Stakeholders Driving Payment Evolution and Digital Identity

February 2015 ACTion Newsletter

IN THIS ISSUE:

  1. EDITORIAL COMMENT - MY HOUSE - MY RULES!
  2. CANADIANS PRIORITIZE SECURITY OVER CONVENIENCE, SPEED WHEN MAKING PAYMENTS
  3. UGO WALLET EXPANDS CAPABILITIES TO INCLUDE MORE LOYALTY CARDS
  4. TEXT US: TD THE FIRST MAJOR BANK IN CANADA TO OFFER SMS CUSTOMER SERVICE
  5. WITH ITS SOFTCARD DEAL, GOOGLE CEMENTS CARRIER SUPPORT AND TURNS UP HEAT ON APPLE PAY
  6. INTERAC DEBIT CARD FRAUD LOSSES FALL TO RECORD LOW
  7. CARDTEK USA UNVEILS NEW PARTNERSHIPS FOR A SMARTER AND SAFER MOBILE PAYMENTS WORLD IN THE U.S.
  8. ICC SOLUTIONS RELEASES M-TIP 2.0 TEST SUITE SUPPORTING TEST SELECTION ENGINE (TSE)
  9. GEMALTO CONFIRMS NSA HACK (BUT SAYS MASS ENCRYPTION KEY THEFT DIDN'T HAPPEN)
  10. SAMSUNG ACQUIRES LOOPPAY TO HELP DRIVE MOBILE WALLET PLANS
  11. MARS PARTNERS WITH PAYPAL, UGO AND MONERIS SOLUTIONS TO POWER FINANCIAL TECHNOLOGY INNOVATION IN CANADA
  12. G&D OFFERS WHITE LABEL MOBILE CLOUD PAYMENT SERVICE FOR FIS
  13. RBC IS TESTING APPLE PAY, RUMORED TO BE LAUNCHING IN CANADA SOON
  14. MAJOR RETAIL STUDY: MOBILE CONSUMERS PREFER NFC TECHNOLOGY OVER COMPETING ALTERNATIVES
  15. NBS TECHNOLOGIES ANNOUNCES VISA INC. CLOUD-BASED PAYMENTS HCE APPROVAL
  16. VISA PREPARES EUROPEAN TOKENS AND P2P PAYMENTS
  17. GLOBAL M-COMMERCE SET TO LEAVE E-COMMERCE IN THE DUST
  18. DOUBLE SAFEGUARD FOR DIGITAL IDENTITIES - GIESECKE & DEVRIENT AND VODAFONE PRESENT LOGIN PROTECTION AND ENCRYPTION USING A SIM CARD
  19. NEW FIME WHITE PAPER: WHAT THE U.S. MERCHANT COMMUNITY NEEDS TO KNOW ABOUT EMV CHIP IMPLEMENTATION
  20. OBERTHUR POWERS POLISH BANK'S NEW HCE-ENABLED MOBILE APP
  21. VISA LAUNCHES MOBILE LOCATION SERVICE TO IMPROVE CARD PAYMENT EXPERIENCE DURING TRAVEL
  22. SANTANDER, MASTERCARD AND GEMALTO ACHIEVE LARGEST DEPLOYMENT OF CONTACTLESS EMV CARDS IN SOUTH AMERICA
  23. NXP, CREDITCALL AND VIEWAT TECHNOLOGY INTRODUCE SECURE SOLUTION FOR NFC-ENABLED MOBILE POINT OF SALE
  24. CZECH REPUBLIC IS EUROPE'S LEADER IN NFC PAYMENTS
  25. G&D SIMPLIFIES SECURE AUTHENTICATION IN WEB SERVICES AND PREVENTS IDENTITY THEFT
  26. RUSSIAN SUBWAY GOES CONTACTLESS WITH MASTERCARD PAYPASS
  27. MASTERCARD'S LATEST HCE MOVES
  28. GEMALTO ADDS NEW TOKENIZATION OPTIONS TO ITS TRUSTED SERVICES HUB
  29. VISANET DOMINICANA PARTNERS WITH ANYWHERECOMMERCE TO POWER ITS "CATCHER" MPOS SERVICE IN THE DOMINICAN REPUBLIC
  30. FIRST INVESTMENT BANK AD CHOOSES MEAWALLET FOR IMPLEMENTING AN INNOVATIVE CLOUD BASED MOBILE PAYMENT SERVICE

ACT Canada Partners:

Ingenico Group

INGENICO - Point of Sale Equipment Partner
Ingenico Group is the global leader in seamless payment, providing smart, trusted and secure payment solutions to empower commerce across all channels, in-store, online and mobile. With the world's largest payment acceptance network, we deliver secure solutions with a local, national and international scope in 125 countries. For over 30 years, we have been the trusted world-class partner for financial institutions and for retailers, ranging in size from small merchants to several of the world's best known global brands. Our smart terminal and mobile solutions enable merchants to simplify payment and deliver their brand promise. Visit http://www.ingenico.com/.

Interac Logo

INTERAC - Payment Network Partner
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.

 Payments Business - Media Partner



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

PRINCIPAL

CUPS Payment Services ~ member since 2012
Desjardins ~ member since 2012
HSBC Credit Card Services ~ member since 2006
Zag Bank (Formerly Bank West) ~ member since 2012

GENERAL

Dream Payments ~ new member
EVO Payments International Corp-Canada ~ new member
Imperial Oil ~ member since 2010
Infineon Technologies ~ member since 1998
NXP Semiconductors ~ member since 2006
Ombudsman for Banking Services & Investments ~ member since 2009
PRESTO-Division of Metrolinx ~ member since 2013
SecureKey Technologies Inc. ~ member since 2009
Suncor Energy Products Inc. ~ member since 2010

ASSOCIATE

North Commons (Formerly Gamble Consulting) ~ member since 2014


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

Mobile World Congress
Mar 2-5, 2015
Barcelona, Spain
http://www.mobileworldcongress.com/
ACT Members receive 15% off the full registration price

Connect:ID
Mar 23 - 25, 2015
Washington, DC
http://www.connectidexpo.com/
ACT Members receive 15% off the full registration price

ICMA 25th Anniversary Card Manufacturing & Personalization EXPO
Mar 29 - 01, 2014
Phoenix, AZ
https://icma.com/icma-25th-anniversary-expo/

TRANSACT 15
Mar 31 - 02, 2015
San Fransico, CA
http://electran.org/events/transact15/

Card Forum & Expo
Apr 8 - 10, 2015
Chicago, IL
http://www.paymentssource.com/conferences/card-forum/
ACT Members receive $200 off registration

Cartes America
May 5 - 7, 2015
Washington, DC
http://www.cartes-america.com/
ACT members receive a 20% registration discount

CNP Expo
May 18 - 21, 2015
Orlando, FL
http://cardnotpresent.com/cnpexpo/

Cardware 2015
Jun 16-17, 2015
Niagara Falls, ON
http://www.cardware.ca
ACT members receive a substantial registration discount


ACTivities

Our Mobile and Customer Authentication Strategic Leadership Teams (SLTs) have both determined their mandates for the first term of 2015:

Customer Authentication - to see a list of active member companies please visit http://www.actcda.com/teams/slts/customer-authentication.html

This term will focus on the need to address fraud in eCommerce/Card Not Present (CNP) transactions. The mandate of the group is to build a white paper to:

    • Address current risks involved in eCommerce/CNP transactions
    • Understand current solutions for eCommerce/CNP transactions
    • Provide recommendations or best practices for eCommerce/CNP transactions

Mobile - to see a list of active member companies please visit http://www.actcda.com/teams/slts/mobile-slt.html

This term will focus on understanding data in the mPayment ecosystem versus the traditional transaction environment. The mandate of the group is to build a white paper to:

    • Identify the new data that is available to stakeholders with the introduction of mobile transactions
    • Map the flow of this data through exploring the sources, ownership and transference/transmission of the data
    • Identify the parties/stakeholders involved in the data flow and the implications or benefits to these groups

Our SLTs are open to all members, if you are interested in joining one of the aforementioned teams, please email britteny@actcda.com.

Cardware 2015 is just around the corner on June 16th & 17th. Check out www.cardware.ca to get all the details. Our call for speakers is now closed and that means we are busy putting together the program for Cardware 2015. However, that doesn't mean you have to wait to make your move. Registration is now open (www.cardware.ca/register) and hotel information including how to get a discount for your stay is available as well (www.cardware.ca/delegate-information/location.html). The hotel will fill up quickly, so make your travel arrangements before it is too late.


1. EDITORIAL COMMENT - MY HOUSE - MY RULES!
Source: Catherine Johnston, President & CEO, ACT Canada (02/26)

Remember when your parents said that to you, or perhaps you have said it to your own children. Should it be any different in the workplace? Let's take a look. You want your family to be happy. In your business you want your customers, employees, shareholders and even regulators to be happy. The scale is bigger but the concept is the same.

In your family it takes work to establish and adhere to standards and values. The same is true of the workplace. In both scenarios people have to take individual responsibility and lapses need to be corrected in a way that encourages better future outcomes.

We are at an interesting point in the evolution of payment and even more so related to customer authentication and general issues of ID, data and privacy. Technology is not the factor that will determine who will and won't be successful or profitable. Enough of us have access to technology to make it a somewhat neutral factor. Is the level of education and the skill sets of our employees the differentiator? Not as much as we would like to think. I believe it is an issue of character and judgment.

CEO does not stand for Chief Ethics Officer and every single person in the company is responsible for making choices that support long term relationships and corporate health. People who want to reap quick profits at the expense of long term sustainability should be removed from their positions.

CIO does not stand for Chief Integrity Officer because it is everyone's responsibility to do the right thing. Sometimes that brings short term penalties, but again, everyone needs to protect the long term viability of the company.

The decisions that will be made in this emerging market will likely touch on how our personal data is used. Each of us needs to think through the pros and cons of data usage employing our commitment to ethics and integrity.

And one last one - CFO doesn't stand for Chief Fix It Officer. (I bet you thought I was going in a different direction with the acronym, didn't you) Everyone who takes on a responsibility should fulfil it to the very best of their abilities. Frankly, I'm tired of people who put more effort into justifying what they didn't get done than the effort required to succeed in the first place. There is no Chief Fix It Officer in your life so do what you committed to or accept that there must be consequences. Please.


2. CANADIANS PRIORITIZE SECURITY OVER CONVENIENCE, SPEED WHEN MAKING PAYMENTS
Source: Visa (02/19)

Ahead of Fraud Prevention Month, a new study commissioned by Visa Canada showed Canadian consumers still prioritize payment security above all else. Two thirds (66 per cent) of credit cardholders ranked security as the most important element of a credit card transaction, surpassing convenience (14 per cent) and speed (10 per cent). Additionally, nearly half (48 per cent) of credit cardholders report they worry about fraud when shopping online.

These figures coincide with the four-year milestone of Canada's transition to EMV chip and PIN, following the European example and leading the way for other markets. Whether on a chip card, or other form factors such as a mobile phone, chip technology offers an innovative barrier to counterfeit fraud. The chip stores the payment data and generates a unique, one-time code for each transaction, a feature that is virtually impossible to replicate in counterfeit cards.

The adoption has been widespread - 83 per cent of transactions processed in Canada are now 'chip-on-chip' (a chip card processed at a chip terminal) and according to Visa data, fraud rates (6 cents for every $100 of global Visa transactions) are historically low. Consumers are noticing the chip and PIN benefits too - more than two thirds (69 per cent) said they felt the technology was secure, an overwhelming majority (84 per cent) agreed that paying with chip and PIN was easy, and most cardholders (60 per cent) cited an easy transition from magnetic stripe to chip and PIN.

"Since adopting the enhanced security of chip and PIN, Canada has seen a notable decrease in domestic counterfeit and lost and stolen fraud losses," said Gord Jamieson, Head of Visa Canada Risk Services and North America Acquirer Risk Services. "Chip and PIN has laid the groundwork for secure commerce and responsible innovation, something Canadians are telling us is very important to them, wherever they choose to shop."

Contactless NFC payments are the next step in this rapid evolution of commerce in Canada. Seven Visa payWave contactless transactions happen every single second across the country, and new form factors like smartphones now offer NFC technology built-in for connected consumers on-the-go. More than half (58 per cent) of credit card users who have made purchases in person reported having used contactless payments, and almost three quarters (74 per cent) of contactless payment users consider this type of payment quicker than other card payments.

"Canadians are quickly adopting contactless payment methods like Visa payWave," said Jamieson. "Visa payWave transactions are protected by the same layers of security as all Visa payments, including Visa's Zero Liability policy which means consumers do not pay for unauthorized transactions."

When it comes to ecommerce, most credit cardholders have shopped online (86 per cent of card holders), but many still have privacy and fraud concerns, with 48 per cent reporting they feel their credit card details are less secure online. Visa's multiple layers of security like Verified by Visa, Address Verification Service (AVS), E-Promise, Card Verification Value 2 (CVV2, or the three digit code) offer reassurance that cardholders are protected when using their Visa payment card when shopping online. Complete details about Visa's multiple layers of security including Visa's Zero Liability policy are available at www.visa.ca.

Every Visa transaction is processed through VisaNet, the technology backbone that supports the billions of transactions made on the global network. In a split second, Visa analyzes multiple data sets such as past transactions, whether the account has been involved in a data compromise, global fraud trends, and nearly 500 other pieces of data, helping identify criminal patterns and prevent fraud before it happens.

"The future of commerce is exciting, and Visa is committed to working with consumers and all participants in the payments industry to build out the changing commerce landscape," said Jamieson. "For more than 40 years, VisaNet's multiple, advanced layers of security have supported Visa's changing payment innovations and services, and it will continue to provide that secure backbone for years to come."

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


3. UGO WALLET EXPANDS CAPABILITIES TO INCLUDE MORE LOYALTY CARDS
Source: CNW (02/23)

UGO Mobile Solutions L.P. announced a significant update to its mobile app, UGO Wallet. Building on its payment and loyalty platform - launched just three months ago - this new version allows users to quickly and easily store multiple loyalty cards by simply using their smartphone's camera to scan the barcode of their loyalty cards. This is another step in providing Canadians the ability to digitize and slim down their wallets.

Customers can now collect, and where applicable, redeem reward points in the same way they use their plastic loyalty cards, simply by presenting the digitized barcode of their loyalty card on their smartphone at check-out for scanning. Barcode scanning technology is compatible with an extensive list of smartphones, including Apple iPhone.

"This feature is a benefit to both loyalty programs and consumers - providing the opportunity for improved program participation and member engagement," said Alec Morley, CEO of UGO Mobile Solutions. "It's also a great example of our ongoing effort to develop and evolve UGO Wallet, by providing an enhanced digital wallet experience."

The new loyalty card feature is compatible with an expanded range of smartphones, making this version of UGO Wallet available for download on the App Store, as well as Google PlayTM and BlackBerry World. Owners of eligible NFC-enabled BlackBerry 10 or AndroidTM smartphones also have access to the payment functionality of UGO Wallet, available with participating credit cards.


4. TEXT US: TD THE FIRST MAJOR BANK IN CANADA TO OFFER SMS CUSTOMER SERVICE
Source: TD Bank Group (02/20)

TD Bank Group announced the launch of customer service through SMS in Canada via "TDHELP." Mobile, easy and fast, texting takes customer comfort and convenience to the next level, and TD is the first major bank in Canada to offer it.

"We are excited to be able to make banking easier through the convenience of texting, a medium our customers are using in increasing numbers," says Wendy Arnott, Head of Digital Marketing and Social Media, TD Bank Group. "Whether it's a general question about a banking product, a branch location or EasyWeb, or they just need a quick phone number, TD customers can now reach a live TD agent via text. And even though it's still early days, increasing engagement is pointing to texting becoming a key service channel for TD."

Introduced as part of a pilot in the fall of 2014, the ability to text TD is now available to customers by using the shortcode TDHELP (834357) between 6 am and 11 pm ET, seven days a week. Customers with questions that require an in-person response will be directed to the TD customer service line (1-866-222-3456, toll free). (Standard text messaging rates will apply.)

We are making it easier than ever for customers to connect with a TD specialist anytime. In 2011 TD was the first bank in Canada to offer customer service 17 hours a day, seven days a week through a dedicated North American Social Customer Service team on Twitter and Facebook. Now texting joins Social Customer Service, TD Helps (the TD online advice community) and the TD Aeroplan Community as part of an expanding suite of online assist capabilities that TD offers customers to help make banking convenient and comfortable. Next month, TD customers will be able to start a real-time conversation via TD Live Chat on tdcanadatrust.com.

How does it work?
Customers can text their questions to TDHELP (834357) through their smartphone. For more information they can visit www.TD.com/contact.

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


5. WITH ITS SOFTCARD DEAL, GOOGLE CEMENTS CARRIER SUPPORT AND TURNS UP HEAT ON APPLE PAY
Source: Digital Transactions (02/23)

When Google Inc. launched its Google Wallet mobile-payments service nearly four years ago, it quickly ran into a formidable obstacle: three major mobile carriers, including two of the nation's largest, wouldn't let Google Wallet work on their phones.

Now Google has finally found a solution, and it's one that could catapult its mobile wallet into what some observers say is an advantageous competitive position with rival Apple Inc.'s Apple Pay service.

At mid-day Monday, the online search giant announced a deal with the same trio of carriers that once boycotted Google Wallet. The deal will result in the carriers—AT&T Inc., T-Mobile USA, and Verizon Wireless—building the Google service into the Android-powered mobile phones they sell. The agreement also includes the transfer to Google of technologies developed by Softcard, the mobile-payments venture the carriers launched in 2010.

Terms for the transaction were not announced. It remains unclear what the deal means for Softcard, which like Google Wallet has struggled to catch on with merchants and consumers, but it appears Google has acquired virtually all of its tangible assets. "Softcard technology and capabilities will be transitioned to Google, and we anticipate that Softcard will eventually cease to exist as a standalone business," a Softcard spokesperson tells Digital Transactions News by email.

For Google, the deal could have momentous implications, experts say. It calls for the three carriers to start including Google Wallet before the end of the year in all Android phones sold in the U.S. that run KitKat or an even newer version of Android called Lollipop.

Since Android devices enjoy a significantly larger U.S. market share than Apple's iPhones, that part of the deal could ultimately give Google Wallet a huge boost in its competition with the 4-month-old Apple Pay service, which runs in-store only on the iPhone 6 and 6 Plus (though the introduction of Apple Watch, expected in April, will extend Apple Pay to the iPhone 5, 5c, and 5s). For now, KitKat and Lollipop combined already acount for about 22% of all U.S. smart phones in use, according to data from Google and market researcher comScore.

Overall, Android commands a 53.1% share of U.S. smart-phone subscribers, compared to a 41.6% share for all iPhone products, according to comScore. Potentially, Google now has "the ability to field mobile payments across all of the handsets that aren't Apple. That's the lion's share of devices in the market," Nick Holland, a senior analyst who follows mobile payments at Javelin Strategy & Research, tells Digital Transactions News.

Another key advantage for Google is that the deal gives it access to the so-called secure element (SE) in those phones—the very access the carriers had blocked for years to protect Softcard. This could prove crucial as some observers say the secure element—a chip in the phone that houses card credentials for mobile payments—is coming to be seen as a more secure option than a cloud-based approach called host card emulation (HCE). Apple, for example, has staked the reputation of its SE-based Apple Pay service on security.

"The conversations are hotting up on HCE vs. secure element," says Holland. "There's more of a conversation that the encryption keys need to be on [the] device rather than hosted in the cloud. Apple clearly had a more elegant and secure situation by having the credentials stored on the device."

Google, Softcard, and the mobile operators all said they would not comment beyond announcements posted by Google and Softcard.

The technologies Google has acquired from Softcard likely include a large portfolio of patents the company developed during its relatively short tenure. Among these is a patent for a technology called SmartTap that combines loyalty and offers programs with payments. SmartTap depends on near-field communication (NFC), a wireless technology used by both Softcard and Google Wallet.

SmartTap has been built into a range of newer-model NFC-capable terminals, including devices used with vending machines and other unattended points of sale. It's unclear, however, how SmartTap differs from a similar technology called SingleTap that Google unveiled with Google Wallet in 2011. Word first leaked a month ago that Google, along with several other interested parties, was negotiating to acquire Softcard from its three carrier owners.

"I foresee a lot of innovation being fostered with this new combination," says Steve Mott, principal at BetterBuyDesign, a Stamford, Conn.-based payments consultancy, in an email message. "Softcard brings a lot of practical integration experience to the table."

Clearly, Google has made a play to step up Google Wallet's rivalry with Apple Pay. "It's now much more of two-horse race," observes Holland.


6. INTERAC DEBIT CARD FRAUD LOSSES FALL TO RECORD LOW
Source: Interac Association (02/25)

Interac Association reported that Interac debit card fraud losses, as a result of skimming, are at a record low - decreasing 45 per cent to $16.2 million in 2014 from a previous low of $29.5 million in 2013. More significantly, fraud exploitation within Canada accounted for only 20 per cent, or $3.2 million, of 2014 losses to financial institutions. Cardholders are protected from losses through Interac's Zero Liability Policy.

Also released today, results from a recent Interac survey shows that two out of five (41 percent) of Canadians are concerned about payment card fraud. Canadians are most concerned about fraud associated with skimming (49 per cent), retail data breaches (45 per cent), electronic pickpocketing (40 per cent) and online shopping (38 per cent).

"We know that payment fraud stories, such as skimming, electronic pickpocketing and retail data breaches are worrisome to people," said Mark Sullivan, Head of Fraud Risk Programs, Interac Association and Acxsys Corporation. "That's why we stay vigilant in the fight against fraud. We are debit experts and only want to provide payments solutions that allow people to access their hard earned money securely."

Interac Flash is a case in point. As an enhancement of Interac Debit, it has all the same security features, such as chip technology, Interac zero liability, plus the added protection of small transaction limits. No single transaction can be more than $100 and the total spend can not exceed $200 before the cardholder must enter their PIN.

"Criminals are looking for large amounts of cash and highly fenceable goods, not a few coffees," reinforced Sullivan. "Interac Flash is about speed and convenience for small value purchases but we know cardholders want security and that's why it offers strong protections, including protection from criminals attempting electronic pick-pocketing to a lost card where someone tries to fraudulently spend $100."

With measures like the migration to chip technology, which is near complete in Canada, criminals are migrating their payment card fraud activity to international exploitation in non-chip environments and card-not-present (i.e., over the Internet and telephone) exploitation on credit cards and other networks' debit products.

"As our fraud numbers show, we have a steady decline of Interac debit card fraud losses since the introduction of chip and PIN technology in 2009," said Sullivan. "These investments in technology, along with our policies, sophisticated fraud prevention and detection efforts, and partnerships, have had a tremendously positive impact on the decline of Interac debit card fraud in Canada."

Top Payment Card Fraud Concerns:
- Skimming: One of out two Canadians (49 per cent) is concerned about skimming-related fraud. The Interac network protects consumers from skimming-related fraud through chip technology and comprehensive fraud prevention tactics. All ABMs and Interac debit cards have been converted to chip technology - and by the end of 2015, all point-of-sale (POS) terminals will be converted. To date, virtually all cards and ABMs have been converted and 96 per cent of POS terminals.
- Electronic pickpocketing: Two out five Canadians (40 per cent) are concerned about electronic pickpocketing. When Canadians use Interac Flash, they are safeguarded against counterfeiting and transaction replay types of fraud, including electronic pick-pocketing. As a contactless enhancement of Interac Debit, it protects cardholders with layers of security, including chip technology and spending limits. No single transaction can be more than $100 and total spend without a PIN can not exceed $200. Once a limit is reached, a cardholder must insert their Interac debit card and enter their PIN for verification, i.e., conduct a regular Interac Debit transaction. The limits are then re-set.
- Retail data breaches: Forty-five percent of Canadians are concerned about retail data breaches. Canadians should know that the Interac network is not susceptible to fraud from retail payment card security breaches, like those recently reported. Unlike credit cards and other debit card products, Interac rules do not allow the number on the front of the payment card to be used as an account number; it is only an identifier for Interac transactions. This means that any data captured or stolen through skimming or a breach is entirely useless to a criminal because it cannot be used to conduct transactions, online or in person. No personal financial information is ever shared or stored with retailers.
- Online shopping: Thirty-eight per cent of Canadians have concerns about shopping online. Although Canadians are most concerned about the fraud risks associated with online shopping, Interac Online uses unique, encrypted data - meaning the information cannot be duplicated and re-used for a fraudulent transaction. Since the transaction is completed through web banking, no personal information is ever shared with the merchants. These rules also protect cardholders from fraud resulting from payment card data security breaches, such as those recently reported in the media.

Notably, Canadians 35 and younger are less concerned about payments-related fraud. They cited skimming (34 per cent), online shopping (34 percent), electronic pickpocketing (32 per cent) and retail data breaches (32 per cent) as their top concerns.

About the Survey Methodology
The omnibus survey was conducted by The Strategic Counsel among a representative sample of 1,000 adults (age 18 and over) across Canada. The survey was conducted online between January 19th and 23rd, 2015. A probability sample of this size would yield results accurate to ± 3.1 per cent, 19 times out of 20.

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


7. CARDTEK USA UNVEILS NEW PARTNERSHIPS FOR A SMARTER AND SAFER MOBILE PAYMENTS WORLD IN THE U.S.
Source: PR Newswire (02/03)

Cardtek USA is proud to announce its sister company, Phaymobile's memberships to "Samsung Enterprise Alliance Program" and "Tizen Association Partner Program." With its extensive Embedded Secure Element experience, Phaymobile will be developing the data software of Samsung smartphones and contributing to the development of Tizen Operating System (OS) to monitor and provide maximum safety for Samsung smartphones worldwide. Joining the company-wide accomplishments, the American division of Cardtek Group, Cardtek USAwill be offering a smarter and safer infrastructure for mobile payment users with the cloud-based mobile service solution HCExpert product.

With the recent market trends and developments, especially in the Near Field Communications (NFC) front, concepts such as Host Card Emulation (HCE) and tokenization have been introduced. HCE will be used to eliminate the need for secure elements in mobile phones for storing card credentials, which will eventually put an end to the constant fear of becoming a data breach victim.

"This is revolutionary for the NFC market," said Gokhan Inonu, President, Cardtek USA. "When compared to the standard Secure Element Platform, HCE is not only a lower cost option, but it's also easy to install. This game changing newcomer is expected to give the big push to the NFC solutions, increasing user numbers, and eventually, e-commerce sales to $414 billion by 2018 in the U.S., according to Forrester Research. We are excited to be a part of this revolutionary movement as one of the leading developers."

Cardtek is a member of ACT Canada; please visit www.cardtek.com.


8. ICC SOLUTIONS RELEASES M-TIP 2.0 TEST SUITE SUPPORTING TEST SELECTION ENGINE (TSE)
Source: ICC Solutions (02/13)

ICC Solutions is delighted to announce the immediate availability of M-TIP 2.0 test suite release running on the industry leading ICCSimTMat test tool platform and which supports the newly released MasterCard Test Selection Engine (TSE).

A number of Acquirers successfully used the TSE enhancements featured in this M-TIP test suite during pilots of TSE. M-TIP 2.0 will be officially released by MasterCard for use on February 18, 2015.

TSE is a stand-alone Microsoft Windows application replacing M-TIP Questionnaires and Test Case User Guides offering benefits that include: contact and contactless test plan selection and test case description in a single, consolidated environment; a user-friendly interface facilitating the collection of terminal configuration details and test results; new and enhanced functionalities, like formal description of acceptance criteria, test case versioning, automated test plan update and incremental testing capabilities; better integration with M-TIP qualified tests tools and M-TIP service providers.

Dave Maisey, CEO, commented "ICC Solutions was delighted to work with MasterCard to run pilots of TSE in conjunction with several major acquirers reporting successful results achieved using the ICC Solutions tool. The TSE features introduced by MasterCard in M-TIP 2.0 will further extend the terminal testing efficiency experienced by our clients using ICCSimTMat: M-TIP test suite to perform contact and contactless M-TIP EMV chip terminal integration tests for formal approval with MasterCard."

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


9. GEMALTO CONFIRMS NSA HACK (BUT SAYS MASS ENCRYPTION KEY THEFT DIDN'T HAPPEN)
Source: PYMNTS.com (02/25)

The world's biggest maker of SIM cards for mobile phones, Gemalto, confirmed in an early AM press conference that it has "reasonable grounds" to believe that the NSA and GCHQ hacked its network in 2010-2011. The Dutch firm went on to note that while the hack breached Gemalto's office networks, it "could not have resulted in a massive theft of SIM encryption keys." Gemalto further noted that even had encryption keys been stolen, the government involved would only have picked up the ability to spy on generation 2G mobile networks, as 3G and 4G networks are not vulnerable to that sort of attack.

Gemalto further noted that though (given the nature of their business) they are frequently a target for digital attackers, they can confirm that in 2010 and 2011 they were the victims of a cyberattack that was particularly sophisticated and consistent with a state sponsored incursion into their computers.

"At the time we were unable to identify the perpetrators, but we now think that they could be related to the NSA and GCHQ operation. These intrusions only affected the outer parts of our networks - our office networks - which are in contact with the outside world. The SIM encryption keys, and other customer data in general, are not stored on these networks. It is important to understand that our network architecture is designed like a cross between an onion and an orange; it has multiple layers and segments which help to cluster and isolate data," Gemalto noted in a statement released on their investigation of the event.

That statement accompanies the final report from an investigation of the hacking that Gemalto has posted on its website. The investigation was carried out in response to an article in The Intercept that had indicated (via documents leaked by Edward Snowden) that Gemalto's encryption keys had been wholesale boosted by U.S. and British intelligence.

Gemalto's statement defines the scope of the breach but does not outline any hard numbers, meaning it remains a somewhat open question as to how many encryption keys were stolen. On the upside, Gemalto also reconfirmed that none of its other products were affected in the attack.

"While the intrusions described above were serious, sophisticated attacks, nothing was detected in other parts of our network. No breaches were found in the infrastructure running our SIM activity or in other parts of the secure network which manage our other products such as banking cards, ID cards or electronic passports. Each of these networks is isolated from one another, and they are not connected to external networks."

Gemalto also had some questions about the allegations of theft in some of the specific details - noting that elements of the report indicate that the Dutch SIM card maker might not have been a correctly identified target. For example, the report notes that Gemalto hasn't ever sold SIM cards to four of the twelve operators listed in the Intercept report.

So why steal access to 2G networks?

2G networks accounted for the vast majority of connections in China and India in 2010 and 2011, though only 25 percent of the U.S. and 50 percent of Western Europe.

"In 2010-2011 most operators in the targeted countries were still using 2G networks. The security level of this second generation technology was initially developed in the 1980s and was already considered weak and outdated by 2010. If the 2G SIM card encryption keys were to be intercepted by the intelligence services, it would be technically possible for them to spy on communications when the SIM card was in use in a mobile phone. This is a known weakness of the old 2G technology and for many years we have recommended that operators deploy extra security mechanisms. However, even if the encryption keys were intercepted by the Intelligence services they would have been of limited use. This is because most 2G SIMs in service at that time in these countries were prepaid cards which have a very short life cycle, typically between 3 and 6 months."

The full Gemalto press release is available at http://www.gemalto.com/press/Pages/Gemalto-presents-the-findings-of-its-investigations-into-the-alleged-hacking-of-SIM-card-encryption-keys.aspx.

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


10. SAMSUNG ACQUIRES LOOPPAY TO HELP DRIVE MOBILE WALLET PLANS
Source: Mobile Payments Today (02/18)

In what was probably one of the worst kept secrets in the industry, Samsung announced it acquired LoopPay along with the company's proprietary contactless payments technology that is supposed to work with 90 percent of the point-of-sale terminals deployed in the U.S.

Samsung intends to integrate LoopPay's Magnetic Secure Transmission technology into its mobile devices. LoopPay's selling point with the technology is that it can "communicate" with magnetic-stripe readers. The forthcoming Galaxy S6 smartphone, which Samsung will reveal March 1 at the Mobile World Congress in Spain, will reportedly feature LoopPay's technology — though neither company has yet officially acknowledged such a marriage.

While LoopPay sidestepped inquiries about its involvement with Samsung leading up to Wednesday's announcement, CEO Will Graylin two weeks ago retweeted an article about the rumored collaboration between the two companies regarding the Galaxy S6.

"We are excited to take our relationship with LoopPay to the next level, by bringing consumers a mobile wallet solution that is not just safe and reliable, but also widely accepted at more locations than any competing service," said David Eun, EVP of Samsung's Global Innovation Center. "Through this deal we can significantly accelerate our mobile-commerce efforts. LoopPay's outstanding leaders and team have deep-rooted relationships with banks, card networks and merchants that will complement those Samsung has established over the years."

For much of its existence, LoopPay's technology was met with skepticism from industry executives and analysts. Doubters viewed the idea of using (and buying) a fob device or smartphone case embedded with the MST technology in conjunction with a free mobile app as a sloppy partnership and not a true mobile payment. And sometimes the technology didn't work. One industry analyst Mobile Payments Today spoke to in the past said he experienced an incident where the fob caused problems with a merchant's terminal.

Some industry observers believed LoopPay's technology could be an asset in a mobile phone. Obviously, Apple was out of the question, although LoopPay has an iOS app (for now). The next best thing for the company was to get themselves involved with Apple's primary competitor in the smartphone market. And there was little doubt Samsung knew about Apple Pay months before it debuted and wanted to create a mobile wallet of its own.

"Samsung clearly intends to respond to Apple Pay with its own payment system, and to date no wallet solution has rivaled the user experience that Apple Pay has been able to deliver, so we can expect them to try to replicate the user experience as closely as possible, with perhaps a few unique components in order to stand out," Rick Oglesby, a senior research analyst for Double Diamond Payments Research, told Mobile Payments Today in an email.

LoopPay's technology does have the advantage over the Apple Pay feature of Passbook in that it is mostly compatible with the existing payments infrastructure. In fact, the company's marketing strategy centers on this concept. LoopPay trumpets this in all its advertising emails to consumers. Oglesby acknowledged this advantage, but also believes there's some risk involved with Samsung's new acquisition.

"Samsung will need to continue to support NFC also; it wouldn't make sense to be completely incompatible with Apple Pay," he said. "So if Samsung Pay supports both Loop Pay and NFC, then the user's payment experience will vary from merchant to merchant (one experience at mag-stripe merchants, and a different one at NFC-ready merchants).

"This will be confusing to consumers and could inhibit adoption. Additionally, many mag-stripe terminals are behind-the-counter devices and are therefore inaccessible for a contactless payment even when they are technically capable. This could create additional barriers to consumer adoption."

LoopPay's technology also hits a speed bump when it comes to EMV.

Per its own website: "You can add chip cards to your LoopPay account today and use them at mag-stripe readers (MSR) just like any other payment card. However, if the merchant POS terminal is configured to accept EMV cards, you will be instructed to use the physical card to make the transaction via the chip-and-PIN card reader. LoopPay will soon be announcing a solution that will address this inconvenience."

Samsung will face other obstacles if it truly wants to compete with Apple Pay, Oglesby said.

"Samsung also needs to get banks on board in scale, the way that Apple has done," he said. "Samsung therefore needs to be working with the payment networks to create a bank-friendly and secure solution, and hopefully one that ties neatly into the infrastructure that is already in place for banks and networks to interface with Apple Pay. Big technical barriers that lengthen bank activation would create further barriers to consumer adoption."

The battle lines have now been drawn. Some mainstream media outlets have dubbed LoopPay a competitor to Passbook, and by extension Apple Pay, but such a label might be a bit misguided. Apple Pay doesn't need an additional peripheral to conduct a mobile payment. LoopPay's cases can cost as much as $60, though its fob device is much cheaper. In any event, Samsung's answer to Apple Pay was inevitable.

"Other manufacturers and operating system owners need to offer competitive solutions, since there are many checklist buyers that evaluate feature by feature and go with the device that has the most features," Oglesby said about the current mobile wallet battle. "We can expect the other manufacturers and Google to continue this trend; mobile payment functionality will now be a mainstream feature built into new mobile devices coming to market.

"However, that doesn't mean that consumer adoption will be mainstream. Many technologies and products never take hold, and there are big challenges left if this coming generation of mobile payments products is to succeed."


11. MARS PARTNERS WITH PAYPAL, UGO AND MONERIS SOLUTIONS TO POWER FINANCIAL TECHNOLOGY INNOVATION IN CANADA
Source: Let's Talk Payments (02/19)

New technologies have clearly transformed the way we shop and pay. With the advent of technology, customer experience has gained centre stage across the commerce value chain. Firms operating across the chain, including those in CPG, Retail, Banks and Fintech are in the process of building seamless products catering to the needs of the customer. Apart from the incumbents, new players - mostly startups - have also focused on new products. As a result, global investment in Fintech ventures reached nearly US$3 billion in the last five years and is set to grow to US$8 billion by 2018.

Most firms in the sector solve a specific problem and focus on an explicit consumer segment. However, with intense competition, it looks like players in the ecosystem have been competing with similar solutions addressed to the same (tech savvy) consumer segment. As such, there are very few firms/solutions which have been successful in the market and have made a lasting impact. The result, for the industry as a whole, is multiple solutions in silos.

A concrete step towards addressing this problem was taken by the retailer community by forming MCX. MCX brought all of the top US retailers under one roof by developing solutions which could work across all the major stores. The second such initiative was taken up by Apple where in Apple Pay had on boarded a large number of merchants even before its launch. Such joint development in co-operation with the extended enterprise is a wonderful example of "Open Innovation".

A similar initiative has surfaced in the heart of Canada's financial services industry in Toronto. MaRS Discovery District (MDD) in Toronto is one of the world's largest urban innovation hubs focused on Fintech. MaRS cultivates high-impact ventures and equips innovators to drive economic and societal prosperity. MaRS also provides expert advice and market research, and makes connections to talent, customers and capital. MaRS will connect leaders in the technology and financial services sector with startups developing next generation technology in the payments, financial services, peer-to-peer transactions, alternative lending, and crypto-currencies.

The centre has recently tied up with PayPal and UGO to power financial technology innovation. The new partnership is aimed at connecting leaders in the technology and financial services sectors. In addition, Moneris Solutions Corporation also announced its plans to work with MaRS Discovery District. The collaboration is aimed at aiding startups to help steer the development of market-changing payment technologies. MaRS startup ventures have created 6,500 jobs and, in the last three years alone, they have raised $1 billion in capital and generated $500 million in revenue.

MCX and Moneris Solutions are members of ACT Canada; please visit www.mcx.com & www.moneris.com.


12. G&D OFFERS WHITE LABEL MOBILE CLOUD PAYMENT SERVICE FOR FIS
Source: Mobile Payments Today (02/24)

Giesecke & Devrient has launched Convego CloudPay, a mobile cloud payment service compliant with the specifications of the major international payment schemes.

The solution comprises two main components: the CloudPay server for mobile payment card provisioning and life cycle management; and the CloudPay client software, which includes digitalized payment cards and also executes payment transactions, a G&D press release said.

Convego CloudPay supports payment schemes that include MasterCard, Visa and Amex. For financial institutions, the solution also offers managed services in payment scheme-certified data centers operated by G&D.

To enroll for cloud-based payments, consumers download the mobile app offered by their bank from a mobile app store such as Google Play.

Once enrolled for a digitalized payment card, the consumer receives the "card" over-the-air from the CloudPay server. The accountholder may begin using the card on the phone app at merchant locations that support contactless transactions.

Combined with a trusted mobile app Convego CloudPay allows banks to offer mobile payment solutions and a range of other mobile financial services under the bank's brand, G&D said.

The bank is able to interact directly with customers, as G&D delivers system-wide security while leaving the design and marketing to the bank, the release said.

American Express, Giesecke & Devrient, MasterCard & Visa are members of ACT Canada; please visit www.amex.ca, www.gi-de.com, www.mastercard.ca & www.visa.ca.


13. RBC IS TESTING APPLE PAY, RUMORED TO BE LAUNCHING IN CANADA SOON
Source: Let's Talk Payments (02/11)

In US, Apple Pay supports 90% of the payment card brands that consumers use. Following its success with banking partners in US, it seems Apple Pay wishes to do the same in Canada as well. Royal Bank of Canada is rolling out a pilot project for Apple Pay aimed at those having either an RBC Royal Bank USD checking account or RBC Bank US credit card, as reported by MobileSyrup. Although this project is currently meant for the Canadian employees only but this doesn't rule out that Apple Pay might be launched in Canada later this year.

RBC is the largest bank in Canada and would make an ideal partner for Apple Pay to enter the Canadian market. Canada already has prominent presence of NFC terminals and established EMV chip-and-pin based payment infrastructure. Many Canadian banks already offer similar mobile payment services for Android and BlackBerry users. With the backing of RBC when it enters the Canadian market, Apple Pay can expect a number of banking partnerships in short period as it witnessed in US.

RBC is a member of ACT Canada; please visit www.rbc.com.


14. MAJOR RETAIL STUDY: MOBILE CONSUMERS PREFER NFC TECHNOLOGY OVER COMPETING ALTERNATIVES
Source: NFC Forum (02/12)

The NFC Forum and Strategy Analytics today unveiled the results of a comprehensive retail research report and web survey on mobile consumer engagement and purchases, revealing the needs and preferences of today's mobile-centric consumer. The in-depth report - which includes both observational research of retail scenarios comprising 36 participants and a web survey that included more than 1,000 participants - offers retailers insights into providing more relevant, convenient and enhanced in-store shopping experiences and a better understanding of the full potential of in-store engagement opportunities. Overwhelmingly, NFC technology was preferred over competing alternatives including Bluetooth Beacons and QR codes.

The Forum's related white paper, "NFC Technology: How Changing Consumer Preferences Create New Opportunities for Retailers," is available at the Forum's website. The findings were also discussed earlier today during the Forum's webinar, "Consumer Perspectives on In-Store Engagement Technology," which is archived and available for replay.

As mobile technology continues to allow retailers and brands to enhance communication and engagement with increasingly connected mobile consumers, the NFC Forum recently commissioned leading global consumer research firm Strategy Analytics to gather and analyze data relating to end-user preferences and perceptions of NFC in a retail setting.

The study revealed six specific opportunities in which retailers and brands can use NFC technology during the customer journey to improve in-store experiences, generate more sales, and enhance customer loyalty and trust. Consumers were particularly excited to use NFC to access timely and relevant information, such as:

- Store deals, store Wi-Fi, and rewards accounts
- Multimedia content and real-time store inventory
- Information about related products
- A digital, NFC-enabled shopping cart on their phones
- Product information for large purchases
- Exact refill cartridge information and one-touch reorder capability
- NFC was preferred by a significant margin over QR codes, Bluetooth Beacons, and browsers in all of these use cases.

The study also revealed that:

- Over 75% of respondents who used NFC were very satisfied with their experience.
- More than 75% of respondents indicated an interest in viewing additional product information including inventory and availability via NFC.
- Over 60% were interested in an NFC-enabled mobile shopping cart in-store experience and using NFC to order the replacement parts or accessories for products, such as ink and toner cartridges for printers.

"Smart phones continue to change the way we live, interact - and shop," said Paula Hunter, Executive Director, NFC Forum. "For decades, retailers have been working to leverage technology to improve customer experiences and engagement under the ever-evolving digital model - all with varying degrees of success."

"Thanks to this survey data we have a much deeper understanding of how retail consumers want to be engaged. Overwhelmingly, NFC is preferred because it's fast, efficient, and offers greater control," continued Hunter. "With more than 500 million NFC-enabled phones in the market today and more than a billion by the end of this year, retailers would be wise to take advantage of NFC's superior performance to immediately improve consumer engagement in many other aspects of the retail experience."


15. NBS TECHNOLOGIES ANNOUNCES VISA INC. CLOUD-BASED PAYMENTS HCE APPROVAL
Source: ICMA Industry News (02/06)

NBS Technologies announced that its Xpressi Mobile Wallet software has been approved by Visa Inc. to meet all of the functional requirements of its Cloud-Based Payments Program and granted participation in the Visa Ready Program for mobile financial card issuance.

"NBS's XpressiTM Cloud platform and Visa Cloud-Based Payments HCE application provides credit card providers a complete end-to-end solution to the mobile payment market," commented Robin Ehrlich, chief software architect. "NFC-enabled phones can now be used with confidence for contactless payments. All cryptography is implemented securely in the cloud."

The support of Visa Cloud-Based payments includes the XpressiTM Cloud platform which is used to securely personalize an application on the phone as well as a Mobile Wallet application for the phone. The software application includes an NBS Technologies developed Android HCE. NBS's Xpressi Mobile Wallet may be branded by financial institutions or incorporated into their existing mobile banking application.

"The XpressiTM Cloud platform allows our customers to use the same software platform to securely personalize NFC enabled phones, issue contact and contactless cards instantly at financial institution branches, and to issue physical cards via central issuance," commented Alan Fontanella, director of North American sales. "We're excited to be an early participant in the Visa Ready Program. It's an emerging market with tremendous promise and creates more choice for banks, issuers and their customers."

NBS Technologies and Visa are members of ACT Canada; please visit www.nbstech.com & www.visa.ca.


16. VISA PREPARES EUROPEAN TOKENS AND P2P PAYMENTS
Source: PYMNTS.com (02/24)

Apple Pay is coming closer to reality in Europe as Visa prepares for a mid-April launch of a tokenization service customized for the European marketplace.

The practice of swapping out a 16-digit credit card number with a basically meaningless token number is considered a necessary component in the future of payments security, and has been since Apple chose to make it the central security feature for Apple Pay.

Steve Perry, Visa Europe's chief digital officer, noted in an interview that his firm's plan for secure credit card data transmission parallels what Visa Inc offers in the United States. He declined to comment on whether Apple Pay had agreed to use Visa's tokens in European markets.

"Apple and Visa (Inc) have an agreement around what has happened," Perry said. "I am as excited as anyone, but we have to wait," he added. The Visa Europe executive referred further questions to Apple.

Visa's announcements this week were not all about tokens, however. The firm has also announced an intention to create a peer-to-peer payment service that will allow users to transfer cash, in real time, using just a mobile phone number or Visa card number.

The service will be called Visa Direct and will supplant Visa Personal Payments, the existing P2P protocol with about 200K users in Europe. It will be hooked in to Facebook and Twitter to allow users to transfer funds between social media services.

Visa has additionally rolled out an API to make it easy for banks to integrate the service, and is geared for a summer 2015 launch.

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


17. GLOBAL M-COMMERCE SET TO LEAVE E-COMMERCE IN THE DUST
Source: PYMNTS.com (02/19)

Leaving your smartphone at home today is like leaving the house without your shoes on. It's oddly unsettling and anyone in this predicament would likely feel a little lost until they get that device back in their hands.

Not as many people may notice who's without the device as they would notice who's without the shoes, but the consumer without it surely feels the pain. But as much as the smartphone has become an extension of a person's everyday habits, in the U.S., consumers are still turning to smartphones to browse more than they are to shop. But that's not the case globally. Turns out, the U.S. is just "average" when comparing mobile commerce figures, according to Melissa O'Malley, director of global merchant and cross border trade initiatives for PayPal.

"People don't associate their phone with making phone calls. They associate it with something that's transactional — whether it's transactional because they can text somebody, because they can buy something, they can share something. It's becomes a really utilitarian device," she said in a interview with MPD CEO Karen Webster on the eve of releasing the results of their mobile commerce study with Ipsos.

To fully understand the shifting global mobile commerce behavior, here are the top takeaways from PayPal's recently released report about global mobile commerce:

M-Commerce Growth Is Outpacing E-Commerce 3-1
Everyone instinctively understand that mobile commerce is growing and growing fast. But now we have some facts to back that up.

Overall, PayPal's research in conjunction with Ipsos that examined the mobile commerce habits of 17,600 consumers in 22 countries, shows that between 2013 and 2016, the multi-country average compound annual growth rate for mobile commerce is projected to be 42 percent, toppling e-commerce's same growth rate at 13 percent.

PayPal's been on the receiving end of that growth, as well, O'Malley noted. It's seen its mobile payment volume grow significantly over the past four years and reports that mobile now accounts for 20 percent of its overall purchase volume worldwide. That same figure was less than 1 percent in 2010.

"We are on the cusp on the mobile-first era," said Anju Nayar, senior director of global initiatives for PayPal. "One thing is evident: Mobile shopping is on target for meteoric growth. Mobile commerce is growing at three times the rate of e-commerce."

In the U.S., mobile commerce is anticipated to grow from $54.6 million in 2014 to $96.3 million in 2016. Compared to the roughly 9-11 percent increase e-commerce is expected to see each year, m-commerce in the U.S. has a projected growth rate of between 32-26 percent each year through 2016. Globally, mobile commerce across the 22 markets is estimated to grow from roughly $102 billion in 2013 to roughly $291 billion in 2016.

Mobile Commerce Leaders: China, Turkey, United Arab Emirates
When it comes to both online shopping and smartphone-shopping density figures, these regions by far surpass any other. According to PayPal's reports, in the UAE, mobile shopping makes up for 24 percent of overall online spending. In China, that number is 21 percent and Turkey is in third at 19 percent.

In terms of smartphone-shopping density, more than 68 percent of Chinese online consumers said they've used their mobile devices to make purchases on a smartphone in the past year. The number is only slightly lower for UAE shoppers at 57 percent and 53 percent for Turkish consumers. But in the U.S. the number is roughly cut in half, with only 31 percent of consumers reporting that they've used their smartphones to shop in the past 12 months. The explanation, however, has nothing to do with whether or not the U.S. is filled with Luddites who don't like using their mobile devices. It's simply that U.S. consumers have multiple devices to use to access the Internet - tablets, desktop computers, laptop computers - and use them all to do their shopping online.

"China, the UAE and Turkey are leading the smartphone market as a whole, but they also lead smartphones in terms of density. When you look at the percentage of people who are actually doing this, those are the people who are actually leading," O'Malley said.

33 Percent Of Online Shoppers Say They've Used A Smartphone To Make A Purchase
According to PayPal's report, and not surprisingly, the surge in projected smartphone shopping growth comes from young adults. Overall, a third of online shoppers surveyed said they've used their smartphone for making an online purchase in the past 12 months. And that increase in mobile shoppers is being driven by smartphone shoppers between the ages of 18-34 (59 percent of smartphone shoppers in that age bracket reported using mobile to shop online).

When comparing individual companies to the overall global average of 33 percent, the U.S. figures are slightly below. The average number of consumers who've shopped in the U.S. using a smartphone was 31 percent. That puts the U.S. behind the U.K. (33%), France (36%), Spain (34%), Switzerland (32%), Russia (34%), Israel (37%), Turkey (53%), Ukraine (57%), Brazil (34%), Mexico (46%), Australia (33%) and China (68%).

So why is the U.S. percentage below average? O'Malley said its simply a cultural difference. In the countries like Turkey, Ukraine, Mexico or China, that report having a larger percentage of mobile shoppers, it's more likely because the trend is to use a smartphone for more purposes. The U.S. is split in their behavior likely because of the consumer trend toward using more devices (desktop, laptop, tablet, smartphone). The trend in many other regions is to have one device for all purposes, including shopping and socializing.

64 Percent Of Consumers Have Used Mobile Apps For Shopping
PayPal reports that globally, 64 percent of smartphone users reported using an app for purchases as opposed to the 52 percent who used mobile browsers. The reasons cited for that are two: convenience and speed. Convenience was cited by 35 percent of users and speed by 30 percent. Instant payment confirmation and having a reminder in the app to use discounts or coupons were two other major reasons cited by those surveyed.

"When you look at how a merchant can take advantage of this, they need to decide if they need an app strategy," O'Malley said. "It's important because more people are more likely to buy from an app from a browser than a phone."

Mobile Spending: A Picture Of Then, Now And The Future
PayPal's research shows that across its 22 global markets, the rate of mobile spending is projected to rise by roughly $190 billion over the next three years. The 2013 mobile spending figure for mobile shopping in 2013 was roughly $102 billion, which is anticipated to hit $291 billion in 2016.

The mobile shopping behaviors consumers say they use today is shifting dramatically to what they say they'll use their mobile device for in the future. In terms of actual mobile shopping behaviors today, 36 percent of consumers say they use mobile to get info on a product, 27 percent use mobile to find a business and 25 percent use devices to read reviews on particular stores or products.

But consumers revealed that in the future, they are interested in using their smartphones for more mobile-centric tasks. For example, consumers said that they'd be interested in using tap and pay at the register with their smartphone (16 percent), mobile ordering through app or browser (15 percent), and to compare prices while shopping in stores (14 percent).

What's Hurting Mobile Commerce Growth?
PayPal reported that the top barrier to mobile commerce is the size of the screens. While that is changing, particularly in the U.S. with the launch of the iPhone 6 Plus, many of the smartphone users (39 percent) surveyed said they prefer to use a laptop or desktop because of screen size and website functionality. Security was another top concern named, as 21 percent of those surveyed had security concerns when it came to using a mobile device to shop online.

The data also shows that the shift from smartphones and tablets is expected to change even during the next 12 months. Data from the previous year show that consumers are still turning toward online shopping 85 percent of the time, with smartphones falling at 9 percent and tablets at 5 percent. But in the next 12 months, the research shows that computer-based online shopping will dip to 79 percent, while smartphone shopping will increase 14 percent and tablet shopping will increase 7 percent.

"With the advent of low-cost mobile phones, larger screen sizes and mobile device security improvement, the barriers to mobile commerce will decrease," Nayar said. "Those improvements combined with streamlined digital options like PayPal One Touch will make it easier, more secure and more intuitive for customers to pay with their mobile phone."


18. DOUBLE SAFEGUARD FOR DIGITAL IDENTITIES - GIESECKE & DEVRIENT AND VODAFONE PRESENT LOGIN PROTECTION AND ENCRYPTION USING A SIM CARD
Source: Giesecke & Devrient (02/16)

User accounts are increasingly becoming the targets of internet hackers. Once a username and password have been obtained, the combination of these gives cyber thieves access to critical company services such as cloud storage systems, e-mail accounts, and online shop accounts. In order to tackle the problem of identity theft in the digital world, Vodafone Germany and Giesecke & Devrient (G&D) have worked together to develop Vodafone Secure Login as a solution specifically for corporate and public sector customers which acts as a second authentication element in addition to a password. The solution is based on a SIM card and incorporates a special security mechanism.

G&D is putting its many years of experience with the development of its secure cards to good use with the "Secure Login" offering based on the Vodafone Secure SIM: During production, the SIM card is given a permanent unique identity. When the product is shipped, this identity can be linked with its subsequent user via various secure procedures. The SIM card can therefore be used as a second component that is a mandatory requirement when logging in to networks or services. In this way, it safeguards internet transactions or confirms access to a network. The simple act of "phishing" for the username and password no longer provides cyber criminals with access to digital identities.

Companies can therefore safeguard access to their networks and even to the web-based services used outside of their firewalls. These include CRM systems, accounting systems, communication systems such as e-mail, or systems for supporting business processes.

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


19. NEW FIME WHITE PAPER: WHAT THE U.S. MERCHANT COMMUNITY NEEDS TO KNOW ABOUT EMV CHIP IMPLEMENTATION
Source: Global Newswire (02/04)

2015 is expected to be a landmark year of progress for the U.S. migration to EMV chip payments. It is also the year when, starting Oct. 1, the payment brands will start to shift liability for fraudulent transactions to merchants if they haven't upgraded their systems to accept chip cards. While it's probable that the "big box" merchants will be ready, there are millions of mid-sized merchants and value-added resellers (VARs) that are only just starting to learn about chip technology and beginning implementation project plans.

To help this merchant community understand the changes and challenges associated with introducing EMV chip technology to the U.S. and to get started on the right path to chip deployment, payments consultancy FIME has released the white paper, "EMV Chip Migration for U.S. Merchant Community: Implementing Chip in the Complex U.S. Acceptance Environment." It can be downloaded on the FIME website at https://www.fime.com/whitepaper/EMVmigration.

"Introducing EMV chip payments in the U.S. is not a simple card technology change. It is a paradigm shift of the payments ecosystem, as chip introduces transaction, processing and system requirements that are fundamentally different from magnetic stripe," said Xavier Giandominici, director of FIME America. "FIME is providing this white paper for the U.S. acceptance community to better understand the complexities around introducing chip, and to offer some best implementation practices for getting a chip-accepting solution to market in as timely and efficient manner as possible."

This white paper provides the merchant community with essential education about the introduction of chip payments in the U.S., including:
- The fundamental changes that chip technology introduces to the U.S. payments ecosystem
- How introducing chip affects the payment acceptance infrastructure and current payment acceptance systems
- The challenges for introducing chip implementation for payment acceptance
- Opportunities for standardization to reduce implementation, integration, certification and maintenance costs
- The top chip implementation steps, best practices and considerations

FIME is heavily involved in chip implementation projects for acquirers, merchants and issuers throughout the U.S. The company recently expanded its San Jose headquarters to accommodate the increasing demand for consulting and end-to-end testing services for the U.S. EMV chip migration. For more information on FIME's offerings, visit http://www.fime.com/emv-consulting.html.

The authors of the white paper are Stuart Miller, bank products and services business line manager, FIME and guest expert writer Emmanuel Haydont, partner, Amadis. Today, FIME and Amadis are working together to provide state-of-the-art payment solutions that are developed by experts and validated by an independent third party laboratory.

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


20. OBERTHUR POWERS POLISH BANK'S NEW HCE-ENABLED MOBILE APP
Source: Mobile Payments Today (02/19)

Oberthur Technologies announced its selection by Poland-based Getin Bank to introduce mobile proximity payments relying on HCE (Host Card Emulation).

Relying on Oberthur's solution, Getin Bank performed a first transaction compliant with Visa specifications for HCE at the end of December 2014. With this service, Getin is the first bank in Poland to propose a mobile payment program using HCE. The solution provided by Oberthur will be available to all Getin Bank customers at the end of the first quarter of 2015, according to a press release.

Customers need to install the Getin Bank HCE mobile wallet and register their Visa mobile card in it. To make a transaction, they will log in to Getin Bank's application and tap their mobile phone on a contactless payment terminal. Transactions up to 50 PLN (12€) will not require confirmation with a PIN. The application will also enable them to check the history of performed transactions and manage their payment cards.

"Proximity payments are gaining momentum in Poland, that's why we constantly work on the development of this kind of service," said Pawel Wawiernia, director of payment cards and alternative payments department at Getin Noble Bank. "Visa cloud-based payment and HCE are currently the most advanced technologies that are available on the market of mobile payments. Thanks to the cooperation with Oberthur, our customers will soon be able to enjoy this innovative, secure and convenient service."

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


21. VISA LAUNCHES MOBILE LOCATION SERVICE TO IMPROVE CARD PAYMENT EXPERIENCE DURING TRAVEL
Source: Let's Talk Payments (02/15)

Visa Inc. is introducing a new mobile service designed to reduce unnecessary purchase declines often triggered when consumers travel outside of their home area. Visa Mobile Location Confirmation uses mobile geo-location information to more reliably predict whether it is the account holder or an unauthorized user making a payment with a Visa account.

"Wherever you are in the world, we want Visa transactions to be the most secure, convenient and seamless payment choice," said Mark Nelsen, senior vice president of risk products and business intelligence, Visa Inc. "By matching the location of the cardholder through a cell phone or other mobile device, to the location of the purchase, Visa's new service will enable banks to feel more confident about authorizing a transaction that might otherwise have been declined due to suspicion of fraud."

While infrequent, unnecessary transaction declines can mean lost sales for retailers, additional customer service costs for financial institutions and, ultimately, frustration for the cardholder if unable to make a purchase when traveling. According to Visa estimates, issuing financial institutions spend hundreds of millions of dollars annually to manage customer service calls related to pre-travel requests and to research declined transactions.

By providing financial institutions greater intelligence when approving transactions, Visa expects to reduce such declines by as much as 30 percent, impacting millions of transactions annually and improving the experience for cardholders, merchants and financial institutions.

How it works

Mobile Location Confirmation is an optional service for consumers that will be offered through participating financial institutions' mobile banking applications. The service uses mobile geo-location data in real time as an additional input into Visa's predictive fraud analytics. Finsphere Corporation, a leader in the use of mobile data and geo-spatial analysis, provides Visa an analysis of the account holder's device location data, which is then matched with the transaction location in less than a millisecond, right at the point of sale. When a cardholder's mobile device is in the same location as the payment transaction, the issuing financial institution can more confidently approve the transaction.

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


22. SANTANDER, MASTERCARD AND GEMALTO ACHIEVE LARGEST DEPLOYMENT OF CONTACTLESS EMV CARDS IN SOUTH AMERICA
Source: Gemalto (02/11)

Gemalto announces it has deployed more than one million Optelio contactless EMV cards in a year for Banco Santander Brasil, through Santander Universities. These University Smart Cards (USC) are issued to universities in Brazil with agreements with Banco Santander and represent the largest deployment of its kind in South America. The Gemalto Santander solution combines the security of EMV with the speed and convenience of contactless transactions using MasterCard PayPass features. It also offers a range of features including digital ID for access to university facilities, as well as a variety of everyday features and student services, while eliminating the hassle and risk of carrying multiple cards and cash.

Students at PUC-Campinas (Pontifícia Universidade Católica de Campinas) one of the most prestigious universities in Brazil, were among the most recent adopters of Gemalto's contactless technology. The multi-application card allows students - who are also, optionally, Santander's customers - to access their bank accounts and make low-value purchases by simply waving their card in front of a contactless reader. Brazil has the world's second largest contactless payment network, with around 1.5 million NFC-ready terminals scattered throughout the country. Students are also eligible for exclusive discounts at participating bookstores, restaurants and study centers. There are more than 3 million Santander University Smart Cards in Brazil, which demonstrates the success of the project, already used by more than 7.9 million users at 302 universities in 12 countries worldwide.

"Our long-standing partner, Gemalto, helped us create a culture of trust in contactless technology built upon smart cards that offer a seamless path for migration to NFC implementations in the future as the marketplace is ready for adoption," said Vicente Prior, Director Products and Channels, Santander Universities. "Gemalto's local presence helps us quickly deliver and provision cards as well as activate banking features onto existing University Smart Cards creating a path for launching additional technologies that can be leveraged for all Santander customers."

"University Smart Card is an important tool for financial inclusion for young people, as well as a technology enabler to academic activities," said Marcelo Tangioni, Products Vice President at MasterCard Brazil and South Cone. "The student already has an extremely busy life and he needs useful tools that make his daily tasks simpler. These cards provide a great support at the beginning of the student's financial life".

"Millions of secure University Smart Cards are already activated and growing every day across Brazilian university campuses," said Diego Schpilberg, Senior Vice-President of Secure Transactions for Latin America at Gemalto. "Students love the new technology because it simplifies campus life and payments while improving security, giving Santander the opportunity to start building brand loyalty early, with many first time bank users."

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


23. NXP, CREDITCALL AND VIEWAT TECHNOLOGY INTRODUCE SECURE SOLUTION FOR NFC-ENABLED MOBILE POINT OF SALE
Source: Global Newswire (02/02)

NXP Semiconductors N.V. (NXPI), Creditcall and ViewAt Technology Co today announced the launch of a complete hardware and software reference demonstrator for secure near field communication (NFC) enabled mobile point of sale (mPoS) solutions. The demonstrator provides a universal solution for all payment technologies -- covering both cards and mobile payments -- and is pre-validated for international EMVCo and Payment Card Industry (PCI) standards. The demonstrator also conforms to the People's Bank of China (PBOC) specification for financial transactions, enabling secure transactions in small local retailers, for local service businesses or for delivery-based merchants, such as taxi drivers or food delivery services. The mPOS demonstrator provides a full payment terminal experience to small merchants resulting in shorter queues and reduced waiting time to pay. By equipping store staff with mPOS devices merchants will now also be able to create multiple points-of-payment in their stores maximizing the opportunity to sell.

The reference module offers NFC payment functionality in an mPOS system, enabling system designers to incorporate the technology into future payment terminals, devices and infrastructures. According to ABI research, the installed base of mobile point-of-sale systems will grow from 1.4 million units in 2012 to around 51 million units in 2019. Recent market developments indicate that the use of NFC technology for secure payments will further increase as NFC payment card functionality becomes increasingly integrated in mobile devices.

"As mobile payments become ubiquitous we will start to see new markets and applications flourish. New use-cases will be created and the simplicity of mobile payments will become part of our everyday lives. Our new module helps designers that are not yet familiar with mobile payment technologies get a head start in their development cycle and push the boundaries of innovation," said Paul Hubmer, general manager NFC reader solutions, NXP Semiconductors.

"We are pleased to be working with NXP to develop this new innovative mPOS reference demonstrator, as the evolution of the global payments industry continues to create a wealth of opportunities for consumers and business across the world," said Jeremy Gumbley, CTO, Creditcall. "Creditcall develops EMV solutions that enable companies to future-proof their business with the ability to embrace new technologies and innovative products in a simple and secure way. The combination of tested hardware and Creditcall's proven track record of secure EMV kernel technology will ensure mobile payments stay within reach of all retailers."

The mPOS demonstrator incorporates all the necessary hardware and software modules needed to create a mobile point-of-sale. ViewAt Technology developed the hardware for the mPOS module which can be licensed as a white label mPOS device to end customers. The PCI certificate included with the demonstrator can be reused by customers thus simplifying the final certification process. Creditcall, a globally leading supplier of EMV payment terminal SW kernels, is providing its knowledge and expertise to support the EMVL2 contact and contactless kernels needed by customers for the mPOS module. The end customer will license the EMVL2 kernel directly from Creditcall. This comprehensive solution enables system integrators to bring NFC payment applications to market faster, saving over six months design time and simplifying the final certification process.

NXP Semiconductors is a member of ACT Canada; please visit www.nxp.com.


24. CZECH REPUBLIC IS EUROPE'S LEADER IN NFC PAYMENTS
Source: ICMA Industry News (02/12)

The Czech Republic is the European leader in Near Field Communications (NFC) at 3.3 transactions per card per month and the highest amount spent through NFC at CZK 1,700 a month, reports Nearfield.cz. The results are due to the good infrastructure, with 57,000 terminals, which is a year-on-year increase of 120 percent. What is also growing is the number of contactless Visa cards, with 2.6 million circulating, up 170 percent year-on-year.

Figures from October 2013 to September 2014 show that currently, more than 500 million Visa cards are in circulation, or one card per adult in Europe. Over 100 million of those cards are contactless ones. Every sixth Euro in Europe is spent by a Visa card and the volume of payments at points of sale exceeded € 1.5 trillion.

This year, Visa Europe plans to launch mobile contactless payments in a cloud service. With this technology, it is not important which SIM card the customer has in her or his mobile phone, and therefore, mobile operators are not necessary. The terminal verifies payments on a remote server, with which it communicates via a secured application in a smartphone or smartwatch.

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


25. G&D SIMPLIFIES SECURE AUTHENTICATION IN WEB SERVICES AND PREVENTS IDENTITY THEFT
Source: Giesecke & Devrient (02/24)

Giesecke & Devrient (G&D) announced the launch of a new service to provide improved security for consumers as they increasingly use mobile devices to carry out business and private transactions over the Internet. The service will combine the G&D's SmartLicentio platform and G&D's SIM cards with am applet compliant with the GSMA Mobile Connect SIM applet specification. It will enable mobile network operators to offer a consistent and standardized set of services for managing digital authentication and identity globally. This solution only requires the user's mobile number and mobile device.

People today are more dependent than ever on web-based services such as e-mail, voice communications, e-commerce applications, online banking and ticketing. However, in addition to the flexibility and mobility that technology provides, consumers are concerned about the security of their data and personal information as the rise in phishing attempts and spyware make life harder for users. In light of millions of hacked usernames and passwords and stolen identities, the calls for better security mechanisms in the digital environment are becoming louder and louder. To allay consumer fears, passwords alone are no longer sufficient, as attacks by cyber criminals are becoming increasingly cunning and their technical methods are growing in sophistication.

Another important aspect is user convenience. Today the need for using multiple usernames and passwords is not very user-friendly when online users have to identify themselves for various partners with different combinations or even with their private data. The users are therefore calling for a standardized solution which will allow them to identify themselves quickly and securely, whilst retaining control over their own user data.

Authentication made simple
With the new solution making its debut at Mobile World Congress 2015 in Barcelona, Giesecke & Devrient is once again showcasing its innovation, and presenting a commercial solution which will allow mobile network operators (MNO) to offer their customers a more convenient and secure identity protection. The progressive solution from G&D is based on the GSMA Mobile Connect SIM applet specification and G&D's service platform SmartLicentio, the tried and trusted server for authentication services. By using this G&D solution, MNOs will be able to equip the SIM cards of their customers with a two-factor authentication, clearing a convenient path for their users to greater security in the mobile environment. The two-factor authentication requires the end user to be in possession of their mobile device and be able to enter a secret that they know (a PIN or personal code) when prompted on their phone. This approach is independent of the respective operating system and can be used with any mobile device, as the required Mobile Connect SIM applet is stored on the SIM card and so is automatically controlled by the SIM toolkit. Another advantage for the user: He will only have to register for this service once with their mobile network operator.

"With this solution, we are working with the mobile network operators to offer the user a high degree of security and convenience," explains Carsten Ahrens, Group Senior Vice President and head of the division Telecommunication Industries at Giesecke & Devrient. "This is a form of two-factor authentication based on the phone number and the possession of the phone. Users hence don't need to memorize several user IDs and passwords for all the services they use."

Contribution to the GSMA Mobile Connect Initiative
This end-to-end solution is a contribution made by G&D as a founding member to the GSMA Mobile Connect Initiative, set up at Mobile World Congress 2014. The objective of this cross-industry consortium, which includes leading mobile network providers and other technology companies as well as G&D, is to develop specification and implementation guidelines worldwide. Service providers, content suppliers and banks can offer trustworthy authentication via mobile network operators in this way.

"This is another important step forward for the adoption of GSMA Mobile Connect as it boosts user growth, as well as increases the availability of Mobile Connect-enabled services," said Marie Austenaa, Head of Personal Data, GSMA. "Mobile Connect brings together an ecosystem of trusted mobile operators and service providers to offer consumers the ability to use their mobile phone to manage their access to online services, giving them greater control and a means of access that is more secure and convenient."

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


26. RUSSIAN SUBWAY GOES CONTACTLESS WITH MASTERCARD PAYPASS
Source: ICMA Industry News (02/06)

MasterCard, in partnership with the St. Petersburg government, the St. Petersburg Metro, and Bank Saint Petersburg, launched the first implementation of contactless technology in a Russian subway with MasterCard PayPass.

Subway riders will no longer need to purchase a separate ticket or token for their ride. MasterCard PayPass is a contactless way to pay; it's like having exact change wherever you go.

"MasterCard is focused on being the partner of choice for developing and offering the most secure and the smartest payment solutions to the Russian market, and we are excited to begin this year with this remarkable project in St. Petersburg. St. Petersburg Metro will become a milestone in the history of Russia's payment industry, because here MasterCard contactless technology was implemented at turnstiles for the first time," said Ilya Riaby, head of MasterCard Russia.

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


27. MASTERCARD'S LATEST HCE MOVES
Source: PYMNTS.com (02/25)

MasterCard now has cloud-based in-store mobile payments live in 15 countries, with another 10 in the pipeline, the card brand announced.

The live programs and pilots, which are underway in the U.S., Canada, Australia, Russia and across Europe, use Host Card Emulation (HCE) for Android phones, which eliminates the need for banks to prepare smartphones for mobile payments by downloading payment card information into the Secure Element of the phone. That process, which was used in early mobile payments efforts like Google Wallet, turned out to be too complex and labor-intensive for most card-issuing banks.

But hundreds of issuers have now licensed MasterCard's HCE-based mobile-payments framework, including Santander, Italy's Unicredit and Spain's Banco Sabadell, the card company said. While the new approach is simpler, it still works only on phones that contain an NFC chip that mimics a contactless payment card.

MasterCard said its contactless point-of-sale locations, ranging from conventional retailers to vending machines, parking lots, mass transit and taxis, have also grown by 56 percent in the past year, from about 2 million to 3 million. In some parts of Europe, contactless transactions represent a large portion of in-store MasterCard payments, including 52 percent in the Czech Republic, 33 percent in Poland, 18 percent in Hungary and 17 percent in Slovakia. In-store mobile payments in Europe also jumped by 174 percent in the past year.

The HCE approach "will drive greatly expanded availability of mobile contactless and remote payments, through integration with MasterPass, our global digital platform," said MasterCard SVP James Anderson, who heads the Shared Platform Services Group for the card brand.

MasterCard has also shortened the time-to-market for developing Android payment apps by releasing a software development kit that provides a collection of software libraries and tools for developing and testing apps to make sure they comply with MasterCard's HCE specifications.

But while MasterCard is providing the tools that issuers and other mobile payments players will need to implement cloud-based payments in Android apps, what's still not clear is exactly how much additional work card processors and banks will have to do to support the new payments framework. That includes issues such as tokenization, user verification, and what happens when there's no signal to connect a phone to the cloud.

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


28. GEMALTO ADDS NEW TOKENIZATION OPTIONS TO ITS TRUSTED SERVICES HUB
Source: Gemalto (02/25)

Gemalto adds new key capabilities to its Allynis Trusted Services Hub for tokenization based payment services. For banks and payment service providers that look to create a seamless mobile payment experience, Gemalto brings the most complete and integrated solution, from the mobile tokenization gateway all the way to the client-server architecture for provisioning and processing payment security.

Available in software-as-a-service (SaaS) mode, Gemalto brings the most complete and yet modular solution needed to enable real-time enrolment of payment cards, homogeneous distribution to diverse devices and simplified on-boarding of business partners. The expanded hub service offers simplicity and choice with regards to available security models, covering management of credentials on Secure Elements, Trusted Execution Environment (TEE) and HCE-enabled handsets, or a combination. Gemalto brings the leading security expertise to help issuers deploy their mobile banking and payment plans, easing the back office processes and the need for costly integrations to existing systems, while maintaining flexibility to upgrade security levels at any time to match risks.

"We envision that mobile payment technology will come in many flavors and deployments will vary from country to country with combinations of embedded secure elements, multitenant SIM and HCE," commented Jean-Claude Deturche, Senior Vice President of Mobile Financial Services at Gemalto. "By converting sensitive card credentials into limited-use digital data, tokenization simplifies mobile services on-boarding process, addresses the real-time provisioning needs that banks have been asking for, and offers more choices towards delivering a better mobile payment experience. Drawing on our in-depth mobile security experience, we designed a future-proof and versatile solution to maximize the reach and performance of our Trusted Services Hub on all available devices. Our role is to advise and support our customers through their choice, implementation roadmaps and risk management needs."

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


29. VISANET DOMINICANA PARTNERS WITH ANYWHERECOMMERCE TO POWER ITS "CATCHER" MPOS SERVICE IN THE DOMINICAN REPUBLIC
Source: Anywhere Commerce (02/24)

AnywhereCommerce announced that it has partnered with VisaNet Dominicana on their groundbreaking "Catcher" mobile commerce service in the Dominican Republic. Utilizing smartphones and tablets as mobile point-of-sale (mPOS) terminals, Catcher provides merchants and independent business owners with a turn-key mPOS solution. At its core, the mCommerce platform is comprised of a secure EMV card acceptance device and an easy-to-use smartphone/tablet software application, all powered by the aCommerce Platform incorporating gateway services, mobile top-up, and utility payments, and operating with direct connectivity to the VisaNet Dominicana payment processing network, all supported by a robust online administration and reporting platform.

"This important relationship with VisaNet Dominicana demonstrates the power and flexibility that our entire solution delivers," said William Nichols, Chief Executive Officer for AnywhereCommerce. "The mPOS market has shifted from simple dongles for mobile payment to more sophisticated—yet easy-to-use—platforms that enable a variety of mobile commerce features and services. AnywhereCommerce has both the experience and portfolio required to help partners and merchants across the globe achieve their business objectives."

Catcher, by VisaNet Dominicana with the support of Visa Inc., is an end-to-end turnkey solution designed for small and independent merchants, ranging from mobile merchants like taxi drivers to traditional brick-and-mortar shop owners. Merchants simply connect an EMV-certified reader to an iOS or Android device, download and configure the payment app, and are transformed into fully-functional mobile merchants within minutes. In addition, Catcher enables small businesses with the opportunity to sell mobile top-up minutes and offer customers the ability to pay their bills from many of the largest utility and telecom companies in the country. With the help of robust, secure, and continuously available online web-based reporting tools, merchants now have the ability to manage all payment activity through a mobile device.

"AnywhereCommerce has a sterling reputation for delivering reliable, flexible, and secure solutions that adhere to EMV standards on a global scale," said Fabio Baez, Head of Sales and Marketing for VisaNet Dominicana. "We found the company to be extremely responsive, and well educated on the nuances of our specific market. We have already seen excellent interest in Catcher and we anticipate this will evolve into a highly demanded service in 2015."

"Visa is proud to be supporting this first of its kind mobile payments solution in the Dominican market and to continue contributing to the electronification of the island. Through Catcher, merchants in the Dominican Republic now have the opportunity to capture new business prospects and further expand their operations," said Rodrigo Meirelles, Head of Digital Business for Visa Inc. Latin America & the Caribbean.

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


30. FIRST INVESTMENT BANK AD CHOOSES MEAWALLET FOR IMPLEMENTING AN INNOVATIVE CLOUD BASED MOBILE PAYMENT SERVICE
Source: MeaWallet (02/26)

First Investment Bank AD of Bulgaria has chosen to cooperate with MeaWallet to bring mobile NFC payments to their existing mobile bank users. The innovative mobile payment service is based on mobile virtual payment cards using cloud based security and Host Card Emulation (HCE) technology. The end users just tap their smartphone at the merchant NFC-enabled POS-terminal to complete the payment. The service will work at all merchants that accept MasterCard PayPass and Visa payWave payment transactions.

This will be one of the first commercial cloud based NFC banking projects in Europe and the plan for launch is after summer. The mobile bank users will be able to use the service globally at all EMV contactless compliant POS terminals covering millions of merchants.

"First Investment Bank AD is seen as one of the most innovative banks in the Balkan region. With the MeaWallet mobile payment service we will give our customers an attractive, secure and easy to use service to complement our already popular mobile banking app," says Mr. Svetoslav Moldovansky, Executive Directorat First Investment Bank AD.

The popular mobile bank app will add mobile NFC payment from MeaWallet to existing use cases such as accounts balance and transaction history, bills payments, person-to-person payment and communication services. For future discussions is also to use the app for mobile payment for m- and e-commerce purchases.

"The partnership with First Investment Bank AD, which is a first mover and trendsetter in Bulgaria, further proof that our mobile technology platform and strategy, and in particular our focus on cloud based mobile payment solutions, including techniques like tokenisation, HCE and NFC, is paying off. We look forward partnering with the bank, and to support them on their continuous journey of enabling attractive and innovative mobile financial services", says Lars Sandtorv, CEO at MeaWallet.

MeaWallet is a member of ACT Canada; please visit www.meawallet.com.


In 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
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.