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October 30, 2006 |
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Welcome to the October 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. Canadians Reactions To EMV Payment
3. Department Of Homeland
Security Proposes
To Expand Use Of Vicinity
Radio Frequency
Identification
4. Transit Smart Card Closer
To Reality -
GTA Multi-City Project
To Start In Mid-2007
5. Giesecke & Devrient
Opens State-Of-The-Art
Smart Card Facility In
Canada
6. NFC Pilot Project Launched
In Europe
7. Gemalto To Supply The
E-Passport Solution
For Estonian Republic
8. Giesecke & Devrient
Provides Cards
For First Contactless EMV
Card In Europe
9. Keycorp Buys Canadian
ETPOS Firm
10. Consumers Acceptance
Of Prepaid Cards
Will Play Major Role In
Profitability Of
European Banks
11. Spain Launches ID Card
Based On STMicroelectronics'
Secure Smart Card Chip
12. Denmark Rolls Out E-Passports
Based On
Gemalto Technology
13. SCM Microsystems' Smart
Card Readers
Receive Qualification For
Use In HSPD-12
Program
14. ACI Joins Consortium
Of Suppliers To
Develop And Deliver E-Passport
Solution
15. Seoul Taxis To Accept
Transit Cards
16. Additional Stories Available In Members
Only Section
ACT CANADA THANKS OUR NEW & RENEWING
MEMBERS:
PRINCIPAL:
Canadian Tire Financial Services ~ new
GENERAL:
Integri ~ new
NXP ~ new
StepNexus ~ new
GOVERNMENT:
Ministry of Government Services (Ontario)
~ new
UPCOMING EVENTS:
Cartes & IT Security 2006
November 7 - 10, 2006
Paris, France
http://www.cartes.com
Visit ACT Canada in booth 4H 061
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1. EDITORIAL COMMENT
Source: Catherine Johnston, President &
CEO, ACT Canada (10/27) |
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Border Crossing Identification: Haste makes
Waste?
There is no question
that good personal
ID
makes sense for border
crossings, but is
there a rush to implement
a US card that
might cause more
harm than good? The
US Department
of Homeland Security
and Department of
State
have drawn swift
reaction from the
card industry
by proposing a technology
that is not recommended
for human identity
management, but rather
used to monitor the
movement of goods.
If you have read
my editorials, you
know
that I advocate taking
steps to improve
situations
and raise the bar,
rather than seeking
the
elusive perfect solution.
While taking that
route, the US government
doesn't go far enough.
It is proposed that
RFID tag technology
be
issued to Americans
traveling to Canada
and
Mexico without passports.
When returning
home, the tag can
be read 20 feet before
the person reaches
the border officer
and
the ID number opens
the citizen's databased
record. This is to
meet the need for
speed
at the border, but
does it? Is there
not
a need to ensure
that all people in
the vehicle
have this ID and
that the tag they
carry
is theirs? Was the
shielded envelope
so that
the tag could be
read? Are the tags
authentic,
or cloned?
The bigger issue
is why they are rushing
to implement a technology
that differs from
the electronic passport
(ePassport) they
require from Visa
waiver countries.
Should
we be concerned that,
unlike the ePassport,
no third party standards
body has been involved
to develop specifications
for the protection
and use of personal
information?
Does having two different
technologies and
procedures increase
or decrease security
at the border? Why
add to the infrastructure
costs? Does RFID
provide sufficient
security?
For starters, they
are easy to clone
and
the traveler must
keep it in a shielded
envelope.
Any time it is removed
the ID number is
exposed.
Will that envelope
fit into a wallet
and
if not, how will
people carry it?
The personal
data record sits
on a database, raising
security
and privacy concerns
and certainly costs.
So why should any
of this be an issue
for
Canadians? If this
is just for Americans
it shouldn't impact
Canada or Mexico,
but
let's look at the
longer term. Neither
country
has access to the
proposed database,
so these
cards are useless
as a means to identify
Americans crossing
our borders. How
long
will it be until
the US suggests they
will
provide access if
we join this program?
Are
we ready or willing
to share citizens'
information?
The answer should
be no. We don't do
that
when passports are
used and Canadians
are
very privacy conscious.
The political backlash
would likely be significant.
e-Passports, using
tamper and counterfeit
resistant contactless
technology can meet
the requirements
for transaction speed,
procedural
and cost efficiency
and most important
-
citizen security,
privacy protection
and
global interoperability.
Haste makes waste
in this case, but
far more
important are the
issues of privacy
and security,
- and perhaps in
our case - sovereignty.
*****
ACT Canada is pleased
to announce that
we
are in the final
review process of
the Contactless
and RFID Privacy
Design Tool and Privacy
Impact Assessment
Procedure. Draft
copies
are now available.
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2. CANADIANS REACTIONS TO EMV PAYMENT
Source: ACT Canada (10/27) |
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ACT Canada and Ipsos Reid are very pleased
to announce the go-ahead for the "Chip
Cards in Canada: 2006 " market research.
The survey will be undertaken in Q4 and the
report available early in the new year and
will provide timely information for all EMV
stakeholders.
As plans move forward,
it will be important
and valuable for issuers
and acquirers, as
well as merchants to understand
how Canadians
feel about chip, fraud,
biometrics, loyalty,
e-purse, fees, home banking
and many other
elements related to chip
based payment products.
This information provides
insights for strategic
plans.
For more information, please
contact ACT
Canada or David Saffran
Senior Vice President,
Ipsos Reid Corporation
(416) 324-2006, David.Saffran@ipsos-reid.com
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3. DEPARTMENT OF HOMELAND SECURITY PROPOSES
TO EXPAND USE OF VICINITY RADIO FREQUENCY
IDENTIFICATION
Source: ICMA Daily News (10/18) |
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The Department of Homeland Security (DHS),
in conjunction with the Department of State's
proposed rulemaking on the new PASSport card,
announced that it proposes to expand the
use of vicinity radio frequency identification
(RFID) technology at U.S. ports of entry.
The vicinity RFID technology, to be compatible
with the PASSport card, would allow a travel
document to be read from several feet as
a vehicle approaches inspection. The PASSport
card, part of the People Access Security
Service (PASS) System, is designed to meet
the specific requirements of the Western
Hemisphere Travel Initiative (WHTI) for U.S.
citizens crossing U.S. borders by land or
sea.
WHTI is the U.S.
government's plan to implement
a provision of the
Intelligence Reform Terrorism
Prevention Act of
2004, which requires citizens
of the United States,
Canada, the British
Overseas Territory
of Bermuda and Mexico
to have a passport
or other designated document
that establishes
the bearer's identity and
nationality to enter
or re-enter the United
States. The proposal
to expand the use of
vicinity RFID technology
is another step
in the U.S. government's
layered plan to
enhance our nation's
security, ensure the
integrity of our
immigration system, facilitate
the flow of legitimate
travel and trade,
and protect the privacy
of our citizens and
visitors.
To protect the privacy
of Americans who opt
to use the PASSport
card, no personal information
will be stored or
transmitted on the RFID
chip on the card.
The technology will transmit
only a number between
the card and the reader
which will be matched
against a DHS database.
While no personally
identifiable information
will be transmitted,
DHS is taking steps
to help ensure that
this number cannot be
intercepted during
transmission to an authorized
reader at a port
of entry.
The proposed PASSport
card would serve as
an alternative to
a traditional passport
book for use by U.S.
citizens who cross the
land borders and
travel on cruises to Canada,
Mexico and the Caribbean.
Frequent border
crossers would benefit
most readily from
this new limited-use
PASSport card. It would
provide evidence
of identity and citizenship,
would be convenient
to carry and would cost
less than the traditional
passport book.
U.S. citizens would
be able to apply for
the PASSport card
using the same forms and
procedures as currently
exist for the PASSport
book.
The proposed regulations
on the PASSport
card are available
for public viewing and
comment at the Regulations
website ( Regulations.gov
) for a 60 day comment
period. For more information,
visit the Department
of Homeland Security
website or Travel
Section of U.S. Department
of State.
Editor's Note - Please
see the editorial
comment for ACT Canada's
response to this
press release.
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4. TRANSIT SMART CARD CLOSER TO REALITY -
GTA MULTI-CITY PROJECT TO START IN MID-2007
Source: Toronto Star (10/13) |
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IA fare card that can be used on any transit
system in the GTA is one step closer after
the province awarded the 10-year, $250 million
contract to design and implement the system.
The system will be
running by 2010 and
will
be built by Accenture,
a management consulting
and technology services
company, a provincial
official said.
Under the proposed
system, commuters
from
several transit systems
operating in the
GTA would use the
same payment card,
called
a smart card, to
move between transit
systems
stretching from Hamilton
to Oshawa - with
one exception.
The Toronto Transit
Commission is still
deciding
if it makes financial
sense for TTC customers
to climb on board.
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5. GIESECKE & DEVRIENT OPENS STATE-OF-THE-ART
SMART CARD FACILITY IN CANADA
Source: ICMA Daily News (10/10) |
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Giesecke & Devrient (G&D) officially
opened their new facility in Markham, Ontario,
Canada. Situated in Canada's high technology
capital, in the greater Toronto area, the
facility hosts the latest technology in physical
and logical security, equipment and processes.
The new Canadian facility offers complete
end-to-end smart card solutions for the North
American market and will be developing innovative
solutions based on smart card technology.
With double the footprint of their previous
facility, G&D Canada has enough capacity
to meet North American demands for smart
cards used in electronic payment systems,
high security ID documents, and new applications,
such as, customer loyalty programs.
The key physical
focus of the new
production
facility is in the
protection of client
assets
and data integrity.
It has therefore
been
equipped with the
latest in highly
sophisticated
security systems
including biometric
authentication.
The facility provides
complete card solutions
that cover the entire
lifecycle of a smart
card, from the development
of card applications
and card design through
to printing the laminated
cards, embedding
the chips, card personalization,
and shipping. The
production facility
is
certified by VISA,
MasterCard, and AMEX.
Giesecke & Devrient, MasterCard and Visa
Canada Association are members of ACT Canada;
please visit http://www.gi-de.com; http://www.mastercard.ca & http://www.visa.ca.
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6. NFC PILOT PROJECT LAUNCHED IN EUROPE
Source: ContactlessNews (10/19) |
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JCB with CCV Holland B.V., Gemalto, KPN,
Nokia, NXP Semiconductors (formerly Philips
Semiconductors), PaySquare, and ViVOtech,
announced they have successfully launched
Mobile J/Speedy, the Near Field Communication
(NFC) mobile payment pilot project in Amsterdam.
Following initial trials in September, the
pilot service is now being rolled out to
a broader group of JCB's customers. The project
marks Europe's first contactless international
credit payment scheme using a mobile phone
with an NFC chip.
This project is being
carried out with
close
collaboration among
these regional and
global
enterprises addressing
the whole ecosystem
for mobile payment
applications. Selected
JCB cardholders are
provided with a mobile
phone by Nokia, which
is equipped with
an
NFC chip, developed
by NXP and loaded
with
the JCB payment application
specified by
JCB and developed
by Gemalto. At selected
PaySquare merchants,
cardholders can securely
purchase items by
just holding their
mobile
phone close to ViVOtech's
contactless NFC
reader/writer, which
is attached to the
payment
terminal of CCV.
KPN is taking the
role of
installing the application
and personalizing
the mobile phones,
and CCV is processing
the transactions.
JCB designed the
scheme
and coordinated the
project based on
its
successful experience
in contactless technology
in Japan.
Gemalto and NXP are members of ACT Canada;
please visit http://www.gemalto.com & http://www.nxp.com.
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7. GEMALTO TO SUPPLY THE E-PASSPORT SOLUTION
FOR ESTONIAN REPUBLIC
Source: ICMA Daily News (10/20) |
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Gemalto announced it will supply the Citizenship
and Migration Board of Estonian Republic
with its e-passport solution for the future
Estonian electronic passport. Under the terms
of the contract, Gemalto will provide the
Estonian authorities with a turnkey solution,
from manufacturing and binding of passport
booklets, using Gemalto Setec* technology,
to the implementation of the personalization
system in the premises of the Citizenship
and Migration Board under the Ministry of
Interior. First deliveries are scheduled
to start in early 2007.
The agreement runs through 2012 with a possible
extension to 2015. Considering present passports
issuance rates and plans, it could involve
up to one million electronic passports.
Gemalto is a member of ACT Canada; please
visit http://www.gemalto.com.
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8. GIESECKE & DEVRIENT PROVIDES CARDS
FOR FIRST CONTACTLESS EMV CARD IN EUROPE
Source: ICMA Daily News (10/05) |
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Staff at the Royal Bank of Scotland's head
office in Gogarburn, Edinburgh can now make
payments by simply tapping their cards on
a reader in a number of outlets on the Gogarburn
site.
This summer, the Royal Bank of Scotland (RBS)
began conducting a trial using dual interface
EMV debit cards, the first financial institution
in Europe to do so. The cards were supplied
by Giesecke & Devrient (G&D).
RBS, MasterCard and G&D, working in close
cooperation, have now brought a dual interface
EMV product powered by MasterCard's PayPass
technology to the UK market, and expect to
see solid growth in this sector over the
next three years.
During the trial, RBS employees are using
the cards to make purchases worth up to 10
British pounds on the Bank's premises in
Gogarburn, near Edinburgh. The RBS facilities
are ideal for the trial since they contain
a range of outlets where the cards can be
used, which together represent a miniature
version of the "real" shopping
world.
Giesecke & Devrient and MasterCard are
members of ACT Canada; please visit http://www.gi-de.com & http://www.mastercard.ca.
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9. KEYCORP BUYS CANADIAN EFTPOS FIRM
Source: The Globe and Mail (10/12) |
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Keycorp has acquired Optimal Services Group
(OSG), a Canadian EFTPoS services provider,
at a cost of A$3 million (US$2.23 million).
OSG, which is based in Montreal, specializes
in the installation and repair of point-of-sale
systems for retailers and payment processors.
In a statement, Keycorp says that the acquisition
will "provide the infrastructure platform
to launch managed payment services in the
Canadian market, services that Keycorp's
leading customers are now requesting it provide."
Keycorp supplies payment terminals, software
and services in Australia and Canada.
"Our strategy is to continue to move
away from straight product sales to managed
services, software and solutions," Bruce
Thompson, Keycorp's CEO, told corporatefile.com.au,
an Australian investment news service. Thompson
said that, with Canada's imminent move to
EMV (Europay MasterCard Visa) chip-and-PIN
technology, it is important for Keycorp to
be in at the start of the EMV compliance
program that the Canadian payments industry
faces.
Keycorp is a member of ACT Canada; please
visit http://www.keycorp.net.
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10. CONSUMERS ACCEPTANCE OF PREPAID CARDS
WILL PLAY MAJOR ROLE IN PROFITABILITY OF
EUROPEAN BANKS
Source: ICMA Daily News (09/28) |
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Since the announcement of the Single Euro
Payments Area (SEPA) directive - which requires
cross-border payments to be treated in the
same manner as domestic payments - Europe's
movement towards a "harmonized"
market has left many European banks challenged
relative to becoming more profitable. SEPA
is pushing banks to find new motivators to
increase customer usage of low-cost payment
instruments such as credit, debit, and charge
cards, as opposed to high-cost instruments
such as checks.
As European banks increase fees for cash
and checks while providing discounts and
incentives for online or card payments, new
research from TowerGroup finds that a sharp
rise in the deployment of prepaid products
over the next 10 years will be key to supporting
bank profitability. However, TowerGroup believes
that European banks success will be elusive
as long as the use of cash remains high -
underscoring the need for a true debit-based
alternative that does not include identity
recognition as part of the electronic payment.
Prepaid cards offer a solution that can be
as anonymous as cash, yet work with both
online and offline payments. This direct
substitute for today's cash and check options
will offer Europe's banks an ideal mechanism
to achieve efficiencies after SEPA goes into
effect. TowerGroup estimates that by 2010,
prepaid cards usage will be EUR75 billion,
a 600% increase over 2005, with 375 million
cards will be in circulation, a 1,000% increase
over 2005.
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11. SPAIN LAUNCHES ID CARD BASED ON STMICROELECTRONICS'
SECURE SMART CARD CHIP
Source: SecureID News (10/10) |
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STMicroelectronics announced that its ST19WL34
secure microcontroller -- certified to the
high 'Common Criteria' EAL5+ (Evaluation
Assurance Level) security standard -- powers
the new Spanish national ID Card scheme.
The ID Card roll-out started in February
2006, the successful culmination of a three-year
development and qualification program with
FNMT-RCM (Fabrica Nacional de Moneda y Timbre
-- Royal Casa de la Moneda), Spain's national
printing office. Spanish police issued around
7,000 cards as the project ramped up in the
first half of 2006, in Burgos, near Madrid.
Now it is available in 13 other cities, and
500,000 cards are expected to have been deployed
by the end of the year, with 2 million forecast
in 2007, and 6 million in 2008. Ultimately,
more than 30 million Spanish citizens will
benefit from the card.
STMicroelectronics is a member of ACT Canada;
please visit http://www.st.com.
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12. DENMARK ROLLS OUT ELECTRONIC PASSPORTS
BASED ON GEMALTO TECHNOLOGY
Source: ICMA Daily News (10/03)
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Gemalto announced that the Danish National
Police has started issuing electronic passports
that integrate its most advanced Setec* secure
technology. For this nationwide deployment
Gemalto manages the entire delivery process.
In addition to its secure electronic passport
software and high security polycarbonate
data page technologies, Gemalto will provide
passport booklet assembly and individual
personalization of each passport.
The agreement runs through to 2009, with
an option for two additional years. The Danish
authorities plan to incorporate the electronic
capability in all new passports from now
on and are expected to issue some 250,000
by the end of 2006. Between 700,000 and 800,000
traditional passports are issued annually.
Gemalto is a member of ACT Canada; please
visit http://www.gemalto.com.
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13. SCM MICROSYSTEMS' SMART CARD READERS
RECEIVE QUALIFICATION FOR USE IN HSPD-12
PROGRAM
Source: SecureID News (10/19) |
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SCM Microsystems, Inc. announced that nine
of its secure smart card readers have been
determined to be compliant with Homeland
Security Presidential Directive (HSPD)-12
and have thus been included on the Government
Services Administration's (GSA) Approved
Product List. The GSA list governs which
products and services may be purchased by
federal agencies for the HSPD-12 program.
HSPD-12 is the presidential order that requires
all government employees and contractors
to carry a standard identity credential that
works across all agencies. The credential,
in the form of a smart card, is intended
to be used for secure access to facilities
(physical access) and for securely logging
on to government computers or networks (logical
access). Over six million federal workers
and contractors are expected to carry an
identification card under HSPD-12 by October
2007. Smart card readers will be required
at all agencies to support both physical
and logical access. These will be installed
over the next few years.
SCM Microsystems is a member of ACT Canada;
please visit http://www.scmmicro.com.
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14. ACI JOINS CONSORTIUM OF SUPPLIERS TO
DEVELOP AND DELIVER E-PASSPORT SOLUTION
Source: ACI Worldwide (10/19) |
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ACI Worldwide announced that the company
has been selected as the exclusive supplier
of the Travel Document Management System
for the Electronic Passport System (e-Passport)
of the Immigration Department, Hong Kong.
The e-Passport project will leverage ACI
Smart Chip Manager software to offer the
Hong Kong Immigration Department an end-to-end
solution for e-passport issuing and lifecycle
management - including stock management and
post issuance updating.
The e-Passport project was started in January
2006. The system is set up to produce 3500
electronic travel documents per day.
ACI Worldwide is a member of ACT Canada;
please visit http://www.aciworldwide.com.
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15. SEOUL TAXIS TO ACCEPT TRANSIT CARDS
Source: ICMA Daily News (10/23) |
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The Seoul metropolitan government said that
transportation cards including pre-paid,
T-money and credit cards can be used in taxis
starting next year.
According to the plan, about 3,500-5,000
taxis will be equipped with the transportation
card device for a three-month trial operation,
and the city will install the devices in
all taxis in Seoul during the first half
of the year.
Currently, Seoul has 72,000 taxis and they
accept only cash. After receiving feedback
from citizens, the city government will consider
making it compulsory for taxi drivers to
install the card devices.
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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
FRENCH BANK TO COMBINE NFC WITH EMV FOR PAYMENT
TRIAL
French banking group Crédit Mutuel-CIC, along
with MasterCard Worldwide and a French mobile
network operator, plans to launch a test
next month of contactless payment using handsets
that comply with Near Field Communication
technology…
STANDING OUT FROM THE CROWD; A FEW BANKS
HAVE PUT NEW APPLICATIONS, SUCH AS LOYALTY
PROGRAMS AND CONTACTLESS PAYMENT, ONTO EMV
CARDS. WHAT'S HOLDING BACK THE REST?
A chip-based loyalty program came first.
Then, earlier this year, Turkey's Garanti
Bank began issuing some 20,000 contactless
payment cards with MasterCard Worldwide's
PayPass application. It was Europe's first
commercial PayPass pilot...
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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, Operations
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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