their payment infrastructure for safety in automated teller machines (ATM) and point of sale terminals. It has set a two-year timeline for banks to upgrade the systems beginning with implementation of fraud risk management services by September 30, 2012.

In accordance with the suggestions by the working group appointed by the regulator in March this year, RBI has also asked for better sourcing and monitoring process at the merchant level by the same time frame. The regulator has directed banks to migrate to EMV chip cards and PIN-based cards by June 30, 2013.

The central bank has also said that Aadhaar-based biometric identification instead of the personal identification number (PIN) should be used for all card transactions which include transactions in ATM and point of sale transactions.

"The need for a complete migration to EMV Chip and PIN-based cards could be considered based on the progress of Aadhaar in about 18 months," RBI said.

It is, however, clarified that banks are free to migrate to EMV Chip and PIN-based technology, depending on their commercial judgment and decision taken by their respective boards, the regulator added.

22. GEMALTO PROVIDES FIRST MULTI-APPLICATION EMV CARDS IN COLOMBIA
Source: ICMA Industry News (09/22)

Gemalto announced it is providing Colsubsidio, the major Compensation Fund in Colombia, with the country's first multi-application EMV cards.

The Multi Service Membership Card provides all Colsubsidio members with the security of EMV payment, combined with a wide range of services. These services include an e-purse application, admittance to recreational parks, as well as access to sport and convention centers. The contactless feature of the card provides easy and convenient access to public transportation in the city of Bogota. Gemalto also supplied Colsubsidio with a software solution for in-house card personalization as well as technical support during the launching phase.

Gemalto's digital security technology enables Colsubsidio to integrate all of their services and those of their partners on to one single card. The Multi Service Membership Card affords users a more enjoyable experience, where they can "wave" their way onto public transportation, access participating venues, and securely pay for goods and services, with a convenient, all-in-one solution.

Gemalto has been a major provider of cards and personalization services since the beginning of EMV migration in Latin America, with a strongly differentiated offer in Colombia, featuring value added applications, Gemalto also delivers technical expertise and world-class migration guidance from its regional facilities.

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

23. WITH SEVEN DEVICE MAKERS NOW ON BOARD, ISIS READIES FOR ITS DUAL PILOTS IN 2012 - 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.