Engaging, Enabling and Evolving Commerce in Canada since 1989

July 2013 ACTion Newsletter

IN THIS ISSUE:

  1. EDITORIAL - WHAT DO CONSUMERS WANT FROM M-PAYMENT AND WHAT ARE WE SELLING?
  2. FIRST NFC-ENABLED IPHONE PREPAID MOBILE WALLET LAUNCHES IN EUROPE
  3. SIGNIFICANT STEP TAKEN TO BOLSTER INTERAC'S ABILITY TO COMPETE AND INNOVATE
  4. NEW CONSENSUS ON DEBIT ROUTING REMOVES EMV OBSTACLE BUT LEAVES TIMING UNCLEAR
  5. SCOTIABANK RECEIVES VISA SERVICE QUALITY PERFORMANCE AWARDS
  6. MASTERCARD CANADA CALLING ALL DEVELOPERS TO MASTER THE CODE
  7. BIG GAP REMAINS BETWEEN HOPES, REALITIES OF PROXIMITY PAYMENTS
  8. GEMALTO AND PCS MOBILE DELIVER ADVANCED CJIS COMPLIANT ACCESS SOLUTION
  9. THE INTERNATIONAL RETAIL USER GROUP CONGRATULATES HMV CANADA INC. AND SOLUTION PARTNER STJ RETAIL - WINNERS OF THE 2013 IRUG RETAIL INNOVATION AWARD
  10. INGENICO AND MERCURY DELIVER ADVANCED PAYMENT SOLUTIONS TO U.S. BASED SPECIALTY RETAIL AND HOSPITALITY MERCHANTS
  11. GIESECKE & DEVRIENT'S SIM CARDS SECURE
  12. AIMIA ACQUIRES SMART BUTTON
  13. FIME MAKES VISA TERMINAL INTEGRATION TESTING EASIER THROUGH AUTOMATIC ONLINE SUBMISSION OF TEST RESULTS USING ITS SAVVI TEST TOOL
  14. GLOBAL PAYMENTS AND SHOPKEEP POS ANNOUNCE AGREEMENT TO PROVIDE IPAD POINT-OF-SALE SYSTEM TO U.S. MERCHANTS
  15. ICCSIMTMAT NIV (SUBSET 7) TEST SUITE QUALIFIED BY MASTERCARD
  16. NBS TECHNOLOGIES LAUNCHES PRE-PERSONALIZATION OPTION ONTO THE DMEX MILLING AND EMBEDDING MACHINE
  17. ILLINOIS BANK WILL ALLOW DIEBOLD ATM WITHDRAWALS VIA MOBILE WALLET
  18. MCX JOINS FORCES WITH FIS, ADD KOHL'S TO MERCHANT ROSTER
  19. MOBILE PAYMENT AT U.S. STARBUCKS LOCATIONS CROSSES 10% AS MORE STORES GET WIRELESS CHARGING
  20. CHUNGHWA TELECOM SELECTS GEMALTO FOR NFC TRIAL WITH MASTERCARD AND FOUR LEADING BANKS IN TAIWAN
  21. ORDERING YOUR MORNING DOUBLE-DOUBLE JUST GOT MORE REWARDING: AMERICAN EXPRESS SERVES UP NEW RELATIONSHIP WITH TIM HORTONS
  22. INTERNATIONAL RETAIL USER GROUP EXPANDS THE EMV/MOBILE PAYMENTS PROGRAM TO PROVIDE A YEAR ROUND VIDEO CONFERENCE FORUM.
  23. FIME KOREA TO PROVIDE NFC PAYMENT TESTING FOR MOBILE HANDSETS
  24. COCA-COLA BRINGS FAST AND CONVENIENT REFRESHMENT TO CANADIANS WITH NEW INTERAC PAYMENT OPTION
  25. ACS DEVELOPS MOBILE CARD READERS

ACT Canada Partner:

ACCEO logo

ACCEO
The e-business operations expert, ACCEO Solutions is a leader in banking, accounting, and business software, SaaS solutions, and cloud computing. We also offer a wide range of specialized consulting services covering strategic advising, IT management and infrastructure, payment solutions, custom development, and full integration of our own and of our partners' ERP solutions.

 

Visa

Visa Canada Inc.
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 WOULD LIKE TO THANK OUR NEW & RENEWING MEMBERS:

GENERAL

CT Payments ~ new member
Discover Network ~ member since 2011
Fiserv ~ member since 2010
Home Hardware Stores Ltd ~ new member 2013
LoyaltyOne Inc. ~ member since 2008

ASSOCIATE

Card Resource Group Inc ~ member since 2010


JOB OPPORTUNITIES

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 ACT Canada for more details – postings@actcda.com


CALENDAR OF EVENTS

International Cryptographic Module Conference
September 24-26
Gaithersburg MD, USA
www.icmc-2013.org

Money2020
October 6-10, 2013
Las Vegas, NV, USA
www.money2020.com

GlobalPlatform Presents the Trusted Execution Environment (TEE): Next Generation Mobile Security for Today and Tomorrow
October 31, 2013
Santa Clara, California
http://www.globalplatform.org/TEEevent/ 

Emerging Mobile Payment Systems
November 4-5, 2013
Toronto, ON, Canada
http://www.osgoodepd.ca/cle/2013-2014Fiscal/2013_emerging_mobile_payments/index.html

Cartes
November 19-21, 2013
Paris, France
www.cartes.com

Smart Card Alliance Members Conference
December 8-10, 2013
Coral Gables, FL, USA
www.smartcardalliance.org


 

1. EDITORIAL COMMENT
Source: Catherine Johnston, President & CEO, ACT Canada (07/31)

What do consumers want from m-payment and what are we selling?

We invited Nanos Research of Ottawa to ask boomers (born between 1946 and 1964) what they want from mobile payment and we compared their answers to bankers who participated. Only 6.8 % of boomers and 16.3% of bankers felt that a phone would replace the need to carry a wallet. I mention that because almost every presentation I hear on mobile payment touts this as a great advantage.

Let's take it off the list for now and I'll tell you why. Most wallets also contain government documents; a driver's licence, health card and perhaps other ID. I think we need to look at this from the viewpoint of government agencies that accept payment or provide services. Legislation, policies and procedures will all need to be reviewed to ensure that no citizen can argue that they are being disenfranchised because they don't have a "smart" device, and that no-one will be negatively impacted if a payment cannot be made on time due to an issue with the handset, network or application software. No patient should be penalized if they cannot show their proof of entitlement to government paid health care. In this province the patient would not be turned away, but might be required to produce a payment card until they could provide proof of OHIP eligibility.

You likely have insurance papers. If you are stopped and the officer asks to see those papers, the same issue of handsets, networks and application software applies. This doesn't mean that this can't all be worked out over time but it won't happen quickly, so let's not try to sell "wallet-less" as a benefit until we are there.

All consumers, including boomers have said that they want convenience, security, privacy, reliability and ubiquity in terms of m-payment – the same things they want from card payments.

Join our Mobile Strategic Leadership team as they tackle key questions so that we can advance this market. For more information, visit http://www.actcda.com/teams/


 

2. FIRST NFC-ENABLED IPHONE PREPAID MOBILE WALLET LAUNCHES IN EUROPE
Source: Mobile Payments Today (07/23)

Kalixa Group, DeviceFidelity and MasterCard announced the U.K. launch of the NFC moneto prepaid wallet, according to a release.

The wallet enables NFC functionality on an iPhone, allowing users to tap and pay for goods at thousands of MasterCard retail outlets across the country.

The moneto solution integrates NFC technology into a consumer's mobile phone using DeviceFidelity's microSD NFC technology and combines it with an application to offer the convenience, control and flexibility of prepaid in a secure and mobile environment. Users can access account information on the move, check their balance in real-time, locate merchants and ATMs and, unique to moneto, make wallet-to-wallet transactions.

The wallet offers the following benefits to users:
- Control. The wallet is prepaid so users have total control over how much money they load and spend with the ability to manage their account on the move using the mobile application.
- Convenience. The wallet is accepted wherever the user sees a MasterCard PayPass logo or the contactless acceptance symbol around the world. Users can switch back to chip-and-PIN transactions if they wish to make contactless payments above the GBP £20 threshold through the chip-and-PIN prepaid companion card.
- Flexibility. The wallet works irrespective of the user's mobile operator. The companion EMV prepaid MasterCard allows users to withdraw cash at ATMs, make online purchases and shop at retail outlets that do not accept contactless payments.
- Security. In addition to the high levels of security afforded by NFC, the user needs to activate the wallet to make a payment, reducing the risk of unauthorized payments in the event the device is lost or stolen. Furthermore, the wallet isn't directly connected to the user's bank account, which means there is no danger of someone getting access to a consumer's funds, according to the announcement.
- Speed. NFC technology enables faster transactions and helps make payments easier.

"Momentum behind NFC technology continues to gather pace around the world, and moneto is a breakthrough service for the European market, " said Marion King, U.K. & I president at MasterCard. "Soon consumers across Europe will be able to use the moneto wallet to make NFC payments with an iPhone. The service is an important part of our strategy to develop the next generation of payments for a world beyond cash."

The issuing, processing and acquiring technology that is behind Kalixa's flagship prepaid MasterCard, Kalixa Pay, powers moneto. The wallet also uses a combination of the MasterCard PayPass technology and DeviceFidelity's iCaisse technology to enable tap-and-go payments on the iPhone. Android and iPhone 5 compatibility, as well as service rollouts to other European markets, will be announced soon.

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


 

3. SIGNIFICANT STEP TAKEN TO BOLSTER INTERAC'S ABILITY TO COMPETE AND INNOVATE
Source: Interac (07/12)

A request to vary the Interac Consent Agreement was filed with the Competition Tribunal. The proposed amendments will help address governance, structural and funding constraints that impact the organization's ability to compete effectively and meet market demands in today's highly competitive payments marketplace.

"It is important that Canadian merchants and consumers continue to have access to a sustainable, domestic, low-cost payment option," stated Mark O'Connell, President and CEO, Interac Association/Interac Inc./Acxsys Corporation. "These amendments help achieve this by allowing us to restructure the organization into a single corporation, Interac Corp., that can offer a single integrated portfolio of payment products under the direction of an independent board, and with the ability to better fund innovation."

Since 1996, Interac Association has operated under a Consent Agreement which prescribes in detail how it is structured, how it is governed and by whom, how it sets and collects fees, and the voting levels required for decisions. The Agreement can only be amended or terminated through the Competition Tribunal. If approved by the Competition Tribunal, the amended Consent Agreement will remain in place until June 2018, subject to a successful restructuring of the organization.

Interac is a low-cost, world-class debit system with payment products in the bricks-and-mortar and virtual spaces, and serves Canadians well. In 2012, consumers carried out over 4 billion Interac transactions. The Canadian payments marketplace, however, is undergoing significant shifts and increased competition with large multi-national competitors unencumbered by the business operating constraints faced by the domestic provider, Interac Association.

"Our goal is to strive to continue to offer the best payment products available and the value-add of being a low-cost payment option," emphasized Mr. O'Connell. "At the end of the day, we don't want to be like our competitors, but we want to be able to compete with them on a more level playing field. The amendments to the Consent Agreement are a first step, albeit a critical one, to make this happen."

Interac is a member of ACT Canada; please visit www.interac.ca.


 

4. NEW CONSENSUS ON DEBIT ROUTING REMOVES EMV OBSTACLE BUT LEAVES TIMING UNCLEAR
Source: Digital Transactions (07/08)

The payments industry may have solved a vexing problem related to EMV chip cards and the Dodd-Frank Act's Durbin Amendment, but whether that solution will smooth the way for EMV (Europay-MasterCard-Visa) deployment in the United States is less clear.

The EMV Migration Forum, an industry group that has been working on ways to make EMV compliant with Durbin's mandate that merchants have a choice in debit-transaction routing, last week announced the group has settled on what it calls a "recommended path" that steers between and among at least three competing solutions.

No debit card, the announcement says, will be allowed to accommodate more than one solution, an approach that the group says simplifies card issuance as well as merchant acceptance. But rather than mandate any one solution, the recommendation leaves it up to issuers to decide which one to embed on any given card. MasterCard Inc. and Visa Inc. have both proposed solutions, and so has the Secure Remote Payment Council, whose debit-network members adopted technology from Discover Financial Services.

Each of the solutions presents a means of letting merchants and merchant processors identify networks supported by a given issuer and then route transactions to the preferred network. As a two-decades-old, proprietary standard deployed until now only outside the U.S., EMV does not normally allow for this routing choice. The so-called common AID solutions, or application identifiers, are expected to give EMV that ability for debit payments. In the EMV specification, the AID is a string of characters that identifies both the network brand and the specific type of card, for example, credit or debit.

Until last week, the industry disagreed on which common AID solution to adopt. Now it appears it has adopted all three, so long as only one resides on any given EMV debit card, reducing the complexity and cost of managing routing choices. "That was the key challenge to overcome," says Randy Vanderhoof, director of the EMV Migration Forum, which operates under the auspices of the Princeton Junction, N.J.-based Smart Card Alliance. The Forum embraces issuers, merchants, networks, and processors.

Vanderhoof says the recommendation is the consensus approach of the Forum's steering committee, which represents this varied constituency. Indeed, large retailers appear to be onboard. "This [recommendation] does answer our concern," says Mark Horwedel, chief executive of the Merchant Advisory Group, a Minneapolis-based organization that represents big-box merchants on payments issues. The MAG had feared the group might adopt a multi-AID approach for any given card, Horwedel says. "Issuers and merchants clearly spoke up on this," he notes. "We sent the message that we are the ones that pay the bills."

Some observers say the new consensus on how to field a debit-routing solution could spur deployment of EMV in the U.S., the last major industrialized nation to adopt the technology, which replaces magnetic stripes with microchips. "Having closure on this issue was important," says Julie Conroy, a research director at Boston-based Aite Group LLC. "That's big news that they resolved it. It's the most realistic resolution given the competition in play."

But much work remains to be done. Vanderhoof cautions that issuers and the solution providers must negotiate terms. That work, he says, is already under way. "Now that there's clarity about how to deploy the three solutions, [issuers and providers] are confident they can move forward," he says. Even so, he hesitates to estimate how long it will take to negotiate licensing and other arrangements. "I don't think anybody is ready to put a timeline on it," he says. "This just happened in the last few weeks."

Observers differ, too, over whether merchants will be ready for a liability shift set by Visa and MasterCard for October 2015. The shift will make merchants not prepared for EMV transactions liable for any counterfeit card fraud. Until then, issuers are responsible for such fraud. Horwedel calls the date "ridiculous," arguing it doesn't leave merchants enough time to deploy needed hardware and software to support EMV.

The deadline could lead some merchants, he says, to adopt EMV before the common AID arrangements are in place, causing them to surrender their Durbin routing rights.

But Conroy says most major retailers she's talked to have told her they're "geared up and planning to be ready," even if they don't want to say so publicly. "Merchants see EMV as four-letter word," she says. "They'd be protesting this liability shift if it were four years out."

For its part, Visa says the date will stand. "We are seeing positive momentum in the market as the U.S. continues to migrate to chip and have no plans to delay the liability- shift date," says Stephanie Ericksen, head of authentication product integration, in an e-mail message to Digital Transactions News.

Discover, MasterCard, Merchant Advisory Group, Smart Card Alliance and Visa are members of ACT Canada; please visit www.discover.com, www.mastercard.ca, www.merchantadvisorygroup.org, www.smartcardalliance.org & www.visa.ca.


 

5. SCOTIABANK RECEIVES VISA SERVICE QUALITY PERFORMANCE AWARDS
Source: Scotiabank (07/18)

For the fourth consecutive year, Scotiabank is the recipient of Visa Service Quality Performance Awards. The Bank was acknowledged in three categories: Highest International Authorization Approval Rate, Commercial Issuer; Highest Chargeback Effectiveness Rate - Non Fraud Reason Codes, Commercial Issuer; and Highest Chargeback Effectiveness Rate - Fraud Reason Codes, Commercial Issuer

"We are honoured to be recognized by Visa with these prestigious awards," said Alberta Cefis, Executive Vice President and Head, Global Transaction Banking, Scotiabank. "They represent our ongoing commitment to making it easier for customers to do business with us and to continuously improving the cardholder experience."

The Global Visa Service Quality Awards program recognizes exceptional card operations performance by issuers, acquirers and processors, acknowledging consistent, superior performance, as well as, continued service quality improvements. These awards reinforce Visa's commitment to best-in-class operations in areas that directly affect cardholders and merchants.

"With today's economy and the competitive challenges within the payments industry, especially in bankcard operations, service quality is more imperative than ever before", said Jim Allhusen, Country Manager, Visa Canada. "Scotiabank's outstanding performance in 2012 clearly demonstrates their commitment to the service quality today's customers need."

Scotiabank and Visa are members of ACT Canada; please visit www.scotiabank.com & www.visa.ca.


 

6. MASTERCARD CANADA CALLING ALL DEVELOPERS TO MASTER THE CODE
Source: Canada Newswire (07/03)

MasterCard celebrated 40 years in Canada by partnering with MaRS Discovery District to open a new networking space for entrepreneurs and announcing MasterCard N>XT, the first payment network developer challenge with Rogers and CIBC as co-sponsors, to be held at the MaRS Center.

"Innovation is in our DNA," said Betty DeVita, President of MasterCard Canada . "Over the last 40 years, MasterCard has led the way in bringing payment innovations to the fingertips of Canadians and merchants - from chip & PIN to Tap & Go - we continue to find ways to make electronic payments a seamless, convenient and rewarding choice for Canadians."

The 2-day challenge will take place September 28 th and 29th at MaRS and will search for Canada's next great developer and breakthrough payment solution. With access to MasterCard's commerce infrastructure, professional and student application developers are invited to create their own payment applications and mobile solutions.

Working in teams, developers will leverage MasterCard's open API and tool kit to build any type of app with a payment connection. Winners will be chosen by a prestigious judging panel that will bring together some of Canada's most sought-after technology minds to award three top prizes of $10,000 and access to senior technology executives to pitch their app idea.

Registration for MasterCard N>XT begins on July 18, 2013.

In partnership with MasterCard, Xtreme Labs, a leader in mobile strategy and product development, will be creating a resource portal for developers as well as delivering an in-person workshop teaching developers how to leverage MasterCard's API to create payment applications and mobile solutions.

In addition, MasterCard has sponsored the creation of The MasterCard deck, an outdoor patio space within the heritage building of the MaRS Centre. The MasterCard deck will continue MasterCard's tradition of innovation and help build the next generation of great ideas by providing an invigorating networking space for entrepreneurs and stakeholders.

"We are delighted to partner with MasterCard - a global innovation pioneer - in support of the entrepreneurs in our MaRS ecosystem," said Ilse Treurnicht, CEO, MaRS Discovery District. "The MasterCard deck is a unique addition to the MaRS Centre - strategically located in the MaRS Commons within the iconic Heritage Building. It will provide an inspiring new space for our entrepreneurs to meet and collaborate, further catalyzing the innovation that will drive Canada's knowledge economy. We also look forward to providing the platform for MasterCard's upcoming developer challenge, where we can bring together top tech talent both from within the MaRS network and the larger community across Canada."

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


 

7. BIG GAP REMAINS BETWEEN HOPES, REALITIES OF PROXIMITY PAYMENTS
Source: Mobile Payments Today (07/19)

In what is arguably bad news for the mobile payments industry, research firm eMarketer has reduced its forecast for U.S. proximity mobile payments in 2013 by more than half, from $2.12 billion to $1 billion.

The original forecast was made in October 2012, and since then, Gartner and Yankee Group have also scaled back projections.

The good news is that eMarketer predicted that U.S. proximity mobile payments will eventually become huge, but growth will take longer than the industry had expected, due to "delays and adoption issues facing numerous mobile wallet initiatives, as well as a congested landscape of competing technologies."

EMarketer defines proximity mobile payments as "transactions for goods or services made by scanning, tapping, swiping or checking in with a mobile phone at the point of sale." The U.S-based research firm said that U.S. proximity mobile payments rose from $170 million in 2011 to $540 million in 2012 driven by consumers buying items such as daily coffee through closed-loop payment systems, as well as an increase in bigger-value purchases made via smartphones.

Downgrade
"Gartner cut its North American NFC mobile payment forecast by 55 percent in its latest update," said Gartner Research Director Sandy Shen. Gartner has forecast that the value of North American NFC transactions will grow by 53 percent in 2013 to $37 billion from $24 billion in 2012. The region has been impacted by low adoption of NFC payment services and many merchants launching mobile apps in a copycat fashion without a clear winning strategy, Gartner said.

Yankee Group, in its June 2013 Mobile Marketing and Commerce Forecast, said that U.S. proximity mobile payment transactions will be worth $2.16 billion in 2013, comprising $2.02 billion worth of NFC transactions and $140 million worth of 2D barcode transactions. In a barcode payment, the retailer scans a barcode displayed on the customer's mobile device. Yankee Group predicted that there will be 849,000 NFC users and 1.04 million 2D barcode users in the U.S. in 2013. The number of U.S. NFC and 2D barcode transactions in 2013 will respectively total 166.8 million and 213.1 million.

"We are currently revisiting our U.S. forecast in the light of the slower than expected growth of the mobile payments market," said Jordan McKee, a mobile analyst at Yankee Group. "We will be issuing new figures in a month or two and they will be lower than our June forecast. In the short term, the proximity mobile payments market will be dominated by people making low-value purchases, such as their Starbucks coffee. Up until 2017, the number of mobile payments users who scan barcodes as a payments method will be larger than the number of NFC users. But after 2017, the number of NFC users will surpass the number of people scanning barcodes."

Gartner noted that Google Wallet and Isis, two high-profile U.S. NFC-based mobile wallet services, are struggling to gain traction. According to a Glenbrook Partners blog by George Peabody, Isis is still limited to 1,580 merchants in Salt Lake City and Phoenix. Meanwhile, Google Wallet is only accessible by Sprint customers. Bloomberg BusinessWeek reports that fewer than 10 million users have downloaded the Google Wallet app in the two years since its launch.

Barriers
"Lack of acceptance infrastructure at the point of sale, and lack of consumer awareness of mobile wallets are barriers," said Gartner's Shen. "But the biggest barrier is the lack of value for consumers and merchants. People don't see the benefit of using mobile NFC to pay compared to cash or credit cards."

According to a U.S. consumer survey by ComScore in November 2012, only 12 percent of respondents claimed to have used a digital wallet other than PayPal.

"Proximity mobile payments aren't huge yet in the US," said Karen Augustine, manager of Mercator Advisory Group's CustomerMonitor Survey Series. "Mobile Internet purchases are still the largest mobile purchasing method."

A U.S. consumer survey by Mercator in June 2013 found that 6 percent of all U.S. mobile users and 9 percent of smartphone users have made a point-of-sale purchase by Quick Response, or QR, code or barcode scanning in 2013. "Four percent of all mobile users and 7 percent of smartphone users have made a purchase by tapping or waving their mobile device against a POS terminal, and 12 percent of all mobile users and 19 percent of smartphone users have made a mobile Internet purchase," said Mercator's Augustine.

Augustine said that consumer awareness about mobile payment apps is growing. "We are also seeing growing consumer confidence about the security of mobile payments, particularly among young adults and smartphone users," she said.

Starbucks
Starbucks, with its 10 active million mobile payment users, is a significant player in proximity mobile payments, Augustine said. Starbucks provides its U.S. customers with an app linking their Starbucks prepaid card to their smartphones, which then displays a barcode for scanning at the point of sale. The number of retailers offering mobile payment apps is growing. For example, Dunkin' Donuts has launched a mobile payments app linked to its prepaid card.

According to a presentation by Starbucks Chief Digital Officer Adam Brotman, Starbucks processes 3 million mobile payment transactions a week, and is adding 100,000 mobile payment app downloads a week.

Yankee Group's McKee said that barcode scanning-based payments have largely been confined to coffee shops and quick-service restaurants such as Washington, D.C.-based chain SweetGreen. For these retailers, mobile payments is really just a form of cash replacement for low-ticket purchases," he says. "I would say that Starbucks and Dunkin' Donuts have the largest number of mobile payment users."

McKee singled out mobile payments startup LevelUp as a potentially significant player. To pay through LevelUp, smartphone users download an app to their smartphone, which then links to their payment card.

"LevelUp now has 5,000 merchants including QSRs such as SweetGreen and over 1 million users," McKee said. "It has signed up payments processor Heartland Payment Systems to promote its service to its clients."

Mobile Payments Today reported that LevelUp was processing $5 million a month in payments as of March 2013.

MCX
In August 2012, a consortium of major U.S. retailers founded Merchant Commerce Exchange, also known as MCX, in order to develop a common platform for mobile payments at the point of sale in the U.S. Analysts cite a lack of common standards as one of the barriers to mobile payments.

MCX, which includes 7-Eleven, WalMart, Target and Best Buy among its members, recently appointed FIS as its payments processor.

MCX's mobile wallet will be provided by Gemalto and will use barcode technology to transmit payment information between customers' smartphones and point-of-sale terminals.

The future
EMarketer predicted that U.S. proximity mobile payments will jump from $10 billion in 2015 to $26 billion in 2016 and $58 billion in 2017. It had previously said proximity mobile payments would reach $20 billion in 2015.

The firm said the sharp rise in transaction volumes from 2015 will be due to U.S. consumers using mobile devices to make a wide variety of point-of-sale purchases at different pricing levels, not just low-ticket items. But it admitted that growth will be contingent on more mainstream merchants accepting proximity mobile payments. Also, if hardware and infrastructure barriers can be overcome in a shorter timeframe and adoption focuses on specific mobile wallets or payment mechanisms, then the market could accelerate at a faster rate, eMarketer said.

Gemalto, MCX and Mercator Advisory Group are members of ACT Canada; please visit www.gemalto.com, www.mcx.com & www.mercatoradvisorygroup.com.


 

8. GEMALTO AND PCS MOBILE DELIVER ADVANCED CJIS COMPLIANT ACCESS SOLUTION
Source: Gemalto (07/16)

Gemalto and PCS Mobile, a value added reseller specializing in mobile data products and services for state and local public safety organizations, are joining forces to provide a comprehensive solution for law enforcement agencies to comply with the Criminal Justice Information Services (CJIS) mandate. Beginning September, 2014, the Federal Bureau of Investigation (FBI) will require law enforcement personnel to use advanced, secure, authentication methods to access the CJIS database.

The foundation of the offering is Gemalto's Protiva Defender Suite, a combination of smart cards, physical and mobile tokens (OTP), an authentication server and associated consultancy services, backed by PCS Mobile's experience in providing mobile laptops, professional services and customer education. The solution ensures customers are not only compliant with upcoming CJIS requirements, but are provided flexible technology that can be used for multiple applications (e.g. remote network access, secure email, physical access, etc.) and is scalable to keep pace with PCS Mobile's growing customer base.

As computing and communications devices become smaller in size and increasingly mobile, it is necessary for law enforcement to run criminal background checks from multiple devices, such as rugged yet mobile computers, including laptops, tablets and handheld devices with wireless connectivity. With Gemalto's Protiva Defender Suite, PCS Mobile gives law enforcement agencies the security tools needed to access the information while on the go.

"We provide a full-scale solution that ensures our customers have the security tools and mobile devices they need to access the federal criminal database without interruption," said Kathy Pakkebier, PCS Mobile, President. "Gemalto supports us through the entire process, from consulting and understanding customer needs through product delivery. We look forward to a long and successful collaboration with Gemalto."

"The partnership between Gemalto and PCS Mobile allows law enforcement agencies to get everything they need from one source," said Tom Flynn, Vice President of Identity and Access at Gemalto North America. "From hardware and secure identity to advice and training, we ensure CJIS compliance with less hassle."

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


 

9. THE INTERNATIONAL RETAIL USER GROUP CONGRATULATES HMV CANADA INC. AND SOLUTION PARTNER STJ RETAIL - WINNERS OF THE 2013 IRUG RETAIL INNOVATION AWARD
Source: IRUG (06/03)

The International Retail User Group (IRUG) announced HMV Canada Inc. as the winner of the 2013 Retail Innovation Award. This prestigious award was presented at the User Group's 36th annual conference in Anaheim, CA - April 21 -24, 2013. The Innovation Award has very special meaning because the winner is chosen by the retailers peer group – the membership of the IRUG organization. The solution provider, STJ Retail, was also honored with the 2013 Retail Solution Innovation Award.

Despite a mass of new security standards such as SDP, AIS, CISP and PCI PA-DSS to protect cardholder data, credit card fraud continues to grow at an alarming pace. Now more than ever credit cards have become an easily exploitable target for individuals looking to defraud both retailers and the banks. The combination of fines and negative press that result from a security breech can be devastating to both the finances and reputation of the affected merchant.

HMV Canada Inc. installed STJ Retail's EFT Plus to address the new Chip and PIN security standard (EMV) introduced by Visa, MasterCard, Amex and Interac Debit. The first release of this product was specifically designed for the IBM 4690 operating system and enables users to process Chip and PIN cards through their fully-integrated payment systems. Aligning these new security standards with the legacy payment systems was no small feat as conventional processes could not be followed. In addition to providing better protection, the EFT Plus™ system is also used to provide value added services to 3rd parties for loyalty cards, gift cards, card top-up activations. The latest release includes contactless payments including mobile phone e-wallets. HMV has been working with STJ Retail since the concept stage of the solution in 2006.

The award recognizes a retail member and their solution provider with an innovative solution that demonstrates a sustainable competitive advantage through the application of a unique business model or software. The solution provider for the winning retailer is also honored with a Retail Innovation Award. Innovation has been driving competitive advantage in retail; however, in these times of rapid change it has never been more important.

Judging criteria are based on creativity and uniqueness with the ability to enhance the consumer experience, reducing the cost of doing business, speed up the business processes and achieving a competitive advantage. "We are honored to have our project chosen along with our solution provider, STJ Retail as the IRUG innovation solution of the year," said Martine Frobisher Director, Information Technology. "We are pleased to partner with IRUG bringing our EMV experience to the US retailers and being the first international member to win this prestigious award. It is great to see the project recognized by the membership of the International Retail User Group."

IRUG and STJ Retail are members of ACT Canada; please visit www.ibmretailug.org & www.stjretail.com.


 

10. INGENICO AND MERCURY DELIVER ADVANCED PAYMENT SOLUTIONS TO U.S. BASED SPECIALTY RETAIL AND HOSPITALITY MERCHANTS
Source: Ingenico (07/09)

Ingenico and Mercury announced their partnership and the certification of Telium2 series traditional fixed point‐of‐sale (POS) and smart mobile payment devices. The certification extends to Ingenico's retail base application (RBA) and its hardware, including iSC Touch 250/350 terminals, iPP350 PINPad, and the iSMP, a smart mobile payment device. All certified devices will be integrated to support MercuryShield® End‐to‐End Encryption (E2E)security solution, helping to reduce merchant's cost and effort involved for seeking PCI compliance.

"Our partnership with Mercury is a perfect example of a technological partnership which will bring successful benefit on multiple levels," commented Scott Tubbs, senior vice president of Retail Sales for Ingenico, North America. "It will further enhance Ingenico's North American' market reach and help Mercury's customers address new payment acceptance challenges by providing them with the most relevant and comprehensive POS technology solutions."

Together the two companies have created a powerful payment processing and secure hardware framework that can be effectively leveraged by Mercury's network of more than 500 independent software vendors(ISVs) and 2,500 value‐added resellers. Specifically, the developers can use the combined framework and actual devices to create the next value‐added payment application for specialty retailers and hospitality merchants.

"Point of sale solutions are becoming increasingly complex, and ISVs are now forced to choose technologies and hope they maintain relevancy in the future," said John Berkley, senior vice president of product for Mercury. "By integrating Ingenico's Telium‐based POS technology with our payment processing platform, we are offering our partner network a fast and reliable solution to extend and improve their POS system, while future‐proofing it against rapid industry changes."

Island Pacific, one of Mercury's certified ISVs, has already successfully utilized the new framework to roll out a multi‐purpose and reliable POS solution across several Peek Aren't You Curious clothing retail locations in the U.S. The Mercury Shield E2E security solution encrypts cardholder data immediately at the time of swipe, using the iSC Touch 250 devices. Cardholder data remains encrypted throughout the transaction process and Island Pacific efficiently upgraded the existing retail POS system with the capabilities to accept all forms of payment including EMV and NFC transactions, as well as combine it with a robust inventory and retail store management software.

"As a solution provider, we are always looking for a strong partnership to enhance our current offerings," commented Richard Gaetano, Chief Operating Officer, Island Pacific Systems Inc. "Both Ingenico and Mercury have world‐class solutions that we can bundle and offer with our Island Pacific Store solution. It also completely supports our mobile offerings which will enable our customers to leverage a standard payment platform across all our omni‐channel offerings."

Ingenico's iSMP, integrated with Mercury's processing platform, takes a smart mobile payment device and combines an iPhone® and iPod touch transforming the device into an EMV Chip & PIN secure mobile payment solution. Island Pacific is already under way running lab pilots with several US‐based merchants, leveraging the Telium‐based mobile device to help its retailer customers introduce mobile payments into their existing POS infrastructure. The company plans a full POS rollout for later this summer.

Ingenico and Mercury are members of ACT Canada; please visit www.ingenico.com & www.mercurypay.com.


 

11. GIESECKE & DEVRIENT'S SIM CARDS SECURE
Source: Giesecke & Devrient (07/22)

Giesecke & Devrient's commercial SIM cards are protected from the hack currently being reported in the media thanks to the way the operating system on G&D's SIM cards is set up. This means that the SIM cards do not respond to the hack in the way it needs but instead are able to repel the attack successfully.

Karsten Nohl's SIM card hack exploits a weakness in the encryption technology of the single Data Encryption Standard (DES). When a SIM card of this type receives a special OTA message via SMS, the first thing the SIM card does is to verify the message's digital signature. If this signature is false or if one is not provided, there are a variety of possible responses. G&D's SIM cards either do not respond at all to such messages or they send an answer that does not allow potential hackers to deduce the correct digital signature. As a result, it is not possible to recover the encrypted key that allows access to the SIM card. This means that the recently publicized attack cannot succeed. Besides, for more than a decade now Giesecke & Devrient has offered significantly improved triple DES encryption for its SIM cards.

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


 

12. AIMIA ACQUIRES SMART BUTTON
Source: Aimia (07/23)

Aimia Inc. announced that it has purchased Smart Button, an innovative loyalty technology provider for national retailers and other organizations, for a purchase price of approximately US $18 million. The acquisition will be financed with cash on hand. The purchase is part of Aimia's global growth strategy, strengthening its presence in the high potential U.S. retail loyalty market. While complementing Aimia's existing products and services, the acquisition of Smart Button will increase the breadth and depth of Aimia's loyalty product and client portfolio.

"Aimia's passion is helping our clients create deep and lasting relationships with their customers", said Michael Zea, President and CEO of Aimia in the U.S. "Smart Button is a great addition to the Aimia family and provides increased access to the high potential U.S. loyalty market, complementing our existing U.S. presence."

In June, the Conference Board's U.S. Consumer Confidence Index marked its highest point since January 2008. While confidence is rising, consumers are also making more informed purchasing decisions and marketers are responding with loyalty initiatives that are differentiated, intelligent and, most importantly, engage customers in personalized relationships.

Smart Button offers clients a turnkey, feature rich, loyalty solution that enables them to build deep relationships with their customers that are easy to integrate into a company's systems and can be managed by a company's own internal marketing team. Smart Button has a proven track record with ten plus years of experience, and a strong portfolio of retailers across the U.S. including well-known brands such as Hot Topic, Aeropostale, and KOA.

"The combination of Smart Button's platform and Aimia's unmatched reach and full suite of offerings in the loyalty services market will provide new and existing clients with turnkey loyalty solutions that meet their needs," said Smart Button President and CEO, Philip M. Sugar.

The acquisition further advances Aimia's position as a leading loyalty management company delivering world-class customer, distribution channel and employee solutions across all vertical industries, geographies and channels for consumer and business-to-business brands

Aimia is a member of ACT Canada; please visit www.aimia.com.


 

13. FIME MAKES VISA TERMINAL INTEGRATION TESTING EASIER THROUGH AUTOMATIC ONLINE SUBMISSION OF TEST RESULTS USING ITS SAVVI TEST TOOL
Source: FIME (07/10)

FIME has enhanced its SAVVI test tool to enable Visa terminal integration test results to be automated into a format which, for the first time, can be submitted directly online to Visa. This new functionality, which has been tested and endorsed by Elavon, a leader in payment processes, will speed up the testing process for acquirers as well as eliminate human error when inputting and filing results manually.

Secure-chip testing provider, FIME has advanced its terminal integration test tool, SAVVI, to facilitate the direct upload and online submission of automated results generated for the Visa Acquirer Device Validation Toolkit (ADVT). Visa's online system – the Visa Chip Compliance Reporting Tool (CCRT) – has previously required all test results to be manually inputted and submitted. This process can be time intensive and vulnerable to human error.

Vincent Poty, Head of Strategy and Corporate Development at FIME, comments: "The CCRT enables chip acquirers and their processors to complete and submit the mandatory terminal compliance reports via a globally available online system. The ability to produce an automatic report in a format that can be directly uploaded onto the CCRT system is a significant advancement that optimises efficiencies in the testing process. In turn, this will enable Visa's stakeholders to bring products to market more quickly."

To test the process within a live environment, FIME teamed up with Elavon. Andy Morris, Implementation Manager at Elavon Merchant Services, adds: "By doing the real life case report, we were able to ensure the automatic report generated results that could be submitted to the CCRT system correctly. Elavon was keen to be part of the pilot as we recognise the benefits that this new process can bring to our business and the industry as a whole. It not only speeds up our ability to get new products to market, but also minimises administration resource investment and contains potential human errors that can cause delays."

FIME's SAVVI tool conducts the integration tests required for the certification of any kind of contact and contactless terminal by Visa. "SAVVI analyses the ability of a payment terminal to integrate successfully in the marketplace," concludes Vincent. "The new enhancements not only allow SAVVI to automate the required Visa terminal test results into a loadable format, but also provide it in a readable layout that makes it easier to identify where any bugs are that may need fixing."

Elavon, FIME & Visa are members of ACT Canada; please visit www.elavon.com, www.fime.com & www.visa.ca.


 

14. GLOBAL PAYMENTS AND SHOPKEEP POS ANNOUNCE AGREEMENT TO PROVIDE IPAD POINT-OF-SALE SYSTEM TO U.S. MERCHANTS
Source: Global Payments (07/11)

Global Payments Inc. announced an agreement with ShopKeep POS, a leader in iPad point-of-sale (POS) solutions for brick and mortar businesses, to offer an iPad POS solution to Global Payments' merchants throughout the United States. This agreement combines Global Payments' services and distribution network with the ShopKeep POS system and award-winning customer care to provide merchants with a complete store management system and business data at their fingertips to help them grow.

The easy-to-use and flexible solution offers small and medium-sized merchants a highly-functional, cost-effective cloud-based POS system to facilitate transactions as well as manage sales, inventory, staff and customers, all from an iPad.

"Tablet-based POS systems are revolutionizing the way merchants interact with their customers," said Sid Singh, SVP and GM, Integrated Solutions for Global Payments. "These solutions enable millions of small and medium sized merchants with the ability to accept card payments with inexpensive, yet highly functional POS systems.

Global Payments is a member of ACT Canada; please visit www.globalpaymentsinc.com.


 

15. ICCSIMTMAT NIV (SUBSET 7) TEST SUITE QUALIFIED BY MASTERCARD
Source: ICC Solutions (07/12)

ICC Solutions is delighted to announce the immediate availability of ICCSimTMat: NIV (subset 7) test suite qualified by MasterCard. This test suite is necessary to perform MasterCard Network Interface Validation (NIV) of single or dual-message acquirer host application interfaces to the MasterCard network. This test suite may be used to approve any type of ATM and POS terminal supporting MasterCard (or Maestro) PayPass M/Chip.

The addition of this new test suite further extends the extensive range of ICCSimTMat test suites already qualified by MasterCard which are used worldwide to perform and achieve efficient certifications.

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


 

16. NBS TECHNOLOGIES LAUNCHES PRE-PERSONALIZATION OPTION ONTO THE DMEX MILLING AND EMBEDDING MACHINE
Source: NBS Technologies (07/15)

NBS Technologies announces the official launch of pre-personalization option on the DMEX milling and embedding machine. Since the early stages of the smart card Industry, NBS (which acquired cybernetics in 2004) has been the worldwide leader in the milling and embedding operations. Milling consists of carving a cavity in the plastic card body, and embedding means inserting the micro-chip onto the cavity.

With more than 200 machines in the field, NBS addresses major market changes and demands. Customers are steadily increasing demand for Dual Interface cards (cards able to handle both contact and contactless interface) and pre-personalization capabilities for OS loading and application initialization and NBS is a leader in delivering state-of-the-art card solutions.

Today NBS is officially announcing the following options, available with the DMEX 3000 machine:
- Full integration of the NBS Horizon Smart Card Elevator (Contact and contactless) for pre-personalization and initialization purposes
- Card Orientation Check / Data matrix
- Antenna continuity test
- Conductive Glue Dispense
- Vision system
- ATR / ATS

This machine is well equipped to widely address growing and varied market needs.

"The DMEX has already been adopted by many accounts, and NBS is convinced it will be a feature of new accounts in the near future," says Francois Maurel, NBS SAS General Manager taking advantage of the power of the DMEX and associated options.

NBS Technologies is a member of ACT Canada; please visit www.nbstech.com.


 

17. ILLINOIS BANK WILL ALLOW ATM WITHDRAWALS VIA MOBILE WALLET
Source: Mobile Payments Today (07/26)

An Illinois bank has rolled out a service that will enable customers to use their cellphones to withdraw cash from Diebold ATMs. Mobile Cash Access, from Wintrust Financial Corporation, will use the Paydiant and FIS mobile wallet solution.

Diebold says the solution will give customers a more convenient and secure option for interacting with their financial institutions. To use it, customers will log on to their mobile banking application and find the nearest ATM, then follow the withdrawal prompts on their phone. Consumers will authenticate themselves at the ATM by scanning a unique QR code, which will tell the ATM via an encrypted cloud connection that it's OK to dispense cash.

Diebold spent a year conducting research before building the function in the terminal software. The company collaborated with Paydiant, which will provide the mobile wallet, and FIS, which will handle the processing.

In published reports, Devon Watson, Diebold's senior director of software product development, said the company's research shows that millennial generation consumers want to use their mobile devices to interact with ATMs.

"This mobile cash access is the first thing productized from that research," he said. "We're always trying to stay one step ahead of hackers, skimmers and other forms of fraud. In this particular solution, because you don't have to use your card for withdrawal, there's no ability to skim your card data."


 

18. MCX JOINS FORCES WITH FIS, ADD KOHL'S TO MERCHANT ROSTER
Source: Mobile Marketing (07/17)

Merchant Customer Exchange (MCX) has announced that it has selected banking and payment provider FIS to power a suite of services that will help bring MCX's long-awaited mobile commerce solution to fruition.

FIS mobile technology for payment processing, routing and settlement will be integrated with MCX mobile wallet software being developed by Gemalto. The integrated solution will provide consumers with a personalized, real-time mobile payment platform that will include perks such as loyalty programs, offers and promotions.

"Today's consumers are increasingly mobile centric and expect to leverage their mobile devices to perform a wide variety of financial services and transactions," said Nancy Langer, EVP, Money Movement, FIS. "We're pleased MCX has chosen to leverage FIS' payments network technology to deliver a seamless mobile commerce experience for millions of US consumers that shop at these nationwide merchants."

MCX also announced the addition of Kohl's Department Stores and Circle K to its list of participating merchants. This follows the addition of Phillips 66, Southwest Airlines and Brinker International in May.

MCX is a member of ACT Canada; please visit www.mcx.com.


 

19. MOBILE PAYMENT AT U.S. STARBUCKS LOCATIONS CROSSES 10% AS MORE STORES GET WIRELESS CHARGING
Source: Tech Crunch (07/26)

Starbucks is seeing impressive adoption of mobile payments in its U.S.-based store locations, the company revealed during its quarterly earnings conference call last night (via WSJ). Mobile payments crossed the 10 percent mark in the U.S. as a percentage of in-store purchases, indicating efforts like the Starbucks mobile app, Apple's Passbook and Square Wallet are popular among users.

The coffee franchise is pushing forward with more mobile-focused initiatives, including the installation of wireless charging mats in select locations. The Powermat-supplied wireless charging initiative follows a trial of 17 locations in Boston, and will roll-out in Silicon Valley throughout August. The standard it uses is the Power Matters Alliance variety, which unfortunately doesn't work with phones that use the Qi standard like the Google Nexus 4. Still, a growing number of companies are joining up with PMA's standard, and Starbucks's continued support should help it appear in more devices.

The lesson here is that Starbucks is putting a lot of weight behind its mobile digital initiatives, and those efforts are bearing fruit. Starbucks Chief Digital Officer Adam Brotman said on the call that its "various digital initiatives have added demonstrable impact to our U.S. business in the third quarter" and promises to do even more for the company with continued investment.

Pay-by-app in this way kind of defies what many thought about mobile payments in the early days, that it would be enabled by one dominant provider and come in the form of a single wallet provided by a single ruling platform creator, and that it would be enabled by NFC or something similar. The Starbucks method involves a variety of different payment options and uses traditional barcode scanning to function, and yet it's very popular. This seems to be because it's convenient, easy to find and carries familiar branding from multiple trusted sources.

While we still mostly pay with traditional methods, the Starbucks example is a good illustration of how mobile-enabled commerce can work if the conditions are right and the source in question has the clout to push it through. But the Starbucks model is an island, which means we could see continued growth in mobile payments on a case-by-case basis instead of as a sweeping trend that trounces cards and currency in one tidal push.


 

20. CHUNGHWA TELECOM SELECTS GEMALTO FOR NFC TRIAL WITH MASTERCARD AND FOUR LEADING BANKS IN TAIWAN
Source: Gemalto (07/02)

Gemalto announces that its UpTeq NFC SIM embedded software and product has been selected by Chunghwa Telecom (CHT) to secure its NFC payment program. CHT is Taiwan's largest mobile network operator with 10 million subscribers. The initiative, using the SIM as the secure element to safeguard mobile NFC transactions, was approved by the Financial Supervisory Commission of Taiwan, and is supported by leading Taiwanese banks Cathay United, Chinatrust Commercial, E.Sun, Taishin, as well as handset makers HTC Corp, Samsung, Sony.

CHT subscribers will be able to use their mobile phone for contactless payments at over 20,000 MasterCard PayPass point of sale readers across Taiwan including supermarkets, department stores and a fleet of taxis. The pilot also supports additional NFC services such as multiple credit and prepaid cards, loyalty cards, coupons, and ticketing.

Gemalto's UpTeq NFC SIM is the tamper-proof secure element that provides banking-grade security for mobile contactless transactions. It also enables CHT to easily deploy and manage additional NFC services after the card has been issued to subscribers in the field. This unique flexibility is key to attracting more service providers looking to harness NFC technologies while ensuring successful deployment and adoption of a broad range of mobile NFC services.

"The strong support of the Gemalto local team helped us achieve first-to-market advantage in using the SIM to secure mobile payments," said by Joseph Kuo, Director of Value Added Services CHT. "It is part of our strategy to 'seed the market' by equipping all of our subscribers with the UpTeq NFC SIM so we are ready for mass deployment of mobile contactless services."

"MasterCard continues to lead the demands in Taiwan market by providing consumers with the most innovative payment technology and creating new opportunities for financial services," said Julie Yang, Head of Taiwan, MasterCard. "Gemalto's UpTeq NFC SIM solution provides EMV-payment level of protection for mobile contactless transactions and also opens the door to a wealth of innovative NFC services beyond payments for the benefits of the consumers as well as business stakeholders in the value chain."

"With leading partner banks bringing significant clout to the program, CHT is poised to play a leading role in the swift deployment of mobile NFC services," added Michael Au, Senior Vice-President of Telecommunications at Gemalto Asia. "This will also spur new service providers to onboard the NFC ecosystem to offer a wide array of NFC services such as mass transit, access control and information download from smart posters."

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


 

21. ORDERING YOUR MORNING DOUBLE-DOUBLE JUST GOT MORE REWARDING: AMERICAN EXPRESS SERVES UP NEW RELATIONSHIP WITH TIM HORTONS
Source: American Express (07/08)

American Express Canada and Tim Hortons are pleased to announce that customers of Canada's most popular and largest quick service restaurant chain can pay using their American Express Card. The payment option is available at most locations across Canada. In addition to offering consumers this payment option in store, consumers can also now reload their Tim Hortons Card online with their American Express Card.

"We are very happy to welcome American Express to Tim Hortons, bringing even greater payment convenience to our consumer and business guests alike," says Roland Walton, President, Tim Hortons Canada.

As a proud Canadian employer for 160 years, American Express is thrilled to work with such an iconic Canadian brand. Tim Hortons has built a reputation for quality, value, service and community leadership - traits that align with American Express' core values.

"We're excited to share this news with our Cardmembers," said Jennifer Hawkins, Vice President and General Manager, Merchant Services, American Express Canada. "We know that our Cardmembers want to use their Amex, not just for big ticket items but for everyday purchases like filling up their car, shopping at the pharmacy or grocery store and picking up a coffee and Panini at Tim Hortons. We're proud to say that now they can."

The relationship with Tim Hortons further expands American Express' reach into the "everyday spend" category of quick service restaurants. American Express has recently made great strides in growing its merchant base adding numerous merchant accepting locations from a variety of different sectors. Additionally, American Express has specifically sought out new merchants that give Cardmembers even more places and ways to use their Card - from Canada's toll highways and grocery stores to insurance payments and apartment rentals.

To support the American Express and Tim Hortons announcement, an integrated radio, digital and social media marketing campaign is being launched. Creative, media buying and PR and social media elements were provided by partner agencies, Ogilvy, Mindshare and High Road Communication respectively. The integrated marketing campaign will be in market from July 8th until August 18th.

American Express is a member of ACT Canada; please visit www.americanexpress.ca.


 

22. INTERNATIONAL RETAIL USER GROUP EXPANDS THE EMV/MOBILE PAYMENTS PROGRAM TO PROVIDE A YEAR ROUND VIDEO CONFERENCE FORUM.
Source: IRUG (07/23)

The International Retail User Group (IRUG), retail's leading association of U.S. and international retailers and solution providers, is announcing a video conference series to be added to the EMV/Mobile Payments focus group program. These WebEx conferences will provide a year round educational and experience sharing forum for retailers as requested by the IRUG membership. EMV sponsors, stakeholders and retailers will be presenting the series of video conferencing programs to supplement the EMV/Mobile Payments spring and fall conferences and workshops.

The first video conference is titled "Mobile Convergence at the POS" which will be hosted by ACI Worldwide and is scheduled for August 6, 2013, 3:00 PM (EDT). "We're pleased to be selected to lead the 'Mobile Convergence at the POS' session, and to touch on key areas – such as mobile POS, rewards & promotions and payment entry methods – relating to mobile payments at the point of sale. Using real-world examples from working with numerous retailers will help highlight the efforts taken to tackle their mobile payments challenges", said Karen Jarnecic, ACI Worldwide Director, Merchant Alliances. "It's great to partner with IRUG and the EMV/Mobile Payments focus group as they continue to provide these thought leadership opportunities for their members."

"Our EMV/Mobile Payments steering committee continues to enhance the programs that we provide for the IRUG community and the WebEx sessions are part of that effort," said Andrew B. Morris, Chair of the steering committee. "Retailers need information to help them make critical decisions about payments technologies like EMV and mobile. And we're very appreciative of the support that we've received from industry stakeholders and our sponsors. They make our programs possible."

In addition to the video conference on August 6, 2013, retailers and stakeholders should plan to participate in the upcoming IRUG EMV/Mobile Focus Group conference and workshop being held in Raleigh, NC October 13–14, 2013.

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


 

23. FIME KOREA TO PROVIDE NFC PAYMENT TESTING FOR MOBILE HANDSETS
Source: FIME (07/03)

FIME Korea has achieved test bench qualification for EMVCo Contactless Card Level 1 in Korea, authorising the advanced testing provider to offer contactless card level 1 testing services. This status allows FIME Korea's NFC Mobile Test Centre to verify that locally developed and manufactured near field communication (NFC) enabled handsets meet the requirements of the mobile payments industry before market launch.

EMVCo is the EMV standard body for credit and debit payment cards based on chip card technology. It has an established certification programme to confirm products meet the requirements outlined in the EMV Specifications. This promotes increased levels of confidence that EMV products will perform as intended and ensures interoperability between payment devices.

FIME Korea opened in 2012 to serve the testing and certification needs of the thriving South Korean mobile device marketplace. This qualification confirms FIME Korea's ability to perform EMVCo Level 1 Contactless PICC analog and protocol tests, and allows FIME Korea to offer certification testing on behalf of payment networks for mobile handsets to the EMVCo Contactless Communication Protocol specification defined by EMVCo.

Myung-Hwa Calais, Operation Director of FIME Korea, comments: "This is an exciting time for the high-technology community in South Korea. The mobile device marketplace is growing exponentially, driving innovation across all areas of smartphone functionality. The ability to facilitate mobile NFC payments is a key priority and we are pleased to offer laboratory certification services in close proximity to internationally recognised mobile and payment brands. This local service will reduce product time to market for Korean world leading mobile manufacturers."

"As markets converge to deliver secure mobile services, we are noting that there is a global demand for testing services within the mobile industry," adds Pascal Le Ray, General Manager of FIME. "The key aim of this activity is to confirm that NFC-enabled handsets are fully interoperable and compliant with industry standards and payment specifications prior to market release. FIME is committed to not only expanding its services and capacity offering to support advancing industry needs, but doing so through local operations that can advise on regional variations and provide on-the-ground support."

FIME Korea works with mobile device manufacturers and network operators to provide consulting, laboratory testing and certification services for a range of secure-chip solutions such as transit ticketing, electronic-identity and secure-chip banking applications. The FIME Korea regional operation is part of a global network of accredited laboratories and R&D centres across America, Asia, Europe, Middle East and Africa, and India which serve FIME's international customer base.

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


 

24. COCA-COLA BRINGS FAST AND CONVENIENT REFRESHMENT TO CANADIANS WITH NEW INTERAC PAYMENT OPTION
Source: Interac (07/04)

Amidst the fanfare of the Calgary Stampede on July 5th, Coca-Cola will be the first company to roll out Interac Flash payment capabilities at vending machines, starting with 16 vending machines located on the park grounds. Attendees of the event will be the first in Canada to experience this unattended retail implementation – just by purchasing the Coca-Cola beverage of their choice at the Coca-Cola and Interac Vending Tower.

"We are pleased to bring the proven convenience, speed and security of Interac Flash to our vending machines at the Calgary Stampede," says John Guarino, President of Coca-Cola Refreshments Canada. "This first-of-its-kind initiative offers consumers the flexibility to pay the way they want for the beverages they love."

Interac Flash, an enhancement of Interac® Debit, is Canada's first and only contactless debit technology. By holding their Interac Flash-enabled debit cards in front of a reader, guests can pay for their Coca-Cola beverage quickly and conveniently, using money from their bank accounts.

By the end of July Interac Flash will be deployed on approximately 4,000 Coca-Cola vending machines across Canada.

"Coca-Cola Canada's decision to offer Interac Flash at its vending machines is an exciting first for Interac debit payments in the vending market," said Mark O'Connell, President and CEO, Interac Association. "As a leader in the beverage marketplace, Coca-Cola understands the value that Interac Flash offers, particularly to its consumers wanting to pay quickly and securely at its vending machines with funds from their bank accounts."

Interac Flash gives cardholders the choice to pay for smaller value items using debit faster than ever before by simply holding their card at a contactless point-of-sale reader that supports Interac Flash.

Interac Flash uses EMV technology and the existing chip debit infrastructure, which protects it from fraud tactics such as copying and "electronic pick-pocketing". It offers strong consumer protections and 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.

Interac is a member of ACT Canada; please visit www.interac.ca.


 

25. ACS DEVELOPS MOBILE CARD READERS
Source: ACS (07/26)

Advanced Card Systems Ltd. (ACS, a wholly owned subsidiary of Advanced Card Systems Holdings Ltd., SEHK: 8210), Asia Pacific's top supplier and one of the world's top 3 suppliers of PC-linked smart card readers (Source: Frost & Sullivan), has released a line of Mobile Device Card Readers.

ACS Mobile Card Readers

"ACS currently enables mobility by housing powerful readers in the smallest form factors," says Gilbert Leung, ACS Vice President of Sales and Marketing. "It was enough years ago for users to have a reader that fits in the pocket, to be plugged into a PC. But developments in mobile devices have presented us with a new challenge. Mobile devices can now perform many functions of a PC, and many users are starting to prefer the former for the majority of their activities. By developing readers that they can use with smart phones and tablets, ACS is enabling true mobility for such users."

ACR38U PocketMate II and ACR31ACS has released two new mobile device card readers: the ACR38U PocketMate II and the ACR31 Swipe.

The ACR38U PocketMate II is a token-sized device that transforms into a full-sized smart card reader with a single swivel motion. It houses the ACR38 core, which has been proven to meet the requirements of highly demanding smart card applications.

The ACR38U PocketMate II supports ISO7816 Class A, B and C (5V, 3V, 1.8V) cards, microprocessor cards with T=0 and T=1 protocol, and most memory cards. With its Micro USB OTG interface, it can support most smartphones and tablets in the market that run on Android™ OS. It is compliant with EN60950/IEC60950, ISO7816, CE, FCC, VCCI, PC/SC, CCID, EMV 2000 Level 1, and RoHS standards, for maximum security and versatility.

Meanwhile, the ACR31 Swipe is a phone jack card reader that supports high and low coercivity magnetic stripe cards and can read tracks 1 and 2 of most ISO7810 and ISO7811–compliant cards, as well as cards compliant to JIS1 and JIS2 standards. It uses AES-128 encryption algorithm to secure transactions.

The ACR31 Swipe supports most Android and iOS devices. To show the functionalities of the ACR31 Swipe, ACS has developed the ACR31 EasySwipe application, an iOS-based demo that shows the functionalities of the ACR31 Swipe Card Reader. An Android version of the application will also be available on Google Play.

ACS will also launch a phone jack card reader that supports magnetic stripe and contactless cards, and a phone jack card reader that supports magnetic stripe and contact cards.

ACS is a member of ACT Canada; please visit www.acs.com.hk.


Entering our 25th year, 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.  Please visit http://www.actcda.com or contact our office at 1 905 426-6360 x122.


Please forward any comments, suggestions, questions or articles to . Please note that articles contained in this newsletter have been edited for length, and are for information purposes only. If you would like to be removed from our newsletter distribution list please follow the unsubscribe instructions at the bottom of the email.


Andrea McMullen
Vice President, Operations
ACT Canada
tel: 905 426-6360 ext. 124
fax: 905 619-3275
email: andrea@actcda.com
web: www.actcda.com
mail: 85 Mullen Drive, Ajax, ON, L1T 2B3

http://ca.linkedin.com/in/andreamcmullen


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because stakeholder dialogue helps you make profitable decisions.

 

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.