Stakeholders Driving Payment Evolution and Digital Identity

June 2012 ACTion Newsletter

IN THIS ISSUE

  1. Editorial - It's all about communications
  2. 2012 Cardware Awards & Prize Winners
  3. TD Unveils Canada's Most Comprehensive Debit Card
  4. TTC To Try Mobile Presto Payments This Summer
  5. Mobile Commerce And Paypal: What Those Usage Numbers Really Mean – Members Only Access
  6. CIBC Continues Its Leadership In Mobile Financial Services With The Launch Of New Text Message Alerts
  7. ICC Solutions Expands U.S. Footprint For EMV
  8. German Olympians Sport Contactless Cards From G&D
  9. New Smartphone App For Movie Lovers To Launch This Summer In Toronto – Members Only Access
  10. Direct Cash Payments Inc. Announces Initiative With Visa Canada To Help Make ATM Transactions More Accessible For Visitors To Canada
  11. French Railway Turns To Ingenico For Contactless POS Terminals
  12. CPI Card Group Wins Prepaid Award For Customizable Powercore Card
  13. Infineon Supplies Security Chips For New Identity Cards In Malaysia
  14. Sprint To Launch Its Own Mobile Wallet? – Members Only Access
  15. Open Solutions Expands Global Reseller Network With Cardtek Partnership
  16. China Projected To Be On Par With Us As A Future Tech Innovation Leader; Cloud, Mobile To Drive Breakthroughs In Coming Years
  17. Gemalto Makes It Possible For The Nation-Wide Transport Operator In Taiwan, Easycard, To Deploy Micropayments Across The Country
  18. New Zealand NFC Payments Trial Gets Rave Reviews – Members Only Access
  19. Collis Expanding Reach In Latin America Through Strategic Partnership With Argotechno
  20. Multos Consortium Enlists Discover Financial Services As Newest Member
  21. FIME Extends Its Support Of MasterCard Contactless Terminal Testing With PayPass M-Tip Services
  22. Aimia Study Makes Case For Segmentation-Driven Social Media Strategy Based On Six Social Media Personas
  23. Everlink Introduces Instant Card Issuance 2.0: The Next Generation
  24. G&D And NXP Sign Mifare Licensing Agreement
  25. Microsoft's Windows 8 Phone Gets NFC Wallet, But Who Will Use It? – Members Only Access
  26. INSIDE Secure MicroRead NFC Reference Platform Achieves NFC Forum Certification
  27. Using Loyalty To Create Customer Intimacy
  28. Oberthur Technologies Completes Acquisition Of Moremagic
  29. EMV Payments Leader ICC Solutions And Top U.S. Card Test Equipment And Test Laboratory Leader Q-Card Sign Strategic Agreement

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

ATB Financial ~ member since 2006
HSBC Bank Canada ~ member since 2006
Visa Canada ~ member since 1995 

GENERAL

CanCard Canadian Card Systems ~ member since 2008
IBM Retail User Group, Inc ~ new member 2012
MillenTech-CTI Group ~ new member 2012
Open Solutions Canada ~ member since 2010 

ASSOCIATE

Jeffrey Roode Law ~ member since 2011
Mohawk Council of Akwesasne ~ member since 2010

JOB OPPORTUNITIES

ACT Canada will be launching 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

Cartes
November 6-8, 2012
Paris, France
http://www.cartes.com 

11th Annual Smart Card Alliance Government Conference
November 28-30, 2012
Washington, DC, USA
http://www.smartcardalliance.org 

1. EDITORIAL COMMENT
Source: Catherine Johnston, President & CEO, ACT Canada (06/28)

It's all about communications.

People talk about the art of communication, but before you can get there you need the science.  Not the science of sound waves but the science of listening and feeding back what you think you heard.  We've all heard people say, in frustration, "that's not what I said" and "I told you that".  Then there is the unspoken language – the crossed arms, pointing finger and other body language.

At Cardware last week, I watched as people communicated.  For the most part it was very positive.  They shared information about their ideas, plans and hopes.  You could hear the buzz and see the animation.  In some cases it was the opposite, as people struggled to vent their frustrations about market problems that have gone unresolved.  Some were elated at having their innovations and services recognized with awards.  Others expressed their annoyance at being treated as lesser stakeholders.

Nonetheless, they all communicated and I believe each and every one left the conference feeling more positive than when they arrived.  For me, that is hallmark of a good conference.

But what do we do for the next 365 days?  Well, ACT Canada will do more of the same.  We will bring people together through Strategic Leadership teams, the Issues Alert initiative, a networking event in the fall and all other avenues our members want to support.  As we move toward mobile commerce, all stakeholders must be brought to the table during the planning stages if we want the best results.  Who would want less...?  Let's talk!


2. 2012 CARDWARE AWARD & PRIZE WINNERS

Congratulations to all the nominees and winners.  Here are the results.

Aconite for their Mobile Application Manager  winning the Bronze for International Payment Innovation benefiting issuers.

Giesecke & Devrient for their BMO Mobile PayPass Tags winning the Silver for Canadian Payment Innovation benefiting issuers and the Bronze for Canadian Payment Innovation benefiting consumers

Giesecke & Devrient also won the Gold International Payment Innovation benefiting issuers award for their Nano-SIM card.

INSIDE Secure for their SecuRead designed into RIM Blackberry devices winning the Gold for Canadian Payment Innovation benefiting consumers, as well as the Gold for Canadian Payment Innovation benefiting issuers

Interac for their eTransfer International winning the Bronze for Canadian Payment Innovation benefiting issuers and an honourable mention for Canadian Payment Innovation benefiting consumers

Oberthur Technologies for their ID-One Digital watermark winning the Gold for International Identity Innovation benefiting governments and the Silver for International Payment Innovation benefiting issuers for their NFC now.

Payfirma's mobile payment processing application won the Silver for Canadian Payment Innovation benefiting consumers and the gold for Canadian Payment Innovation benefiting merchants.

This year we were pleased to name 2 heroes; David Chaudhari, Managing Director, Ingenico Canada, Ltd and Richard Cusson, Managing Director, Multos International Pte Ltd

Ron Matthews, Manager Cash Operations, Treasurer's Department, Imperial Oil Ltd is the winner of this year's Champion award.

Innovation, integrity, leadership and excellence are the foundation for success.  We are all pleased to celebrate these successes.

CARDWARE EVALUATIONS PRIZE WINNERS

We have a lot of generous sponsors to thank for prizes – and a lot of lucky winners.  The following prizes were drawn from delegates who submitted written evaluations or entered the Endo Network survey.

Dawn Gallagher Murphy of A LA CARD – a pocket projector donated by 3M Payment Components

Derek Ross and Marc Regan of ICC Solutions who each won golf jackets and golf balls donated by Ingenico

Seb McGale of Bank West – a gift certificate donated by the Marriott Gateway

Oscar Galvez of Technicard – an ACER Tablet donated by MSC

Steve Orr of Giesecke & Devrient – a golf bag, tees, shirt and umbrella donated by Everlink

Paul DeRosse of Apriva – an HP Slate 2 tablet donated by QMM

Alvin Chan of CIBC – a classic 160GB iPod donated by R3D Consulting andSteve Arebalo of Inside Secure – a Cutter and Buck Leather Briefcase donated by MasterCard

Thank you to all our sponsors and all the delegates who provided feedback that we will use to make next year's conference even better.


3. TD UNVEILS CANADA'S MOST COMPREHENSIVE DEBIT CARD
Source: TD (06/26)

TD Canada Trust announced the launch of the first debit card to give cardholders access to their bank account(s), with the benefits of Visa Debit, Interac® Debit and Interac Flash™, all in one card. This comprehensive debit card makes everyday purchases easier and more convenient, and allows customers to shop in store, online, over the phone, by mail and at international merchants, with funds drawn directly from their bank account.

"For consumers who prefer to pay for purchases with money they already have, this is a premier debit card," says Raymond Chun, SVP, Everyday Banking and Payments, TD Canada Trust. "It offers the convenience, security and ease to shop anywhere and any way, traditionally associated with a credit card. But it allows them the benefit of a debit purchase made directly from their bank account."

The enhanced card will allow for online, international, telephone, and mail order purchases, wherever Visa or Visa Debit is accepted. Point of sale purchases in Canada will continue to be processed as Interac Debit transactions.

At participating retailers in Canada, customers can also pay for purchases under $100 with Interac Flash - by simply holding the card against the reader, rather than having to swipe or insert it and enter a PIN. It offers the same safety and security of traditional Interac Debit, only faster.

"It can be hard at times to stick to a budget," says Chun. "Whether you're buying music or movies online, or travelling and purchasing items from local merchants, this debit card can help you to stay on track and on top of your finances".

The new debit card has an embedded microchip that stores information in a secure encrypted format. Transactions processed via Interac Debit and Interac Flash will benefit from the Interac Zero Liability Policy. International, online, telephone and mail order purchases, processed through the Visa network, are protected by Visa's security features including Zero Liability, Verified by Visa, address verification and the three digit code on the signature panel. Cardholders should protect the confidentiality of their PIN at all times and notify their financial institution immediately if they suspect fraud.

Card manufacturer Giesecke & Devrient (G&D) led the custom development of the new applications and technology to produce an innovative dual interface chip on the new card.

Giesecke & Devrient; Interac Association; TD Canada Trust and Visa Canada are members of ACT Canada; please visit http://www.gi-de.com; http://www.interac.ca; http://www.td.com  & http://www.visa.ca.


4. TTC TO TRY MOBILE PRESTO PAYMENTS THIS SUMMER
Source: Toronto Star (06/21)

TTC riders will be the first in the Toronto region to pay their transit fares with mobile devices and contactless credit cards starting this summer.

Provincial agency Metrolinx expects to begin testing open payments on the Presto system at College Station. If all goes well, the trial will be extended to Dundas Station and then to Yonge-Bloor.

Open payments mean that riders can tap their mobile device or credit or, debit card on an electronic reader in the same way that transit users across the Toronto region already tap their green Presto cards to deduct their fares from a pre-paid e-purse.

The TTC will get the second generation of Presto readers — an update from those already installed on the GO system, 14 pilot TTC stations and seven other municipal transit services around the city.

Metrolinx hopes to have Presto on all TTC vehicles and in stations by the 2015 Pan Am Games.

It's similar to the new technology Metrolinx is struggling to launch in Ottawa. The readers there have worked so poorly in field tests, that the July 1 launch of Presto in the capital has been delayed until at least Feb. 1.

Scheidt& Bachmann, the company that makes the Ottawa fare card readers is one of 10 companies expected to bid on the TTC contract. The Toronto-region readers were made by another supplier.

"All the suppliers have to meet our requirements and part of the requirements is looking back on performance. The focus right now is getting the Ottawa devices fully operational and reliable...how they perform is going to be considered a factor for future business," said Metrolinx CEO Bruce McCuaig.

The readers being used on the Toronto region, including GO and in Hamilton, will have to be replaced when open payments are launched on those transit systems. But no dates have been set for that deployment.

"TTC will go immediately to the new generation. Ottawa will have gone to the new generation. But for the existing infrastructure — not for the civil works, not for the power — but the actual readers sitting there, will have to be replaced," said Metrolinx chair Robert Prichard.


5. MOBILE COMMERCE AND PAYPAL: WHAT THOSE USAGE NUMBERS REALLY MEAN – 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/ june-2012-newsletter.html

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


6. CIBC CONTINUES ITS LEADERSHIP IN MOBILE FINANCIAL SERVICES WITH THE LAUNCH OF NEW TEXT MESSAGE ALERTS
Source: Canada Newswire (06/25)

CIBC announced it has launched powerful new text message (SMS) customer Alerts,continuing its leadership in mobile financial services. The new Alerts bring important financial information to clients at a time and place that's convenient for them through their smartphone, or through email or online banking, to help clients manage their day to day finances.

The Alerts range from reminding clients about upcoming credit card payments and due dates so they don't inadvertently miss a payment, to information on future-dated bills or transfers to ensure clients have adequate balances and can avoid late payment fees. Text message Alerts to mobile devices, combined with CIBC's award-winning Mobile Banking, empowers clients to effectively and conveniently manage their finances, wherever they are.

"Making these new Alerts available online, by email or by text message allows clients to view timely reminders about their finances whether they are banking online, or on the go with mobile banking," said Michael Martin, Senior Vice President, Alternate Channels CIBC. "With the rapid growth in smartphone adoption and mobile banking in Canada, the addition of text message functionality puts more information about their day to day finances into our clients' hands."

A CIBC poll conducted by Harris/Decima earlier this year revealed Canadians named managing day to day spending and budgeting as one of their top three priorities for 2012. These enhancements will make it easier for clients to stay on top of their everyday banking as part of their broader financial plan.

CIBC clients can sign up for e-mail, online or text message Alerts to notify them of a variety of information:

Upcoming payments and transfers, such as:When future-dated transfers or bill payments go throughWhen they don't go through, so clients can add the necessary funds to their account in time to avoid       late payment fees and charges

Keeping track of spending limits and other financial changes, such as:

  • When clients attempt to exceed their daily limits for ABM withdrawals and point of sale transactions.
  • When funds held upon deposit become available

Credit card information, such as:

  • When their minimum payment is due
  • When their monthly statement is available online
  • When client-customized monthly budgets are exceeded

Preventing fraud, such as:

  • When information changes, such as a PIN number, address change or new bill payee added
  • When a credit report has changed
  • When there is any potential fraudulent activity on their debit or credit card

Many more Alerts are available and clients can view all of the options when they sign on to CIBC Online Banking.

Alerts add to the online services available to CIBC clients, such electronic statements for their chequing, savings and credit card accounts. Together with CIBC's innovation in Mobile Banking, Sunday hours at a number of our branches, and award-winning Online Banking, CIBC Alerts give Canadians one more reason to do more of their everyday banking with CIBC.

CIBC is a member of ACT Canada; please visit http://www.cibc.com.


 7. ICC SOLUTIONS EXPANDS U.S. FOOTPRINT FOR EMV
Source: The GreenSheet (06/05)

In a move to support the U.S. banking and payment industry migration to secure EMV chip and pin debit and credit cards, Britain's ICC Solutions Limited, a leading provider of EMV contact and contactless test and certification products to all but one of the G20 nations, announced today that it has expanded its operations significantly in the United States, adding technical sales, service and support capabilities.

Founded in 1996, British-based ICC Solutions is currently the only company in the world capable of offering fully qualified test scripts for American Express AEIPS, Discover D-PAS, INTERAC Contact & Flash; M-TIP, PayPass& NIV for MasterCard; Visa ADVT & ADVT qVSDC Device Module in addition to EMV Level 2 and EMV Entry Point Type Approval test suites. This will be key as the U.S. develops a successful EMV banking payment infrastructure.

The U.S.A. is the last of the G20 nations to adopt the EMV chip and pin payment standard. EMV offers far superior security and unique personalization capabilities, which reduces card fraud, and contributes to new market opportunities for banks and other financial institutions. "Ultimately, EMV will offer a more convenient and rewarding shopping experience for the consumer," said Wendy Maisey, Director, ICC Solutions Ltd and a Board Member of ACT Canada, that country's preeminent payment industry association which helped usher in the EMV era North of the border.

Recognizing the enormity of the EMV migration, ICC Solutions has substantially expanded its support operations in the U.S. marketplace. This includes a new U.S. HQ in Atlanta. "We believe this will help us stay close to our U.S. customers helping them to keep their EMV migration plans on track," said Maisey. "The setting up of the Atlanta HQ and support satellites in NYC and CA makes sense on many fronts, including common language, customs, processes and a desire to provide a meaningful technical resource to our American cousins as they transition to EMV. "

In addition to the Atlanta HQ, ICC Solutions has also added technical sales and support capabilities in New York, and California. This will strengthen ICC Solution's presence in North America where it previously operated from Toronto, Canada. The company will continue to add new resources to support its rapidly growing U.S. presence. "The U.S. EMV migration will be an ongoing and reiterative process, but the end results will be well worth the effort," added Maisey. "The investment a merchant / acquirer makes in test tools helps ensure the process runs smoothly and on schedule at maximum efficiency. We have enjoyed tremendous success in Canada and Europe enabling major acquirers in these regions to achieve a large number of certifications within a short timeline leading to a successful EMV implementation."

ICC Solutions is a member of ACT Canada; please visit http://www.iccsolutions.com.


8. GERMAN OLYMPIANS SPORT CONTACTLESS CARDS FROM G&D
Source: Contactless News (06/11)

Giesecke & Devrient (G&D) announced it will produce and supply German Olympians with an exclusive dual-interface Visa card for contactless and contact payment.

Landesbank Baden-Württemberg will be providing the PAYBACK Top-Class Sports Visa card for Olympic athletes to use as contactless payment wherever the Visa standard for contactless payment - Visa payWave - is accepted. They will also automatically collect PAYBACK points when using the card to pay.

Additionally, Olympic Games participants will not be required to enter a PIN or sign a payment slip for amounts under €25 (~ USD $30). German athletes will be able to apply for the card from the end of June at the official outfitting presentation in Mainz.

There are thousands of contactless payment terminals in London, with another 3,000 planned for the Olympic Games alone. 8,000 Transport for London buses and 2,500 taxis will also be equipped with terminals to accept contactless payment.

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


 9. NEW SMARTPHONE APP FOR MOVIE LOVERS TO LAUNCH THIS SUMMER IN TORONTO – 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/ june-2012-newsletter.html

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


10. DIRECT CASH PAYMENTS INC. ANNOUNCES INITIATIVE WITH VISA CANADA TO HELP MAKE ATM TRANSACTIONS MORE ACCESSIBLE FOR VISITORS TO CANADA
Source: Canada Newswire (06/25)

DirectCash announced that it has teamed up with Visa Canada to provide Visa cardholders with greater access to their funds quickly, conveniently and securely. Starting this year, DirectCash's 7,600 ATMs, located primarily in high-value, high traffic tourist locations will begin accepting Visa, giving those travelling to Canada additional acceptance points that they trust.

"Research shows that travellers continue to rely on ATMs to obtain local currency when they arrive in a foreign country," said Sue Whitney, head of new products, Visa Canada.  "Having DirectCash prominently display Visa branding on their ATMs, ensures cardholders know that they have found a safe and convenient location to withdraw funds using their Visa card."

DirectCash's ATMs with Visa acceptance will offer greater utility and functionality than regular ATMs currently available in Canada. For instance, Visa ATMs will accept all types of Visa cards, including debit, credit and prepaid, with additional transactions and enhancements to come.

"We're delighted to join forces with Visa to expand the services provided by our ATMs, reaching new customers and diversifying our services beyond traditional cash dispensing," said Jeffrey Smith, President and CEO, Direct Cash Payments Inc. "Visa's commitment to the ATM channel, the scope of its global network and the strength of its prepaid clients make Visa a perfect partner for us."

Whitney continued: "ATMs that accept international payment cards are generally well-located at most airports and major tourist and shopping areas, letting travellers avoid the risk of carrying large amounts of cash and easily access their vacation funds when they need it."

There are 1.9 billion Visa cards around the world. Visa is accepted at tens of millions of merchants and more than 1.8 million ATMs in 200 countries and territories worldwide.

Direct Cash and Visa Canada are members of ACT Canada; please visit http://www.directcash.com  & http://www.visa.ca.


11. FRENCH RAILWAY TURNS TO INGENICO FOR CONTACTLESS POS TERMINALS
Source: The Green Sheet (06/12)

Ingenico is equipping the 3,000 points of sale of SNCF with its latest generation of payment terminals.

The SNCF is one of the world's biggest mobility and logistics groups, present in 120 countries with 32.6 billion Euros in turnover, 23% of which is international, and 245,000 employees in 2011. SNCF is extending its transport offer to provide its customers, passengers or Organisation Authorities with a fluid mobility service.

SNCF group expressed its desire to renew all payment systems at its sales desks and selected the new Ingenico terminals: the iCT250 contactless terminal and its associated pin‐pad, the iPP2xx developed with Telium technology.

The iCT250 is the new generation of Ingenico payment terminals uniting state‐of‐the‐art technology and the latest PCI PTS 3.0 security standard. Equipped with a colour screen and RFID reader, it provides SNCF sales agents with easy access to contactless payment technology and enables them to offer new services to their customers.

Ingenico is also developing the software required to integrate electronic payment terminals into SNCF's monetics architecture and to interface the latter with Mosaïque sales stations.

We are particularly proud to support SNCF in its project to renew its payment solution" declared FrédéricLeclef, General Manager, Ingenico France, "Ingenico's technological lead has enabled it to fulfil the demands of a complex payment approval system".

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


12. CPI CARD GROUP WINS PREPAID AWARD FOR CUSTOMIZABLE POWERCORE CARD
Source: CPI Card Group (06/15)

CPI Card Group announced that the company has received the award for Best Prepaid Card Design/Merchandising for PowerCore during the 2012 Prepaid Awards Canada held on June 7, 2012.

The Prepaid Awards event recognizes the significant commercial achievements and successes of the prepaid sector within Canada in gift and prepaid products, programs and solutions.

Part of the Best Prepaid Card Design/Merchandising award is based on how the card design/merchandising leverages innovation and creativity and its contribution to building brand values and awareness.

An industry first, the PowerCore card can be customized to fit any design needs – from lighting up a birthday cake on a gift card while it plays 'Happy Birthday' to the ability for retailers to customize number, color, timing and length of the light on the card to highlight a unique design. These cutting edge capabilities allow retailers to more effectively illustrate their brand through card programs.  For Financial and Security cards, issuers can utilize encapsulated, secure chips with OATH based algorithyms to display a one-time-password (OTP) or a dynamic account number or security code, like a DBC/CVV/CVC2.

CPI Card Group is a member of ACT Canada; please visit http://www.cpicardgroup.com.


13. INFINEON SUPPLIES SECURITY CHIPS FOR NEW IDENTITY CARDS IN MALAYSIA
Source: Infineon (06/27)

Infineon Technologies announced it is supplying the security chips for Malaysia's new national electronic identity cards. Popularly known as 'MyKad', the new generation smart card features Infineon's SLE 78 security controller with Infineon's award-winning 'Integrity Guard' security technology. Malaysia takes advantage of this new security technology combined with SOLID FLASH™ for fast deployment capability.

MyKad is a multi-application national electronic identity card, including biometric identification, which will allow the implementation of numerous additional functions such as Driving License, Health, ATM, eSignature and eGovernment services. In the past years, Malaysia issued approximately two million new identity cards each year. Identity cards are used for many years and are subject to intense wear. This is why they must meet specific high requirements. In particular, the bearer's personal data should be secured during the entire life of the card.

The utilized Infineon SOLID FLASH product combines the highest level of flexibility provided by dedicated Non Volatile Memory (Flash, EEPROM) technologies with outstanding reliability and a sophisticated security concept. The security certified Flash product allows a faster reaction to market changes through short lead times and flexible product usage, and offers many advantages in logistics, development and throughout the certification process. A full range of SOLID FLASH products are Common Criteria certified by the BSI (Federal Office for Security in Information Technology) in Germany as well as type approved by EMVCo making it the choice for many applications while keeping full flexibility for upcoming changes.

MyKad also uses Infineon's Integrity Guard security technology. For identification documents with high demands on security and robustness, it offers long lasting security with encrypted Dual CPU-core, setting a new benchmark for secure electronic documents. With this technology, data is encrypted along the entire data path during processing. The security controller core has two processing units, constantly checking each other's correct function by utilizing sophisticated error detection. Infineon's highly secure SLE 78 product family with Integrity Guard is used in all important eGovernment applications, such as the electronic health card, the electronic identification card and in residence permits with biometric data.

Infineon is a member of ACT Canada; please visit http://www.infineon.com.


14. SPRINT TO LAUNCH ITS OWN MOBILE WALLET? – 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/ june-2012-newsletter.html

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


15. OPEN SOLUTIONS EXPANDS GLOBAL RESELLER NETWORK WITH CARDTEK PARTNERSHIP
Source: Open Solutions (06/06)

Open Solutions Inc. and Cardtekhave partnered to distribute the DNA™ core platform internationally.

The agreement enables Cardtek to market, customize, localize, manage and service the DNA platform to financial institutions throughout Turkey and Azerbaijan. This partnership is another important step in Open Solutions' global distribution strategy to connect financial institutions around the world with a single platform that can be localized and extended in limitless new ways.

"Open Solutions is a true innovator, and we are thrilled to offer the DNA platform internationally," said Ayse Nil Sarigollu, CEO, Cardtek. "Our goal is to bring the most advanced technology solutions to market in the regions we serve and we concluded that there is no better platform than Open's DNA platform. Its future-forward design can be easily localized and extended to serve our clients' unique market needs."

Commenting on the partnership, Louis Hernandez, Jr., chairman and CEO of Open Solutions, stated: "Open Solutions is entering a new phase of rapid, global growth. The success of the DNA platform in the U.S., Canada and other international markets has established DNA as a proven, advanced core solution that is radically changing enterprise technology. We are pleased to work with Cardtek to expand our global network of financial institutions all sharing a single platform."

Cardtek and Open Solutions are members of ACT Canada; please visit http://www.cardtek.com  & http://www.opensolutions.com.


16. CHINA PROJECTED TO BE ON PAR WITH US AS A FUTURE TECH INNOVATION LEADER; CLOUD, MOBILE TO DRIVE BREAKTHROUGHS IN COMING YEARS
Source: KPMG (06/27)

KPMG LLP (US) released the 2012 Global Technology Innovation survey which asked technology executives worldwide to predict future disruptive technologies and the next epicenter for innovation. The survey found that China and the US will be at the forefront, with cloud enabling both the next indispensable consumer technology and business transformation for enterprises. Mobile technologies will continue to build on cloud, providing the tech breakthrough that will transform businesses.

Asked to predict future disruptive technologies and the next epicenter for innovation, technology executives worldwide believe that China and the US will be at the forefront, with cloud enabling both the next indispensable consumer technology and business transformation for enterprises. Mobile technologies will continue to build on cloud, providing the tech breakthrough that will transform businesses, according to the Global Technology Innovation survey by KPMG LLP (US), the audit, tax and advisory firm.

Almost 30 percent of the 668 business executives in the Americas, Asia Pacific (ASPAC), Europe, the Middle East and Africa (EMEA) said China and the US show the most promise for disruptive breakthroughs with global impacts, while 13 percent cited India. Interestingly, only 39 percent of US respondents selected the US as most promising, while 71 percent in China selected China.

To identify disruptive technologies and the scope of change two to four years out, KPMG surveyed executives from technology industry startups, mid-sized to large enterprises, venture capital firms and angel investors.

"The pace of technology innovations today is happening at unparalleled speed and China's projected rapid rise to prominence as a technology leader would be another example of this," said Gary Matuszak, partner, global chair and US leader for KPMG's Technology, Media and Telecommunications practice. "China's anticipated parity with the US tech sector shows the significant challenge facing the US to retain its position as an innovation leader. Other countries will continue taking steps to boost technology innovation and to attract tech entrepreneurs."

"These survey findings also demonstrate that China's innovation investment has fostered an environment for the development of disruptive technologies that is growing by leaps and bounds. The Chinese Government is encouraging significant investment in three key areas: shared services and outsourcing; payments and cloud computing. The 12th Five-Year Plan is also driving innovation in these critical areas, in order to create a nationwide virtual environment," said Egidio Zarrella, a partner with KPMG in China.

Asked what technology will have a major impact by 2015, 30 percent of the survey respondents globally said Cloud Software as a Service (SaaS) will enable the next indispensable consumer technology. In regard to driving business transformation, 22 percent said Cloud Infrastructure as a Service, followed closely by SaaS, will have the greatest impact. In the US, SaaS was the top selection in consumer and enterprise technologies.

"It is clear that technology leaders in countries where technology innovation is thriving believe that the cloud represents a technology tidal shift. They are placing a huge bet on cloud, as it has multiple capabilities and benefits for providers and users such as generating revenue, improving operational efficiency, reducing costs and time to market, and enabling other disruptive technologies such as mobile and social applications," said Matuszak. "The significant cloud investment that is under way is likely to spur technologies that drive breakthroughs in business transformation."

Mobile technologies are also seen as a significant beneficiary of cloud, as almost 30 percent of global respondents expect that the next tech breakthrough to drive the greatest business transformation in the next four years will come from smartphones, tablets and other mobile technologies.

Potential challenge to Silicon Valley's position as tech innovation center

Forty-four percent of global respondents said it was likely that what many consider the technology innovation center of the world would shift from Silicon Valley to another country in the next four years, while 23 percent of those surveyed said it is unlikely and 34 percent were undecided. Not surprisingly, only 28 percent of the US respondents think the shift is likely, while more than half in ASPAC, and more than 40 percent in EMEA, see the move as likely. Of those globally who believe the center will shift, most (44 percent) said it would move to China.

Apple viewed as top innovator

In considering innovation drivers, visionaries and leaders, more business executives globally identified Apple, now led by Tim Cook, and former CEO Steve Jobs, as tops in these three areas. As the top company driving disruptive innovation, Apple was followed by Google and Microsoft, according to the survey. Respondents also viewed Jobs as the top global innovation visionary, followed by Bill Gates. In China specifically, executives said Gates was the top visionary and Jack Ma the innovation leader. In India, Infosys was identified as the innovation leader, and in Israel, it was IBM.

At the same time, about one-third globally pointed to Google, Facebook and Amazon as emerging leaders in mobile commerce.

Innovation development, challenges, barriers

The survey uncovered differences in who or what function is responsible for driving innovation in companies. About 3 in 10 globally said the CEO has the responsibility to drive innovation in their company, while 20 percent, including half the respondents in China, said the Chief Innovation Officer. Fifteen percent each cited the Chief Information Officer and research and development. Some 38 percent said that innovation is most often spotted and nurtured in the R&D department, followed by IT and strategic planning, while the majority of those surveyed use revenue growth as the metric to measure innovation value.

Asked whether their education system serves as an incubator for innovator thinkers, slightly more than half believed this was true. In China, close to 75 percent thought this was true, while in the US, less than half thought so

In regard to adopting future technologies, cost/pricing models was pointed to by survey respondents as the top challenge to adopting the next indispensable consumer technologies, while security/privacy governance is the number one challenge to adopting future business transforming technologies and also is the top barrier to commercializing disruptive innovation.

"The fact that security/privacy governance is a challenge is not news, yet it's an ongoing reminder of their importance as the business models continue to evolve," said Matuszak. "The companies that develop a way to balance data-driven innovation with the appropriate transparency, privacy and information security frameworks to satisfy customers and regulators will have a competitive edge."

KPMG is a member of ACT Canada; please visit http://www.kpmg.com.


17. GEMALTO MAKES IT POSSIBLE FOR THE NATION-WIDE TRANSPORT OPERATOR IN TAIWAN, EASYCARD, TO DEPLOY MICROPAYMENTS ACROSS THE COUNTRY
Source: Gemalto (06/05)

Gemalto announces the deployment of its next generation multi-application advanced smart cards technology to EasyCard Corporation in Taiwan. This latest generation software will enable micropayments on the widely used transport card enjoyed by over 30 million cardholders that ride the metro in the Greater Taipei Area, take intercity bus and river boat services, as well as use the parking lots and libraries in Taipei City.

The new Gemalto Celego card supports both contact and contactless functionalities, allows users to securely check their personal transaction records from the Internet, to make e-payment for government services and to conduct Internet shopping. Gemalto made available its full set of consulting services on specifications, provided operating system development and certification, and advised EasyCard Corporation on the migration path and opportunities to this new high end multi-application product.

In line with EasyCard's move from transport into micropayments, the new card materializes EasyCard's vision and strategy of providing a wider range of services for 'Mobile Life' – becoming indispensible in the daily lives of its users also as a financial lifestyle card. As the contactless transit and payment markets in Taiwan converge, the new card enables EasyCard to reinforce its innovation leadership and provides a compelling growth opportunity.

The Gemalto Celego card has obtained the Common Criteria EAL4+ top level bank security standard certification. This enables EasyCard to meet the Taiwan Financial Supervisory Commission stringent requirements. It is also offering the very high level of performance needed for transportation and contactless micropayments applications. The new generation software also allows for expansion into Near Field Communication (NFC), future-proofing EasyCard's offer when the national market will move towards mobile contactless payments.

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


18. NEW ZEALAND NFC PAYMENTS TRIAL GETS RAVE REVIEWS – 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/ june-2012-newsletter.html

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


19. COLLIS EXPANDING REACH IN LATIN AMERICA THROUGH STRATEGIC PARTNERSHIP WITH ARGOTECHNO
Source: Collis (06/14)

Collis is pleased to announce that Argotechno has become our value added reseller and strategic partner in Brazil.

Argotechno, based in Brazil, has become a strategic partner and the latest value added reseller within the Latin America region to join Collis' growing network of distributors worldwide. They will offer the complete range of products and services in the mobile and payment domains, which include award winning and accredited test tools and quality consultancy services.

Argotechno operates in the software engineering market and provides IT consultancy services within the payment domain. From January 2012 on Argotechno has been accredited by MasterCard to provide Formal Approval Services (CPV, TIP & M-TIP), becoming one of the only three companies in the world entitled to provide such services.  Collis also holds the same accreditation and certifications for other payment schemes. Thus a strategic partnership based on strong technical background and commitment to high quality customer centred products and services turn out to be of utmost relevance. With the partnership, both Collis and Argotechno are hoping to extend their service offering to their customers. This partnership offers an excellent opportunity to establish local expertise within the Latin America region as well as integration of technical teams leveraging knowledge, competencies and offers.

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


20. MULTOS CONSORTIUM ENLISTS DISCOVER FINANCIAL SERVICES AS NEWEST MEMBER
Source: MULTOS (06/19)

The MULTOS Consortium is pleased to announce that Discover Financial Services, in partner with Diners Club International, has joined the group of key industry players. MULTOS Consortium is a group of international blue chip organisations responsible for the promotion and development of the MULTOS specifications.

Joining as a member, Discover will participate in the MULTOS Business and Technical Advisory Groups. This will allow them to play a prominent role in the development and growth of MULTOS, whilst benefiting fully from the Consortium's marketing and networking resources with Members that span the secure smart device industry.

Stuart Attwood, Commercial Director of The MULTOS Consortium, comments "We are delighted to welcome Discover to the MULTOS Consortium. As a payment brand with an outstanding pedigree and  deep  experience   in  the  payments   arena,   the  contribution   Discover can make to the development  of  the  Consortium  and  the  MULTOS  product  as  a  whole  will  undoubtedly  prove hugely advantageous, and further strengthens MULTOS' position as a leading global high security smart card platform.  As one of the most recognized payment brands in the US, the work Discover has already undertaken in EMV migration in other parts of the world – including a MULTOS product offering – will be invaluable."

Troy Bernard, Director of Chip Payment Technology, Discover, says "Joining the MULTOS Consortium allows us to expand the availability of our leading-edge and highly secure technology on a global scale."

MULTOS and Discover are members of ACT Canada; please visit http://www.multosinternational.com  & http://www.discover.com


21. FIME EXTENDS ITS SUPPORT OF MASTERCARD CONTACTLESS TERMINAL TESTING WITH PAYPASS M-TIP SERVICES
Source: Smart Card Trends (06/06)

FIME has enhanced its acquirer services offering with the upgrade of the SAVVI test log analysis tool. The new version supports the latest MasterCard PayPass® Terminal Integration Process (M-TIP) Specifications, which were released in February 2012 to replace the existing PayPass TIP process, and complements FIME's Formal Approval services.

From August 1 2012, acquirers implementing contactless terminals must adhere to the new PayPass M-TIP Specification. Over the coming weeks, and until the deadline, acquirers with previously approved MasterCard TIP contactless readers may continue to use the existing PayPass TIP process for new terminal integration projects.

As the global leader in consulting and terminal integration test services for acquirers, FIME has updated its SAVVI test tool in response to the release of the new MasterCard PayPass M-TIP Questionnaire, which determines the tests that need to be undertaken by an acquirer. Used in conjunction with FIME's test cards qualified by MasterCard as validation test tools, this advancement enables FIME to offer an efficient integration test platform for contactless readers, which is of significant relevance to vendors and banks that manufacture and deploy payment terminals. It provides stakeholders with the ability to debug and test their contactless payment terminals in preparation for formal approval and deployment.

Retaining its 'three-in-one' offering, SAVVI acts as a test log analysis tool, a process management tool and tutorial, while adding further functionality to accommodate MasterCard's latest requirements concerning contactless terminal testing. It automates the matching and analysis of test results, which helps to avoid errors during the final validation stages of a terminal integration project, thereby saving time and development costs. SAVVI version 1.2 adds to FIME's portfolio of dedicated test tools for use in the telecom, e-payment, transport, e-identity and logistic sectors.

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


22. AIMIA STUDY MAKES CASE FOR SEGMENTATION-DRIVEN SOCIAL MEDIA STRATEGY BASED ON SIX SOCIAL MEDIA PERSONAS
Source: Aimia (05/31)

Aimia unveiled an industry-first segmentation model that reveals six distinct social media personas, based upon the behavioral drivers of trust and control. The model is detailed in a new Aimia research brief, Staring at the Sun: Identifying, Understanding and Influencing Social Media Users. The report argues that no single social media channel can deliver a complete picture of customer behavior.

"Today's approach to social media measurement – racing to rack up the most 'likes,' retweets, followers and recommendations – is the wrong approach. Marketers must define success not by social media activity, but rather by customer value and engagement," said Doug Rozen, lead author of the report and Senior Vice President, Communications, Design & Emerging Technologies at Aimia.

"Marketers often struggle to understand the true motivations and purchase intent behind customers' social media activity. Proper segmentation allows marketers to appropriately identify, understand and influence customers through social channels," continued Rozen.

The report maps the current landscape of social media usage, and outlines the differences between types of social media participation via six proprietary social media "personas" comprising the entire U.S. adult population ages 18 or older:

No Shows (41%      of US population) – least involved with social media, if at all;      infrequently engage in online commerce.Newcomers      (15%) – passive users of a single social media network, primarily to      enhance offline relationshipsOnlookers      (16%) – observe others via social channels on a regular basis, but share      almost no personal informationCliquers (6%)      – active users of one network; influential among their small group of      friends and familyMix-n-Minglers      (19%) - those who regularly share and interact with a diverse group of      connections via social mediaSparks (3%) –      most active and deeply engaged users of social media; will serve as      enthusiastic online ambassadors for their favorite brands

Aimia then mapped these personas against social brand-related activities: Engagement in online commerce; the viewing and creation of online video; participation in flash sales or daily deals; writing of product and service reviews; interaction with brands, games, forums and blogs; and "checks in" to locations. Among the findings: the more passive "Onlookers" are just as interested in flash sales and daily deals as the two most active personas, "Mix-n-Minglers" and "Sparks." In addition, "Cliquers" are just as likely as "Sparks" to play brand-sponsored games online.

Aimia's segmentation is constructed on a framework of behavior based on the two primary emotional drivers of social media participation: Trust and Control. Trust is driven by consumers' ability to navigate social media, how much they trust friends and networks with personal information, and how much trust they place in the social networks themselves. Control correlates to the amount of information that consumers are willing to share, the number of connections they make, and the reputation they build online.

"Control equals exposure, and trust equals participation. The more control a consumer perceives over their social media activity, the more likely they are to engage with a wider variety of social media networks. The more trust a consumer places in social media networks and their connections, the more likely they are to actively participate," said Rozen.

The research, conducted in late 2011, consisted of a series of weeklong ethnographic research panels conducted by Aimia, with the findings substantiated with Forrester, Mintel and GfK Mediamark Research & Intelligence, as well as Aimia's own study Born This Way: The US Millenial Loyalty Survey. Authors include Rozen, Mona Askalani, Director of Social Marketing and Tom Senn, Director of Research and Customer Insights.

Staring at the Sun represents the inaugural edition of an ongoing Aimia focus on the intersection of social media marketing and loyalty management. To view the complete report and related infographic, please visit http://aimia.com/English/Knowledge/Research-Center/default.aspx.

AIMIA is a member of ACT Canada; please visit http://www.aimia.com


23. EVERLINK INTRODUCES INSTANT CARD ISSUANCE 2.0: THE NEXT GENERATION
Source: EVerlink (06/18)

Everlink Payment Services Inc., a leading provider of Integrated Payment Solutions & Services for Credit Unions, Banks and ISOs in Canada, is pleased to announce that its industry leading and award winning Instant Card Issuance (ICI) solution has achieved another innovation milestone by successfully adding a payment application to a certified EMV chip card, post-issuance.

The Everlink ICI solution first raised positive industry attention in April 2011when it became the first system in North America to instantly produce a fully personalized – and Interac/MasterCard certified – chip debit card, in-branch. This accomplishment signaled the introduction of the first generation of Instant Card Issuance solutions and earned it a prestigious Canadian Innovation Award from ACT Canada in the Payment category at the Cardware 2011 conference.

The most recent breakthrough, which arrives just in time for the Cardware 2012 conference, effectively introduces the next generation of the Everlink ICI solution which was first used to add a new financial application and identifier (AID) to an existing EMV chip card powered by MULTOS Step/One, one of the world's most secure smartcard operating systems.

"The Issuing institution needed a means to support another payment network and asked Everlink for a solution that would allow them to avoid reissuing their entire EMV debit card portfolio," said Mark Ripplinger, President of Everlink Payment Services Inc. "With the depth of EMV and Instant Issuance experience at Everlink, it was quickly determined that our best approach would be to use our award winning Everlink ICI solution to add the new application to the card and as a result the next generation of Everlink ICI was born."

The benefits of this solution upgrade are many and include the potential for substantial cost savings with regards to card replacements and the ability to make upgrades on an as-needed basis. In order to facilitate the addition of the new application to their cards, cardholders will be contacted by the Issuer and requested to go to one of their branches. There a customer service representative will use the Everlink ICI solution [which is card bureau and printer/encoder hardware agnostic and currently supports multiple financial card printers] to add the new network application to the card.

Everlink is a member of ACT Canada; please visit http://www.everlink.ca.


24. G&D AND NXP SIGN MIFARE LICENSING AGREEMENT
Source: Giesecke & Devrient (06/12)

NXP Semiconductors N.V and Giesecke & Devrient (G&D) announced an agreement enabling G&D to integrate NXP's MIFARE™ technology into its portfolio of secure SIM products. With the new MIFARE DESFire™ and MIFARE Plus™ based SIM cards, including backward compatibility to MIFARE Classic, G&D can now serve the growing demand of mobile network operators for enhanced NFC solutions with mobile ticketing as well as mobile payment capabilities.

The market adoption of NFC, a technology co-invented by NXP, is accelerating. More than 50 NFC enabled handsets are already available. In addition, mobile network operators around the world are preparing NFC rollouts and are eagerly looking for new exciting applications for their end customers. Confirmed by a Juniper Research report from January 2012, mobile ticketing is one of the NFC applications most appreciated by end users looking for convenient devices and a new travel experience in public transport.

With MIFARE enabled secure SIM products, G&D is able to provide mobile network operators with solutions that perfectly fit the requirements and expectations of mobile ticketing. MIFARE is the most widely used technology platform for contactless applications on the market today, accessible through more than 50 million contactless readers and terminals across the globe. Public transport operators of more than 650 cities worldwide have selected MIFARE's open architecture platform, reaching 1.2 billion people that experience the convenience of MIFARE every day. This existing infrastructure ensures best interoperability with these new MIFARE enabled SIM cards from G&D. It allows mobile network operators to make full use of such solutions and to develop an unprecedented interactive consumer experience for public transit, event ticketing, customer loyalty, and access control, thus generating new opportunities for additional revenue streams for their businesses.

This agreement on the mobile market is another element of the long-lasting cooperation between two companies that encompass banking, personal identification and transit applications. NXP and G&D are both members of the MIFARE4Mobile Industry Group and actively contribute to the development of a uniform concept of managing MIFARE based contactless applications on NFC enabled secure elements, such as SIM cards. In addition to this latest license agreement regarding SIM cards, NXP licenses MIFARE to various leading chip manufacturers that supply MIFARE based reader terminals and smart cards. Over 1,000 business partners are already part of the open MIFARE community and ecosystem.

Giesecke & Devrient and NXP Semiconductors are members of ACT Canada; please visit http://www.gi-de.com & http://www.nxp.com


 25. MICROSOFT'S WINDOWS 8 PHONE GETS NFC WALLET, BUT WHO WILL USE IT? – 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/ june-2012-newsletter.html

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


26. INSIDE SECURE MICROREAD NFC REFERENCE PLATFORM ACHIEVES NFC FORUM CERTIFICATION
Source: INSIDE Secure (06/18)

Enhancing its NFC industry leadership, INSIDE Secure announced that its MicroRead NFC solution is the first full-function NFC controller chip to successfully prove that devices based on it can achieve certification by the NFC Forum. This certification offers increased assurance that products using MicroRead solutions will work with the millions of NFC mobile phones, tablet computers, access devices and other NFC products throughout the world that will also use NFC components certified by the NFC Forum. MicroRead and SecuRead products shipped by INSIDE into market total nearly 25 million units from start of deployment in 2011 to date, establishing a broad base of interoperable NFC devices.

The NFC Forum is a non-profit industry association dedicated to advancing Near Field Communication technology by developing specifications, ensuring interoperability among devices and services, and educating the market about NFC. The NFC Forum Certification Program provides consistency in the behavior of NFC devices by confirming that products conform to the NFC Forum's specifications. It offers increased assurance that NFC Forum-certified products will be interoperable with other NFC Forum-certified devices.

"Our MicroRead solution is the first NFC controller used in an NFC-Forum certified device that is capable of not only reader/writer functionality, but card emulation and peer-to-peer modes as well," said Loic Hamon, Vice President Products and Marketing Mobile NFC Division at INSIDE Secure. "Achieving this certification reflects INSIDE's leadership and commitment to open standards and maintaining complete interoperability with all other NFC Forum certified devices, and provides our customers with confidence that their MicroRead-based solutions will work everywhere."

"We are pleased that INSIDE Secure, an active member of the NFC Forum since its founding, has earned NFC Forum certification, the gold standard of compliance, for its MicroRead Reference Platform," said Koichi Tagawa, chairman of the NFC Forum. "By establishing its conformance with NFC Forum specifications, INSIDE Secure is able to offer its customers the highest level of assurance of interoperability with other NFC Forum-certified solutions."

The rigorous certification testing was carried out by AT4 wireless in Malaga, Spain, an NFC Forum authorized test lab. "MicroRead is one of the most complete NFC products we have ever tested. It demonstrated 100 percent compliance with the applicable NFC Forum test requirements. We are very proud to support INSIDE Secure's first NFC product certification," said Jose de la Plaza, laboratory manager at AT4 wireless.

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


27. USING LOYALTY TO CREATE CUSTOMER INTIMACY
Source: LoyaltyOne via Financial Post (06/01)

When a grocery store client asked LoyaltyOne Inc. why it was not selling very much meat at one of its urban locations, the Air Miles parent company mined data from its loyalty card program and found that the retailer's key customers in the area were students, young singles or lower-income couples.

After the Air Miles parent suggested that the supermarket incorporate more single-serve and lower-priced cuts of meat to its mix at that outlet, beef sales rose 12%.

The example illustrates how the geeky world of deep data analytics can help businesses forge a bond of emotional loyalty with consumers, according to The Loyalty Leap, a new book by Bryan Pearson, LoyaltyOne's chief executive.

Canadians love loyalty programs — about 94% of them belong to at least one. And Air Miles is the largest loyalty program in Canada, with more than 10 million active accounts, representing two-thirds of Canadian households.

"There clearly are levels of avidity in any loyalty program," Mr. Pearson said in an interview.

"Emotional loyalty to the program can be demonstrated in irrational behaviour — people buying things that they otherwise would not have bought, or using a service they might not otherwise use" — to accrue more loyalty points or currency. "Someone might book an extra flight or make their travel inconvenient to get enough qualifying legs or points to achieve the next tier."

But despite having vast stores of data, he argues in the book, too many companies are focused on using the customer information they have to boost weekly product sales, rather than making a fuller assessment about what their customers' needs are.

"The reality is that most companies are operationally product-obsessed about how they look at their businesses." That means a fashion retailer looks at specific product styles and hot colours of the season. Grocery retailers structure their organization based on margin levels in each category. What they should be doing, Mr. Pearson believes, is getting to know their customers' preferences and habits better, therein cultivating a more devoted type of customer and increasing sales.

"The reality is, that there is only going to be one Apple in any category and one Walmart in any category, so how do the vast majority of companies compete?" asks Mr. Pearson, who joined parent company Alliance Data, then known as Loyalty Group, in 1992, and was named president of the Air Miles reward program in 1999 before becoming head of LoyaltyOne, an umbrella unit with several loyalty disciplines, including Air Miles, in 2006.

"It really is with [creating greater] customer intimacy."

The method has had proven success. Shell Canada Ltd., an Air Miles client, was struggling along with other Canadian gas retailers in the mid-1990s because it had too many locations. It had a goal of cutting 20% of its retail outlets to about 2,000 from 2,500, while trying to maintain its market share. Air Miles found that more than half of each location's revenue came from Air Miles members and of that group, half generated 86% of those sales.

Using customer data and targeting those customers helped make the retailer's transition much more efficient, Mr. Pearson said. Shell posted notice at each outlet during the closings giving information about the next closest Shell location, and Air Miles did direct mailings to alert consumers who frequented those outlets to the changes. The company offered the incentive of doubling Air Miles on purchases consumers made at the other stations.

"The results were a 300% increase in the volume that was retained from those closed stations, by virtue of telling those customers what stations were nearby," Mr. Pearson said.

"Shell moved from being the least-efficient fuel retailer in Canada in terms of volume throughput per station to being the most efficient, with the highest volume throughput per station. They created customer intimacy at scale."

So why are companies reluctant to use the data they have?

For one, they are concerned about the volume of it and are worried about how to cope with data overload, according to a study published last fall IBM Corp. Each day the digital realm creates 2.5 quintillion bytes of data, and 90% of the world's current data has been created since 2009. Over 70% of the 1,734 top chief marketing officers around the world interviewed by IBM said they had been unable to deal with the impact of the data and were worried about how their marketing departments would be able to manage all of it.

Another obstacle is how businesses use their data, Mr. Pearson said. "I think there are a lot of legacy systems that exist where customer data is not easily integrated into the decision-making tools that people have."

Retailers, for example, continually go through the exercise of delisting unpopular products to make room for new ones.

"What merchants generally do is eliminate the least profitable product or slowest selling product," he said. "But if you add a customer filter to that, you ask, what are my best customers buying? If you discover that the product you were thinking of de-listing was actually bought by 50% of your best customers, maybe you would make a different decision at that point — you don't want to alienate your best customers."

LoyaltyOne is a member of ACT Canada; please visit http://www.loyaltyone.com.


28. OBERTHUR TECHNOLOGIES COMPLETES ACQUISITION OF MOREMAGIC
Source: Oberthur (06/19)

Oberthur Technologies announced the completion of the acquisition of the leading Boston based mobile payments company MoreMagic.

Joining forces, Oberthur Technologies and MoreMagic will create a comprehensive suite of mobile commerce and financial services solutions including a secured mobile wallet infrastructure and NFC end-to-end offer. This will help mobile operators, financial institutions and other non-telecom service providers to offer innovative services such as P2P transfers, mobile banking, proximity and remote payments.

MoreMagic's offer will be part of Oberthur Technologies' solutions portfolio and will be available through its global sales network.

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


29. EMV PAYMENTS LEADER ICC SOLUTIONS AND TOP U.S. CARD TEST EQUIPMENT AND TEST LABORATORY LEADER Q-CARD SIGN STRATEGIC AGREEMENT
Source: ICC Solutions (06/27)

ICC Solutions Limited and Q-Card signed a strategic agreement. The new partnership will help drive the U.S. payment industry's migration to the more secure EMV Chip and PIN payment standard in the USA.

The addition of Q-Card to ICC Solutions' U.S. sales, marketing and support infrastructure in the USA is a major opportunity for both organizations. It is also part of an ongoing program by ICC Solutions, a recent award recipient of the U.K.'s prestigious Queen's Awards for International Trade and Innovation, to quickly expand the company's U.S. operations to support the U.S. payment industry migration to the new EMV chip card. Earlier this month, ICC Solutions announced the opening of a new U.S. HQ in Atlanta, Georgia. For Q-Card, the new partnership expands its leadership in payments by supporting the growth of Q-Card's emerging payments technology business group, which includes the development of new EMV based contact, contactless and Mobile NFC payment solutions.

The USA is the last of the G20 nations to adopt the new payment chip payment standard, which reduces card fraud, and provides a more secure and rewarding shopping experience for U.S. consumers. Both VISA and MasterCard have mandated EMV compliance beginning in 2013.

Founded in 1996, British-based ICC Solutions is currently the only company in the world capable of offering fully qualified test scripts for American Express AEIPS, Discover D-PAS, INTERAC Contact & Flash; M-TIP, PayPass & NIV for MasterCard; Visa ADVT & ADVT qVSDC Device Module in addition to EMV Level 2 and EMV Entry Point Type Approval test suites. This will be key as the U.S. develops a successful EMV payment infrastructure to meet the VISA and MasterCard mandates.

"Q-Card is a world-class organization long renowned for providing top quality test products, equipment and services to the marketplace," noted David Maisey, Chief Executive Officer, ICC Solutions Limited. "We are excited about the new agreement with Q-Card, which will further expand our footprint in the USA and help us help our customers migrate seamlessly to EMV."

ICC Solutions is a member of ACT Canada; please visit http://www.iccsolutions.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.