Stakeholders Driving Payment Evolution and Digital Identity

August 2012 ACTion Newsletter

IN THIS ISSUE

  1. Editorial - The Rewards of Learning
  2. Leading Retailers Form Merchant Customer Exchange To Deliver Mobile Wallet
  3. Cross-Industry EMV Coalition Created To Support Move To Chip-Based Payments In The U.S.
  4. A Perfect Combo - Interac Flash At McDonald's In Canada
  5. A Cashless and Cardless Future? Maybe – Members Only Story
  6. Giesecke & Devrient Secure Flash Solutions Supplies Mobile Security Card SWP MicroSD Cards For Cathay United Bank's Mobile Payment and Transit Trial
  7. Discover Brings Google Wallet To Its Cardmembers
  8. IRUG To Conduct Second EMV and Mobile Payments Focus Group Meeting For Retailers and Stakeholders
  9. Should Banks Fear McPayments? – Members Only Story
  10. Gemalto, Infineon Tapped For U.S. E-Passports
  11. City Of Toronto Launches City Services Benefit Card
  12. FIME To Provide Mobile Wallet Certification
  13. Westpac Selects Oberthur Technologies As Pilot TSM Service Provider
  14. Google May Be Preparing To Sell Google Play Gift Cards – Members Only Story
  15. Gemalto NFC Management Service Goes Live For Singapore
  16. Visa To Launch Encryption Service To Help Protect Sensitive Cardholder Data And Improve Merchant Security
  17. Interac Flash(TM) Goes To The Movies With Cineplex
  18. NFC: What Lies Beyond Contactless Payments – Members Only Story
  19. G&D To Manufacture And Supply New EU Standards Drivers' Licenses
  20. PayPal and Discover To Bring PayPal To Millions Of In-Store Locations
  21. New Smart Card Operating System From G&D Offers Greater Security For Electronic Identification Documents

ACT Canada Partner

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

Bank West ~ new member 

GENERAL

American Express ~ member since 2008
Berkeley Payment Solutions ~ new member
Discover Network ~ member since 2011
GFI Solutions Group Inc. ~ member since 2010
Target Corporation ~ new member 

ASSOCIATE

Card Resource Group Inc ~ member since 2010

 

JOB OPPORTUNITIES

ACT Canada has launched a Job opportunities section on our web site later this week.  Please visit http://www.actcda.com to see the latest job postings in our industry.

 

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.

 

CALENDAR OF EVENTS

To receive the member discount code for any of the conferences listed below, please contact Andrea McMullen – andrea@actcda.com.

 

Mobile Money Canada

September 25, 2012

Toronto, ON, Canada

www.mobilemoneycanada.com

ACT Canada members receive discounts

 

Information Technology & E-Commerce: Mobile Computing Part II: Payment Systems

September 27, 2012

Toronto, ON, Canada

www.cba.org/pd/details_en.aspx?id=ON_12TEC0927T

 

CAMA 2012 Expo

September 27 - 29, 2012

Niagara Falls, ON, Canada

http://www.vending-cama.com/EVENTS/expo2012.asp

ACT Canada is speaking at this event

 

MAG 2012 Annual Conference

October 16 - 18, 2012

Phoenix, AZ, USA

www.merchantadvisorygroup.org

ACT Canada will be presenting the EMV Roadshow at this event

 

The ATM Debit & Prepaid Forum

October 22, 2012

Phoenix, AZ, USA

http://www.paymentssource.com/conferences/atmdebit/

ACT Canada will be presenting the EMV Roadshow at this event

 

Cardware Connections & ACT Canada's Annual General Meeting

October 30, 2012

Toronto, ON, Canada

Details coming soon to www.actcda.com

This event is exclusive to ACT Canada members

 

Cartes

November 6-8, 2012

Paris, France

www.cartes.com

ACT Canada members receive discounts

 

11th Annual Smart Card Alliance Government Conference

November 28-30, 2012

Washington, DC, USA

www.smartcardalliance.org

ACT Canada members receive discounts

 

Cardware 2013: Payment Insights

June 18-19, 2013

Marriott Gateway on the Falls

Niagara Falls, ON, Canada

www.actcda.com

ACT Canada members receive discounts


1. EDITORIAL COMMENT

Source: Catherine Johnston, President & CEO, ACT Canada (08/29)

 

The Rewards of Learning

 

In these final days of August, as so many prepare to go back to school, I can't help but think about how much I hated returning to the classroom.  I've changed.  Now the opportunity to learn allows me to be better at my job.  As I recall, my parents and teachers told me that would be the case, but sometimes personal experience is the best teacher.  Ironically, I now find myself urging others to invest in their own career development.

 

Let us help.  ACT Canada has arranged discounts for our members to the following conferences; Mobile Money Canada, Cartes and the Smart Card Alliance Government conference.  On the other side, we are providing information at a number of events: CAMA – the Canadian Automatic Merchandising Association; the ATM, Debit & Prepaid forum and the Merchant Advisory Group Annual conference.

 

We have spent a great deal of time at US events this year, as American payment stakeholders start down the road toward EMV.  ACT members are anxious to see cross border fraud decrease, so we have been actively supporting the move.

 

Here at home, our members will be sharing information as the fall Strategic Leadership teams engage for their next mobile and prepaid mandates.  On October 30th, all members are welcome at Cardware Connections for a day of presentations and roundtable networking, as well as our annual general meeting.

 

Well, as long as I'm thinking back to my school days, I might as well think back to that glorious time when we predicted that technology would allow us to have a four day work week.  Lovely theory, but as we all know, very few people manage a work week of less than 45 hours and many top 70 every week.  It is really hard to allow yourself time to learn, whether it is in a structured or networking environment, but everyone wins when you take that time. 

 

Take the time to win!


 

2. LEADING RETAILERS FORM MERCHANT CUSTOMER EXCHANGE TO DELIVER MOBILE WALLET

Source: MAG (08/15)

 

A group of the nation's leading merchants announced today that it has formed Merchant Customer Exchange (MCX), a new company dedicated to offering consumers a versatile mobile-commerce experience that will combine the convenience of paying at the register with customizable offers.

 

Development of MCX's mobile application is underway. The initial focus centers on offering merchants a mobile-commerce solution capable of seamlessly integrating a wide range of consumer offers, promotions and retail programs. The application will be available through virtually any smartphone.

 

MCX includes merchants such as: 7-Eleven, Inc.; Alon Brands; Best Buy Co., Inc.; CVS/pharmacy; Darden Restaurants; HMSHost; Hy-Vee, Inc.; Lowe's; Publix Super Markets, Inc.; Sears Holdings; Shell Oil Products US; Sunoco, Inc.; Target Corp. and Wal-Mart Stores, Inc. Combined, these initial members serve nearly every smartphone-enabled American and account for approximately $1 trillion in annual sales. While current MCX merchants have unmatched scale, MCX intends to address the needs of financial institutions and merchants of all sizes to better serve consumers in the growing mobile marketplace.

 

"MCX will leverage mobile technology to give consumers a faster and more convenient shopping experience while eliminating unnecessary costs for all stakeholders," said Mike Cook, corporate vice president and assistant treasurer, Wal-Mart. "The MCX platform will employ secure technology to deliver an efficiency-enhancing mobile solution available to all merchant categories, including retail stores, casual dining, petroleum and e-commerce."

 

"We believe MCX is uniquely qualified to offer the most comprehensive mobile payment options for consumers," said Terry Scully, president of financial and retail services, Target. "By participating in MCX, merchants are in a position to effectively deliver innovative payment approaches that aren't available today."

 

"As merchants, no one understands our customers' shopping and payment experience better than we do, and we're confident that together we can develop a technology solution that makes that experience more engaging, convenient and efficient," said Mark Williams, president of financial services, Best Buy.

 

Sears, Suncor, Target and Walmart are members of ACT Canada; please visit http://www.sears.ca,  http://www.suncor.com,  http://www.target.com  & http://www.walmart.ca.


 

3. CROSS-INDUSTRY EMV COALITION CREATED TO SUPPORT MOVE TO CHIP-BASED PAYMENTS IN THE U.S.

Source: Smart Card Alliance (07/31)

 

To join the payments ecosystem together as the United States moves to a new way to pay with EMV chip cards, the Smart Card Alliance today announced the formation of an independent, cross-industry organization, the EMV Migration Forum. The Forum will support the alignment of the EMV implementation steps required for global payment networks, regional payment networks, issuers, processors, merchants, and consumers to successfully move from magnetic stripe technology to secure EMV contact and contactless technology in the United States.

 

Commonly used globally in place of magnetic stripe¹, EMV chip technology drastically reduces card fraud resulting from counterfeit, lost and stolen cards; provides global interoperability; and enables safer and smarter transactions across cards, contactless, mobile, and remote payment channels. American Express, Discover, MasterCard and Visa have all announced their plans for moving to an EMV-based payments infrastructure in the U.S., with payment processor mandates in place for 2013, and major changes for managing fraud risk set for 2015.

 

"We have seen in other markets around the world that cooperation and alignment of all participants' activities are necessary to ensure that the migration to EMV-enabled cards, devices, and terminals is efficient, timely, and effective," said Randy Vanderhoof, executive director of the Smart Card Alliance. "Industry stakeholders have called for a neutral forum to play this role for the U.S. market. By creating an organization that brings together all of the payments stakeholders who have a direct role in the EMV migration in the U.S., without regard to their past or present involvement with smart cards or other chip technologies, the EMV Migration Forum will be able to focus on the needed coordination and cooperation across the payments landscape."

 

While part of the Smart Card Alliance corporate organization, the EMV Migration Forum will have a separate membership and be open to representatives from financial card issuers, payments processors, merchants, acquirers, payment networks, industry suppliers and other constituent groups including payments industry associations to ensure that all stakeholders in the payment industry are represented.

 

The EMV Migration Forum will address topics that require some level of industry cooperation and/or coordination to migrate successfully to EMV technology in the United States. Topics and activities that are in the scope of the Forum include:

 

- Providing guidance on technical issues, consumer awareness and other non-proprietary issues relating to industry-wide adoption of EMV

- Developing best practices and educational material necessary for successful adoption of EMV-enabled cards, devices, and terminals within the U.S. market

- Discussing the coordination of process-related elements of the payments infrastructure necessary to introduce an EMV-enabled payment system

- Discussing and engaging in projects to facilitate consumer adoption and allow for a more consistent consumer experience

- Reporting on EMV adoption as it progresses

 

"The Alliance is taking this step to create the EMV Migration Forum to leverage the strong collaborative environment around chip-enabled payments we've built within our membership and extend that environment to the broader issuers, merchants and consumer market. Our current members have been very supportive and eager to establish an EMV-focused organization to assist the payments industry with this all-important migration," said Smart Card Alliance Board Chair Willy Dommen, Accenture.

 

Julie Conroy McNelley, research director for Aite Group's retail banking practice, said, "The cross-industry collaboration that this initiative represents will be welcome for all stakeholders in the value chain. Merchants and issuers have been looking for unified direction and guidance, and this announcement promises to meet that need."

 

"EMV's arrival in the U.S. has profound implications for issuers, merchants and the entire payments industry. While the global EMV experience will help, the devil is in the implementation details and common U.S. approaches will be needed for a smooth EMV transition," said George Peabody, Mercator Advisory Group's director of emerging technologies. "The EMV Migration Forum can speed deployment as well as improve the return on the considerable EMV investment in the U.S. because the technology has the potential to do far more than prevent counterfeit card fraud."

 

To launch the formation of the new EMV Migration Forum organization, the Smart Card Alliance has scheduled its first meeting for September 12-13, 2012, at MasterCard Worldwide headquarters in Purchase, New York. During this initial meeting, participants will learn about member benefits and member participation in Forum governance, discuss the priorities for organization activities and launch its first working committee projects.

 

The Smart Card Alliance is a member of ACT Canada and a founding member of ISCAN; please visit http://www.smartcardalliance.org.


 

4. A PERFECT COMBO - INTERAC FLASH AT MCDONALD'S IN CANADA

Source: Interac Association (08/15)

 

Interac Association announced that McDonald's Canada has committed to accept Interac Flash, enabling customers to make a contactless debit transaction when purchasing their favourite menu items at participating McDonald's restaurants nationwide. Interac Flash, which is an enhancement of Interac Debit, is Canada's first contactless debit technology.

 

"We are thrilled that McDonald's, an iconic brand and one of the world's leading foodservice retailers, understands the value of Interac Flash," said Mark O'Connell, president and CEO, Interac Association and Acxsys Corporation. "This payment technology allows McDonald's customers in Canada the opportunity to make faster and more convenient debit transactions, which is of tremendous importance for a quick service restaurant like McDonald's."

 

"We're delighted to be able to offer our customers the speed, convenience and security of Interac Flash," said Jacques Mignault, chief operating officer, McDonald's Restaurants of Canada Limited. "Part of our commitment to providing an enjoyable restaurant experience is ease and speed of service when ordering menu items, either at the front counter or at the drive-thru. Interac Flash helps us fulfill that commitment."

 

This announcement coincides with the completion of a successful Interac Flash pilot at five McDonald's restaurants in Toronto. Full deployment at point-of-sale within restaurants and at drive-thrus at more than 1,400 locations from coast-to-coast will be completed by March 2013. The deployment will be managed by Moneris Solutions, one of Canada's largest payment card processors.

 

"Moneris helps merchants, large and small, enable high-value innovative payment solutions," said Jim Baumgartner, president and CEO, Moneris Solutions. "We are thrilled to facilitate the McDonald's Interac Flash rollout with the same convenience, speed and efficiency that it delivers to their customers."

 

Interac Association and Moneris are members of ACT Canada; please visit http://www.interac.ca  & http://www.moneris.com.


 

5. A CASHLESS AND CARDLESS FUTURE? MAYBE– 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/2012-newsletter-archives/ august-2012-newsletter.html

 

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


 

6. GIESECKE & DEVRIENT SECURE FLASH SOLUTIONS SUPPLIES MOBILE SECURITY CARD SWP MICROSD CARDS FOR CATHAY UNITED BANK'S MOBILE PAYMENT AND TRANSIT TRIAL

Source: ICMA Industry News (08/02)

 

Cathay United Bank recently launched a trial for mobile payments and transit in Taipei. The project enables bank customers to use their mobile phones to make contactless payments at local stores and to access the Taipei public transit system. The NFC-capable microSD cards used as a secure element in this project are supplied by G&D Secure Flash Solutions.

 

Cathay United Bank provides the participants of the trial with NFC-capable HTC Incredible E NFC smartphones and issues Mobile Security Card SWP microSD cards developed by G&D Secure Flash Solutions. The Mobile Security Card SWP microSD card is the first in Taiwan that is compliant with MasterCard PayPassTM standards. This card has been approved for this trial project, which allows users to pay at popular local convenience and department stores by simply tapping their HTC phone on a specially equipped merchant terminal.

 

Additionally, the Mobile Security Card SWP has been approved by EasyCard Corporation to be used as a contactless "EasyCard", the popular contactless transit card for the Taipei Metro (MRT) and buses. As an alternative to topping up the card's balance with banknotes, there is an "auto" top-up feature which allows the card's balance to be topped up via MasterCard's credit card functionality, so no cash is needed. Pre-charged fares are deducted automatically from the card when the HTC NFC phone with Mobile Security Card SWP is passed over the EasyCard sensor on faregates, aboard buses or in merchant stores.

 

"We believe there is considerable market potential for the microSD form factor in mobile NFC transaction solutions. We are proud that Cathay United Bank chose our Mobile Security Card SWP for their trial," says Marcus Rosin, managing director of G&D Secure Flash Solutions.

 

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


 

7. DISCOVER BRINGS GOOGLE WALLET TO ITS CARDMEMBERS

Source: ICMA Industry News (08/24)

 

Discover announced that it is partnering with Google to allow cardmembers to save their credit card directly into Google Wallet by logging into the online Account Center at discover.com/googlewallet.

 

This will give Discover cardmembers the ability to tap and pay for purchases in-store in conjunction with the Google Wallet application on a compatible Near Field Communication (NFC) smartphone, as well as make purchases online, for a simpler, more convenient shopping experience. Cardmembers using Google Wallet to pay for items with their Discover card will continue to earn Cashback Bonus rewards.

 

"Our cardholders regularly use their Discover card to make purchases and payments online, in-store and now more frequently through their mobile devices," said Sanjay Gosalia, director of Mobile at Discover. "By offering the ability to join Google Wallet through our Account Center, Discover is providing our cardmembers with even greater flexibility and convenience when it comes to paying for their purchases."

 

Once logged-in to the Discover Account Center, a simple click-to-add-process allows cardmembers to add their Discover card and make it their primary credit card in the Google Wallet. The credit card will automatically sync to the Google Wallet application for those that have a compatible NFC smartphone. Additionally, Discover cardmembers can add their credit card through the Google Wallet mobile application on their smartphone, or by adding their card through their Google account online.

 

"We're excited to partner with Discover to make it even easier for cardmembers to pay for their purchases," said Robin Dua, head of Product Management, Google Wallet. "By providing a simple way for cardholders to securely add their credit card to Google Wallet directly from the Discover website, we're extending the opportunity to pay with Discover through Google Wallet at hundreds of thousands of merchants."

 

Discover is a member of ACT Canada; please visit http://www.discover.com.


 

8. IRUG TO CONDUCT SECOND EMV AND MOBILE PAYMENTS FOCUS GROUP MEETING FOR RETAILERS AND STAKEHOLDERS

Source: IRUG (08/17)

 

IRUG, retail's leading association of U.S. and international retail systems users, and retail solution providers; today announced the second IRUG - EMV and Mobile payments focus group meeting: October 11-12, 2012 in Raleigh, NC for retailer and associate IRUG members. At its 35th annual conference, held in Las Vegas, NV - May 20 - 23, 2012; IRUG addressed EMV chip technology and the significant challenges it poses to US retailers. IRUG enlisted ACT Canada, to develop a program presented at the IRUG 2012 conference as a major event consisting of a main tent panel made up of industry stakeholders, an EMV exhibit where retailers could meet with representatives from the brands, acquirers, PIN Pad manufacturers and systems Integrators. The conference was followed by the adoption of an IRUG USA EMV focus group.

 

The sessions described the impact of EMV on the retailers business and technology strategies, and shared how the power of industry stakeholders working together with the retailers can support a smooth transition. The stakeholders; consisted of representatives from each component of the process required for EMV from: the brands MasterCard and VISA, retailer hmv Canada, PINPad manufacturer Ingenico, systems Integrator STJ Retail, and Acquirers Vantiv and Bank of America.

 

Ron Ferri, President of IRUG said, "I am pleased that IRUG was able to; with the assistance of Catherine Johnson, CEO of ACT Canada, put together a program that was focused on the needs of the retailers. The sharing, sponsorship and assistance from the industry stakeholders was most appreciated by our retail members."

 

To meet the continuing challenge to our members, IRUG will conduct the second USA IRUG-EMV and mobile payments focus group meeting and workshop; October, 11 – 12, 2012 to be held in Raleigh, NC at the North Raleigh Hilton. The U.S. retailers face a tremendous challenge in preparing their hardware and software environments to accept and process EMV chip technology for credit and debit payments. In an effort to support retailers as they migrate to these technologies, the EMV focus groups purpose is to help share information, education and best practices. The group is also dedicated to serve as a voice of the retailers back to the stakeholders.

 

Kelly Hewitt, chairman IRUG EMV Focus Group and past IRUG President said "I was pleased with the success of the first EMV program at the IRUG 2012 conference. I am looking forward to the continuing success of the EMV focus group and the value it brings to the IRUG retail members."

 

The EMV Focus Group is open to all IRUG members and non-member retailers who wish to join with IRUG this Fall. IRUG is the leader in providing the most comprehensive knowledge and experience sharing opportunity in the industry. Join us this Fall, and find out everything that you need to know to plan for and implement EMV Chip and Pin and mobile payments in your organization well in advance of the deadline!

 

IRUG is a member of ACT Canada; please visit http://www.ibmretailug.org.


 

 

9. SHOULD BANKS FEAR MCPAYMENTS? – 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/2012-newsletter-archives/ august-2012-newsletter.html

 

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


 

10. GEMALTO, INFINEON TAPPED FOR U.S. E-PASSPORTS

Source: SecureID News (08/14)

 

The U.S. Government Printing Office awarded two contracts for the covers of the U.S. passport, which includes contactless smart card chips and antenna, to Gemalto Inc. and Infineon Technologies North America Corp.

 

Both companies had previously supplied smart card chips to the Printing Office for e-passports. Terms of the five-year contracts were not disclosed.

 

As part of the process, companies had to meet the international standards established by the United Nations' International Civil Aviation Organization.

 

The Government Printing Office produces the U.S. passport for the Department of State at the agency's secure production facilities in Washington D.C., and the Stennis Space Center in Mississippi. The office has produced more than 80 million passports containing secure electronic features since they were introduced in 2005.

 

Gemalto and Infineon are members of ACT Canada; please visit http://www.gemalto.com & http://www.infineon.com.


 

11. CITY OF TORONTO LAUNCHES CITY SERVICES BENEFIT CARD 

Source: City of Toronto (07/18)

 

The City of Toronto is implementing a new card technology, the first of its kind in Canada, to improve customer service and modernize City services. The City Services Benefit Card will replace manual cheques as the payment method for Toronto residents who receive Ontario Works assistance and do not have a bank account.

 

"This initiative is the first of its kind in Canada," said Councillor Paul Ainslie (Ward 43 Scarborough East), Chair of the Government Management Committee. "It's great to see this kind of customer service improvement for Toronto residents, and that we're able to deliver better service while cutting costs for the City.

 

"The City Services Benefit Card is the most recent example of the City's commitment to modernizing and transforming how services are delivered and how residents are supported in finding work. This is efficient government and customer service excellence and provides a foundation to build on."

 

Moving from cheques to the card will result in cost savings for the City, as well as for clients who may have been paying expensive cheque-cashing fees.

 

"The introduction of the City Services Benefit Card will free up resources and allow Toronto Employment & Social Services (TESS) staff to focus on helping residents to find jobs," said Councillor Michael Thompson (Ward 37 Scarborough Centre) as the new method of payment was unveiled today at the Golden Mile Employment & Social Services office in his ward.

 

In addition, the City Services Benefit Card will reduce stigma associated with receiving social assistance benefits and will empower residents with financial management tools, as well as reducing visits to TESS locations for cheque pickup.

 

Five TESS locations - Lesmill, Wellesley Place, Malvern, the Queensway and Yonge-Eglinton - started using the City Services Benefit Card today. Based on the results of this initial testing phase, the City Services Benefit Card will then be rolled out in the remaining 10 TESS offices.

 

This is the first such card in Canada to use chip and PIN technology. The card program for the City was supported by Government Management Committee, and approved by City Council in July 2011 (http://www.toronto.ca/legdocs/mmis/2011/gm/bgrd/backgroundfile-39104.pdf).

 

The City Services Benefit Card is a personalized, reloadable card that replaces the need to issue funds by cheque. It uses industry standard PIN and chip technology and works like a debit card but does not require a bank account. Cardholders will have four free withdrawals per month at specific ATM machines across the city, and can also use the card at ATMs, shops, grocery stores, gas stations and anywhere MasterCard is accepted.

 

Cardholders can access services such as balance inquiries, transaction histories, an ATM locator and more online or by telephone 24 hours a day, seven days a week. Multilingual customer care support is also available.

 

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


 

12. FIME TO PROVIDE MOBILE WALLET CERTIFICATION

Source: American Banker (08/02)

 

Isis has authorized FIME, a consulting and testing services firm for near-field communication, to certify hardware for its mobile wallet initiative.

 

FIME will work with device manufacturers to evaluate Isis mobile handsets and secure elements to certify their compliance with Isis technical specifications, FIME said Thursday. The firm's North American laboratory was the first to achieve this qualification from Isis, FIME said.

 

"As we see more and more NFC applications being deployed, not only in the U.S. but globally, third-party testing is essential in establishing a fully interoperable infrastructure that allows end-users to successfully, securely and conveniently pay, all with a tap of their phone," Xavier Giandominici, director at FIME America, said in a news release.

 

NCF transactions are predicted to reach $74 billion by 2015, Giandominici said. Isis is a joint venture by AT&T Mobility, T-Mobile USA and Verizon Wireless focused on creating a secure NFC environment to deliver mobile services in the U.S.

 

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


 

13. WESTPAC SELECTS OBERTHUR TECHNOLOGIES AS PILOT TSM SERVICE PROVIDER

Source: Oberthur Technologies (08/29)

 

Oberthur Technologies is pleased to announce that its Trusted Service Manager (TSM) Platform is being used by Westpac for a new pilot Android Mobile "NFC" Payment application.

 

Near-Field Communications or "NFC" is an innovative new technology that allows the wireless authentication and communication between a mobile handset and any contactless payment terminal. With the help of Oberthur Technologies' TSM solution, Westpac's Debit cards can be securely pre-personalised into android handsets fully-equipped with a secure element embedded in the SIM card - meaning there is no additional hardware attachments required. Once the users' virtual Debit card has been personalized on the phone, participants will be able to pay for goods simply by tapping their phone onto contactless payment readers at the checkout.

 

"Oberthur Technologies is delighted to collaborate with Westpac on this important milestone in the bank's mobile payments strategy. It is one of the first and most recent times where an Australian financial institution is not utilizing bridging technologies such as NFC-enabled phone cases, microSD's, or stickers to facilitate mobile NFC payments" said Roswell Wolff, Managing Director Asia at Oberthur Technologies.

 

With the proliferation of contactless payment terminals at major supermarkets, retail and fast food outlets in the past couple of years, it won't be long before all Australian consumers will have the convenience and security of making payments, redeeming virtual coupons and offers, and accruing loyalty points by simply tapping their phone on these terminals at checkout. In future, this same NFC technology can also apply to virtual ticketing where users can also tap their phones to access sporting and public venues, public transportation and even enable the secured storing of official ID documents like Passports for example.

 

Benefiting from 10 years experience in remote administration and a leader in secured personalization; Oberthur Technologies is a trusted supplier to more than 5,000 banks, mobile operators and transport authorities globally and has consistently innovated its solution offerings to answer the needs of the NFC ecosystem. Oberthur Technologies has a track record of more than 30 TSM references around the world.

 

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


 

14. GOOGLE MAY BE PREPARING TO SELL GOOGLE PLAY GIFT CARDS – 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/2012-newsletter-archives/ august-2012-newsletter.html

 

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


 

15. GEMALTO NFC MANAGEMENT SERVICE GOES LIVE FOR SINGAPORE

Source: Gemalto (08/03)

 

Gemalto announced the official go-live of NFC services management in Singapore, powered by its Allynis Trusted Services Manager (TSM) solution, hosted in Gemalto's local TSM data center. Supported by the Infocomm Development Authority (IDA) of the nation, the project to bring NFC to Singapore consumers lines up a consortium of local partners including mobile operators, banks and service providers. This is the first time that the mobile operators and a range of other service providers join forces to launch nation-wide NFC services to the general public using a unified, comprehensive TSM solution.

 

With the upcoming commercial rollout, consumers will have the freedom to tap and pay using their NFC-enabled mobile devices at over 20,000 retail points such as convenience stores, fast food outlets, retailers and even a fleet of taxis. Additional and innovative services are expected to join over the coming months when consortium partners launch their NFC services and consumers will be notified on how they can adopt NFC services as part of these launch plans.

 

All this is enabled by Gemalto's secure, interoperable and inclusive TSM infrastructure, which manages over-the-air provision of confidential payment credentials to users' NFC devices, offering dependable flexibility by leveraging cellular data, SMS or Wi-Fi channels in real time. Gemalto's TSM data center in Singapore is MasterCard and VISA certified. This full-time and 24/7-available service enables highly-sensitive payment applications, while enabling easy on-boarding of new applications with smooth integration for service providers to be connected any time to the NFC ecosystem. In addition, Gemalto provides a SIM-based mobile wallet application that ensures a common user experience across compatible NFC handsets.

 

"As part of IDA's iN2015 Masterplan, the Next Generation e-Payments Programme promotes technology adoption that realizes the vision of Singapore as a leading e-payments nation," comments Mr Ronnie Tay, CEO of the national Infocomm Development Authority of Singapore. "The open access model for NFC infrastructure allows businesses to deploy innovative payment and other secured services, providing convenience to both consumers and merchants, and enabling commerce for all."

 

"This pioneer launch of an all-inclusive platform allows mobile operators, financial institutions and all the other service providers in Singapore to easily plug into and get on board to offer secure NFC services. The NFC capable SIM cards are already being deployed, the NFC infrastructure is ready and with our MasterCard and VISA certified TSM data center we are able to support customers as they ramp up their large-scale deployment of mobile NFC services," said Tan Teck Lee, Chief Innovation & Technology Officer and Asia President at Gemalto. "We are happy to see this landmark program go live as planned, appreciate the benefits it contributes to the country's economy, and want to thank our customers for their trust and for their confidence in the future."

 

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


 

16. VISA TO LAUNCH ENCRYPTION SERVICE TO HELP PROTECT SENSITIVE CARDHOLDER DATA AND IMPROVE MERCHANT SECURITY

Source: Visa (08/21)

 

Visa Inc. announced a new service, Visa Merchant Data Secure with Point-to-Point Encryption, to help acquirers and their merchants protect payment card data. Visa will make the service available to acquirers and their merchants by early 2013. Visa is currently working with acquirers, processors and payment technology vendors to provide specifications for integrating Visa's solution into payment terminals as well as into all critical systems across the payment processing industry.

 

Point-to-point encryption (P2PE) technology helps merchants and acquirers protect payment card data within their systems by encrypting sensitive cardholder information. Because the card data can only be accessed, or unscrambled, with decryption keys held securely by the acquirer, gateway or Visa, cardholder information is protected within the payment processing environment.

 

"Merchants large and small have expressed an interest in encryption as a way to protect cardholder data in their payment systems and simplify their security protocols," said Ellen Richey, Chief Enterprise Risk Officer, Visa Inc. "Since encrypted data can't be used to commit fraud, Visa's point-to-point encryption solution can significantly reduce the risk and impact of data compromises."

 

This solution is part of Visa's broader authentication strategy which aims to improve payment industry security by eliminating account data from the payment environment whenever possible, protecting sensitive information wherever it is stored, processed or transmitted, and devaluing stolen account information through dynamic authentication solutions such as EMV chip technology. P2PE technology is complementary to EMV chip technology, by providing an added layer of protection against the threat of data breaches, especially as the industry works to reach critical mass in the adoption of chip terminals and chip cards to benefit from EMV's defense against counterfeit fraud.

 

"With Visa's global processing reach and capabilities, we are able to provide an encryption solution that meets the needs of merchants and acquirers who want ease of implementation, flexibility, and effective protection," said Darren Parslow, Global Head of Processing, Visa Inc. "Working in concert, multiple layers of security including point-to-point encryption can help take merchants out of harm's way while mitigating fraud throughout the payment system."

 

Visa Merchant Data Secure with Point-to-Point Encryption addresses several key merchant and acquirer concerns about encryption:

- Minimal impact to payment processing systems. Merchants and acquirers can adopt point-to-point encryption with ease because of the minimal impact to existing payment systems. To make the transition as easy as possible, Visa will also offer a "format preserving" option, enabling merchants to integrate point-to-point encryption using a 16-digit encrypted value with their current systems.

- Consistent, open encryption standard. Visa's encryption solution relies on the same Triple Data Encryption Standard (TDES) and Derived Unique Key per Transaction (DUKPT) key management that are used to encrypt PINs today. This provides a consistent framework for managing keys and minimizes the impact of merchant system updates.

- Multi-zone encryption. Visa's solution allows for encryption and decryption in multiple zones, providing merchants and acquirers flexibility in how to deploy encryption within their unique environments. Multi-zone encryption can facilitate routing to multiple endpoints, if the merchant is using multiple processors, consistent with how PIN encryption is managed today.

 

In 2009, Visa developed global industry best practices for encryption to provide guidance to encryption vendors and early adopters. Visa's encryption service is designed to meet Visa best practices as well as the PCI Security Standards Council's P2PE Solution Requirements for reducing the scope of PCI compliance requirements. Visa expects to validate the P2PE service against the PCI requirements by the time it is available to merchants.

 

Over the coming months, Visa will provide specifications and implementation guides through technical review agreements.

 

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


 

17. INTERAC FLASH(TM) GOES TO THE MOVIES WITH CINEPLEX

Source: Interac (08/23)

 

Interac Association announced that Cineplex Entertainment ("Cineplex"), Canada's largest movie exhibitor, will accept Interac Flash contactless debit transactions at its 134 theatres. Interac Flash, which is an enhancement of Interac Debit, is the first contactless debit technology to be offered in Canada. Interac Flash gives cardholders the choice of paying for smaller value items using debit faster than ever before by simply holding their card at a point-of-sale reader that supports Interac Flash.

 

"Cineplex's decision to accept Interac Flash is very important to us," said Mark O'Connell, President and CEO, Interac Association and Acxsys Corporation. "As the leader in their field, Cineplex joins a growing list of national merchants wanting to provide a faster, more convenient debit payment experience for consumers. Using their Interac Flash card, moviegoers will be able to pay quickly and simply, knowing their money is safe."

 

"Our guests expect speed and convenience when they're purchasing tickets or movie snacks," said Pat Marshall, Vice President, Communications and Investor Relations, Cineplex Entertainment. "We're pleased to provide our guests with an even quicker payment option." Interac Flash uses chip security and the existing chip debit infrastructure, which protects it from fraud tactics such as copying and "electronic pick-pocketing" and offers other strong consumer protections and other unique security features, including the fact that the card never leaves the user's hand. Leveraging the trusted Interac brand, cardholders are also 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.

 

Cineplex will begin installing almost 3,000 Interac Flash-enabled terminals in the fall of this year and expects to see all their box offices and concession stands up and running with Interac Flash by June of 2013.

 

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


 

18. NFC: WHAT LIES BEYOND CONTACTLESS 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/2012-newsletter-archives/ august-2012-newsletter.html   

 

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


 

19. G&D TO MANUFACTURE AND SUPPLY NEW EU STANDARDS DRIVERS' LICENSES

Source: ICMA Industry News (08/24)

 

The Latvian Ministry Of Transport is offering its citizens a very special service. At any one of ten registration centers nationwide, drivers will be able to apply in person for a new, EU-compliant polycarbonate drivers' license and walk out with the finished card in almost no time at all. This is possible thanks to technology from Giesecke & Devrient (G&D), which is responsible for supplying both the cards and the infrastructure necessary to personalize them with each applicant's information. The supply contract will run for a period of five years.

 

"In issuing these new drivers' licenses, the Latvian government is offering its citizens not only a highly secure form of ID but also an exemplary service. At the same time, Latvia's introduction of the new polycarbonate cards early next year will bring it into line with European Union requirements," explains Hans-Wolfgang Kunz, head of Government Solutions at Giesecke & Devrient.

 

The process of collecting all the relevant information, such as a person's details, license category, signature, and photograph, will be carried out at the registration center itself, building on the present IT infrastructure. G&D is expanding existing data collection, data preparation, and personalization processes with the hardware and software necessary to issue the new licenses securely. To this end, G&D is implementing its tried and tested IMAGO software suite. Thanks to its versatile functionality, IMAGO can be integrated in existing system environments and connected to national databases without difficulty.

 

Following collection of the necessary details, applicants' records are forwarded to the central transport registry. After a completed check, applicants only have to wait around 20 minutes to take possession of their finished licenses. This is because the polycarbonate cards can be personalized on the spot: all the assembled information, including the photograph and signature, is engraved into the card body on site using a laser personalization technique. This is a reliable way to prevent any manipulation of data.

 

The new Latvian drivers' licenses will also carry the MAGIC-ID security feature, which is particularly effective against forgery. This employs a 3D image that incorporates a fluid motion effect depending on the viewing angle, making for a simple and reliable visual check. The effect is created by combining specially prepared print data and extremely fine lens structures. It enables police officers carrying out roadside checks to establish quickly, accurately, and without technical assistance whether or not a license is genuine.

 

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


 

20. PAYPAL AND DISCOVER TO BRING PAYPAL TO MILLIONS OF IN-STORE LOCATIONS

Source: Discover (08/22)

 

PayPal announced an extension of its offline strategy by teaming up with Discover to bring PayPal to more than 7 million merchant locations across the U.S., and potentially to millions of international merchant locations in the future. Starting in 2013, Discover will work with PayPal to enable participating merchants to accept PayPal easily through their existing relationship with Discover. Consumers will be able to take advantage of the benefits of PayPal at these merchant locations, providing them with the simplicity, speed and security they've come to expect from PayPal across any channel, any time.

 

"We're delighted to enable PayPal's efforts to provide their U.S. customers acceptance at millions of physical point-of-sale locations by leveraging our unique payment services assets. The establishment of this relationship is a major industry milestone, which will help shape the emerging payments landscape by bringing together an established direct banking and payments company with a leading commerce enabler to create an alternative payments option for consumers at the point of sale," said Diane Offereins, President of Discover Payment Services. "This initiative will result in real change and innovation for the industry by bringing new technologies to the point of sale that benefit merchants and PayPal customers."

 

"We couldn't be more thrilled to work with Discover. This relationship quickly extends PayPal's reach to millions of merchant locations nationwide and is a milestone moment for us that will create new benefits for Discover merchants without requiring new hardware or software," said Don Kingsborough, PayPal's Vice President of Retail. "This relationship will deliver a truly seamless digital wallet, available most places consumers shop offline, which offers the speed, simplicity and security already enjoyed by 113 million active PayPal customers online."

 

Starting in 2013, participating merchants will be enabled to accept PayPal easily through their relationship with Discover. To offer PayPal, merchants will not have to install or upgrade existing point-of-sale hardware or software and consumers will know of this additional payments option through in-store signage. As a leader in online payments, PayPal expects to bring brick-and-mortar merchants more shoppers in store and to extend convenience and utility for consumers through innovative mobile payment solutions.  Additionally, PayPal's 50+ million active U.S. customers are expected to help increase customer engagement, loyalty and incremental sales at the physical point of sale.

 

Discover is a member of ACT Canada; please visit http://www.discover.com.


 

 

21. NEW SMART CARD OPERATING SYSTEM FROM G&D OFFERS GREATER SECURITY FOR ELECTRONIC IDENTIFICATION DOCUMENTS

Source: Giesecke & Devrient (08/02)

 

Giesecke & Devrient (G&D) is the first manufacturer in the world to offer a certified solution for the new security functions in electronic passports as well as residence permits and ID cards on the basis of the protection profile as newly defined by Germany's Federal Office for Information Security (BSI). The BSI has accordingly granted the Munich-based company a security certificate. What's new in this protection profile is that passports, too, are covered by the PACE (Password Authenticated Connection Establishment) protocol. Countries belonging to the EU are obliged to use PACE in electronic passports and residence permits from December 2014.

 

Germany's Federal Office for Information Security (BSI) has granted G&D's new STARCOS 3.5 smart card operating system a security certificate under the Common Criteria Protection Profile (BSI-CC-PP-0056-V2-2012) for machine-readable travel documents with Extended Access Control and PACE.

 

"The PACE procedure ensures that a highly secure connection is established between the contactless chip in the identification document and the reader. Data is encrypted before being exchanged, making it impossible for hackers to read the data communication or decrypt it later," explains Dr. Hermann Sterzinger, head of Giesecke & Devrient's Government division.

 

The PACE security mechanism is already used in the new German national ID card, for which G&D is also supplying a certified solution (under the ID card protection profile BSI-CC-PP-0061-2009) with the STARCOS 3.5 operating system.

 

With this new smart card operating system, G&D is already offering its customers a security-certified solution to bring their electronic documents up to date with the latest technology and afford them effective protection against fraud.

 

It is planned that, in the future, the new security protocol will not only be used in official documents within EU countries but worldwide. The International Civil Aviation Organization (ICAO) recommends that all countries should change their biometric passports over to the PACE access mechanism by December 2014, replacing the Basic Access Control (BAC) protocol.

 

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


For more than 22 years, ACT Canada has been the internationally recognized authority in the market. As the eyes, ears and voice for stakeholders focused on secure payment, mobile, NFC, loyalty, secure identity, and leveraging EMV, we promote knowledge transfer, thought leadership and networking. We help members protect their interests, advance their causes, build their business and grow the market. We take a neutral and non-partisan approach to all issues, facilitating collaboration among issuers, brands, acquirers, merchants, regulators, solution providers, governments and other stakeholders. Over 50% of our members have been with us for more than 5 years, enjoying ongoing value from their affiliation with ACT Canada. To learn more about membership, please contact Eileen Cassidy at 1 905 426-6360 x122.

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.