- Email: [email protected]
MasterCard and Visa release specification
news Both organizations believe there is an enormous demand for non-traditional payments via consumer devices such as PCs, mobile phones, gaming and other handheld devices. By combining the benefits of electronic payments and contactless chip technology, Philips and Visa plan to deliver contactless solutions that will enable payment transactions “anywhere, anytime and through any device”. Through the alliance, Philips and Visa intend to explore a wide variety of applications and engage potential partners, such as handset and electronic device manufacturers and service providers, in areas such as gaming, ticketing, music, mass transit and home shopping. As a result, content providers and merchants will have a means to develop new revenue streams and distribution opportunities, as well as attract new customers. Consumers, meanwhile, will benefit from more flexible access to new shopping, transit and entertainment experiences. Banks, on the other hand, will have the opportunity to improve customer convenience and create new service models. The two organizations have signed a Memorandum of Understanding (MOU) that outlines the scope of cooperation between the two companies. Specifically, Philips and Visa are looking to identify joint business partners, such as hardware manufacturers and content providers, and to investigate developing business and technical models that meet their unique needs. Contact: Andrew Goldman at Philips, Tel: +31 4027 66743, email: [email protected] Sabine Middlemass at Visa International, Tel: +1 650 432 8307, email: [email protected]
transport
German transport project takes delivery More than 1.7 million contactless smart cards have been delivered to the German public transport associations VRR and VRS as part of one of the largest smart-card-based transit projects in Europe. VRR and VRS represent 54 different transport operators and cover an area with over 10 million inhabitants. The cards, which have been rolling out to yearly and monthly ticket holders since the start of the year, have been supplied by ASK. ASK supplied the cards to card.etc, which is the general contractor and joint project management company on the project. Verkehrsverbund Rhein-Ruhr (VRR) handles around 1.1 billion customers each year on its bus and rail network. The main cities it covers are Bochum, Dortmund, Dusseldorf,
Card Technology Today June 2003
Duisburg, Essen, Oberhausen and Mulheim. Verkehrsverbund Rhein-Sieg (VRS), meanwhile, handles around half a billion passengers per year, covering the cities of Bergisch, Gladbach, Bonn, Cologne and Euskirchen. The ASK MV5100 cards include three different applications – e-ticket, e-purse and emarket. For now, the cards are only using the contactless e-ticket functionality, but the remaining contact-based functions will be added as a second stage to the project. The cards comply with specifications that were developed by card.etc, based on the VDV (the association of public transport in Germany) core application, which is expected to become a standard across Germany. In a separate deal, ASK has started shipping 1.7 million contactless smart labels to the 17 public libraries in Marseille, France. The libraries use the system and its C.label technology for managing, tracking and securing their entire inventory of over 1.5 million items. Each of the libraries’ borrowers has a contactless C-ticket card from ASK. These customers can borrow or return items by placing them and the card on the same reader. Contact: Claire Boyer at ASK, Tel: +33 497 214856, email: [email protected]
emv
MasterCard and Visa release specification MasterCard International and Visa are working together to develop a common standard for the personalization of EMV applications, such as MasterCard’s M/Chip and Visa Smart Debit/Credit (VSDC). The standard is to be called the EMV Card Personalization Specification and is expected to be released this month. Smart card personalization represents a significant portion of the total cost of producing an EMV smart card. By creating one consistent process to be used for both M/Chip and VSDC, it is hoped that this initiative will help reduce the overall costs of chip migration for card issuers. Compliance to the specification will be recommended rather than mandated, but it is anticipated that these specifications will be broadly adopted by smart card issuers and personalization providers because of the benefits offered to all the parties involved. Simon Pugh, vice president, Infrastructure and Standards, MasterCard International commented: “The EMV Card Personalization Specification is a major step forward in facilitating standards for smart cards, thereby simplifying implementations for financial institutions.”
in brief • SSP Solutions and SSP-Litronic have been awarded a US$500,000 contract to supply the US Department of Defense with USA (Universal Secure Access) Forte smart card technology. The USA Forte smart card is designed to protect electronic communications and financial transactions based on a “cryptographic system on a chip” design. The 32-bit ARM chip smart card and system architecture ensures that all sensitive information and data requiring protection and authentication is processed on the card without exposing any cryptographic functions to the user’s PC. The technology operates in conjunction with both ISO 7816 or USB reader interfaces. • In an effort to improve the business case for smart cards, Visa International and Datacard Group have collaborated to provide Visa member banks with turnkey smart card personalization solutions that streamline the EMV migration process. The new solutions are aimed at member banks wanting to control the personalization process in-house. In particular, the solutions are being offered in geographic markets outside the USA and to banks that are migrating to Visa Smart Debit/Credit. Datacard is the first vendor to join the Visa Smart Breakthrough Turnkey Personalization Program, and is offering banks two solutions. One is a high-end solution for members with existing Datacard equipment who want to add smart card capabilities; the other is a desktop-based issuance solution for low-volume card issuers. There is a predefined package price for each solution. • Japanese car manufacturer Nissan Motor Co is distributing a chip-based corporate ID badge to its 125,000 employees worldwide. The cards are designed to control physical access to all buildings and facilities around the world. The main supplier for this new system is SchlumbergerSema. • Legic Identsystems has launched a new multi-ISO standard compliant contactless smart card system called LEGIC advant. The system is designed to support access control and other person-related applications, such as time and attendance, cashless payment, parking and identity. The product line complies with multiple industry standards including ISO 15693, 14443 and the LEGIC RF standard. It is possible to extend the reading range of the cards to approximately 70 cm for ISO 15963 and LEGIC RF standard cards, the supplier claims. Meanwhile, the supplier has announced that Airbus, a leading aircraft manufacturer, is to use its technology for its employee company cards. Airbus operates 16 development and manufacturing sites in four European countries and has over 46,000 employees.
5
news Contact: Sabine Middlemass at Visa, Tel: +1 650 432 8307, email: [email protected]
in brief • The South Korean Financial Supervisory Committee (FSC) has decided to introduce smart cards to eliminate counterfeit cards by 2008. The FSC is expected to phase in smart cards and will make it mandatory to apply chip technology to cash cards, credit cards and terminals beginning from next year. The cost of replacing 160 million cards is estimated at 1.5 trillion won (US$1.25 billion) while the upgrading of 60,000 ATMs will cost 4.5 trillion won (US$3.75 billion). • French bank Societe Generale has chosen Schlumberger Smart Cards & Terminals and one other manufacturer to provide payment terminals and services to its retail customers as part of its Progecarte offer. Progecarte is a turnkey rental offer of point-of-sale (POS) terminals to retailers. It includes distribution, installation, training, assistance and maintenance services. Societe Generale said that the good performance of Schlumberger’s terminals in the French EMV (CB 5.2) pilot reinforced its decision. The second stage of Progecarte features Schlumberger MagIC* Evolution fixed and mobile point-of-sale terminals, which are certified EMV level 2. • Lawyers representing some five million US merchants announced a victory last month as Visa joined MasterCard in agreeing to an outof-court settlement in the high-profile antitrust case. The lawsuit, which was filed in 1996, by Wal-Mart, The Limited, Sears Roebuck, Safeway, Circuit City and three trade associations, charged Visa and MasterCard with violating US antitrust law by monopolistic and anticompetitive business practices concerning debit cards. Debit cards verified with a signature incurred fees of US$1.50 per US$100 transaction compared with about 10 cents for purchases using PIN systems. From the end of the year, Visa and MasterCard will no longer be able to require retailers who accept their credit cards to accept their debit cards as well, paving the way for greater competition from PIN-based networks. • Olivier Piou, president of Schlumberger Smart Cards and Terminals, has been named chairman of Eurosmart, the Brussels-based international smart card industry association. He succeeds Lutz Martiny of Micróelectronica Española, a leading Spanish smart card company. Piou said he intends to promote initiatives for strong growth throughout the industry, while focusing on the economics and the overall attractiveness of the smart card business. Eurosmart is a non-profit association of 32 industry members representing the world’s smart card industry from card equipment, semi-conductor and terminal manufacturers to card manufacturers and system integrators.
6
Christina Costa at MasterCard, Tel: +1 914 249 4606, email: [email protected]
Gemplus personalisation sites get EMV certified Gemplus has completed EMV certification at all of its personalisation sites worldwide. The certification of its Herne site in Germany brings its total number of certified sites to eight, and gives Gemplus the ability to process as many as 16 million EMV cards in 12 weeks. The sites are located in the UK, France, Brazil, Germany, Japan, Singapore, Mexico and Malaysia. All of these personalisation centres have now passed the stringent certification audits set by Payment Associations. Card personalisation forms a large part of any bank’s manufacturing needs, where demands can vary greatly. This variety is the result of numerous factors, such as the requirement for small or large card volumes, gold or premium cards, tight deadlines, exceptional issuances or pilot programmes. Jean-Éric Garnier, vice-president, Banking & Retail at Gemplus, said: “I’m pleased that we now offer to our customers a local presence in all major markets…Moreover, issuers can also choose for their in-house bureaus the same GemSense personalisation solution used by Gemplus in its sites. This unique combination offers the flexibility of in-house operation, backed-up by the industrial strength of large scale personalization centres.” Contact: Vanessa Clarke for Gemplus, Tel: +44 207 344 1349, email: [email protected]
terminals
McDonald’s orders chips from Ingenico… McDonald’s Restaurants Ltd has ordered a complete chip and PIN card payment system from Ingenico, a supplier of secure transaction systems. The landmark deal will see the technology rolled out in Scotland, which has been selected as a test market for this new payments system in McDonald’s UK restaurants. The contract, worth a potential seven figure sum over the next three years, is part of McDonald’s ongoing programme to equip its restaurants with the latest payment technology. Ingenico is providing all of the hardware and
software. In every restaurant, card reading PIN Pads will be connected via a network to both printers and communications controllers which connect via ISDN to the banking system for authorisations. It is expected that the transaction times will be quicker than paying with cash. McDonald’s will also use the system during the UK PIN trial in Northampton which started last month. According to Malcolm Bushell, managing director, Ingenico Northern Europe: “Delivering a payments solution which will be used by millions of people every day in McDonald’s UK restaurants, and which will be fast, secure and reliable has been a real challenge.” Ingenico has over 200,000 terminals installed in the UK today with a client list including all the major clearing banks, IBM, Sainsburys, Pizza Hut, British Airports Authority, Safeway, and Forte Hotels.
…as Ingenico complies with Finread specs Ingenico has successfully complied with specifications laid down by Finread, an international standard for secure smart card readers performing interoperable transactions on the internet. The Trusted Finread project, supported by the European Commission, was initiated in November 2001 with the objective of implementing and testing Finread-compliant readers in a confidential environment. The first step involved the defining of the complete infrastructure of certification and was completed following recent tests. These tests validated several technical points such as the process of secured loading, key management, multi-applicative management and authentication of the terminal. This was carried out under the supervision of the Groupement des Cartes Bancaires in Milan, at Actalis and in Brussels at the Global Trust Authority. The Trusted Finread project will be finished at the end of the first semester of 2003 with the launch of a pilot of 150 prototypes in Italy.
sim
First standards-based logon for WLAN Ericsson claims to have successfully demonstrated the first standards-based solution that allows users a single sign-on for both GSM and Public WLAN. The mobile phone manufacturer said that a WLANenabled laptop was authenticated (identified) by a GSM network, using the same
Card Technology Today June 2003
transport
German transport project takes delivery More than 1.7 million contactless smart cards have been delivered to the German public transport associations VRR and VRS as part of one of the largest smart-card-based transit projects in Europe. VRR and VRS represent 54 different transport operators and cover an area with over 10 million inhabitants. The cards, which have been rolling out to yearly and monthly ticket holders since the start of the year, have been supplied by ASK. ASK supplied the cards to card.etc, which is the general contractor and joint project management company on the project. Verkehrsverbund Rhein-Ruhr (VRR) handles around 1.1 billion customers each year on its bus and rail network. The main cities it covers are Bochum, Dortmund, Dusseldorf,
Card Technology Today June 2003
Duisburg, Essen, Oberhausen and Mulheim. Verkehrsverbund Rhein-Sieg (VRS), meanwhile, handles around half a billion passengers per year, covering the cities of Bergisch, Gladbach, Bonn, Cologne and Euskirchen. The ASK MV5100 cards include three different applications – e-ticket, e-purse and emarket. For now, the cards are only using the contactless e-ticket functionality, but the remaining contact-based functions will be added as a second stage to the project. The cards comply with specifications that were developed by card.etc, based on the VDV (the association of public transport in Germany) core application, which is expected to become a standard across Germany. In a separate deal, ASK has started shipping 1.7 million contactless smart labels to the 17 public libraries in Marseille, France. The libraries use the system and its C.label technology for managing, tracking and securing their entire inventory of over 1.5 million items. Each of the libraries’ borrowers has a contactless C-ticket card from ASK. These customers can borrow or return items by placing them and the card on the same reader. Contact: Claire Boyer at ASK, Tel: +33 497 214856, email: [email protected]
emv
MasterCard and Visa release specification MasterCard International and Visa are working together to develop a common standard for the personalization of EMV applications, such as MasterCard’s M/Chip and Visa Smart Debit/Credit (VSDC). The standard is to be called the EMV Card Personalization Specification and is expected to be released this month. Smart card personalization represents a significant portion of the total cost of producing an EMV smart card. By creating one consistent process to be used for both M/Chip and VSDC, it is hoped that this initiative will help reduce the overall costs of chip migration for card issuers. Compliance to the specification will be recommended rather than mandated, but it is anticipated that these specifications will be broadly adopted by smart card issuers and personalization providers because of the benefits offered to all the parties involved. Simon Pugh, vice president, Infrastructure and Standards, MasterCard International commented: “The EMV Card Personalization Specification is a major step forward in facilitating standards for smart cards, thereby simplifying implementations for financial institutions.”
in brief • SSP Solutions and SSP-Litronic have been awarded a US$500,000 contract to supply the US Department of Defense with USA (Universal Secure Access) Forte smart card technology. The USA Forte smart card is designed to protect electronic communications and financial transactions based on a “cryptographic system on a chip” design. The 32-bit ARM chip smart card and system architecture ensures that all sensitive information and data requiring protection and authentication is processed on the card without exposing any cryptographic functions to the user’s PC. The technology operates in conjunction with both ISO 7816 or USB reader interfaces. • In an effort to improve the business case for smart cards, Visa International and Datacard Group have collaborated to provide Visa member banks with turnkey smart card personalization solutions that streamline the EMV migration process. The new solutions are aimed at member banks wanting to control the personalization process in-house. In particular, the solutions are being offered in geographic markets outside the USA and to banks that are migrating to Visa Smart Debit/Credit. Datacard is the first vendor to join the Visa Smart Breakthrough Turnkey Personalization Program, and is offering banks two solutions. One is a high-end solution for members with existing Datacard equipment who want to add smart card capabilities; the other is a desktop-based issuance solution for low-volume card issuers. There is a predefined package price for each solution. • Japanese car manufacturer Nissan Motor Co is distributing a chip-based corporate ID badge to its 125,000 employees worldwide. The cards are designed to control physical access to all buildings and facilities around the world. The main supplier for this new system is SchlumbergerSema. • Legic Identsystems has launched a new multi-ISO standard compliant contactless smart card system called LEGIC advant. The system is designed to support access control and other person-related applications, such as time and attendance, cashless payment, parking and identity. The product line complies with multiple industry standards including ISO 15693, 14443 and the LEGIC RF standard. It is possible to extend the reading range of the cards to approximately 70 cm for ISO 15963 and LEGIC RF standard cards, the supplier claims. Meanwhile, the supplier has announced that Airbus, a leading aircraft manufacturer, is to use its technology for its employee company cards. Airbus operates 16 development and manufacturing sites in four European countries and has over 46,000 employees.
5
news Contact: Sabine Middlemass at Visa, Tel: +1 650 432 8307, email: [email protected]
in brief • The South Korean Financial Supervisory Committee (FSC) has decided to introduce smart cards to eliminate counterfeit cards by 2008. The FSC is expected to phase in smart cards and will make it mandatory to apply chip technology to cash cards, credit cards and terminals beginning from next year. The cost of replacing 160 million cards is estimated at 1.5 trillion won (US$1.25 billion) while the upgrading of 60,000 ATMs will cost 4.5 trillion won (US$3.75 billion). • French bank Societe Generale has chosen Schlumberger Smart Cards & Terminals and one other manufacturer to provide payment terminals and services to its retail customers as part of its Progecarte offer. Progecarte is a turnkey rental offer of point-of-sale (POS) terminals to retailers. It includes distribution, installation, training, assistance and maintenance services. Societe Generale said that the good performance of Schlumberger’s terminals in the French EMV (CB 5.2) pilot reinforced its decision. The second stage of Progecarte features Schlumberger MagIC* Evolution fixed and mobile point-of-sale terminals, which are certified EMV level 2. • Lawyers representing some five million US merchants announced a victory last month as Visa joined MasterCard in agreeing to an outof-court settlement in the high-profile antitrust case. The lawsuit, which was filed in 1996, by Wal-Mart, The Limited, Sears Roebuck, Safeway, Circuit City and three trade associations, charged Visa and MasterCard with violating US antitrust law by monopolistic and anticompetitive business practices concerning debit cards. Debit cards verified with a signature incurred fees of US$1.50 per US$100 transaction compared with about 10 cents for purchases using PIN systems. From the end of the year, Visa and MasterCard will no longer be able to require retailers who accept their credit cards to accept their debit cards as well, paving the way for greater competition from PIN-based networks. • Olivier Piou, president of Schlumberger Smart Cards and Terminals, has been named chairman of Eurosmart, the Brussels-based international smart card industry association. He succeeds Lutz Martiny of Micróelectronica Española, a leading Spanish smart card company. Piou said he intends to promote initiatives for strong growth throughout the industry, while focusing on the economics and the overall attractiveness of the smart card business. Eurosmart is a non-profit association of 32 industry members representing the world’s smart card industry from card equipment, semi-conductor and terminal manufacturers to card manufacturers and system integrators.
6
Christina Costa at MasterCard, Tel: +1 914 249 4606, email: [email protected]
Gemplus personalisation sites get EMV certified Gemplus has completed EMV certification at all of its personalisation sites worldwide. The certification of its Herne site in Germany brings its total number of certified sites to eight, and gives Gemplus the ability to process as many as 16 million EMV cards in 12 weeks. The sites are located in the UK, France, Brazil, Germany, Japan, Singapore, Mexico and Malaysia. All of these personalisation centres have now passed the stringent certification audits set by Payment Associations. Card personalisation forms a large part of any bank’s manufacturing needs, where demands can vary greatly. This variety is the result of numerous factors, such as the requirement for small or large card volumes, gold or premium cards, tight deadlines, exceptional issuances or pilot programmes. Jean-Éric Garnier, vice-president, Banking & Retail at Gemplus, said: “I’m pleased that we now offer to our customers a local presence in all major markets…Moreover, issuers can also choose for their in-house bureaus the same GemSense personalisation solution used by Gemplus in its sites. This unique combination offers the flexibility of in-house operation, backed-up by the industrial strength of large scale personalization centres.” Contact: Vanessa Clarke for Gemplus, Tel: +44 207 344 1349, email: [email protected]
terminals
McDonald’s orders chips from Ingenico… McDonald’s Restaurants Ltd has ordered a complete chip and PIN card payment system from Ingenico, a supplier of secure transaction systems. The landmark deal will see the technology rolled out in Scotland, which has been selected as a test market for this new payments system in McDonald’s UK restaurants. The contract, worth a potential seven figure sum over the next three years, is part of McDonald’s ongoing programme to equip its restaurants with the latest payment technology. Ingenico is providing all of the hardware and
software. In every restaurant, card reading PIN Pads will be connected via a network to both printers and communications controllers which connect via ISDN to the banking system for authorisations. It is expected that the transaction times will be quicker than paying with cash. McDonald’s will also use the system during the UK PIN trial in Northampton which started last month. According to Malcolm Bushell, managing director, Ingenico Northern Europe: “Delivering a payments solution which will be used by millions of people every day in McDonald’s UK restaurants, and which will be fast, secure and reliable has been a real challenge.” Ingenico has over 200,000 terminals installed in the UK today with a client list including all the major clearing banks, IBM, Sainsburys, Pizza Hut, British Airports Authority, Safeway, and Forte Hotels.
…as Ingenico complies with Finread specs Ingenico has successfully complied with specifications laid down by Finread, an international standard for secure smart card readers performing interoperable transactions on the internet. The Trusted Finread project, supported by the European Commission, was initiated in November 2001 with the objective of implementing and testing Finread-compliant readers in a confidential environment. The first step involved the defining of the complete infrastructure of certification and was completed following recent tests. These tests validated several technical points such as the process of secured loading, key management, multi-applicative management and authentication of the terminal. This was carried out under the supervision of the Groupement des Cartes Bancaires in Milan, at Actalis and in Brussels at the Global Trust Authority. The Trusted Finread project will be finished at the end of the first semester of 2003 with the launch of a pilot of 150 prototypes in Italy.
sim
First standards-based logon for WLAN Ericsson claims to have successfully demonstrated the first standards-based solution that allows users a single sign-on for both GSM and Public WLAN. The mobile phone manufacturer said that a WLANenabled laptop was authenticated (identified) by a GSM network, using the same
Card Technology Today June 2003