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MasterCard announces PayPass findings…
news
in brief • French smart card manufacturer Gemplus International has made a number of personnel changes within its organisation. The company’s Financial and Security Services Business Unit will now be run jointly by Philippe Combes and Jacques Seneca, who will also remain in their current positions as executive vicepresident, Operations, and executive vicepresident, Business Development Group, respectively. They replace Gilles Michel, who is leaving the company to pursue other interests. Combes will focus on volume products including banking, retail & transport and conventional cards. Seneca, meanwhile, will focus on emerging markets including ID & security and smart card interfaces. The company also recently announced the appointment of Werner Koepf and Geoffrey Fink as new company directors. • Oberthur Card Systems has developed a new line of smart-card-based payment products. The MoneytIC EMV Chrysalis cards are based on the latest EMV, Visa and MasterCard specifications and allow debit/credit applications, such as VSDC, M/Chip and ABI, to be activated during manufacturing phase. A flexible file system will allow numerous value-added applications to coexist on the same device. The EMV Chrysalis product line will comprise 2KB, 4KB and 8KB cards with or without an off-line dynamic authentication crypto processor. An optional contactless interface will also be a possibility. • Tarmin Solutions, together with Keycorp and Precise Biometrics, has developed an identity management platform which will allow the rapid design and deployment of identity-based smart cards. The VER platform is based on the MULTOS operating system and is slated for release in the first quarter of 2004. Tarmin will provide document signing and disk encryption capabilities, Keycorp will provide the PKI application and expertise in the MULTOS platform, while Precise Biometrics will supply its Match-on-Card technology for on-card fingerprint matching. • Axalto, formerly Schlumberger Smart Cards & Terminals, has won a contract to supply point-of-sale (POS) terminals for BNP Paribas. Under the contract Axalto is also responsible for providing outsourced POS services, such as terminal installation, maintenance and help desk services. Axalto provides MagIC* 6100/5100 desktop terminals as well as the MagIC X1000 DECT portable terminal, which features the latest digital radio technology.
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flexibility and software interoperability of the original Multos platform, but for a significantly lower price. Financial organisations will be able to upgrade to fully-featured PKI-based Multos smart cards in the future, if they so wished. Keycorp will supply its own version of step/one called LiteOS. According to Tim Fletcher, general manager Smartcard Technologies at Keycorp: “The fact that one of the world’s leading card issuers has already ordered LiteOS in volume shows that there is strong demand for a secure low cost product based on open standards that is part of a broader family.” Meanwhile, the popularity of Multos-based chips appears to be holding firm as the Multos Consortium announced more than 25 million chips have now been shipped.
payments
MasterCard announces Paypass findings… MasterCard International has announced the initial results from its contactless payment market trials taking place in Orlando, Florida and Dallas, Texas. The company also revealed the findings from a recent consumer payment survey, which showed that nearly half (49%) of consumers carry US$20 or less in their wallet and that 86% of consumers reported they want to use cash less often than they currently do. A major intent of the Orlando PayPass trial was to test real-world consumer and retailer experiences of using contactless payment technology – more than 16,000 cardholders and 60 retail locations participated in the nine-month trial. Trial results indicate that consumers found PayPass to be simple, quick, convenient and more secure. Consumers also liked the convenience of not carrying cash for everyday purchases and not having to go to the ATM as frequently. According to MasterCard, in some locations, PayPass reduced purchase times so substantially as to have a tangible impact on retailers’ ability to support additional transactions and thus potentially increase revenues. The most significant time savings were recognized in the drive-through environment, where 12–18 seconds were shaved off the purchase time as compared to cash. For the Dallas, Texas trial, MasterCard had teamed up with Nokia to incorporate PayPass into mobile phones. Consumers are able to tap or wave their phone at the terminal to make payments simpler. Initial results from the Dallas trial again showed that increased speed and convenience
were the top benefits. The average PayPass payment made using a mobile phone was six seconds faster than using a card, due to the reduction of “fumble time”. MasterCard believes that the following best practices are recommended at the point of sale in order to use the full potential of PayPass: • • •
high speed authorization connections; integrated terminals and readers with direct connections to cash registers; and implementation in quick pay merchant environments.
…and selects chip vendors Following on from the successful trials in Orlando and Dallas, MasterCard has taken steps towards a wider rollout of contactless chip-based payment cards in the US, selecting Atmel as one of its primary suppliers of chips. Atmel, meanwhile, announced it will work with the US subsidiary of On Track Innovations, an Israeli company. Atmel’s contactless chip is an 8-bit secure microcontroller from the supplier’s AT05SC product family, currently used for a variety of banking applications. The chip features 40KB ROM, 2KB EEPROM, hardware DES and is compliant with ISO 14443B and ISO 7816 industry standards. OTI is to supply software for the chip, as well as the chip inlay and the antenna that allows the card to communicate with readers. PayPass usage continues to expand in Orlando and MasterCard is also proceeding with plans for deployments in additional locations later this year. According to industry reports, there could be as many as four to six million PayPass contactless cards in the US by the end of 2004.
industry news
SESAMES winners are… Following CTT’s round up of the Cartes show in Paris in last month’s issue, including the shortlist of SESAMES Awards entrants, we are pleased to report on the winners for 2003. Winning the best of show award was the Lifecarte application from CéLaVie. This application attempts to solve the problem of reading basic medical information stored on a smart card when in an emergency situation. The French start-up company has put the emergency data (such as medical, identity, persons to contact, insurance etc.) in multiple languages onto a SIM-sized card that can be read by most GSM mobile handsets deployed worldwide.
Card Technology Today January 2004
in brief • French smart card manufacturer Gemplus International has made a number of personnel changes within its organisation. The company’s Financial and Security Services Business Unit will now be run jointly by Philippe Combes and Jacques Seneca, who will also remain in their current positions as executive vicepresident, Operations, and executive vicepresident, Business Development Group, respectively. They replace Gilles Michel, who is leaving the company to pursue other interests. Combes will focus on volume products including banking, retail & transport and conventional cards. Seneca, meanwhile, will focus on emerging markets including ID & security and smart card interfaces. The company also recently announced the appointment of Werner Koepf and Geoffrey Fink as new company directors. • Oberthur Card Systems has developed a new line of smart-card-based payment products. The MoneytIC EMV Chrysalis cards are based on the latest EMV, Visa and MasterCard specifications and allow debit/credit applications, such as VSDC, M/Chip and ABI, to be activated during manufacturing phase. A flexible file system will allow numerous value-added applications to coexist on the same device. The EMV Chrysalis product line will comprise 2KB, 4KB and 8KB cards with or without an off-line dynamic authentication crypto processor. An optional contactless interface will also be a possibility. • Tarmin Solutions, together with Keycorp and Precise Biometrics, has developed an identity management platform which will allow the rapid design and deployment of identity-based smart cards. The VER platform is based on the MULTOS operating system and is slated for release in the first quarter of 2004. Tarmin will provide document signing and disk encryption capabilities, Keycorp will provide the PKI application and expertise in the MULTOS platform, while Precise Biometrics will supply its Match-on-Card technology for on-card fingerprint matching. • Axalto, formerly Schlumberger Smart Cards & Terminals, has won a contract to supply point-of-sale (POS) terminals for BNP Paribas. Under the contract Axalto is also responsible for providing outsourced POS services, such as terminal installation, maintenance and help desk services. Axalto provides MagIC* 6100/5100 desktop terminals as well as the MagIC X1000 DECT portable terminal, which features the latest digital radio technology.
4
flexibility and software interoperability of the original Multos platform, but for a significantly lower price. Financial organisations will be able to upgrade to fully-featured PKI-based Multos smart cards in the future, if they so wished. Keycorp will supply its own version of step/one called LiteOS. According to Tim Fletcher, general manager Smartcard Technologies at Keycorp: “The fact that one of the world’s leading card issuers has already ordered LiteOS in volume shows that there is strong demand for a secure low cost product based on open standards that is part of a broader family.” Meanwhile, the popularity of Multos-based chips appears to be holding firm as the Multos Consortium announced more than 25 million chips have now been shipped.
payments
MasterCard announces Paypass findings… MasterCard International has announced the initial results from its contactless payment market trials taking place in Orlando, Florida and Dallas, Texas. The company also revealed the findings from a recent consumer payment survey, which showed that nearly half (49%) of consumers carry US$20 or less in their wallet and that 86% of consumers reported they want to use cash less often than they currently do. A major intent of the Orlando PayPass trial was to test real-world consumer and retailer experiences of using contactless payment technology – more than 16,000 cardholders and 60 retail locations participated in the nine-month trial. Trial results indicate that consumers found PayPass to be simple, quick, convenient and more secure. Consumers also liked the convenience of not carrying cash for everyday purchases and not having to go to the ATM as frequently. According to MasterCard, in some locations, PayPass reduced purchase times so substantially as to have a tangible impact on retailers’ ability to support additional transactions and thus potentially increase revenues. The most significant time savings were recognized in the drive-through environment, where 12–18 seconds were shaved off the purchase time as compared to cash. For the Dallas, Texas trial, MasterCard had teamed up with Nokia to incorporate PayPass into mobile phones. Consumers are able to tap or wave their phone at the terminal to make payments simpler. Initial results from the Dallas trial again showed that increased speed and convenience
were the top benefits. The average PayPass payment made using a mobile phone was six seconds faster than using a card, due to the reduction of “fumble time”. MasterCard believes that the following best practices are recommended at the point of sale in order to use the full potential of PayPass: • • •
high speed authorization connections; integrated terminals and readers with direct connections to cash registers; and implementation in quick pay merchant environments.
…and selects chip vendors Following on from the successful trials in Orlando and Dallas, MasterCard has taken steps towards a wider rollout of contactless chip-based payment cards in the US, selecting Atmel as one of its primary suppliers of chips. Atmel, meanwhile, announced it will work with the US subsidiary of On Track Innovations, an Israeli company. Atmel’s contactless chip is an 8-bit secure microcontroller from the supplier’s AT05SC product family, currently used for a variety of banking applications. The chip features 40KB ROM, 2KB EEPROM, hardware DES and is compliant with ISO 14443B and ISO 7816 industry standards. OTI is to supply software for the chip, as well as the chip inlay and the antenna that allows the card to communicate with readers. PayPass usage continues to expand in Orlando and MasterCard is also proceeding with plans for deployments in additional locations later this year. According to industry reports, there could be as many as four to six million PayPass contactless cards in the US by the end of 2004.
industry news
SESAMES winners are… Following CTT’s round up of the Cartes show in Paris in last month’s issue, including the shortlist of SESAMES Awards entrants, we are pleased to report on the winners for 2003. Winning the best of show award was the Lifecarte application from CéLaVie. This application attempts to solve the problem of reading basic medical information stored on a smart card when in an emergency situation. The French start-up company has put the emergency data (such as medical, identity, persons to contact, insurance etc.) in multiple languages onto a SIM-sized card that can be read by most GSM mobile handsets deployed worldwide.
Card Technology Today January 2004