Engaging, Enabling and Evolving Commerce in Canada since 1989

October 2013 ACTion Newsletter

IN THIS ISSUE:

  1. EDITORIAL - HEDGING YOUR BETS – OR BETTING YOUR CAREER?
  2. MASTERCARD, VISA, AMEX PROPOSE ONLINE, M-PAYMENTS STANDARD
  3. CANADIANS CAN NOW USE AMEX TO PAY VIA SQUARE
  4. CHINESE CONSUMERS WILL PAY WITH THEIR MOBILE LEVERAGING OBERTHUR TECHNOLOGIES SOLUTIONS
  5. CHINESE ATM NETWORK TO BUILD NFC-BASED MOBILE PAYMENT PLATFORM
  6. INGENICO DEPLOYS BIOMETRIC SOLUTION FOR BENEFIT PAYMENTS
  7. TD LAUNCHES TABLET BANKING APP FOR ANDROID
  8. MONERIS SOLUTIONS AND TOUCHBISTRO PARTNER TO PROVIDE INTEGRATED PAYMENT SOLUTION TO CANADIAN RESTAURANT MERCHANTS
  9. DIRECTCASH PAYMENTS INC. ANNOUNCES $50 MILLION ACQUISITION OF THRESHOLD FINANCIAL TECHNOLOGIES INC.
  10. VANCOUVER HOSTS BITCOIN'S ATM COMING OUT PARTY
  11. OBERTHUR TECHNOLOGIES AND STM EXTEND THEIR PARTNERSHIP FOR FOUR YEARS IN CANADIAN PUBLIC TRANSPORTATION AND CELEBRATE THE 5,000,000TH DISTRIBUTED CARD
  12. PAYPAL TO ENABLE MOBILE CONSUMER PAYMENT WITH PIN OR QR CODE
  13. UL SEALS SECURITY EVALUATION DEAL WITH INDONESIAN EMV ORGANIZATION
  14. GEMALTO ENABLES MOBILE NFC PAYMENT IN HONG KONG
  15. ICC SOLUTIONS CONFIRMED BY VISA FOR CHIP VENDOR ENABLED SERVICE (CVES)
  16. GIESECKE & DEVRIENT DELIVERS COMMON ACCESS CARDS TO U.S. DEPARTMENT OF DEFENSE'S DMDC
  17. PAYMENT SOLUTIONS BY TENDER RETAIL, A DIVISION OF ACCEO SOLUTIONS, WILL SUPPORT THE EPAS RETAILER PROTOCOL
  18. MULTOS INTERNATIONAL ANNOUNCES NEW DISCOVER D-PAS DUAL-INTERFACE APPLICATION
  19. CANADA POST TEAMS UP WITH 3DCART TO PROVIDE STREAMLINED SHIPPING AND LOGISTICS SOLUTIONS FOR ONLINE RETAILERS
  20. INSIDE SECURE POWERS INNOVATIVE MOBILE WALLET SOLUTION FROM LOOPPAY
  21. SECUREKEY DIVESTS HARDWARE SECURITY TOKEN GROUP
  22. EUROBANK OFFERS NFC PAYMENTS IN POLAND
  23. VERIFONE DEAL ADDS MORE GAS TO MOBILE PAYMENTS
  24. STARBUCKS LAUNCHES 'TWEET-A-COFFEE' SERVICE
  25. D-PAS ICCSIMTMAT TEST SUITES QUALIFIED BY DISCOVER
  26. RIO DE JANEIRO LAUNCHES PILOT FOR PUBLIC TRANSPORTATION NFC TICKETING WITH SMARTPHONES
  27. AIMIA AND POINTS CELEBRATE CHINA REWARDS LAUNCH
  28. UL RECEIVES NEW ACCREDITATION TO PERFORM CARD (CONTACT) TESTING SERVICES
  29. BERKELEY RANKS #11 IN GTA'S 50 FASTEST GROWING COMPANIES

ACT Canada Partners:

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.

Interac Logo

INTERAC
Interac Association is a recognized world leader in debit card services. Interac Association is responsible for the development and operations of theInterac network, a national payment network that allows Canadians to access their money through Interac Cash at 60,000 Automated Banking Machines and InteracDebit at 766,000 point-of-sale terminals across Canada. Interac Flash, a secure contactless enhancement of Interac Debit allows Canadians to pay for items instantly with their Interac chip debit card at a reader that supports Interac Flash.

G&D logo

GIESECKE & DEVRIENT
Giesecke & Devrient (G&D) is a leading international technology provider headquartered in Munich, Germany. Founded in 1852, the Group has a workforce of over 11,200 employees and generated sales of approximately EUR 1.8 billion in the 2012 fiscal year. 58 subsidiaries and joint ventures in 32 countries ensure customer proximity worldwide.

G&D develops, produces, and distributes products and solutions in the payment, secure communication, and identity management sectors. G&D is a technology leader in these markets and holds a strong competitive position. The Group's customer base mainly comprises central and commercial banks, mobile network operators, business enterprises, governments, and public authorities. For more information, please visit: www.gi-de.com



ACT CANADA WOULD LIKE TO THANK OUR NEW & RENEWING MEMBERS:

PRINCIPAL

Canadian Payments Association ~ member since 1998
Giesecke & Devrient ~ member since 1990

GENERAL

Global Payments ~ member since 2011
KPMG Management Services LP ~ member since 2011
MillenTech-CTI Group ~ member since 2012

ASSOCIATE

Bennett Jones LLP ~ member since 2011
Jonathan Magder ~ new member
Mike Vaselenak ~ new member


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

NFC Bootcamp
Nov 05 - 06, 2012
University of Toronto, Best Institute
Toronto, ON
http://www.nfcbootcamp.com/
ACT Canada members receive 10% off the registration price

5th Annual Mobile Money Canada Conference
Nov 13, 2013
Steam Whistle Brewery
Toronto, ON
http://www.mobilemoneycanada.com
ACT Canada members receive a 25% discount

Cartes
November 19-21, 2013
Paris, France
www.cartes.com
ACT Canada members receive a 20% discount
Visit ACT Canada at Booth # 4 Q 054 (new location)

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

Mobile Payment Conference
Jan 28 - 30, 2013
Miami Beach Convention Center
Miami, FL
http://www.mobilepaymentconference.com/
ACT Members receive 20% off the registration price.

Payments Summit, presented by the Smart Card Alliance
Feb 5-7, 2014
Salt Lake City, UT
http://www.SCAPayments.com

Connect:ID
Mar 17 - 19, 2014
Ronald Reagan Conference Center
Washington, DC
http://www.connectidexpo.com

Cartes America
May 13-15, 2014
Las Vegas, NV
http://www.cartes-northamerica.com

Cardware 2014
June17-18, 2014
Marriott Gateway on the Falls
Niagara Falls, ON, Canada
http://www.actcda.com/calendar/act-canada-events/cardware/


1. EDITORIAL COMMENT - HEDGING YOUR BETS - OR BETTING YOUR CAREER?
Source: Catherine Johnston, President & CEO, ACT Canada (10/30)

If you want to launch or change a product or service, there are only three good reasons you can offer your boss or your shareholders. One is to grow your market share, assuming that you won't lose money in the process. The second is that you will make money. The third is that you have to do it to minimize or manage risk.

Spending money to manage risk is just not something that normally leads to great paybacks for individuals, unless you can show where it has actually reduced costs. On the other hand, growing market share and profits usually comes with rewards.

So here we are, post EMV. Everyone is anxious to move ahead and there is no shortage of technology to allow us to bet the farm, so to speak. M-commerce, omnichannel, e-wallets, big data and other opportunities are all in the wings. The question is, which will drive profit and market share and which won't? Which will help your career and which will hurt it? I don't have the magic ball, but I do know how to get the answers.

Surround yourself with the other stakeholders and learn how this would affect or engage them. Determine how much buyers would pay – or if they would pay. Do the research to determine whether people will become new customers in order to get what you are offering and whether you can keep them if their traditional supplier offers it in the future. At the same time, determine whether your customers will leave you if you don't offer it. Don't assume that just because someone else is going to launch something that there is a need for it.

If you lived through the dot.com era, you'll recognize how easy it is to get caught up in market hype. When that market is projected to be billions you can't help but think that you only need a small piece in order to be successful, but the real success is in filtering the truth from the market noise.
This isn't something I think, or have read. This is something I've seen ACT Canada do for members. Having access to other stakeholders helps our members succeed. I invite you to join us so that we can help you.


 

2. MASTERCARD, VISA, AMEX PROPOSE ONLINE, M-PAYMENTS STANDARD
Source: Telecompaper.com (10/02)

Visa, MasterCard and American Express have introduced a proposed framework for a new global standard to enhance the security of digital payments and simplify the purchasing experience when shopping on a mobile phone, tablet, personal computer or other smart device. The proposed standard allows the traditional account number to be replaced with a digital payment "token" for online and mobile transactions. With a token, consumers will no longer be required to enter an actual account number when shopping online or on a smart device. Tokens provide an additional layer of security and eliminate the need for merchants, digital wallet operators or others to store account numbers.

The proposed standard used to generate tokens would be based on existing industry standards and would be available to all payment networks and other payment participants.

Key elements of the proposed standard include new data fields to provide richer information about the transaction, which can help improve fraud detection and expedite the approval process; consistent methods to identify and verify a consumer before replacing the traditional card account number with a token; as well as a common standard designed to simplify the process for merchants for contactless, online or other transactions.

Once a standard is agreed to and implemented, issuers, merchants or digital wallet providers would be able to request a token so that when an account holder initiates an online or mobile transaction, the token -- and not the traditional card account number -- would be used to process, authorize, clear and settle the transaction in the same way traditional card payments are processed today. Tokens can be restricted in how they are used with a specific merchant, device, transaction or category of transactions.

The proposed framework has incorporated the input of many stakeholders, particularly card issuers and merchants. Over the coming weeks, the framework will also be presented to other partners and independent industry bodies, such as The Clearing House, PCI Security Standards Council and EMVCo, to align and further advance the standard.

American Express, MasterCard and Visa are members of ACT Canada; please visit www.amex.ca, www.mastercard.ca & www.visa.ca.


 

3. CANADIANS CAN NOW USE AMEX TO PAY VIA SQUARE
Source: Mobile Payments Today (10/28)

Canadian businesses using the Square reader can now accept American Express payments to go along with Visa and MasterCard.

Canada has more than 1 million small businesses, Square said in a news release, and 2.7 million people who are self-employed.

"Small businesses are a huge part of not only the Canadian economy, but the Canadian identity," Jennifer Hawkins, vice president and general manager of merchant services, American Express Canada, said in the news release. "We've been working hard to identify more ways to support small merchants, and American Express acceptance with Square is a great next step.

American Express, MasterCard and Visa are members of ACT Canada; please visit www.amex.ca, www.mastercard.ca & www.visa.ca.


 

4. CHINESE CONSUMERS WILL PAY WITH THEIR MOBILE LEVERAGING OBERTHUR TECHNOLOGIES SOLUTIONS
Source: Business Wire (10/24)

Oberthur Technologies announced its selection by the Chinese smartphone manufacturer Xiaomi. Oberthur Technologies provides PEARL, its state-of-the-art NFC embedded Secure Element (eSE) to support contactless mobile payment in the newly released Xiaomi Mi3 flagship phone.

Oberthur Technologies' PEARL is the most advanced multi-application embedded Secure Element and offers the largest memory on the market. It is the first-of-its-kind to be certified by Visa, MasterCard and Google and under certification by China Union Pay. PEARL allows easy deployment of secure contactless payment, as well as strong authentication, transit, access and loyalty applications.

"We are delighted to have been chosen by a company such as Xiaomi to equip its newly released Mi3 smartphone. As a recognised leader in trusted payment, Oberthur Technologies was able to provide the best-in-class embedded secure element to Xiaomi in order to give to end-users a new convenient and secure means of payment by using their smartphone. Through this partnership with Xiaomi, Oberthur Technologies supports the new mobile payment ecosystem in China" said Cédric Collomb, Managing Director of the Telecom Business Unit at Oberthur Technologies.

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


 

5. CHINESE ATM NETWORK TO BUILD NFC-BASED MOBILE PAYMENT PLATFORM
Source: MobilePaymentsToday (10/15)

Jetco, the largest automated teller machine network in Hong Kong and Macau, is joining the mobile payments scrum. The South China Morning Post reports that the network will team up with its 30 member banks to build a mobile payment platform using near-field communication technology.

Jetco expects five banks to launch the service by the first quarter of next year, the newspaper said, and hopes to handle a million accounts in five years.

As China's mobile payments market emerges, the country's leading banks are scrambling for a slice of the pie. HSBC and Hang Seng Bank launched their services last year, the paper reports, while last week, Hang Seng offered electronic coupons to boost spending through its service.

And Bank of China (Hong Kong) said last week it had invited more than 100,000 clients to try out its mobile payment service, while Octopus Card followed with an announcement that it would introduce its service on special SIM cards for smartphones, according to SCMP.

"The need for people to draw money directly from ATMs could be declining on the back of increasing online payment and the use of electronic money," Jetco Deputy General Manager John Tsang Hin-kau told the newspaper.

While ATM usage has slowed to the single digits in recent years, compared with 10 percent to 20 percent usage decades ago, the newspaper added that it's still unclear that mobile payments will become popular.

HSBC is a member of ACT Canada; please visit www.hsbc.ca.


 

6. INGENICO DEPLOYS BIOMETRIC SOLUTION FOR BENEFIT PAYMENTS
Source: Planet Biometrics (10/24)

Ingenico, and Carvajal Tecnología y Servicios, a player in the electronic payment industry in Latin America, are to deploy Ingenico´s biometric solution in Colombia and the Dominican Republic.

Ingenico's new biometric payment device (the iWB 220) is to be used in a pioneering project, to bring financial support to low-income families.

Upon government approval for each of the applications, funds will be sent to the banks and through the use of these unique devices, beneficiaries can withdraw their funds, with the use of a fingertip.

"Approved family members are the only ones able to withdraw the funds, and the government is assured that the benefit is being paid to the right person," commented Carlos Manuel Pérez, Carvajal Tecnología y Servicios' CEO.

This biometric point of sale solution complies with the Image Quality Specifications for single finger capture device defined by the FBI, the United States Federal Bureau of Investigation.

In addition to high security standards, the solution is a mobile device with an embedded Magstripe, as well as Chip & PIN readers.

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


 

7. TD LAUNCHES TABLET BANKING APP FOR ANDROID
Source: TD (10/24)

TD Canada Trust announced the launch of its new Android tablet app, offering customers an easy and interactive way to manage personal banking and direct investing needs within one app.

"We've already had great success with our existing apps, and are very excited to be launching our Android tablet app which offers our customers seamless access between their personal banking and wealth accounts - all with a single login, in a safe and secure environment," said Rizwan Khalfan, Senior Vice President, Digital Channels, TD. "We know our customers are increasingly looking to us to make banking easy and more convenient. Our Android app does just that, giving customers the ability to bank and trade using their tablet."

Features available on TD's Android tablet app:

- A single sign in to bank, manage personal investment accounts and trade
- Pay bills and view account history
- Transfer money between accounts
- At-a-glance view of accounts, balances, holdings and wealth products so customers can view and manage finances and set goals
- A monthly calendar to view all upcoming payments
- Ability to monitor investments by checking account balances and trading stocks
- Real-time quotes for stocks, ETFs, and mutual funds
- Locate TD Canada Trust branches and ATMs

According to an Ipsos Mobil-ology research report released by Ipsos Reid Data in January 2013, 21 per cent of adult online Canadians over 18 years of age use a tablet device, up from 11 per cent in 2012. TD's new tablet app provides an intuitive and personalized banking experience on an increasingly popular device, taking the capabilities offered on our mobile banking app and applying it to the tablet.

"We have a number of digital banking initiatives we'll be rolling out later this year and into 2014, making it easier for customers to do their banking, whether it's in our branch, at the ATM, or digitally," added Khalfan. The Android tablet app joins TD's current suite of mobile banking products and services, providing nearly eight million active online and mobile users with a seamless and personalized digital banking and investing experience.

TD Canada Trust is a member of ACT Canada; please visit www.td.com.


 

8. MONERIS SOLUTIONS AND TOUCHBISTRO PARTNER TO PROVIDE INTEGRATED PAYMENT SOLUTION TO CANADIAN RESTAURANT MERCHANTS
Source: Moneris (10/01)

Moneris Solutions Corporation has announced a partnership with TouchBistro, a leader in the provision of innovative restaurant management solutions, to deliver a reliable payment processing system integrated with TouchBistro's point-of-sale and restaurant management software.

"Moneris is continually committed to providing restaurant merchants with innovative and cost-effective ways to optimize their payment solutions," says Jeff Guthrie, Chief Sales & Marketing Officer, Moneris Solutions. "Our partnership with TouchBistro positions Moneris as a one-stop-shop for Canadian restaurant owners looking for efficient, integrated solutions to manage their businesses with greater ease and speed, while meeting their unique merchant payment needs."

TouchBistro, a restaurant POS solution that operates on the iPad platform, is specifically designed for small- and medium-sized restaurants to simplify their reservation management, menu browsing, and table and order management.

"Partnering with the largest payment processor in the country provides TouchBistro with an unmatched channel reach in Canada," says Alex Barrotti, CEO, TouchBistro. "We look forward to working with Moneris to help restaurant merchants across the country streamline their current payment processing system, making their businesses more efficient."

Under the partnership agreement, Moneris will be distributing TouchBistro license credits to prospective TouchBistro users and Moneris merchants.

Moneris is a member of ACT Canada; please visit www.moneris.com.


 

9. DIRECTCASH PAYMENTS INC. ANNOUNCES $50 MILLION ACQUISITION OF THRESHOLD FINANCIAL TECHNOLOGIES INC.
Source: DirectCash (10/28)

DirectCash has signed a share purchase agreement with Brink's Canada Limited, a subsidiary of The Brink's Company, to acquire all of the issued and outstanding shares of Threshold, a business operating credit union and financial institution transaction processing services, ATM outsourcing and its own ATMs in Canada, for $50 million, subject to certain customary closing purchase price adjustments (the "Acquisition").

Threshold's operations add a highly strategic, complementary business in the payments processing space that is expected to be accretive on a cash flow per share basis to DirectCash shareholders in the first full year following the transaction. The Board of Directors of DirectCash has unanimously approved the Acquisition and the parties are working towards closing the transaction on November 1, 2013. The closing date may be adjusted by the parties in accordance with the terms of the share purchase agreement and the status of the conditions precedent to closing set out therein.

In order to increase its ongoing operational and financial flexibility, in conjunction with the transaction, DirectCash has negotiated with its lending syndicate to amend its existing Credit Agreement and has negotiated terms of a Canadian vault cash rental agreement for ATM cash supply with a major Canadian financial institution.

DirectCash believes the integration of Threshold's core credit union and financial institution business will strengthen its strategic position in the payments business and position DirectCash as one of Canada's leading independent providers of end-to-end transaction processing and payment solutions. In addition, the transaction adds an additional 1,475 ATMs to the DirectCash network in Canada.

Jeffrey Smith, DirectCash's President and Chief Executive Officer said, "we are very excited about this acquisition as it will bolster our core ATM business in Canada and gives us a significant presence in the highly strategic credit union and financial institution ATM and payments processing services segment. Threshold is a very high-quality operator with attractive contracts in place, a top-tier customer base and good management. We believe that the credit union and financial institution business will strategically position the Corporation within the Canadian payments space as a leading end-to-end transaction processing provider."

DirectCash and Threshold Financial Technologies Inc. are members of ACT Canada; please visit www.directcash.net & www.threshold-fti.com.


 

10. VANCOUVER HOSTS BITCOIN'S ATM COMING OUT PARTY
Source: Yahoo Finance (10/29)

For as long as there have been ATMs, the one constant has been the currency that comes out them: dollars. As of today, add a new currency to the mix as the world's first-ever bitcoin-enabled bank machine goes live in Vancouver.

The machine is the first of five planned across Canada by Nevada-based Robocoin and Bitcoiniacs, a Vancouver bitcoin trading company, and it will allow customers to convert Canadian dollars into online bitcoins. After authenticating themselves through a palm scan, they will be able to buy or sell up to a maximum of C$3,000 each business day.

Why now?
The ATM represents another tangible step toward bitcoin legitimacy, and is the latest in a year of firsts, including the first real estate listing. Earlier this year, an Edmonton coffee chain began accepting bitcoins. The Canadian Virtual Exchange has traded over $29 million in the currency thus far, the Quebec-based Bitcoin Catalog, the world's first, publishes its second edition next month, and Montreal's non-profit Bitcoin Embassy has become an advocate for adoption across the country.

The appeal of an alternative digital currency in an increasingly digital economy lies in its fluidity: unlike conventional currency, bictoins can be transferred directly from person to person online, with no need for bank or clearing house involvement, thus resulting in lower fees. Bitcoins are not subject to oversight by central banks or any other regulatory agency – which has raised their profile in crisis-hit European economies, as citizens seek safe haven from governments slashing conventional bank deposits. Because they use encryption they are more difficult to track than conventional currency.

This has fuelled a rise in bitcoin's use by individuals and groups who don't necessarily want to be found, which in turn has contributed to bitcoin's reputation in some circles as a sketchy alternative to legitimate currency. When the FBI shut down the Silk Road Internet marketplace earlier this month, it seized 144,000 bitcoins, worth an estimated US$28.5 million, from Ross Ulbricht, the alleged operator of the site.
The FBI alleges Ulbricht, who's been arrested on suspicion of building and maintaining the site where some of its 900,000 registered users were suspected of dealing drugs, buying and selling weapons and arranging murders-for-hire, made upwards of $20,000 in bitcoin commissions every day, and held the largest bitcoin balance of any Silk Road user – an estimated $3.4 million in total.

Not so fast
Despite bitcoin's online-commerce friendliness, the road to adoption isn't completely obstacle-free. The amount of bitcoins available globally is deliberately capped at 21 million, and its value can vary based on supply and demand. Just like a volatile stock, this can drive significant fluctuations, with intra-day swings of upwards of 30 per cent. It is not backed up by a bank or central government-guaranteed reserve, which raises its speculative nature. And for the tax-savvy, the Canada Revenue Agency confirmed earlier this year that bitcoin transactions are subject to Canadian tax law just like any other currency.

In an interview with CNBC, software developer John McAfee said in a world of easily-reproduced, hard-to-value digital data, conventional transactions need to be rethought.

"Another paradigm is necessary. I do not expect to get paid the same way that I got paid 30 years ago," he said. "You cannot stop things like bitcoin. It's like trying to stop gunpowder."
Bitcoin may be emerging as the first widely accepted democratic, programmable currency designed for an increasingly online economy. But just because it's now accessible through an ATM doesn't mean consumers will be switching over in droves anytime soon. Feel free to dabble in bitcoin, but don't give up those loonies just yet.

Editor's Note from Catherine Johnston
I take exception to the use of the term ATM for this device. Canadians have expectations related to ATMs. They understand how they are protected from risk. To call this device an ATM could mislead some into thinking that the same protections apply. Bitcoin is an electronic value that can be bought, sold, traded and used for purchases, but I would not call it a currency. That term I reserve for "money" that is minted and backed by a federal monetary body. There are many devices in the Canadian market that allow you to insert cash and buy "value". Coinamatic does this for laundry. Presto does it for transit. Neither would call their device an ATM and they would be correct.


 

11. OBERTHUR TECHNOLOGIES AND STM EXTEND THEIR PARTNERSHIP FOR FOUR YEARS IN CANADIAN PUBLIC TRANSPORTATION AND CELEBRATE THE 5,000,000TH DISTRIBUTED CARD
Source: Oberthur (10/03)

Oberthur Technologies announced the renewal of its six-year partnership with STM, the transport authority of Montreal in Canada, for four years. Furthermore, last month, both companies celebrated the 5,000,000th card distributed in the city.

STM (La Société de Transport de Montréal) and other operators in the Montreal area and in the Quebec region, transport more than 900,000 travellers every day, by metro, tram, buses and ferries using the OPUS card.

Oberthur Technologies provides STM and its partners its CityGo card, a multi-service dual interface card for ticketing and city applications, fully compliant with the Calypso international standard. The cards are made of PET-F, a highly durable plastic, essential for transport cards which are expected to last 7 years after issuance. Oberthur Technologies' contactless card provides the end-users with a more convenient and secure transportation experience.

"We are delighted to continue our collaboration with Oberthur Technologies which is our OPUS card provider since the beginning of e-ticketing in the City of Montreal. Oberthur Technologies is a key partner which has the capability to leapfrog the OPUS Card future evolutions, especially regarding card dematerialisation on mobile" said Pierre Bourbonnière, Marketing Director at STM.

"STM is the first transport operator to provide an interoperable card, allowing commuters to use the OPUS card throughout the Quebec province. We are proud to have been able to contribute to this major success story, and we look forward to accompanying STM into a new era of transport cards, enhancing commuters' travel experience through new devices such as NFC-enabled mobile handsets" said Eric Duforest, Managing Director of the Payment Business Unit at Oberthur Technologies.

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


 

12. PAYPAL TO ENABLE MOBILE CONSUMER PAYMENT WITH PIN OR QR CODE
Source: PYMNTS.com (10/08)

Talk about connecting the dots.

PayPal's announcement of its new Payment Code functionality is an important third leg of the mobile commerce stool that PayPal has been methodically pursuing over the last three years: giving existing PayPal users a reason to want to use their PayPal accounts at the physical point of sale and adding even more of them to the mix.

Payment Code basically enables payment at the physical point of sale in one of two ways – by QR code or 4-digit short code. Big whoops, you may be saying to yourself. QR codes seem almost prehistoric now since they've been used for mobile authentication since Starbucks launched its mobile commerce scheme "way back" in 2011. And typing in a pin code - isn't that the whole "empty hands" thing that was launched in November 2012 and deployed at Home Depot? The pin itself was invented in the early 1970s for use in ATMs. This demo is worth a look.

So, here's the big deal.

Scaling mobile commerce beyond its off eBay online roots to the physical point of sale required PayPal to think very strategically about what could make them successful, who and what it was competing against, and how it could win.

Securing ubiquity—a sine qua non for consumers--was its first strategic hurdle. It surmounted that with its partnership with Discover in August of 2012. Discover's rails made PayPal acceptance possible at Discover's 8 million merchants. To date, published reports suggest that more than 250K merchants can now accept PayPal at the physical point of sale.

Then, PayPal needed to make its app more "user friendly" to consumers so that they would find it a useful alternative to the existing payment methods in stores, which we all know work just fine today. To accomplish this PayPal launched a new app in September of 2013 that, among other things, included a way for consumers to "check in" when they entered a store so that check out was made much easier, as well as giving consumers a much easier way for consumers to toggle between payment methods at the physical point of sale. One of my biggest frustrations with using PayPal online and even in earlier versions of its app was how much of a pain it was to move between payment methods - friction that its latest version of the app eliminated.

Then, PayPal needed to figure out how to make friends with merchants so that getting that acceptance was not only technically possible but something that hard-to-impress merchants wanted to do. Its announcement of Beacon a month ago was designed to make merchants care. Beacon, as you may recall, leverages Bluetooth Low Energy to enable proximity payments and messaging between consumers who have the PayPal application installed on their phones and merchants that run the iOS operating system. Importantly, this capability provides the merchants with an opportunity to message consumers while they are in the store and to influence what consumers buy and how they pay for those purchases. For merchants, this is the kind of powerful communications channel that improves their chances of snagging incremental sales from the customers in their stores.

Now, with Payment Code, another very important capability was added, making this three legged stool a very comfortable chair. Payment Code enables any merchant with a scanner OR a pin pad to accept payment via the PayPal app using the very same 16 digit account number that the consumer uses today. That includes private label cards. Upon selection of PayPal as the method of payment, a one-time use dynamically generated surrogate is created that is managed on the back end and enabled by Discover. The merchant has to do absolutely nothing to enable this capability. It all happens in the cloud. And, this capability will also work in the merchant's own app, of course, provided that the consumer uses her PayPal account at check out (which of course PayPal will be able to influence via promotions it can message to those consumers).

I'm told that we'll see Payment Code roll out initially not at Mom and Pops but at the big merchants who have private label cards and who want to drive usage. And, I don't have to tell you how fond merchants are of their private label cards and how they push them every chance they get. Now with PayPal and Payment Code, they have the ability to provide incentives to consumers in real time in the hopes of influencing that usage. And, there's nothing stopping from PayPal and Payment Code from enabling "decoupled debit" using this product as well, a la the Target Red Card.

This could provide a significant boost to private label cards which have been on a slow decline for many decades now.

Now, we certainly know that consumers aren't as much in love with private label credit cards as the retailers are and those volumes haven't kept pace with the growth in credit card spend. But, who's to know how, or if, that could change based on PayPal's ability to innovate "private label" via its Bill me Later platform, for example, or offer other sweeteners simply based on their ability to tailor offers to consumers based on their loyalty status and having a connected device available to them to deliver those inducements. And, although I remain pretty skeptical of the whole decoupled debit gig, there is no denying that the Target RedCard has been very successful. It's possible, I suppose that mobile devices plus some combination of Payment Code and PayPal might give merchants more of an incentive to give it a second lease on life.

I also have a funny feeling that there's more to come.

eBay/PayPal's acquisition of Braintree gives it a development platform that will make it easier for it to attract any number of entrepreneurs who want to develop applications for Beacon and Payment Code merchants who want to wrap other value around payment. It's a very fast and efficient way to push innovation out the edge and have it flourish.

Oh, and I still think that there's more than sheer coincidence to the similarity to the PayPal Beacon and Apple iBeacon naming convention.

This could be quite disruptive if PayPal is right that Payment Code is the "killer app" that makes consumers really want to ditch their leather wallets for their digital ones. PayPal's belief is that Starbucks has trained consumers how to use QR codes and that the massive adoption of PIN debit cards has trained consumers how to type in four digit pins at the point of sale. The other bells and whistles that come along with the PayPal app wrapped around a more simple and familiar way of completing a payment in a store, removes any remaining barriers to consumer adoption.

We'll have to wait and see whether this does juice consumer adoption once Payment Code is available in selected stores this year and once a full scale rollout occurs in 2014. But, this development could make an already challenging execution of the MCX vision that much harder. If you were one of the big merchants, what sales pitch would you find more compelling? Pitch in and invest in building and operating a new payments network for the next couple of decades and hope the consumers come, or enable Payment Code via a software push, embed it into your own app if you want to and drive usage of your private label card (whatever flavor that takes) without having to do a whole lot - right away? And, if you are payments incumbent, you have to be a bit worried about the momentum that PayPal is building around mobile commerce and its attempt to end run around network branded products to private label products.

Oh, and what would happen if PayPal decides that Discover is so useful in all this that it just buys it (or at least the network), making a much stronger fourth network.
Just another day in payments land...


 

13. UL SEALS SECURITY EVALUATION DEAL WITH INDONESIAN EMV ORGANIZATION
Source: ATM Marketplace (10/24)

PT Citra Bakti Indonesia has selected UL as its security advisor and first security evaluation partner for the implementation of chip-based ATM and debit cards in Indonesia.

CBI was established by the three switching operators in Indonesia to support the implementation of the industry standard of chip-based ATM/debit cards. CBI defines and manages a variety of certification processes for the conformance of card and related devices to the National Standard Indonesia Chip Card Specification, and acts as a liaison between various parties based on payment industry good governance principles.

The Indonesia Central Bank and Payment System Association have launched strategic initiatives to foster the creation of a secure, efficient and robust electronic payment system, and have now finalized an EMV chip card technical specification for ATM and debit cards.

As a certification service company, Citra Bank Indonesia will support implementation of the Indonesia chip card technical specification, NSICCS, for ATM and debit cards and related devices.

For CBI, UL will develop a document outlining NSICCS security requirements and guidelines, set up a security evaluation for NSICCS chip card payment applications submitted by card manufacturers, and perform the security evaluation for vendors.

"We are very pleased to have become the independent security laboratory partner of CBI," said Jean-Luc Khaou, head of UL transaction security in Asia. "We trust that we can deliver high quality services to assist CBI with ensuring compliance and security of the Indonesia chip-based ATMs and debit cards."

In addition to providing security evaluation services in Indonesia, UL recently opened a PCI PTS laboratory in China. The company said in the release that it will be expanding its compliance and security offering across the region.

UL is a member of ACT Canada; please visit www.ul-ts.com.


 

14. GEMALTO ENABLES MOBILE NFC PAYMENT IN HONG KONG
Source: M2M Magazine (10/15)

Gemalto announces it has worked with PCCW-HKT, one of Hong Kong's major mobile network operators and Octopus Cards Limited (OCL), a leading contactless smartcard payment service provider in the world, to bring the security and convenience of mobile NFC ticketing to its subscribers, as well as a number of additional value added NFC services. Gemalto's UpTeq multi tenant NFC SIM will enable PCCW-HKT subscribers to load the Octopus payment functions onto their mobile NFC device for payment in Hong Kong's public transportation and retail services, as well as other purposes such as Octopus access control and loyalty applications.

With more than 23 million Octopus cards in circulation, Octopus delivers a broad range of micro payment services to 95% of Hong Kong's population. The Octopus Mobile Payment Service is the world's first commercial SIM-based implementation and deployment of the FeliCa application on NFC SIMs. FeliCa is a multi-purpose technology originally developed for payment and transportation applications in Japan, in an effort led by Sony and NTT DoCoMo. It is today broadly used in Japan, and in other countries particularly Hong Kong.

The mobile NFC ticketing service allows commuters to pay for journeys on all of Hong Kong's public transport systems, including the metro, rail, bus, ferry, coach and tram, as well as paying for fares on minibuses and taxis that accept Octopus. Using their selected and tested Sony NFC-enabled smartphones as an e-purse, commuters will be able to top up their Octopus Mobile SIM via any of the Octopus readers in Hong Kong. In addition, users can conveniently pay over-the-counter at retail shops, food and beverages outlets, as well as purchase entrance tickets at selected entertainment venues. Drivers will also able to pay for their parking using their mobile NFC phones.

Mr. Alex Arena, Group Managing Director of PCCW-HKT, said: "Our cooperation with OCL to provide Octopus mobile payment service integrating NFC technology, which is the first such service in Hong Kong, is another example of HKT's efforts to enrich the lifestyle of our customers, who can now enjoy convenient, effective, and secure mobile payment under Octopus' extensive transport and retail coverage all over Hong Kong."

"Hong Kong has the second highest population density in the world and also one of the most developed multimodal public transport networks," Mr. Sunny Cheung, CEO of Octopus Cards Ltd., said. "We are pleased with the rollout of Hong Kong's first Octopus Mobile Payment Service using designated NFC smartphones on transport infrastructure as a key to shifting consumer behavior towards the widespread use of mobile contactless services, and towards providing an additional, simple and attractive usage method of our public transportation system by local users."

"The mobile wallet offers daily commuters yet another convenient option for mass transit usage and payment, complementing the well-known and so popular Octopus contactless card success," added Michael Au, Senior Vice-President of Telecommunications at Gemalto Asia. "In addition to our NFC expertise, we are also bringing here our global experience in public transport, having deployed multi-application contactless transport cards in over 30 large and mega-cities, servicing many millions of inhabitants worldwide every day. This first commercial implementation of the FeliCa application on NFC SIMs will open up new business opportunities outside of Hong Kong and I look forward to seeing transport services act as a catalyst that boosts NFC adoption amongst consumers globally and provides the associated reward to the leading transport, mobile and payment operators who deploy it first."

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


 

15. ICC SOLUTIONS CONFIRMED BY VISA FOR CHIP VENDOR ENABLED SERVICE (CVES)
Source: ICC Solutions (10/31)

ICC Solutions is delighted to be the first vendor confirmed by Visa to offer the Chip Vendor Enabled Service (CVES) introduced to streamline the testing and reporting requirements for the deployment of EMV enabled ATM terminals plus contact and contactless point-of-sale chip-acceptance devices in the U.S.

This new service further expands the capabilities of ICC Solutions, allowing access into the Chip Compliance Reporting Tool (CCRT) to support Visa's terminal testing requirements and test results submissions.

ICC Solutions is now able to execute mandatory Acquirer Device Validation Toolkit and Contactless Device Evaluation Toolkit testing on behalf of U.S. acquirers and U.S. processors, analyse the results and submit reports to Visa using the Chip Compliance Reporting Tool.

Dave Maisey, CEO at ICC Solutions, commented: "This announcement is fantastic news for the industry. ICC Solutions is now enabled to offer additional value-added client services confirmed by Visa which will facilitate extremely efficient certifications of EMV enabled terminals for deployment in the U.S. market. We are proud to work with Visa on this significant initiative."

ICC Solutions and Visa are members of ACT Canada; please visit www.iccsolutions.com & www.visa.ca.


 

16. GIESECKE & DEVRIENT DELIVERS COMMON ACCESS CARDS TO U.S. DEPARTMENT OF DEFENSE'S DMDC
Source: Giesecke & Devrient (10/15)

Giesecke & Devrient (G&D) has received a contract award to provide the U.S. Department of Defense's (DoD) Defense Manpower Data Center (DMDC) with FIPS 201 PIV certified identification and physical/logical access cards. FIPS 201 is a U.S. Federal Government standard that specifies Personal Identity Verification (PIV) requirements for Federal employees and contractors.

For many years, the DMDC has been providing smart card technology as a DoD-wide Common Access Card/Personal Identity Verification (CAC/PIV). The CAC is the standard ID card for active duty members of the Uniformed Services, Selected Reserve, DoD civilian employees, and eligible contractor personnel. It is the DoD's Homeland Security Presidential Directive 12 authorized personal identity verification cards. The CAC/PIV is also the principal card used to enable physical access to buildings and controlled spaces and for logical access to the DoD's computer networks and systems.

Capitalizing on G&D's long history of developing security technologies, with millions of smart cards used for identification and authentication deployed around the globe, DMDC has engaged G&D to supply cards for their CAC/PIV program commencing immediately.

Axel Deininger, Group Senior Vice President at G&D, noted, "G&D StarSign FIPS 201 cards are very robust. They are designed to withstand the field conditions that have led to high card failure rates often seen in the PIV market today and are an excellent host for our authentication and identification applications."

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


 

17. PAYMENT SOLUTIONS BY TENDER RETAIL, A DIVISION OF ACCEO SOLUTIONS, WILL SUPPORT THE EPAS RETAILER PROTOCOL
Source: ACCEO (10/17)

ACCEO Solutions Inc announces that the payment solutions of its Tender Retail division, a Canadian leader in innovative and secure payment solutions, will be integrating the EPAS Retailer protocol. This major development is scheduled for sometime in 2014. The announcement was made today in Nice, France at the Annual Meeting of EPASOrg, an international standards association comprised of various key industry players.

The EPAS Retailer protocol is a standard defined by EPASOrg and will be added as an alternative to Tender Retail's current proprietary protocol. It is a standard, modern and interoperable protocol that will enable the integration of point of sale systems into the Tender Retail payment solution. In using this standard, merchants and vendors of point of sale solutions will enjoy greater operational flexibility. Eventually, Tender Retail solutions will also incorporate the EPAS Acquirer protocol, when acquirers (banks) are ready to support it in North America.

Standards are critical to card payment systems because they foster interoperability, a highly sought-after benefit nowadays. Additionally, by encouraging the spread of interfaces with only slight differentiation, they enable solution providers such as Tender Retail to focus their efforts on innovation, where it matters most.

"This technological advancement reflects ACCEO Solutions' commitment to being a key player in the evolution of payment solutions in both North America and Europe," stated Alain Philippe, Executive Vice President, Payment Solutions at ACCEO Solutions. "Once again, we are proving that innovation is one of our top priorities and also demonstrating our ongoing determination to move our industry forward and grow our market."

"We are delighted that our Associate Member ACCEO Solutions, with its Tender Retail division, is actively contributing to the promotion of EPASOrg standards in North America," said William Vanobberghen, Secretary General of EPASOrg.

ACCEO Solutions has been involved with EPASOrg as an Associate Member since January 2013 – becoming the first North American provider to join its ranks – and is actively supporting the development and use of new payment standards.

ACCEO is a member of ACT Canada; please visit www.acceo.com.


 

18. MULTOS INTERNATIONAL ANNOUNCES NEW DISCOVER D-PAS DUAL-INTERFACE APPLICATION
Source: MULTOS (10/03)

Multos International announces the launch of the new Discover D-PAS Dual-Interface application available for EMV migration on Discover, PULSE and Diners Club International networks. This latest application by Multos International complies with the new D-PAS contactless specification from Discover, and is certified across the latest range of MULTOS "step/one" and MULTOS product families for SDA, DDA and Dual-Interface (SC4, MC4 and ML4 platforms) applications. This opens up a new world of payment options for Discover cardholders, especially for use cases where speed of transaction is important such as transport.

"Discover and Multos International have a long history of working together since the first D-PAS EMV," says Richard Cusson, Managing Director of Multos International. "We are very pleased to be at the forefront of the Discover chip technology roadmap, building on our strong experience in dual-interface products. Having now worked on numerous D-PAS EMV migration projects around the world, we are confident that our latest product offering will be well received and easily deployed by issuers on all the Discover network brands, including regional networks utilizing D-PAS."

Troy Bernard, Head of Advanced Payments at Discover, said "It is important for us at Discover to be able to offer a broad range of products to our network issuers and their partners, in the United States and abroad. We are happy to work with Multos International and offer these dual-interface products ready to meet the needs of our expanding acceptance of Discover, Diners Club and PULSE brands."

Discover and MULTOS are members of ACT Canada; please visit www.discover.com & www.multos.com.


 

19. CANADA POST TEAMS UP WITH 3DCART TO PROVIDE STREAMLINED SHIPPING AND LOGISTICS SOLUTIONS FOR ONLINE RETAILERS
Source: Canada Post (10/29)

Canada Post announces that it's teaming up with 3dcart, an e-commerce platform that powers more than 16,000 online merchants, to provide retailers a user-friendly e-commerce platform with access to the suite of shipping tools already offered by the leading delivery network in the country.

By integrating Canada Post's web services onto the 3dcart software, small- and medium-size retailers will have access to a streamlined shipping process, resulting in an enhanced shopping experience for customers.

Specifically, the addition of Canada Post's web services as native features inside 3dcart's shopping cart software will give online merchants the ability to:
- Provide accurate Canada Post shipping rates, both international and domestic, to shoppers during the checkout process
- Print and track shipping labels directly from the 3dcart's admin interface
- Have custom control over label options such as signature required, proof of age and more
- Include required information for customs exports, like reason for export, HS Code, country and province of origin
- Send a tracking number to shoppers once an order has been shipped

"As our merchant base continues to grow throughout Canada, we are very proud to offer Canadian retailers instant access to the largest delivery network in the country, designed to make shipping and order fulfillment easy and affordable for everyone," says Jimmy Rodriguez, CTO at 3dcart.

"By partnering with innovators like 3dcart, we extend our vast network and array of shipping solutions to more e-retailers, resulting in an enhanced customer experience," says René Desmarais, Senior Vice-President, Parcels at Canada Post.

Canada Post is a member of ACT Canada; please visit www.canadapost.ca.


 

20. INSIDE SECURE POWERS INNOVATIVE MOBILE WALLET SOLUTION FROM LOOPPAY
Source: INSIDE Secure (10/09)

INSIDE Secure announced it is providing security hardware, software and payments industry expertise to LoopPay (DBA Loop), a mobile commerce platform provider launching an innovative mWallet solution that works with nearly all of today's retail point-of-sale (POS) terminals.

Loop selected the INSIDE VaultSEcure secure element to enable payment card data storage for its LoopWallet solution. INSIDE also collaborated with Loop to create a technical specification for LoopWallet, and developed an applet to enable it to perform secure electronic payment transactions with the tens of millions of mag-stripe card readers already in use.

"There are hundreds of mobile wallet solutions out there today, but they don't work at retail locations because the stores' POS terminals can read only mag-stripe cards," said George Wallner, Loop's founder and chief technologist. "Our breakthrough Magnetic Secure Transmission technology is now combined with industry security standards, and with the help of INSIDE we can make the real value of a mobile wallet available to consumers for the first time."

INSIDE's payment industry and security expertise enabled Loop to develop the detailed product definitions and specifications required to assure card issuers of the effectiveness of their solution's security.

The LoopWallet uses magnetic induction to securely communicate credit card information stored in the wallet to mag-stripe POS terminals. The INSIDE VaultSEcure product stores all payment card and other mag stripe card information securely in certified hardware. The specially developed INSIDE applet applies technology originally developed for Near Field Communication (NFC) to securely transfer that data to the terminal. The INSIDE applet, together with the certified hardware platform, assures transaction security. The wallet can also receive data from the terminal, such as promotions and other relevant offers for value-added services.

Loop is led by mobile commerce innovator Will Graylin and payment POS pioneer George Wallner. The company includes an experienced team of industry veterans who have developed the world's first and only mobile wallet solution that works with the vast majority of retail POS terminals. The company has already signed agreements with some of the largest global payment providers, and is in active discussions with many more on the distribution of its products and services.

"We are excited to be working with an innovative company like Loop to provide the security hardware and software they need, as well as applying our payments industry expertise, to ensure the successful launch of their new Loop mobile payment solution. We look forward to building our relationship over time as Loop introduces additional form factors and solutions," said Didier Serra, founder and U.S. general manager at INSIDE Secure. "This partnership demonstrates how our industry-leading solutions and expertise can improve time to market for companies like Loop and help ensure their success."

VaultSEcure IC is the first standalone secure element from INSIDE Secure, and the first in the industry to offer a full complement of external interfaces for host connectivity. The VaultSEcure IC has the greatest memory capacity in its class today, and its operating system is Java Card 3.0.1 and GlobalPlatform 2.2 compliant.

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


 

21. SECUREKEY DIVESTS HARDWARE SECURITY TOKEN GROUP
Source: SecureKey (10/09)

SecureKey announced that it has completed the transfer of its hardware security token group to newly founded Kili Technology Corporation. Afshin Rezayee, formerly vice president of hardware engineering at SecureKey, will lead Kili Technology, and along with the rest of the hardware engineering team will form the core of the new company.

Kili Technology was founded by SecureKey Chairman Greg Wolfond with funding from Toronto-based Blue Sky Capital.

"SecureKey's core business is providing cloud-based authentication services, so developing our own hardware devices is no longer the most efficient approach for us moving forward," said Charles Walton, CEO at SecureKey. "Recognizing the potential that still exists for hardware security tokens, Kili Technology has acquired all of the relevant SecureKey patents and other IP, as well as the engineering team, to continue pursuing this market under the leadership of Afshin Rezayee."

SecureKey's groundbreaking, cloud-based briidge.net platform is providing simplified secure access for citizens to a broad range of online services from the Government of Canada, and has recently been adopted by the U.S. Postal Service to provide the cloud-based authentication infrastructure for the new Federal Cloud Credential Exchange (FCCX).

"SecureKey's hardware security token group will find a good home at Kili Technology, and we are excited by the opportunity to drive this business forward as an independent entity," said Afshin Rezayee, co-president of Kili Technology. "With our excellent engineering team, technology and customer base, and the support of our backers, we are confident about the success of this new venture."

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


 

22. EUROBANK OFFERS NFC PAYMENTS IN POLAND
Source: NFC World (10/16)

Poland's Eurobank has begun offering its customers the ability to pay with NFC using T-Mobile's MyWallet service. The service is already offered by Getin Bank, Noble Bank, Raiffeisen Polbank and mBank.

To make NFC payments, customers must be T-Mobile subscribers and have a MasterCard debit card issued by the bank. Payments can then be made using MyWallet of up to PLN50 (US$16) without entering a PIN. Eurobank will also offer physical contactless cards as part of the partnership.

Eurobank is encouraging its customers to sign up for the service by offering 10% cashback on all contactless transactions up to the value of PLN600 (US$194) during their first six months. Customers who order the service by the end of October 2013 and carry out three contactless payments within 30 days will get an additional PLN50 bonus.

"The mobile channel is becoming increasingly important for Eurobank," says Wojciech Humiński, VP of Eurobank. "We are aware that with the increasing popularity of mobile devices, more and more customers will treat it as their primary channel.

"With the range of mobile contactless payments also expanded, I hope the functionality of our mobile application will help and brighten our customers' use of Eurobank every day."


 

23. VERIFONE DEAL ADDS MORE GAS TO MOBILE PAYMENTS
Source: PYMNTS.com (10/17)
By Jeffrey Green

Convenience store and petroleum station operators soon may add a mobile rewards and automated clearinghouse payment system supported by merchant-branded decoupled debit cards. Merchant processor National Payment Card Association (NPCA) has revealed it will begin offering the smartphone-based solution this fall by tying its mobile-payment service with VeriFone's Smart Fuel Controller.

The service, which will be available for beta testing in November, will enable the more than 1,000 merchants that support the VeriFone system to use their existing payment-acceptance infrastructure to accept mobile payments. It also will provide them with a relatively low-cost means to support rewards programs while enabling them to secure valuable customer information, including email addresses and transaction data.

NPCA specializes in offering decoupled debit cards to access cardholders' checking accounts using the magnetic ink character recognition information from a personal check supplied when customers register online. Consumers then may tie the merchant-branded debit card to the participating merchant's own mobile app. Merchants also may apply their brand to a mobile app supplied by the processor.

"Many consumers today would rather utilize the capabilities of their smartphones versus pulling out their wallets," Danilo Portal, National Payment Card's chief operating officer, said in an October 14 press release.

Participating merchants will pay the processor 18 cents per transaction and a one-time payment of 84 cents per consumer upon enrollment. One of the first users of the system was Cumberland Farms of Framingham, Massachusetts, where about 30 percent of transactions flowing through the processor are mobile-based, reports Digital Transactions.

Indeed, Cumberland Farms' experience in offering an NPCA-based mobile app should provide others with a good look at how such products can work.

The Cumberland Farms Experience

To encourage use of its free SmartPay Check-Link service, launched earlier this year, Cumberland Farms, which operates some 600 locations, provides customers who use the card or mobile app an instant 10-cent discount on every gallon of gas they purchase. Customers see the savings on the screen of their Apple iPhone of Google Android smartphone when fueling, and the price on the pump automatically notes the discounted amount.

Participating merchants fund the discount from savings associated with not having to pay card-network interchange. National Payment Card settles its transactions with merchants daily. To bolster security, customers must enter a four-digit personal identification number (PIN) for each transaction. New customers also go through an account-validation process that could take up to three business days to complete. Customers are notified when approved via email.

How The App Works

When paying, customers open the SmartPay app and select whether to pay at the pump or in the store. When paying at the pump, the app uses the phone's geolocation service to verify location. The user confirms the identified location and enters the pump number. The app then prompts the customer for a receipt and displays the transaction details on the screen. In store, the clerk scans a bar code the app generates on the phone, and the customer enters a PIN to complete the transaction.

Cumberland Farms also provides customers the option to fund their SmartPay account via PayPal. But, when using that option, customers may tie the PayPal account only to the mobile app, and they do not receive the 10-cent discount on gas purchases. They also may use the PayPal option only when paying at the pump and not for in-store purchases.

Because Cumberland Farms requires a $100 authorization for each gas purchase, PayPal customers showing an account balance below that amount are asked to choose another payment option to cover the difference. The retailer releases the difference between the $100 authorization hold and the purchase price once the transaction is complete.

Chief Goal: More Customers

Merchant-funded discounts have become increasingly popular as retailers seek ways to drive more consumers to their stores. Not having to pay interchange is one way to fund the discounts and drive customer loyalty, and tying transactions to mobile devices can help simplify the integrated payment and instant-rewards process.

For more information on the VeriFone/NPCA deal, click here. More information about the Cumberland Farms SmartPay product may be found here.

VeriFone is a member of ACT Canada; please visit www.verifone.com.


 

24. STARBUCKS LAUNCHES 'TWEET-A-COFFEE' SERVICE
Source: FINEXTRA.com (10/28)

Starbucks has teamed up with Twitter to launch a service that lets users tweet their followers and friends a virtual gift card that can be used instore to pick up a coffee.

The US-only beta service, dubbed 'Tweet-a-coffee', works by linking a Starbucks card to a Twitter account. Users then compose a tweet which includes '@tweetacoffee' and the friend's Twitter handle - initiating the gifting of a $5 Starbucks Card eGift.

Recipients receive a link to an e-gift card which they can redeem at participating stores by either showing their phone to a staff member, printing it out or loading it on to the iPhone mobile app.

Twitter is only the latest platform Starbucks has tapped for its e-gifting service; the firm first brought it in on its Web site in 2011 and since taken it to Facebook and its iPhone app.

Twitter's potential as an e-commerce platform has previously been tapped by American Express, which launched an initiative earlier this year where users could sync cards to an account and make select purchases using hashtags. Payments start-up Dwolla has also experimented with a feature enabling users to tweet money.


 

25. D-PAS ICCSIMTMAT TEST SUITES QUALIFIED BY DISCOVER
Source: ICC Solutions (10/08)

ICC Solutions is delighted to announce the immediate availability of D-PAS ICCSimTMat test suites qualified by Discover to meet the test requirements outlined in the D-PAS Acquirer-Terminal End-to-End Test Plan Release 12.2 for Discover and DCI (Diners Club International).

The D-PAS ICCSimTMat test suites may be used by Acquirers to demonstrate that deployed terminals meet the requirements of both the Acquirer and Discover / DCI. This includes demonstrating the ability to send and receive authorization requests and responses between a terminal and the Acquirer host and between the Acquirer host and the network plus demonstrate capability of terminals to process chip-based functions including support of PIN, fallback transactions, and card verification methods (as supported by the terminal).

Discover and ICC Solutions are members of ACT Canada; please visit www.discover.com & www.iccsolutions.com.


 

26. RIO DE JANEIRO LAUNCHES PILOT FOR PUBLIC TRANSPORTATION NFC TICKETING WITH SMARTPHONES
Source: Gemalto (10/18)

Rio de Janeiro will be the first city in Brazil to launch a pilot program enabling mobile NFC ticketing for public transportation. This innovative initiative is a pioneering partnership between RioCard Tecnologia da Informação, Gemalto, Motorola Mobility and the country's four leading mobile operators - Claro, Oi, Telefónica and TIM, supported by the GSMA. Two hundred users of buses, trains and ferries have been selected to collaborate with these companies in this three-month pilot, which is expected to conclude in December 2013.

For the first time in Brazil, smartphones will be used as mobile wallets with embedded NFC technology enabling secure payment for public transportation tickets. NFC allows safe contactless data exchange when two compatible devices are placed within a few inches of each other. Contactless technology was first adopted in Rio de Janeiro with RioCard transit card in 2003 and is now a part of the daily routine of millions of users.

To pay for the transportation, the user needs to place the smartphone Motorola RAZR D3 – which, as the first popular device offering NFC technology, has been exclusively selected for the pilot – within a few inches of the RioCard reader terminal. An app allows users to easily check balances on the screen at any time or place. Soon, RioCard will also offer prepaid charges on the device itself. "It is a practical and fast system that brings freedom to the customer." says Homero Quintaes, Director of RioCard TI.

Gemalto, the world leader in digital security, is providing its UpTeq multi-tenant NFC SIM cards with embedded Mifare4Mobile technology. The card protects the users' credentials enabling them to securely pay for their journey with nothing more than a tap of their handset. As technology needs evolve in the future, with the addition of Gemalto's Trusted Service Manager (TSM) platform the solution will be able to support the introduction of an extensive range of value-added services.

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


 

27. AIMIA AND POINTS CELEBRATE CHINA REWARDS LAUNCH
Source: AIMIA (10/18)

Building on last November's announcement of a minority co-investment in China Rewards, Aimia Inc. and Points, are pleased to announce the launch of China Rewards, the first coalition loyalty program in China that enables members to earn and redeem a common currency across all participating merchants.

"When we chose to invest in China Rewards, it was not only because we recognized the incredible opportunity to build the loyalty market in China, but also because we knew that in China Rewards and China Union Pay Merchant Services, we had found the right partners," commented Rupert Duchesne, Aimia's Group Chief Executive, " We share a common belief in the potential of the Chinese loyalty market and by leveraging the best of what each partner brings to the table today we are launching a program that will redefine the relationship that brands can have with their customers in China."

Points' CEO Rob MacLean added "Today's announcement is a celebration of the vision and commitment that China Rewards, and all partners, have shown in launching a program that will fundamentally transform loyalty in China."

Mr. MacLean continued, "Unlike other programs in China, China Rewards will provide its members with access to all of the worldwide loyalty programs with whom we partner. By the end of this month, China Rewards' points will join the growing list of major international loyalty currencies participating in our consumer Loyalty Wallet at www.points.com. Members will be able to both track and exchange their points with participating international hotel, airline and retail loyalty programs, giving them unparalleled transaction opportunities."

With an unrivalled network of partners across the China consisting of leading retail brands in multiple sectors, China Rewards features many unique attributes:
- Convenience - no need for a membership card, as a member's China Union Pay issued bankcard (credit card or debit card) is their membership card. China Union Pay's sales terminals can recognize and process members' relevant information automatically. Moreover, members can register using China Union Pay terminals at participating merchants.
- High earn rate - significantly higher than banks' points reward programs.
- Online and in-store - points can be earned and burned both online and in-store.
- International Exposure - China Rewards enables members to earn and redeem points around the world. Working with Points, China Rewards' points can also be exchanged with participating loyalty currencies around the world including major airlines, hotel chains, and retailers at www.points.com.

"With global industry leading partners and a network of unrivalled retailers and brands in China, China Rewards is uniquely positioned to offer Chinese consumers a truly personal loyalty program that enables them to earn and redeem where and how they choose," said China Rewards CEO, Cindy Wu - a seasoned executive with more than 20 years experience in the Chinese retail and loyalty industry. "Today we are celebrating not only all that we have accomplished over the past year, but moreover the opportunity that we see to create a truly exceptional loyalty experience for our clients and our members," added Ms. Wu.

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


 

28. UL RECEIVES NEW ACCREDITATION TO PERFORM CARD (CONTACT) TESTING SERVICES
Source: UL (10/17)

UL is proud to announce its accreditation by Discover to perform contact card testing services.

UL's test labs can now offer Discover Accredited Testing Services, which includes full functional card testing in conformity with Discover requirements for Discover contact D-PAS cards.

UL's functional testing and approval services check all aspects of smart cards: physical characteristics, compatibility with EMV and ISO smart card standards to ensure interoperability and compliance.

"We are very pleased with the accreditation by Discover, which adds to our portfolio of accredited testing services we can offer for different schemes and industry organizations. This accreditation will greatly benefit our customers, as it will help reduce their time-to-market and increases the efficiency of their tests. The functional testing is performed in addition to the existing security testing. Adding this service makes UL a convenient, 'one-stop-shop' for card testing and allows us to maintain a high standard in testing," commented Berend van Geffen, Commercial Director of UL Transaction Security.

Anyone wishing to access the market with a payment smart card will need to ensure the card is functionally compliant with the specification requirements set by a particular scheme. UL's functional testing services for Discover will help clarify the interpretation of Discover specifications and enable global interoperability of payment cards with terminals.

UL's advanced development and testing facilities are all equipped with a wide range of state-of-the-art automated measurement equipment. They have all been independently assessed and accredited to the most stringent standards. This includes ISO/IEC 17025 and ISO/IEC17020 under UKAS accreditation, the international testing laboratory competency standard. This way, we provide assurance of the highest levels of service and technical competence.

Discover and UL are members of ACT Canada; please visit www.discover.com & www.ul-ts.com.


 

29. BERKELEY RANKS #11 IN GTA'S 50 FASTEST GROWING COMPANIES
Source: Berkeley Payment Systems (10/08)

Berkeley Payment Solutions ranked #11 in Greater Toronto's 50 Fastest Growing Companies, posting a 5 year revenue growth rate of 1,923%. The ranking appeared in the National Post and was compiled by ProfitGuide.

This is a tremendous achievement following our #26 ranking in the Profit500 list of the fastest growing companies in Canada, and reflects the strength of our client and partner relationships and the dedication of our talented employees.

This also reflects the popularity of our prepaid card solutions which are used by corporations to cost-effectively issue rebates, reward employees, enhance marketing promotions, simplify compensation, and more.

Berkeley Payment Solutions is a member of ACT Canada; please visit www.berkeleypayment.com.


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


Insights • Networking • Visibility

ACT Canada is the place to be to:

  • Filter the truth from market noise
  • Understand complex issues
  • Facilitate problem resolution

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.