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July 27, 2006 |
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Welcome to the July 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.
IN THIS ISSUE:
1. Editorial Comment
2. CUETS & Everlink Announce Alliance
To Provide Chip Solutions To Credit Unions
and Caisses Populaires
3. Smart Card Group Tackling
Contactless
EMV
4. Canadian First: First
Nations To Receive
Social Assistance Benefits
On Prepaid Cards
5. New York Subway Smart
Card Pilot Begins
6. France Takes Lead In
Issuance Of More
Secure Payment Cards
7. Giesecke & Devrient
And Nokia To Provide
Secure Application Management
Services For
NFC Enabled Mobile Devices
8. MasterCard Releases
PayPass Figures
9. Gemalto Selected For
E-Passport Roll Out
In Slovenia
10. SCM Microsystems' Contactless
Readers
Among Top Performers At
E-Passport Interoperability
Test
11. QI Systems Launches
QIWave Vending Support
For HID's IClass
12. Gemalto To Implement
Smart Card-Based
Healthcare System In Algeria
13. MasterCard, Coca-Cola
Bottling &
USA Technologies Introduce
Contactless Payment
In Vending Machines
14. Datacard Takes Smart
Card Production
& Personalization To
5,000 Cards Per
Hour
15. Giesecke & Devrient
Supplies EMV
Cards To Italy's Fineco
16. Additional Stories Available In Members
Only Section
ACT CANADA THANKS OUR NEW & RENEWING
MEMBERS:
PRINCIPAL:
ATB Financial ~ new member
HSBC ~ new member
GENERAL:
Infineon ~ member since
1998
Metaca ~ member since 2005
ASSOCIATE:
Lifecycle Integrity ~ member
since 2005
COLLIS EMV ACADEMY TRAINING IN TORONTO
Collis EMV Academy announces open training
courses in Toronto, Canada on September 21
& 22, 2006.
Collis EMV Introductory
Workshop, Toronto,
21 September 2006
The Collis EMV Introductory
Workshop is an
easy-entry course for everyone
looking for
instant EMV knowledge.
Attend, and find out
all about the rationale
behind EMV, its business
drivers, benefits, costs,
opportunities and
risks. The Collis EMV Introductory
Workshop
is a non-technical workshop,
aimed at a broad
audience from both business
and IT background.
Collis EMV Expert Course,
Toronto, 22 September
2006
This course is for those
who want to know
all the details that make
EMV work. The Collis
EMV Expert Course will
cover topics from
transaction flow to issuer
scripting and
from EMV data elements
to risk management,
PIN handling and security.
Practical exercises
provide unique hands-on
EMV experience. Become
an EMV Expert with the
Collis EMV Expert
Course!
As Collis recently joined
ACT Canada, we
offer an introductory 20%
discount on the
training fees for ACT Canada
members!
For the training program,
location and pricing
details, as well as for
information about
customised in-company training,
please contact
Mr. Maarten Bron, BU Manager,
Collis EMV
Competence Center: info@collis.nl.
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1. EDITORIAL COMMENT
Source: Catherine Johnston, President &
CEO, ACT Canada (07/26) |
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Communication is the key.
As I sit down monthly
to write the editorial,
one topic rises to
the top of the list
to
become the subject.
This month there
are
far too many for
any one to take precedence,
so here are some
observations on the
Canadian
market.
On a positive note,
the transit and transportation
sector is engaged
in a very timely
study
with support from
Transport Canada.
ACT Canada,
along with Integrated
Mobility Systems
and
Moving the Economy
have prepared a report
on the Development
of Innovative Smart
Card
Solutions for Canada.
As a part of that
study
we have examined
the gap between financial
and transit applications
and identified steps
to be taken to facilitate
co-operation between
these two sectors.
We were pleased to
discover that both
groups
had common goals
and concerns, and
although
there had been many
individual conversations,
the two sectors had
not found a way to
broadly
communicate. This
is a case where external
associations such
as ACT Canada and
IMS-MTE
perform an effective
service in facilitating
stakeholder communications.
ACT Canada is encouraged
to see the market
start to respond
to the opportunities
that
are possible now
that EMV has been
chosen
as a credit and debit
payment standard
in
Canada. As the national
infrastructure continues
to be deployed, other
stakeholders will
assess
their opportunities
and the need for
stakeholder
interaction will
grow. We will continue
to
expand and facilitate
that communication
for the benefit of
our members.
In the financial
sector, EMV plans
continue
to move forward.
Currently one of
the greatest
challenges is in
human resources,
where the
competition to hire
qualified staff has
been
fierce and expensive.
ACT is now soliciting
content for the financial
sector curriculum
to help FIs, acquirers
and merchants stay
ahead of the training
curve.
In the public sector,
the Canadian government
is under pressure
to decide how we
want to
handle cross-border
(US) identification.
Balancing our desire
for privacy and security
with that of the
United States government
requires much more
dialogue with stakeholders
and the industry.
Of particular concern
is
some of the messaging
and terminology being
used around proposed
technology. ACT Canada
is willing to help
the Canadian government
work through these
issues, but deadlines
are rapidly approaching
and we may find ourselves
in the position of
having to accept
decisions
made by other governments.
Stakeholder communication
has never been
timelier to ensure
the success of initiatives
in both the public
and private sectors.
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2. CUETS & EVERLINK ANNOUNCE ALLIANCE
TO PROVIDE CHIP SOLUTIONS TO CREDIT UNIONS
AND CAISSES POPULAIRES
Source: CUETS (07/06) |
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CUETS and Everlink are pleased to announce
an alliance to develop competitive chip card
solutions for the Canadian credit union and
caisse populaire system.
"CUETS has partnered
with credit unions
and caisses populaires
to bring advanced
payment programs to the
marketplace,"
said Stan Kuss, CUETS'
CEO, noting the MasterCard
service provider first
announced its intention
to implement and support
chip technology
in October of 2005.
"Aligning with Everlink
- the provider
of electronic transaction
switching services
for the national credit
union system - to
develop chip solutions
just made sense,"
said Kuss. "CUETS
and Everlink understand
the unique needs of the
co-operative system
and their members. By building
on the core
strengths of both our organizations,
we will
offer an innovative program
that will enable
credit unions and caisses
populaires to quickly
move to market with chip-enabled
products
and services."
CUETS and Everlink's chip
solutions provide
a comprehensive and effective
approach to
member-focused processes,
such as PIN management,
cardholder support and
communications. The
alliance is an opportunity
for Canada's leading
suppliers to the co-operative
system to leverage
their expertise and deliver
solutions to
mitigate operating and
fraud costs, simplify
network requirements and
reduce the need
for banking system upgrades.
CUETS is a member of ACT Canada; please visit
http://www.cuets.ca.
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3. SMART CARD GROUP TACKLING CONTACTLESS
EMV
Source: CardTechnology (07/13) |
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The effort to make contactless payments work
better with EMV, the global payment standard
for smart cards, could get a boost. Representatives
from EMVCo., the organization that maintains
the standard, are meeting in Japan to better
define the business requirements for a global
standard covering contactless payments made
with EMV-compliant cards. "We're hoping
to have a fully stable position by the end
of this year," Simon Pugh, senior vice
president of MasterCard Worldwide's advanced
payment solutions unit and a member of EMVCo.'s
board of managers, tells Card Technology.
MasterCard, Visa
International, and
Japan's
JCB Co. are joint
owners of EMVCo.
While
many countries are
abandoning magnetic-stripe
cards in favor of
EMV-compliant smart
cards
in order to reduce
the levels of card
fraud,
the U.S. has so far
not taken that step.
Having a unified
contactless standard
for
the whole world could
make card issuing
and
payment processing
simpler.
Even without a common
standard, many card
issuers have already
produced EMV-compliant
cards capable of
contactless transactions.
For instance, at
least 500,000 of
the 6 million
Visa-branded contactless
cards issued worldwide
to date are based
on the EMV standard,
Stephanie
Ericksen, Visa's
VP of product and
technology
innovation, tells
Card Technology.
MasterCard Canada and Visa Canada Association
are members of ACT Canada; please visit http://www.mastercard.ca & http://www.visa.ca.
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4. CANADIAN FIRST: FIRST NATIONS TO RECEIVE
SOCIAL ASSISTANCE BENEFITS ON PREPAID CARDS
Source: Market Wire (07/18) |
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Mint Capital Corp and FP Financial Ltd. announced
that they have partnered to provide the first
prepaid financial services product in Canada
used to remit recurring social assistance
benefits to Canada's First Nations communities.
As a replacement for traditional paper cheques,
the FirstPeoples Prepaid Benefits Card program
will allow administrators and benefit recipients
to take advantage of direct financial savings,
convenience and the added safety and security
that a traditional credit card offers.
Under the FirstPeoples
Prepaid Benefits
Card
program, social assistance
benefits can be
remitted monthly
onto personalized
prepaid
cards and recipients
will then be able
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have immediate access
to funds, withdrawing
funds from ATMs and
making purchases
everywhere
traditional credit
cards are accepted.
The
First Nations prepaid
card addresses the
real needs of benefit
recipients. On average,
recipients spend
countless hours in
line
each month waiting
to receive their
cheques
and many must then
travel outside of
their
communities to cheque
cashing facilities.
The majority of benefit
recipients in Canada's
native communities
do not have traditional
banking relationships
and rely solely on
cheque cashing facilities
losing, on average,
3% of their monthly
benefits income plus
a $2.50 to $3.00
fee per cheque for
this
service. Reviewing
a case study of an
average
family with several
children receiving
monthly
benefits of $724.48
and using this service,
cashing a cheque
costs approximately
$24.23
each month, or $290.76
a year. In addition
to financial savings
and convenience,
the
FirstPeoples Prepaid
Benefits Card is
far
safer than carrying
cash, and cardholders
benefit from a zero
liability policy
if their
card is lost or stolen.
Mint is a member of ACT Canada; please visit
http://www.mintinc.ca.
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5. NEW YORK SUBWAY 'SMART CARD' PILOT BEGINS
Source: ICMA Daily News (07/11) |
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The rat race could get a little faster as
commuters launch a pilot test of "smart
cards" meant to grant instant entry
to city subways. Throughout the six-month
experiment, commuters at some stations will
be able to pay for their ride by simply tapping
specially designed credit cards, debit cards
and key-chain tags against new turnstile
readers.
Under the current
system, riders must
sometimes
wait in line to buy
magnetized fare cards
called MetroCards,
which are then swiped
at the turnstiles.
The new readers have
been installed at
all
Manhattan stations
on the 4, 5 and 6
lines
and at four stations
in the Bronx, Brooklyn
and Queens, said
Cathleen Conforti,
a SVP
for MasterCard Worldwide
Inc., which is paying
for the trial along
with Citigroup Inc.
Any Citibank customer
can apply to participate
in the experiment,
which requires a
Citibank
MasterCard that is
enabled with PayPass
technology.
The companies are
offering three free
rides
to all participants.
Riders using the
new system cannot
buy weekly
and monthly passes.
They do receive a
standard
20 percent bonus
for advance purchases
over
$20.
Citi Cards Canada and MasterCard Canada are
members of ACT Canada; please visit http://www.citibank.ca & http://www.mastercard.ca.
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6. FRANCE TAKES LEAD IN ISSUANCE OF MORE
SECURE PAYMENT CARDS
Source: ICMA Daily News (07/05) |
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The French have taken the global initiative
when it comes to rolling out the more secure
EMV DDA payment card technology, having given
the go-ahead for 10 million of the new cards
to be issued by the end of this year.
French card organization
Groupement des Cartes
Bancaires has told
CardLine Europe that
700,000
of the more security-focused
cards have already
been issued. The
group says that it
has forecast
10 million will be
in circulation by
the
end of 2006, rising
to 25 million by
the
middle of 2007.
The French commitment
to roll out the DDA
cards comes in the
wake of a spate of
high
profile cases which
have highlighted
that
the less secure option,
predominantly used
in the first wave
roll-out of chip
and PIN
cards, was prone
to certain types
of fraud,
including cloning.
In the UK, oil major
Shell recently removed
its chip and PIN
payment terminals
from operations
after suffering a
GBP1 million cloning
fraud.
Meanwhile, other
high profile identity
fraud
cases were seen in
New Zealand and Canada.
The Achilles heel
of the first generation
chip and PIN cards
is seemingly that
they
largely lack the
most comprehensive
level
of fraud protection,
which has left them
prone to cloning.
However it should
be noted
that even entry level
Chip and PIN remains
far more secure than
the previous magnetic
stripe system, according
to data from UK
payments body APACS.
France appears to
have taken the lead,
certainly
in Europe at least,
due to its heavy
investment
in point of sale
(POS) terminals.
However,
it is likely to have
set an example that
will be closely followed.
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7. GIESECKE & DEVRIENT AND NOKIA TO PROVIDE
SECURE APPLICATION MANAGEMENT SERVICES FOR
NFC ENABLED MOBILE DEVICES
Source: ICMA Daily News (06/27) |
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Giesecke & Devrient (G&D) and Nokia
announced an agreement with intent to form
a joint venture. Giesecke & Devrient
will own 57 and Nokia 43 percent of the new
company. The joint venture will provide services
to the NFC ecosystem by enabling consumer
applications, such as credit cards or transport
tickets, to be securely and easily downloaded
over-the-air to NFC enabled mobile devices.
Over-the-air management of the consumer applications
is a critical part for the emerging NFC ecosystem,
and the joint venture will work closely together
with other stakeholders when bringing these
services to the market. The joint venture
is expected to commence operations in the
fourth quarter 2006.
The joint venture
will implement
and operate
a secure and
versatile service
platform to
manage the
over-the-air
transactions with
consumers'
NFC enabled
devices. The service
platform will
be operated
in a white-label
mode with in-built
interfaces
to the IT systems
of the actual
service providers,
such as
banks issuing
credit cards.
The over-the-air
services will
be offered
to all parties in
the NFC ecosystem,
where mobile
operators
and other service
providers are
exploring
the opportunities
to cooperate
in launching
new services
to consumers.
The new company's
services will
be available
and open to any
NFC enabled
devices from
all vendors.
Giesecke & Devrient is a member of ACT
Canada; please visit http://www.gi-de.com.
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8. MASTERCARD RELEASES PAYPASS FIGURES
Source: CardTechnology (07/18) |
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MasterCard Worldwide released new statistics
on its PayPass contactless product. The average
PayPass transaction is worth US$20 and the
PayPass consumer uses cards with the application
onboard 18% more frequently than MasterCard
cardholders use their standard debit or credit
card. About 75% of all PayPass transactions
are for purchases below $25, and about 45%
are for less than $10. There was a 36% increase
in use per PayPass account from 2005 to 2006,
and a 45% increase in total transactions
per account, according to one issuer, although
MasterCard would not disclose the name of
the issuer or the specific quarter in 2006
in which it saw the increase. There were
also big increases in the number of merchants
accepting PayPass, says MasterCard. There
are 10 million PayPass cards or key fobs
in consumers' wallet's or purses, according
to the card organization. Most of them are
in circulation in the United States, although
credit card companies or banks in Asia have
launched some PayPass projects and two small
pilots have launched in Europe.
MasterCard Canada is a member of ACT Canada;
please visit http://www.mastercard.ca.
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9. GEMALTO SELECTED FOR E-PASSPORT ROLL OUT
IN SLOVENIA
Source: SecureID News (07/10) |
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Gemalto will provide the technology to be
used in electronic passports for Slovenian
citizens. Gemalto will supply the secure
polycarbonate devices embedding its advanced
secure electronic passport software technology
to Cetis, Slovenia's leader in security document
printing. One million passports are currently
in use in Slovenia and the government intends
to roll out the first electronic passports
at the end of August.
The contract involves 600,000 devices to
be supplied by 2016. Gemalto has already
delivered a first batch of 50,000 products
to Cetis, which will deploy the corresponding
number of e-passports by year's end.
Gemalto is a member of ACT Canada; please
visit http://www.gemalto.com.
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10. CONTACTLESS READERS FROM SCM MICROSYSTEMS
AMONG TOP PERFORMERS AT E-PASSPORT INTEROPERABILITY
TEST IN BERLIN
Source: SCM Microsystems (07/10) |
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SCM Microsystems, Inc. announced that its
radio frequency readers were among the most
successful reader entries in the June international
e-Passport testing in Berlin, where electronic
passport samples were tested against readers
from multiple manufacturers for interoperability.
SCM Microsystems' reader successfully read
89 of 90 electronic passports - a success
rate of almost 99 percent. The company was
one of the top performers out of 47 reader
vendors at the event, improving on its excellent
results at the previous interoperability
test in Singapore held last November. Among
the ten most successful manufacturers of
e-Passport readers at the June test were
also several whose readers included SCM radio
frequency technology.
The interoperability test took place from
May 29th to June 1st in Berlin, Germany,
with more than 450 participants from 38 nations
representing both industry and government.
The test was organized by the German Institute
for Standardization (DIN) and was held under
the auspices of the European Commission,
as well as the German and French Federal
Ministries of the Interior.
SCM Microsystems is a member of ACT Canada;
please visit http://www.scmmicro.com.
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11. QI SYSTEMS LAUNCHES QIWAVE VENDING SUPPORT
FOR HID'S ICLASS; QI TO PROVIDE PAYMENT SOLUTIONS
TO ACCESSID'S CLIENTS
Source: ICMA Daily News (07/11) |
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QI Systems Inc announced the launch of their
new QiWAVE cashless vending system. The new
product line, which incorporates HID Global(TM)
Corporation's iCLASS(R) contactless smart
card technology, is designed for use in university
and corporate campus vending, laundry, parking
and photocopying applications.
QiWAVE's contactless iCLASS solution increases
transaction speed and convenience for the
user, reduces or eliminates cash handling,
reduces machine maintenance and extends card
life by eliminating mechanical contact between
the card and the reader.
QI Systems is a member of ACT Canada; please
visit http://www.qisystems.ca.
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12. GEMALTO TO IMPLEMENT SMART CARD-BASED
HEALTHCARE SYSTEM IN ALGERIA
Source: ICMA Daily News (07/05)
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Gemalto announced it has been selected by
the Algerian national health insurance authority
(Caisse Nationale de la Securite Sociale
des Travailleurs Salaries) CNAS to be its
sole provider for the deployment of the first
healthcare microprocessor cards in Algeria.
Gemalto will provide CNAS with a microprocessor
card-based turnkey solution to authenticate
both healthcare beneficiaries and healthcare
providers, at the same time ensuring full
prescription traceability. According to the
company, Gemalto's solution involves smart
cards for citizens, smart cards for healthcare
professionals, the related customisation
system and an integrated issuance and management
system. In addition, Gemalto will assist
the CNAS in starting off the production process,
and provide training for the CNAS personnel.
Main roll out is to take place in 2007, including
a total of 7m smart cards. No financial details
of the contract were disclosed.
Gemalto is a member of ACT Canada; please
visit http://www.gemalto.com.
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13. MASTERCARD, PHILADELPHIA COCA-COLA BOTTLING
COMPANY & USA TECHNOLOGIES INTRODUCE
CONTACTLESS PAYMENT IN VENDING MACHINES
Source: ICMA Daily News (06/27) |
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MasterCard International has teamed with
The Philadelphia Coca-Cola Bottling Company
and USA Technologies to announce that 1,000
Coca-Cola vending machines enabled with the
e-Port cashless transaction solution will
begin accepting MasterCard PayPass. The deployment
is considered to be the largest rollout of
contactless technology in vending machines
in a U.S. market to date.
The landmark rollout in Philadelphia follows
the successful trials of USA Technologies'
e-Port by MasterCard and USA Technologies
in vending machines in New York City and
Atlanta. USA Technologies' Generation Six
(G6) e-Port radio frequency technology was
developed specifically to accept MasterCard
PayPass and other forms of contactless payments.
MasterCard Canada is a member of ACT Canada;
please visit http://www.mastercard.ca.
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14. DATACARD GROUP TAKES SMART CARD PRODUCTION
AND PERSONALIZATION TO 5,000 CARDS PER HOUR
Source: ICMA Daily News (06/27) |
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Datacard Group introduced a new release of
its Datacard(R) MPR5000 card production and
personalization system that is capable of
issuing 5,000 smart cards per hour, a 28%
increase in speed. This enhanced speed is
a result of newly designed card personalization
features including modules for high volume
smart card encoding, dual laser engraving
and card input and output.
"The MPR5000 system is the only fully
inline system capable of offering such a
competitive advantage, with reduced cost
per card and the promise of an improved return
on investment," said Neil Crocker, VP
of marketing and product management for Datacard
Group.
Datacard Group is a member of ACT Canada;
please visit http://www.datacard.com.
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15. GIESECKE & DEVRIENT SUPPLIES EMV
CARDS TO ITALY'S FINECO
Source: Finextra (07/11) |
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Giesecke & Devrient (G&D) has won
a deal to supply EMV smart cards and software
to Italian online bank Fineco. Following
a pilot phase, the bank is now replacing
all its existing magnetic strip-based debit
and credit cards with the new chip-based
EMV cards. Fineco's 300,000 credit and debit
card clients will see their magnetic stripe
cards swapped over to EMV during the next
several months.
Under terms of the agreement G&D will
provide Fineco with initialisation, card
design, production and fulfilment. G&D's
Italian partner Metalplex will perform personalisation
services while FirstData will generate data
and manage keys.
Giesecke & Devrient is a member of ACT
Canada; please visit http://www.gi-de.com.
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| 16. ADDITIONAL STORIES AVAILABLE IN ACT CANADA
MEMBERS ONLY SECTION |
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These additional stories are 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
CARDS SHOWN FACE UP
The (Australian) Federal Government unveiled
a sample design of its proposed "smart
card" in a bid to dispel fears about
privacy. Minister for Human Services Joe
Hockey released the design (right) at the
Smart Card Summit in Sydney…
NIST REVAMPS CRYPTO REQUIREMENTS FOR PIV
CARDS
The National Institute of Standards and Technology
has revised guidelines for the cryptographic
elements on new smart government ID cards,
which agencies are scheduled to begin issuing
in October…
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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
VP
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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