- Email: [email protected]
Hypercom rolls out smart card terminals in Brazil
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news of the Southampton City Council has told members of the UK’s SmartCard Networking Forum. Southampton’s first pilot cards run on Mifare contactless technology and carry leisure and library applications. The SmartCities card works alongside the Southampton University’s own Dolphin campus card; one aim is to dovetail the two cards into one. In April 2002 Southampton plans to begin the issue of 50 000 ‘hybrid’ SmartCities cards; these will carry additional facilities including transport payments (on 350 buses and on toll bridges), schools catering and attendance monitoring; reward/loyalty programmes; and an electronic purse compliant with the European CEPS standards. The aim is to allow citizens to use a wide range of facilities and to take part in cashless shopping; eventually cardholders will be able to add and remove applications using a public-access city terminal, a dual-slot mobile phone or an Internet-connected PC. The SmartCities project is backed by the European Commission to the tune of nearly £3 million. The project, which is being led by SchlumbergerSema, is intended to form the basis for a standard city card that can be easily adapted for use in medium-sized cities across Europe. (Southampton will eventually be issuing something in the order of 225 000 cards to its citizens.) SmartCities is intended to be the basis for an integrated set of application programming interfaces for smart cards, terminals and interfaces. The partners working with Southampton City Council on the SmartCities project are: •
SchlumbergerSema – project management and smart card solutions.
•
Europay International – E-commerce and payment card services.
•
University of Southampton – campus-level ‘proof of concept’ by staff and students.
•
IT Innovation Centre (part of the University of Southampton) –- the transfer of technology and knowledge.
•
Technolution (a Dutch software company) – experience of the Netherlands’ Chipknip and Chipper E-purse projects.
•
CRID (Centre de Recherches Informatique et Droit, which is part of the University of Notre Dame de la Paix, Namur, Belgium) – consultancy on issues of privacy, authentication and liability.
•
City of Gothenburg (the second largest city in Sweden with 460 000 citizens) – requirements analysis, project evaluation and the provision of ‘checks and balances’. 6
The SmartCard Networking Forum aims to give UK local authorities the chance to share their experience of introducing and funding smart card technology. With more than 50 members, the Forum is currently led by Bracknell Forest Borough Council and endorsed by the Department of Transport, Local Government and the Regions (DTLR) and the Improvement and Development Agency (I&DeA). Sponsorship is provided by Novell, BT Ignite, LDA plc, and Nabarro Nathanson. Contact: Mark Palin at Bracknell Forest Borough Council, Tel: +1344 352323, email: [email protected]
The US market
Financial markets set pace for smart card growth Boston consulting firm Celent Communications doesn’t see smart cards being widely issued in the US before 2010. The consultants predict that smart cards will eventually become ubiquitous in the US, not because of their features, but because of the zeal with which Visa USA is promoting them to banks and merchants. Jerome Svigals, California-based consultant (and contributor to CTT), commented that fraud would eventually become more worrisome, and this would present a strong case for switching to chip in the United States. Fraud is also likely to grow as Europe and Canada complete their planned conversions to chip; the migration of fraud to the US will persuade US banks to follow suit, Svigals said. But US citizens may carry government-issued smart ID cards before they carry smart credit cards. Issuers have already had several false starts trying to market smart cards for stored value and Internet shopping; there is still some doubt whether a ‘killer application’ exists in the US. Meanwhile, smart card usage in the United States and Canada increased 37% in 2000 from 1999, according to a report from the Smart Card Alliance released at their annual meeting in McLean, Virginia, USA. The total number of smart cards manufactured for use within the US and Canada for 1999 was 20 775 000. In 2000, this number grew to 28 430 000. The fastest growing market segment between 1999 and 2000 was the financial market sector with a growth rate of 244%. The Alliance study, conducted by KPMG’s Information Risk Management practice, surveyed all major smart card manufacturers supplying the US and Canada in years of 1999 and 2000. The
Alliance plans to report 2001 statistics for North America in the first quarter of 2002. Contact: Donna Farmer at the Smart Card Alliance, Tel: +1 212 837 7715, email: [email protected]
Point-of-Sale
Hypercom rolls out smart card terminals in Brazil Visanet Brasil has awarded Hypercom a contract worth more than $7 million to install smart card readers and software on tens of thousands of Visanet-branded Hypercom T7 terminals throughout the country. “Our goal is to enable 100% of our terminal base to handle smart cards,” said Fernando Castejon, Vice President of Products, Visa do Brasil. “When we achieve that, we will have more than 200 000 smart card-capable terminals. That is far ahead of any other country in Latin America.” The spread of smart cards in Brazil has been due to the focus on credit and debit applications; other factors have been the decreasing cost of smart cards and the increasing availability of cost effective smart card terminals, say Hypercom executives. Visanet Brasil was founded in November 1995, by Visa International and a group of the large Brazilian banks, to manage the country’s network of Visa-affiliated merchants. The network now has 600 000 affiliated merchants, an installed base of 140 000 electronic POS terminals and processes 400 million transactions a year in 4000 Brazilian cities. Hypercom do Brasil maintains an installed base of more than 400 000 card payment terminals in Brazil, and more than 800 000 units in Latin America. Hypercom says it has also rolled out smart card programmes in Europe and Asia, as well as in Latin America. Its smart card-capable ICE terminals are now being delivered to banks and merchants in the US. In the UK Hpercom has now remotely upgraded its installed base of card payment terminals with EMV-certified software applications. This remote upgrade was carried out through the company’s Term-Master Suite terminal management system; there was no need to upgrade hardware. Worldwide, Hypercom maintains an installed base of more than 4 million terminals in over 100 countries which conduct over 10 billion transactions annually. Contact: Pete Schuddekopf at Hypercom, Tel: +1 602 504 5383, email: [email protected]
Card Technology Today January 2002
12/20/01
11:10 AM
Page 6
news of the Southampton City Council has told members of the UK’s SmartCard Networking Forum. Southampton’s first pilot cards run on Mifare contactless technology and carry leisure and library applications. The SmartCities card works alongside the Southampton University’s own Dolphin campus card; one aim is to dovetail the two cards into one. In April 2002 Southampton plans to begin the issue of 50 000 ‘hybrid’ SmartCities cards; these will carry additional facilities including transport payments (on 350 buses and on toll bridges), schools catering and attendance monitoring; reward/loyalty programmes; and an electronic purse compliant with the European CEPS standards. The aim is to allow citizens to use a wide range of facilities and to take part in cashless shopping; eventually cardholders will be able to add and remove applications using a public-access city terminal, a dual-slot mobile phone or an Internet-connected PC. The SmartCities project is backed by the European Commission to the tune of nearly £3 million. The project, which is being led by SchlumbergerSema, is intended to form the basis for a standard city card that can be easily adapted for use in medium-sized cities across Europe. (Southampton will eventually be issuing something in the order of 225 000 cards to its citizens.) SmartCities is intended to be the basis for an integrated set of application programming interfaces for smart cards, terminals and interfaces. The partners working with Southampton City Council on the SmartCities project are: •
SchlumbergerSema – project management and smart card solutions.
•
Europay International – E-commerce and payment card services.
•
University of Southampton – campus-level ‘proof of concept’ by staff and students.
•
IT Innovation Centre (part of the University of Southampton) –- the transfer of technology and knowledge.
•
Technolution (a Dutch software company) – experience of the Netherlands’ Chipknip and Chipper E-purse projects.
•
CRID (Centre de Recherches Informatique et Droit, which is part of the University of Notre Dame de la Paix, Namur, Belgium) – consultancy on issues of privacy, authentication and liability.
•
City of Gothenburg (the second largest city in Sweden with 460 000 citizens) – requirements analysis, project evaluation and the provision of ‘checks and balances’. 6
The SmartCard Networking Forum aims to give UK local authorities the chance to share their experience of introducing and funding smart card technology. With more than 50 members, the Forum is currently led by Bracknell Forest Borough Council and endorsed by the Department of Transport, Local Government and the Regions (DTLR) and the Improvement and Development Agency (I&DeA). Sponsorship is provided by Novell, BT Ignite, LDA plc, and Nabarro Nathanson. Contact: Mark Palin at Bracknell Forest Borough Council, Tel: +1344 352323, email: [email protected]
The US market
Financial markets set pace for smart card growth Boston consulting firm Celent Communications doesn’t see smart cards being widely issued in the US before 2010. The consultants predict that smart cards will eventually become ubiquitous in the US, not because of their features, but because of the zeal with which Visa USA is promoting them to banks and merchants. Jerome Svigals, California-based consultant (and contributor to CTT), commented that fraud would eventually become more worrisome, and this would present a strong case for switching to chip in the United States. Fraud is also likely to grow as Europe and Canada complete their planned conversions to chip; the migration of fraud to the US will persuade US banks to follow suit, Svigals said. But US citizens may carry government-issued smart ID cards before they carry smart credit cards. Issuers have already had several false starts trying to market smart cards for stored value and Internet shopping; there is still some doubt whether a ‘killer application’ exists in the US. Meanwhile, smart card usage in the United States and Canada increased 37% in 2000 from 1999, according to a report from the Smart Card Alliance released at their annual meeting in McLean, Virginia, USA. The total number of smart cards manufactured for use within the US and Canada for 1999 was 20 775 000. In 2000, this number grew to 28 430 000. The fastest growing market segment between 1999 and 2000 was the financial market sector with a growth rate of 244%. The Alliance study, conducted by KPMG’s Information Risk Management practice, surveyed all major smart card manufacturers supplying the US and Canada in years of 1999 and 2000. The
Alliance plans to report 2001 statistics for North America in the first quarter of 2002. Contact: Donna Farmer at the Smart Card Alliance, Tel: +1 212 837 7715, email: [email protected]
Point-of-Sale
Hypercom rolls out smart card terminals in Brazil Visanet Brasil has awarded Hypercom a contract worth more than $7 million to install smart card readers and software on tens of thousands of Visanet-branded Hypercom T7 terminals throughout the country. “Our goal is to enable 100% of our terminal base to handle smart cards,” said Fernando Castejon, Vice President of Products, Visa do Brasil. “When we achieve that, we will have more than 200 000 smart card-capable terminals. That is far ahead of any other country in Latin America.” The spread of smart cards in Brazil has been due to the focus on credit and debit applications; other factors have been the decreasing cost of smart cards and the increasing availability of cost effective smart card terminals, say Hypercom executives. Visanet Brasil was founded in November 1995, by Visa International and a group of the large Brazilian banks, to manage the country’s network of Visa-affiliated merchants. The network now has 600 000 affiliated merchants, an installed base of 140 000 electronic POS terminals and processes 400 million transactions a year in 4000 Brazilian cities. Hypercom do Brasil maintains an installed base of more than 400 000 card payment terminals in Brazil, and more than 800 000 units in Latin America. Hypercom says it has also rolled out smart card programmes in Europe and Asia, as well as in Latin America. Its smart card-capable ICE terminals are now being delivered to banks and merchants in the US. In the UK Hpercom has now remotely upgraded its installed base of card payment terminals with EMV-certified software applications. This remote upgrade was carried out through the company’s Term-Master Suite terminal management system; there was no need to upgrade hardware. Worldwide, Hypercom maintains an installed base of more than 4 million terminals in over 100 countries which conduct over 10 billion transactions annually. Contact: Pete Schuddekopf at Hypercom, Tel: +1 602 504 5383, email: [email protected]
Card Technology Today January 2002