Welcome to the February edition of ACTion
News. Our newsletter is
distributed each month in order to keep you
up to date with events in the
advanced card industry. This complimentary
service is provided by ACT
Canada; "building an informed marketplace".
It is also available in the
Industry Information section of our web site
www.actcda.com. Please feel
free to forward this to your colleagues.
IN THIS ISSUE:
1. Market Update & Editorial from ACT
Canada
2. South African Smart ID Card System Ready
To Go
3. Ontario Smart Card Project Insights Added
to March Symposium
4. Coalition Of Airline Pilots Associations
Urges Transportation Security
Administration to Utilize Funds for Smart
Cards
5. Canada Customs to use Iris Scans at Airports
6. Interac Direct Payment is #1 Again
7. CTST 2002 ~ Register Now For Conference
Discounts
8. North American Smart Card Shipments Grew
by 79%
9. G&D to Supply Smart ID to National
Hazmat Rescue Training Graduates
10. HEC Montreal & RBC Financial Group
Create Chair Focusing On - E-Commerce
In Consumerism & New Information Technologies
11. SchlumbergerSema & Precise Biometrics
Integrate Smart Card
Authentication Technology
12. Visa U.S.A. Aims To Double Smart Card
Issuers In 2002
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1. MARKET UPDATE AND EDITORIAL FROM ACT CANADA
Source: Catherine Johnston (02/25)
Over the past month we have seen a significant
amount of activity related to
security applications. Many new and established
industry players are moving
quickly to add security applications to their
offerings. The federal
government, currently developing a common
card strategy, is leading the
activity on the market side, with various
provincial governments reviewing
advanced cards as a tool for providing secure
Identification for citizen’s,
combating fraud and enhancing e-government
offerings. In this newsletter,
you will find that governments and groups
around the world share these
objectives.
One warning: as we move forward, we must
all focus on applications and their
benefits and remember that technology is
only a tool to support our
objectives. If we talk about smart or optical
card, or biometric projects,
we will not win support from users. We must
always focus on the application
benefits, if we are to build an enthusiastic
market place.
Interac is a sterling example of how to win
over consumers (see article #6).
Convenience, safety and reliability are the
key benefits that have led
Canadians to embrace debit cards, not the
underlying card platform.
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2. SOUTH AFRICAN SMART ID CARD SYSTEM READY
TO GO
Source: Marianne Merten with Stefaans Brummer,
Mail & Guardian All Africa
Global Media via COMTEX (02/14)
After numerous delays - including a probe
into alleged tender improprieties,
redrafted tender requirements and an escalation
of costs from R800-million
(rands) in 1996 to perhaps R3,5-billion -
the first part of the Home Affairs
National Identification System (Hanis) is
set for an official hand-over.
Minister of Home Affairs Mangosuthu Buthelezi
announced the impending hand-
over of the system by MarPless Communications
Technologies to his
department. The intention is to transfer
the paper and microfiche
fingerprint records and identity details
of some 40-million South Africans
on to computer database.
Said a senior official: "For the first
time we'll be able to know who is in
South Africa ... We can clean duplications
and organise [entries]." The
searchable database, the official said, might
be a world first.
A further element of the system, still to
come, is the "smart" identity card
to be issued to all South Africans and which
will replace the current
identity book. The idea is that the card,
which contains a micro chip, will
enable other government departments like
social development to piggy-back to
facilitate the payment of, for example, pensions.
Private institutions like
banks may also integrate with the system
as the card will be able to act as
an "electronic purse".
A Cabinet statement at the time said it would
be phased in over five years
and "also serve as a basis for integration
of relevant government services
as well as for possible utilisation in the
existing banking infrastructure".
However, it is understood that despite the
potential to integrate several
government service functions, no department
has yet officially agreed to
come on board, although some have expressed
interest.
It is unlikely Hanis, including the smart
card system, will be fully
operational before 2006. It was originally
scheduled for implementation last
September.
Executive Editor’s note: this initiative
will also serve to protect South
Africans from identity theft and could serve
for a model for Canada and
other countries.
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3.ONTARIO SMART CARD PROJECT INSIGHTS ADDED
TO MARCH 18th SYMPOSIUM
Due to the sell-out status of this month’s
Network & Education luncheon, ACT
Canada has decided to add the Ontario Smart
card Project insights session to
the March Symposium agenda. Delegates attending
either the morning Advanced
Cards 101, or the afternoon Trusted Registration
for Secure ID sessions are
invited to attend this session as part of
their registration package.
Symposium highlights:
Advanced Cards 101 ~ overview of smart (chip),
optical (laser) and
capacitive cards, as well as security and
privacy protection.
Ontario Smart Card Project ~ lesson’s learned
- insights based on ACT
Canada's involvement. What's in the cards
for the future?
Trusted Registration ~ exploring the elements
of a successful trusted
registration, the first and critical step
in issuing any form of new
identification or card-based service. 2 key
topics will be False ID &
Identity Theft.
For more information, please visit the events
section of our web site
http://www.actcda.com, or contact Maureen
Lew at 905 426-6360 ext. 21.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
4. COALITION OF AIRLINE PILOTS ASSOCIATIONS
URGES TRANSPORTATION SECURITY
ADMINISTRATION TO UTILIZE FUNDS FOR SMART
CARDS
Source: U.S. Newswire via COMTEX (02/13)
Capt. Bob Miller, president of the Coalition
of Airline Pilots Associations
(CAPA) called on the Transportation Security
Administration (TSA) to utilize
funds to implement the Smart Card Program.
CAPA, an association of airline pilot unions
representing over 22,000
members has identified security and aviation
safety as the top priority.
"Prompt implementation of Smart Card
Technology will enable Law Enforcement
Officers (LEO's) to rapidly pass through
security and will increase the
effectiveness of passenger screening. Congress
has approved funding and the
technology exists and has been proven in
Federal Aviation Administration
(FAA) field trials for the Smart Card Program.
It is inexcusable that the
program has not been implemented," Miller
stated.
Because of the additional security requirements,
consumers have experienced
delays at all the major airports. Miller
suggested that once Law Enforcement
Officers have the Smart Card Technology,
the next group of individuals that
should have access to the program are the
flight crewmembers. "Removing both
the LEO's and flight crewmembers from the
public security system will enable
passengers to move quickly through the system
with better security
protection" Miller stated.
"It is the responsibility of the TSA
to efficiently upgrade security. CAPA's
membership believes that utilization of the
Smart Card Program for LEO's and
flight crewmembers will be a step in that
direction. There should not be
further delays," Miller stated.
Executive Editor’s note: The new ICAO (International
Civil Aviation
Organization) standards set the parameters
for a new international travel
document that would sit on a credit card
sized piece of plastic and support
smart, optical and other technology, a logical
fit with this application.
In Ontario, where thousands of security badges
were lost when an airline
went out of business, smart id cards would
have posed little problems as
they could have been identified and rendered
ineffective.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
5. CANADA CUSTOMS TO USE IRIS SCANS AT AIRPORTS
Source: David Akin, The Globe And Mail (02/18)
Canada Customs will begin using iris scanners
this summer to speed air
travelers through the country's busiest airports.
The Canada Customs and Revenue Agency will
announce in early April the
company that will get the contract to install
kiosks equipped with
iris-recognition devices in eight of Canada's
busiest international
airports, industry sources said.
The kiosks would allow some Canadian travelers,
when they get off a plane,
to move through a customs checkpoint in 30
seconds or less by confirming
their identities with quick scans of their
irises.
The iris is the eye's coloured portion, which
surrounds the pupil. An iris
scanner takes a highly detailed picture of
the iris, which is analyzed by a
computer. The computer notes the iris's patterns,
lines, striations, pits
and freckles. Like other anatomical identifiers,
such as fingerprints,
scientists believe no two individuals have
the same iris pattern.
After a traveler’s identity is verified with
the iris scan, the kiosk, in
the customs' arrival area, would prompt the
person to declare any goods
brought into the country and pay any applicable
duties. Users of the service
would still be subject to random inspections.
Canada Customs likely would charge an annual
fee of $50 to $100 for
travelers who want to use its stand-alone
express service, according to
industry sources. Those who want to use the
service would submit to a
background security check, including a criminal-record
search.
Canada Customs said it would allow Americans
who visit Canada frequently to
sign up for the service. It expects that
later, Mexican travellers — Mexico
being the third signatory to the North American
free-trade agreement — could
use it.
Airports in Toronto and Vancouver would be
the first to install the kiosks,
as early as August, said representatives
of some of the companies bidding
for the contract.
Kiosks would be installed at the airports
in Halifax, Montreal, Ottawa,
Winnipeg, Edmonton and Calgary by the end
of 2003.
"The implementation of iris-recognition
biometric technology will be a major
step in improving security for the customs-
and immigration-clearance
processes at Canada's major international
airports," said Michel Proulx of
the Canada Customs and Revenue Agency. "This
technology is highly reliable."
Just one U.S. airport uses iris-scanning
technology to screen passengers,
but the vendors believe that if Canada's
major airports could make the
systems work, major U.S. airports — and,
by extension, the world's busiest
airports — would soon follow.
The International Air Transport Association
(IATA), based in Geneva, has
indicated that scanning eyes is its preferred
biometric choice. One
important factor for the IATA is that using
the eye as an individual's
unique identifier appears to be the most
socially neutral. A Muslim woman
could be identified, for example, without
touching her or asking her to drop
her veil.
Executive Editor’s note: biometrics &
optical (laser) cards have been used
successfully at major Canadian airports in
the Canadian Canpass and USA
Inspass programs.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
6. INTERAC DIRECT PAYMENT IS #1 AGAIN
Source: epayment news (02/19)
For the second year in a row, Interac Direct
Payment (IDP) -- Canada's
national debit service -- continues to outpace
cash as the payment method
Canadians prefer to use most when paying
for their purchases.
The Annual Benchmark Tracking Study conducted
by Toronto-based The Strategic
Counsel, on behalf of Interac Association,
found that 47% of all cardholders
stated Interac Direct Payment when asked
which method of payment they used
most, compared with 29% for cash. For Interac
Direct Payment, that is a 5%
point increase from 42% cent in 2000, and
a six percentage point drop for
cash from 35% in 2000. The study also found
that Canadians say they use
card-based payments (debit or credit) most
by more than 2 to 1 over
paper-based payments (cash or cheques). In
2001, 67% of Canadians said they
would use a card to pay for goods or services
most often versus 31% that
said they would use paper.
Interac Direct Payment has become so popular
because of the convenience,
safety and reliability it offers. Research
shows that Canadians are
extremely satisfied with the service, with
82% stating their level of
satisfaction with the service as "good
to excellent."
In 2001, the number of merchants offering
Interac Direct Payment continued
to grow, with more than 460,000 IDP terminals
deployed at more than 325,000
merchant locations from coast-to-coast-to-coast.
Canadians made a record
total of 2.24 billion IDP transactions last
year translating into $94.9
billion in sales. The busiest day ever for
Interac Direct Payment was
December 22, 2001, with a record 10.8 million
transactions processed in one
day.
In 2001, there were over 35,000 ABMs available
across the country offering
Canadians convenient access to their cash
in traditional and many
non-traditional locations. ABMs are now found
everywhere from convenience
stores, to gas stations, to hockey rinks.
In 2001, the Annual Benchmark Tracking Study
found that 71% of Canadians
used the Shared Cash Dispensing service and
73% had a positive impression of
the level of service provided.
Interac is a member of ACT Canada. For more
information, please visit their
web site at http://www.interac.org.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
7. CTST 2002 ~ REGISTER NOW FOR CONFERENCE
DISCOUNTS
Mark your calendars and register now for
the 12th Annual CardTech/SecurTech
(CTST) Conference to be held at the Morial
Convention Center, New Orleans,
April 22-25, 2002. CTST is the largest North
American smart card,
biometrics, and security technology conference
and exhibition, and offers
new and exciting changes for 2002! Register
at
http://www.ct-ctst.com/ctst2002/ before March
1 and save up to $250 off
standard prices.
Attention ACT Canada members ~ be sure to
take advantage of the member
discount on the registration form. To check
your membership status, please
visit the members section of our web site:
http://www.actcda.com/html/members.htm.
CTST 2002 Conference Program has been re-organized!
Four separate tracks
focused on the most pressing challenges and
opportunities now facing
businesses and governments.
Worldwide ID Congress
Smart Cards on Main Street
Financial Card Technology
Defending Cyberspace
For more information, or to register online,
please visit
http://www.ct-ctst.com/ctst2002/.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
8. NORTH AMERICAN SMART CARD SHIPMENTS GREW
BY 79%
Source: CardTechnology (02/07)
Smart card shipments to the United States
and Canada grew from 14.8 million
in the first half of 2001 to 26.5 million
in the second half of the year, a
79% increase, according to a study conducted
by the Smart Card Alliance.
“Even though the overall economy in the United
States was not that great, we
still had tremendous growth,” says Dan Cunningham,
President & CEO, Potomac
Systems and Technology. “This is a positive
sign for the U.S. smart card
industry.”
The total number of smart cards manufactured
for use within the United
States and Canada for 2001 was 41.3 million,
a 45% increase from the 28.4
million cards that were shipped in 2000.
The Alliance’s report, “United
States and Canada Smart Card Shipment Survey,”
collected from all the major
smart card manufacturers their shipment data
in nine vertical markets,
including government, wireless/telephony,
transit and parking, financial and
retail. The fastest growing segment is the
U.S. federal government with more
than 1,000% growth rate, due in part to stepped
up issuance of the
Department of Defense’s Common Access Card.
The retail sector, which grew by
377%, and the financial segment, which grew
by 146%, also were big drivers,
according to Cunningham. “In banking, you
have a large base of cards being
issued from the Visa banks, Target and American
Express,” he says. “On top
of that base, Citibank began issuing two
cards last year.”
For more information about the Smart Card
Alliance, please visit their web
site at http://www.smartcardalliance.org.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
9. G&D TO SUPPLY SMART ID TO NATIONAL
HAZMAT RESCUE TRAINING GRADUATES
Source: PRNewswire via COMTEX (02/14)
Giesecke & Devrient announced that it
has been selected to participate in a
joint program with the IUOE National Hazmat
program and several governmental
agencies to provide a smart ID card solution
to be used at disaster sites.
In the initial phase of this program, the
smart ID cards will be issued to
the pilot class graduates of the International
Union of Operating Engineers
training class.
The new smart card is expected to replace
the paper-based system that is
currently used by hazardous material teams
and rescue teams at chemical and
biological hazardous sites worldwide. In
addition to providing secure and
accurate authentication of field personnel,
the new smart ID card will
replace the multiple course completion certificates.
When a hazardous
material or Hazmat trainee successfully completes
a required training
course, his smart ID card will be electronically
updated with the course
specifics. This information, together with
other qualifying criteria, is
then electronically verified at the incident
site.
The new smart ID card solution will use sophisticated
electronic security,
making it nearly impossible for unauthorized
access or duplication.
Giesecke & Devrient is a member of ACT
Canada. For more information, please
visit their web site at http://www.gdai.com
Executive Editor’s note: Smart cards as a
secure, tamper-resistant proof of
entitlement is an application emerging into
the Canadian market. The Simcoe
County Literacy Network first introduced
the application and won an ACT
Canada award for excellence in 1998. The
Skills Data Card project,
currently in development, will have unionized
construction workers carry a
smart card with their accreditations. This
application is one that all
schools should consider using.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
10. HEC MONTREAL AND RBC FINANCIAL GROUP
CREATE A CHAIR FOCUSING ON -
E-COMMERCE IN CONSUMERISM AND NEW INFORMATION
TECHNOLOGIES
Source: News Publishing via COMTEX (02/19)
Jean-Marie Toulouse, Director of HEC Montreal
(Ecole des Hautes Etudes
Commerciales), and Ibrahim Dia, VP, Commercial
Markets - Quebec, RBC Royal
Bank, announce the creation of the new RBC
Financial Group Chair of
E-commerce, which will be held by Chairholder
Jacques Nantel. The new chair
will receive funding of $1 million over seven
years, part of a total
donation of $1.35 million by RBC Financial
Group to A World of Projects, the
joint Universite de Montreal, HEC Montreal
and Ecole Polytechnique
fundraising campaign.
The RBC Financial Group Chair of E-commerce
will focus on consumerism and
new information technologies. It will develop
and disseminate the latest
knowledge and expertise regarding Canadian
consumers' adoption and use of
new technologies.
"Although many organizations across
the United States and Canada are
involved in disseminating new electronic
commerce technologies among
consumers, we still know very little about
the factors that motivate people
to adopt them, and even less about how they
are using them," said Mr.
Toulouse. "Such information is, however,
essential for the development of
profitable business plans. That's why we
are pleased that RBC Financial
Group is joining with us to broaden our understanding
of these factors and
of the consumerism patterns that these new
information technologies are
producing."
A MAJOR FIELD OF STUDY FOR MARKET DEVELOPMENT
New technologies emerge year after year,
all of them - in principle - aimed
at better reaching and better serving consumers.
These include the Internet
and its many aspects, digital television,
smart cards, cellular telephony
and, of course, combinations of all of these
technologies.
RESEARCH FOCUSED ON CURRENT CONCERNS
In addition to basic research, the RBC Financial
Group Chair of E-commerce
will develop and disseminate applied research
in the following areas, among
others:
- Consumer perception and understanding of
the use companies make of
proprietary consumer data;
- The structure of Web sites and consumers'
inclination to use them;
- Consumer views on Internet security;
- The main B2C (business-to-consumer) marketing
models;
- The Internet advertising market.
Based on its research, the new chair will
organize a series of teaching and
information-dissemination activities, including
seminars, lectures and
courses, all of them based on the theme of
consumerism and new technologies.
Royal Bank of Canada is a member of ACT Canada.
For more information,
please visit their web site at http://www.rbc.com.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
11. SCHLUMBERGERSEMA & PRECISE BIOMETRICS
INTEGRATE SMART CARD
AUTHENTICATION TECHNOLOGY
Source: PRIMEZONE via COMTEX (02/19)
SchlumbergerSema, and Precise Biometrics
announced the integration of the
Precise Biometrics Match-on-Card(tm) technology
with the SchlumbergerSema
Cyberflex Access(tm) and Cyberflex Palmera(tm)
Java(tm)-based smart cards.
The integration enables SchlumbergerSema
to bring to market smart cards that
use the card-owner's fingerprint as identification
authentication instead
of, or in addition to, a personal identification
number (PIN).
"With the current discussions around
card-based identity solutions, our
industry is ready to accept the challenge
to bring the security capability
of the cards up to the high level expected
by the public," stated Paul
Beverly, VP of eTransactions, SchlumbergerSema,
North America. "With smart
cards rapidly becoming mainstream technology,
the benefits of quickly,
effectively and securely verifying the owners'
identity -- without the need
to access a network -- becomes very important.
The card is the ideal
portable object for secure identification,
while respecting the owner's
privacy."
SchlumbergerSema is a member of ACT Canada.
For more information about
either company, please visit their web sites:
http://www.precisebiometrics.com and http://www.slb.com.
Executive Editor’s note: In Canada, we have
seen a significant change in
the public perception of biometrics. What
was deemed to be questionable in
past years, is now understood to be a security
measure. By focusing on the
application and its benefits to consumers,
not on the underlying technology,
governments and companies have changed public
perception.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
12. VISA U.S.A. AIMS TO DOUBLE SMART CARD
ISSUERS IN 2002
Source: CardTechnology (2/11)
Visa U.S.A. expects to have eight credit
card issuers deploying Smart Visa
cards by this time next year, says Diana
Knox, senior VP of smart card
applications & development. Currently,
First USA, Providian Financial,
FleetBoston and Target Corp. issue the Smart
Visa card. “We have new issuers
in the pipeline,” Knox says. “We have a financial
services community that
will take a leadership roll once the market
opens up again.” While there are
10 million Smart Visa cards in the marketplace
in 2002 Visa is focusing on
the non-payment applications for smart cards,
such as loyalty and secure
access, Knox says. “We have found through
our discussions with merchants
that rewards is an issue that resonates with
them,” Knox says. “By using
chip they can do things with a rewards program
that they are not easily able
to do with magnetic stripe.”
Visa Canada Association is a member of ACT
Canada. For more information,
please visit their web site at http://www.visa.com.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
ACT Canada is an international non-profit
association for the advancement of
card technologies. We work on behalf of our
members to promote the
awareness, understanding and use of all advanced
card technologies;
including optical, smart, capacitive and
emerging technologies. If you
would like to learn more about ACT Canada
membership please visit
http://www.actcda.com or contact our office
at (905) 426-6360 ext. 22.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Please forward any comments, suggestions,
questions or articles to andrea(AT)actcda.com. If you would like to
be removed from our newsletter
distribution list please reply to this email
with the word "REMOVE" in the
subject field. Please note that articles
contained in this newsletter have
been edited for length.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Andrea McMullen
AVP
ACT Canada
tel: 905 426-6360 ext. 24
email: andrea(AT)actcda.com
web: www.actcda.com
Mark Your Calendar!
ACT Canada presents Advanced Cards 101 &
Trusted Registration Symposium
March 18, 2002
Toronto Stock Exchange Auditorium
Toronto, Canada