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May 20, 2004 |
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Welcome to the May edition of ACTion News.
This complimentary service is provided by
ACT Canada; "building an informed marketplace".
It is also available in the Resource Centre
of our web site. Please feel free to forward
this to your colleagues.
If you would prefer to receive this newsletter
in plain text please email your request to
andrea(AT)actcda.com.
This newsletter has been sponsored by ACT
Canada's 2004 Partner:
A Coinamatic Company
IN THIS ISSUE:
1. Editorial Comment
2. Quarter of UK Retailers
Still Undecided
On Chip & Pin
3. Visa Launches Visa Wave
For Contactless
Payments
4. Smart Card Leader Teams
With Expert RFID
Design Firm
5. ISCAN Elections
6. British Telecom &
ActivCard - 1 of
The Largest Global Deployments
of Authentication
Tokens
7. U.S. Gov't Releases
Proposal For Test
Of Transportation Worker
ID
8. Smart Cards - Current
Trends, Developments
& Future Prospects
In Healthcare Industry
9. Eight U.S. Airports
Will Test Security
Technologies
10. Diners Club & MasterCard
Pursue Alliance
11. G&D Awarded It
Security Common Criteria
12. Additional Stories
Available In Members
Only Section
ACT CANADA WOULD LIKE TO THANK OUR NEW & RENEWING MEMBERS:
GENERAL:
Credit Union Central of Canada ~ member since
1990
Interac Association ~ member
since 1995
UPCOMING ACT CANADA EVENTS:
Canadian Smart Card Summit & Golf Tournament
+ ACT Canada's Annual General Meeting - June
2nd, Diamondback Golf Club, Richmond Hill
Cardware 2004: September
23 & 24, OBA
Conference Centre, Toronto
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1. EDITORIAL
Source: Catherine Johnston, President &
CEO, ACT Canada (05/19) |
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Sometimes life may be like a box of chocolates,
but more often it is like a thousand piece
jigsaw puzzle. Each day we all work on pieces
of various plans and projects, putting them
together like a jigsaw puzzle. Can you imagine
how difficult it would be to assemble that
puzzle or manage the project if you didn't
have a picture of the end result? Add to
that the possibility that you might not have
all the pieces. Some may be in the hands
of other players.
That describes the
current state of
smart
cards in Canada.
Various sectors are
starting
to put the pieces
together, somewhat
like
a 100 piece puzzle.
The financial sector,
retailers, government,
transit and transportation
and others are evaluating
their options and
making plans. In
many cases, the plans
of
one sector will impact
one or more other
sectors. For example,
what infrastructures
will a pharmacy need
if a customer presents
a smart card based
credit card, as well
as
a government issued
smart social benefits
card? What are the
pharmacy's options
in
terms of leveraging
that infrastructure
for
their own benefit?
Dozens of examples
and hundreds of questions
come to mind. Many
are the standard
questions
we ask on all projects,
but some of them
are new and unique
to this technology.
Some
are unique to the
sector or even to
the organization.
If we are to succeed
in building economical,
secure, and robust
card applications
that
will be embraced
by consumers and
citizens,
we must increase
our dialogue and
exchange
of information. AND
WE MUST DO IT NOW.
In the past weeks
I have spoken with
dozens
of organizations
across Canada and
others
in Europe and the
United States. I
am struck
by the amount of
misinformation or
gaps in
information that
exist in relationship
to
the state of readiness
of this market as
a whole. I am concerned
for those who do
not understand the
lead times required
to
move to smart cards.
The rewards for that
move can be significant,
but the steps are
very different from
introducing new mag
stripe
applications. (A
new report on the
readiness
of retailers in the
United Kingdom to
meet
the upcoming liability
shift for chip and
pin can be accessed
through one of the
articles
in this edition of
the newsletter.)
Some issuers have
a very clear understanding
because they have
been involved in
research
and pilots. For others,
it is a puzzle without
a picture to work
from.
One thing is clear.
Stakeholders need
a forum
where they can learn,
share information
and
help others understand
their requirements.
This is a business
issue. The dialogue
must
move beyond technology
and look at product
and market development,
training, human resources,
marketing and other
strategic business
elements.
ACT Canada is committed
to providing that
forum for issuers,
acquirers, regulators,
users and all parties
with a vested interest.
On June 2nd, at the
1st Canadian Smart
Card
Summit we will introduce
the plans for an
ongoing forum and
discuss its objectives,
timetable and deliverables.
I encourage you to
participate at the
summit
so that we can all
see where this market
is headed.
On a personal note,
this is our last
newsletter
before our Annual
General meeting.
I'd like
to thank all the
directors of the
association
for their wise counsel
and generous support.
Our AGM is open to
non-members and will
feature
2 guest speakers.
Jane Cloninger, Director
of Edgar, Dunn &
Company will speak
on "Compelling
Business
Cases: North America
says it doesn't have
a compelling case,
but is there a new
driver?"
&
John Gould, Director
Consumer Credit,
The
Tower Group who will
speak on "Virtual
Fraud, the Chip Advantage"
If you would like to attend, please email
andrea(AT)actcda.com. Seating is limited,
but we will try to accommodate your request.
The AGM will be held on Wednesday, June 2nd,
2004 at 2:30 p.m., at the DiamondBack Golf
Club (13300 Leslie Street, Richmond Hill,
Ontario). There is no fee to attend.
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2. QUARTER OF UK RETAILERS STILL UNDECIDED
ON CHIP & PIN
Source: Retail Logic (05/19) |
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'Accreditation pain' cited
Despite being just
six months from the
January
1st fraud liability
shift, 26% of UK
retailers
remain unconvinced
of the benefit of
moving
to EMV Chip &
PIN for plastic card
transactions.
The first phase of
the Retail Bulletin
/
Retail Logic Chip
& PIN survey
also shows
that over 20% of
retailers have decided
to
put off the upgrade
until their next
scheduled
PoS hardware refresh,
meaning it could
be
2010 or even later
before all UK retailers
can accept the new
cards.
Responses were received
from retailers operating
fewer than 10 stores
to those with over
250.
An alarming 56% said
the complexity of
the
accreditation process
and a lack of clear
guidance from the
banks were major
obstacles
to migration. Despite
this, over half the
respondents claimed
they would be ready
before
the January deadline,
with an additional
26% expecting to
go live no more than
six
months later. The
majority of those
surveyed
(79%) hope to be
ready within the
next 12
months. Thirty four
percent remain undecided
or are planning to
wait until their
next
scheduled hardware
upgrade.
"It's good to
see that an increasing
number of Tier 2
retailers are seeing
the
benefits to themselves
and their customers
of moving to Chip
& PIN,"
says Retail
Logic Marketing Director
Mark McMurtrie.
"A few months
ago it looked as
if the
number of stores
continuing to rely
on signature
verification would
be much higher, but
it
should be remembered
that the readiness
dates
cited by respondents
are estimates - our
experience shows
that without exception,
Chip & PIN migration
projects always
take longer than
expected and that
six months
is by no means exceptional."
The majority of respondents
(52%) estimate
the cost of migration
to be between £100,000
and £500,000 ($245,000
- $1,227,000 Cdn),
with 18% planning
to spend less than
£100,000
and 10% more than
£1 million.
"With the migration
deadline less than
six months away,
retailers who have
yet to
start their migration
should adopt a tried
and tested solution,"
adds McMurtrie.
"Anyone trying
to create a bespoke
Chip
& PIN system
from scratch hasn't
got
a hope of meeting
the January cut-off
date."
Survey results can
be viewed at http://www.chip-and-pin.info
and the survey is
to be repeated later
in
the year to track
UK retailers' progress.
Retail Logic is a member of ACT Canada. For
more information please visit http://www.retail-logic.com.
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3. VISA LAUNCHES VISA WAVE FOR CONTACTLESS
CARD PAYMENTS
Source: ICMA Daily News (04/27) |
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Visa Asia Pacific announced Visa Wave, the
first-ever Visa contactless smart card that
is fully compatible with global EMV smart
card standard. With Visa Wave, no signature
is required and there is no need to hand
the card to the cashier - simply wave, pay
and go. Visa Wave allows consumers a fast
and convenient way to make payment within
seconds. The world's first Visa Wave cards
are issued by MBF Cards in Malaysia and the
first live transactions were made today at
a launch ceremony in a Delifrance restaurant
outlet in the popular shopping mall at KLCC.
Visa Wave represents
a major milestone
in
contactless card
payment and chip
innovation.
Payments are done
via Radio Frequency
(RF),
much like those used
in mass transit environments.
By simply holding
the Visa Wave card
at a
close range from
the specially installed
payment reader, the
card will be detected.
Visa Wave is built
on interoperable
standards,
including full compatibility
with the global
EMV smart card specification
that is currently
being adopted by
banks around the
world and
in Asia Pacific.
Visa Wave can also
be used
at conventional EMV
contact readers in
contact
mode.
MBF Cards in Malaysia
is the world's first
Visa Wave card issuer
and will issue 2000
cards to consumers
in this trial that
runs
from now to 31 August
2004. Visa Wave cardholders
are able to wave
and pay with their
card
at more than 150
merchant locations
in Kuala
Lumpur including
outlets of: Baker's
Cottage,
Caring Pharmacy,
Delifrance, Dunkin
Donuts,
Fajar Dept Store
and Supermarket,
Famous
Amos, Golden Oven,
Hoca Coffee, Jaya
Jeans
Sdn Bhd, La Cucur,
Strudels, Toycity,
Victoria
Music Centre, Memory
Lane, Skipper Seafood,Pasaraya,TC
Permata, Edwin, Brothers,
Hallmark, P.K Time
Sdn Bhd. and Key
Color. More merchants
will
be added throughout
the trial. Distinct
Visa
Wave acceptance signages
are displayed at
all these participating
merchant outlets
to make merchant
recognition easy.
Pending
successful results
from the trial, Visa
intends
to introduce Visa
Wave to other markets
in
Asia Pacific.
Since last year,
Visa has conducted
extensive
focus group research
among consumers between
the ages of 20 and
35 in Malaysia to
test
the appeal of contactless
card products.
The majority of consumers
in the research
find the concept
of contactless payment
appealing.
Consumers surveyed
expressed an interest
in using the contactless
interface of the
card for quick and
easy payment of low-ticket
purchases. Supermarkets
and fast food chains
are among the top
retail locations
that consumers
will use for contactless
payments.
Visa Wave is a 'combi'
chip card with both
contact and contactless
interfaces. Payment
transactions can
be done in contactless
mode
at Visa Wave terminals,
and also in traditional
contact mode at 22
million locations
worldwide
through either swiping
or inserting the
card
into a smart card
reader. It can also
be
used to withdraw
cash at over 870,000
ATMs
globally.
Visa Canada Association is a member of ACT
Canada. For more information please visit
their web site at http://www.visa.com.
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4. SMART CARD LEADER TEAMS WITH EXPERT RFID
DESIGN FIRM
Source: Giesecke & Devrient (04/26) |
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Giesecke & Devrient to use Innovision
Research & Technology's Jewel RFID chip
for low cost contactless transit fare cards
Jewel is the smallest
and lowest-cost chip
ever produced for
smart card applications,
and is already attracting
huge interest from
the US mass transit
sector. With a very
small
silicon area, the
Jewel chip is inexpensive
to produce and compatible
with international
standards - including
ISO 14443A, the new
UK transport standard
ITSO version 2.1
and
the Port Authority
of New York &
New
Jersey's Regional
Interoperability
Standards
(RIS) Limited Use
fare card specifications.
It enables production
and deployment of
contactless
tickets compatible
with existing ticket
types
in smart card-enabled
public transportation
systems.
Giesecke & Devrient is a member of ACT
Canada. For more information please visit
http://www.gdai.com & http://www.innovision-group.com.
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5. ELECTIONS WITHIN ISCAN
Source: ISCAN (May, 2005) |
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During its last meeting which took place
in Washington on 28th April 2004, ISCAN,
elected its new Chairman and Vice Chairman
for 2004:
Chairman: Catherine
Johnston (ACT Canada
- Canada)
Vice Chairman Philippe
Delanoue (A.F.P.C.
- France)
ISCAN is an alliance
of independent Smart
Card associations
combining manufacturers,
systems integrators,
issuers, potential
issuers
and economic or social
actors involved in
the Smart Card activities.
ISCAN's major purpose
is to support the
proliferation
of Smart Card usage
world-wide by promoting
results of tasks
and facilitating
exchanges
of views between
participating national,
continental and global
member associations.
By gathering their
own experience world-wide,
ISCAN members can
focus on strategic
and
technical issues
and form a global
view of
the Smart Card industry.
In order to reach
these goals, they
are committed
to provide relevant
and periodic information
on their respective
activities and tasks
achievements:
- Contributions to major issues regarding
Smart Card security and interoperability
- Statistic on Smart Card shipments by geographical
zones and categories of applications
- Major developments and deployments of government
and commercial Smart Card programmes
- Major trends in Smart Cards applications
and market requirements
- Achievements within the standardisation
bodies and/or international organisations
- Other issues of
opportunities as they arise
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6. BRITISH TELECOM CALLS ON ACTIVCARD FOR
ONE OF THE LARGEST GLOBAL DEPLOYMENTS OF
AUTHENTICATION TOKENS
Source: ActivCard (05/11) |
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ActivCard Corp. announced that British Telecommunications
(BT) chose the ActivCard ® solution to secure
access to critical corporate information
for its mobile workforce. This choice was
made following a strict invitation to tender
released early 2003. By April 2004, BT will
have taken delivery of over 25,000 ActivCard
authentication devices for use with the ActivCard
AAA Server. When fully completed, the rollout
of the ActivCard solution will involve up
to 65,000 BT employees, one of the largest
global deployments of two factor authentication
tokens within an enterprise customer. By
incorporating the ActivCard solution within
its infrastructure, BT expects to significantly
reduce user authentication costs for its
multi-channel secure remote access solution.
ActivCard is a member of ACT Canada. For
more information please visit http://www.bt.com/btexact & http://www.activcard.com.
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7. . U.S. GOVERNMENT RELEASES PROPOSAL FOR
TEST OF TRANSPORTATION WORKER ID
Source: CardTechnology (05/11) |
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The U.S. Transportation Security Administration
released the proposal for the final phase
of the Transportation Worker Identification
Credential to potential contractors Monday
evening. The oft-delayed proposal for the
prototype proposal was originally due to
be released in the 2003 holiday season, but
it was pushed back due to questions about
how the project would be funded, whether
ID cards would be issued centrally, and how
facilities would share worker data. The proposal
was sent to representatives at BearingPoint,
EDS, Maximus and Northrop Grumman Corp, the
systems integrators on the General Services
Administration's smart card contract. Responses
to the proposal are due by June 10. The prototype
phase is a seven-month contract with a government
option for an additional four months, according
to the proposal. The technology will also
be tested with 16,805 workers on both coasts
and could eventually be issued to 12 million
transportation workers across the country.
Locations in the east include the Delaware
River and Bay areas and MacArthur Field in
Long Island, N.Y. In the west tests will
take place at Los Angeles International Airport
and at ports in Oakland and Long Beach. Florida's
14 deepwater ports and the Florida Department
of Highway Safety and Motor Vehicles will
also participate in the prototype phase.
The final testing will also evaluate contactless
chip technology along with fingerprint and
hand geometry biometrics, the documents state.
After the prototype phase concludes, the
TSA has said it will start a full rollout
of the TWIC.
EDS is a member of ACT Canada. For more information
pleas visit http://www.eds.com.
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8. SMART CARDS - CURRENT TRENDS, DEVELOPMENTS
AND FUTURE PROSPECTS IN THE HEALTHCARE INDUSTRY
Source: ICMA Daily News (05/18) |
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Research and Markets has announced the addition
of Smart Cards - Current Trends, Developments
and Future Prospects in the Healthcare Industry
to their offering. This latest strategic
publication on smart cards in the healthcare
industry provides:
-An insight into the market and an overview
of the latest trends.
-A summary of the key factors that are anticipated
to have an impact on future developments.
-A comprehensive analysis of smart card opportunity
across a healthcare market - forecasts and
growth projections.
-Industry-specific strategic recommendations
that may be used by market participants and
companies that are seeking to benefit from
the growing use of smart cards in the healthcare
industry.
This report will help both existing market
participants and those looking to enter the
market explore and pinpoint emerging opportunities
arising from the increasing application of
smart cards in the healthcare sector. Hospitals
health authorities and government organisations
will benefit from an up to date analysis
of the various smart card projects that are
currently being undertaken across Europe.
For more information please visit http://www.researchandmarkets.com.
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9. EIGHT U.S. AIRPORTS WILL TEST SECURITY
TECHNOLOGIES
Source: CardTechnology (05/10) |
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Biometrics will be tested at five U.S. airports
as part of an eight-airport test of security
technologies, the U.S. Transportation Security
Administration announced last week. Fingerprint
biometrics will be tested at facilities in
Boise, Idaho; Newark, N.J.; Fort Myers, Fla.;
and Tampa, Fla. T.F. Green State Airport
in Providence, R.I., will test iris biometrics.
In some cases, the biometrics will be tested
along with ID cards that use radio signals
so cardholders can identify themselves by
waving their cards past door controllers.
Also to be tested are video surveillance
and "anti-piggybacking" systems
for preventing a second person from entering
a secure facility behind an authorized individual.
This Access Control Pilot Program is separate
from similar tests of ID card technologies
TSA is performing in preparation for issuing
a smart card ID, known as the Transportation
Worker Identification Credential, to some
12 million U.S. transportation workers. U.S.-based
systems integrator Unisys Corp. is to perform
the access control tests over a period of
20 months under a $17 million contract awarded
last fall. The eight airports announced last
week are part of a first phase of tests due
to be concluded by December. Based on the
results from this phase, Unisys will select
technologies that will be piloted in the
second phase.
Unisys is a member of ACT Canada. For more
information please visit http://www.unisys.com.
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10. DINERS CLUB® AND MASTERCARD® PURSUE ALLIANCE
TO EXPAND CUSTOMER ACCEPTANCE
Source: MasterCard (04/29) |
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Diners Club and MasterCard International
said that they are pursuing an alliance to
provide enhanced global acceptance to Diners
Club North America cardholders, and enhanced
U.S. and Canadian acceptance for Diners Club
International cardholders.
The alliance would allow Diners Club cards
that are issued in the United States and
Canada to be reissued with the MasterCard
brand on the front of the card in order to
function as MasterCard cards. These cards
would be accepted at the more than 22 million
merchant locations worldwide where MasterCard
credit cards are accepted.
In addition, Diners Club cards issued by
Diners Club International franchises (outside
the United States and Canada) will include
the MasterCard brand on the back of the card,
allowing these cards to be accepted at MasterCard
merchants in the U.S. and Canada and processed
as MasterCard transactions. When these cards
are used outside of the United States or
Canada, they will continue to be accepted
and processed by Diners Club as they are
today.
MasterCard is a member of ACT Canada. For
more information please visit http://www.dinersclubnorthamerica.com
& http://www.mastercardinternational.com.
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11. GIESECKE & DEVRIENT AWARDED IT SECURITY
COMMON CRITERIA CERTIFICATE FOR SECCOS BANK
SIGNATURE CARD
Source: ICMA Daily News (05/17) |
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System meets criteria of the European Protection
Profile for Secure Signature Creation Devices
The SECCOS multifunctional chip card operating
system specified by the banking industry
provides a secure platform for a wide range
of new application areas in the payment sector.
Besides the GeldKarte electronic purse function
and EMV capability for national and international
debit transactions, a juvenile protection
feature complying with new German legislation
is also integrated into the card's functionality.
SECCOS not only guarantees the essential
security of the chip card, but also protects
and authenticates e-mail communications and
sensitive Internet-based transactions through
its universally deployable digital signature
function. Possible applications of digital
signatures are e.g. in online banking or
electronically conducted legal business.
For its SECCOS chip card operating system,
the German technical inspection agency TÜV
Informationstechnik GmbH (TÜViT) has awarded
the Giesecke & Devrient (G&D) technology
group both the common criteria certificate
for IT security evaluation and certification
of the system's compliance with the German
Signature Act (SigG).
Giesecke & Devrient is a member of ACT
Canada. For more information please visit
their web site at http://www.gdai.com.
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| 12. ADDITIONAL STORIES AVAILABLE IN ACT CANADA
MEMBERS ONLY SECTION |
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These additional stories will now be available
to ACT Canada members via the Members Only
section of our web site. Click on the link
below to access this section. If you are
a member of ACT Canada but do not have your
login details please contact me - andrea(AT)actcda.com.
http://www.actcda.com/members-only/news.htm
ARTHUR BLANK & CO. SIGNS CONTACTLESS
CARD DEAL
Source: CardTechnology (05/17)
Boston-based card manufacturer Arthur Blank
& Co. says it has signed an agreement
to supply contactless cards that customers
will use at franchises of All Night Auto,
a company that offers car repairs outside
of normal business hours.
U.S. GROCERS EXPECT TO SEE MORE SMART CARDS
CardTechnology (05/07)
The shift to plastic payments will continue
to grow at the grocery point-of-sale, according
to two surveys of consumers and food retailing
executives released this week by the Food
Marketing Institute at its 2004 FMI Show
in Chicago. More details are available on
the ACT member's web site.
GOVERNMENT ADOPTION OF VISA SOLUTIONS DOUBLES
IN THREE YEARS, GENERATES ESTIMATED US$4
BILLION IN SAVINGS
Source: ICMA Daily News (05/05)
The number of government departments and
agencies worldwide that are using Visa solutions
to increase efficiency and save money doubled
between 2001 and 2004, generating at least
US$4 billion in savings over the same period,
according to new numbers announced at the
Visa International Government Services Conference…
U.S. TRANSIT AGENCIES PURSUE A STANDARD FOR
TRANSIT FARE COLLECTION THROUGH UTFS EFFORT
Source: ContactlessNews Monthly Edition (05/19)
Seeking a uniform transit fare standard-that's
open source, no less-is a yeoman's job, but
one that a task force of the American Public
Transportation Association (APTA) has willingly
undertaken. Someday, all transportation agencies
may have the ability to have interoperable
regional smart card systems…
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| 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. |
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| 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, and are for information purposes
only. |
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Andrea McMullen
AVP
ACT Canada
tel: 905 426-6360 ext. 24
fax: 905 619-3275
email: andrea(AT)actcda.com
web: www.actcda.com
mail: 85 Mullen Drive, Ajax, ON, L1T 2B3 |
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