- Email: [email protected]
MasterCard launches Europe's first PayPass enabled watch
news Cards (millions of units)
in brief Telecom
18%
Financial Services, Retail, Loyalty 30
-
490
20%
Government/healthcare
350*
40%
140
56%*
Transport
160
12.5%
30
-
Pay TV
-
-
70
-
Corporate Security
20
33.3%
20
-
Others
10
-
15
-
Total
1010*
9.2%
3165
20%
Source: Eurosmart
4
440
2400
• A Common Criteria certified smart card has been introduced by Samsung Electronics. The company announced that two chips designed for combination (contact and non-contact) smart cards, in 72KB and 144KB capacities with embedded EEPROM, have been given Common Criteria (CC) certification and an Evaluation Assurance Level (EAL) 4+ rating. The smart card consists of a 16-bit CalmRISCTM CPU, an RSA public key encryption algorithm, a triple-DES (a symmetric key algorithm for encryption) and an advanced encryption standard (AES) algorithm. Also built into the smart cards is the International Standards Organization (ISO) 14443 A/B type contactless function. The company says it now satisfies the product standards used in such smart card applications as electronic passports and electronic identification.
• Xavier Drilhon has been appointed executive vice president of Oberthur Card Systems. Drilhon previously worked for Arthur Andersen and KPMG Peat Marwick before joining Oberthur in 1997 as director of manufacturing and development. After the reorganization of the company he took charge of the EMEA region, which represents 70% of Oberthur Card Systems’ global sales. He will now work closely with the CEO, as special advisor in fields such as sales & marketing, personalization activities, and mergers & acquisitions.
% Change
-8.3%
• Vodafone and Giesecke & Devrient (G&D) are teaming up to develop a secure storage element for NFC-enabled mobile phones. With Near Field Communication (NFC) technology set to spur new growth opportunities in the mobile telecommunications market, the SIM card is the secure element. Vodafone and G&D are to continue developing the specification to support interoperability between NFC-enabled SIM cards, mobile phone operators, handset manufacturers, and service providers before making it available to a wider audience in the middle of this year.
• Assa Abloy Identification Technologies (ITG) has introduced a new Omnikey smart card reader that combines contact smart card technology with fingerprint recognition. Using stripe sensor technology supplied by AuthenTec, the Omnikey CardMan 7121 allows threefold authentication via card, PIN and fingerprint. Based on the OMNIKEY CardMan 3121, the CardMan 7121 enables various configurations of fingerprint and smart card applications. It works with almost all contact smart cards and related applications, the company claims. The contact-based desktop device is especially designed for logical access control systems in high security environments.
Memory % Change Microprocessor
* Includes projected Chinese national ID project figures of 300 million units
Figure 2: 2007 Worldwide Shipment Forecast
Cards (millions of units) Region
Microprocessor
%
EMEA
1085.9
40.9
Asia Pacific
1208
45.5
Americas
363.7
13.7
Total
2655
Source: Eurosmart Figure 3: 2006 Microprocessor shipments by Region
contactless devices, such as ePassports, e-ID cards, EMV contactless cards (but excluding basic physical access control cards). From a regional perspective there has been a shift in the balance of power with Asia now having overtaken EMEA as the largest market.
contactless
MasterCard launches Europe’s first PayPass enabled watch MasterCard Worldwide has announced the launch of Europe’s first watch equipped with its PayPass contactless technology, in partnership with Garanti Bank in Turkey. Consumers will simply be able tap their new watches on a PayPass reader to make the equivalent of a credit card purchase at more than 600 merchant locations in Turkey, including major names such as Burger King, Starbucks, Cinebonus, TAV (Istanbul Atatürk Airport Otopark), and the Istanbul Ferry Corporation. The PayPass watch allows users to make purchases under 15 euros, with no signature or PIN required. Larger purchases will still require a signature.
In 2006, microprocessor shipments to Asia were 1208 million (45.5% of the market), up from 679.7 million in 2005. EMEA on the other hand went from 906 million microprocessor units in 2005 to 1086 in 2006 (40.9% of the market).
This is an extension of Europe’s first MasterCard PayPass credit programme, which was launched with Garanti Bank in Turkey in June 2006, when the ‘Garanti Bonus Trink’ card with PayPass was launched. The issuance of PayPass watches in Europe follows the launch in June 2006 of the world’s first watch equipped with MasterCard PayPass in Asia, to coincide with the 2006 FIFA World Cup in Germany. That limited edition watch was created in collaboration with Chinatrust, LAKS and On Track Innovations. Cathleen Conforti, Global PayPass product manager, MasterCard Worldwide, said: “Contactless payments have a major role to play in the replacement of cash in European commerce… In various parts of the world today our PayPass feature is in use in non-card forms, such as key fobs, wristbands and mobile phones, offering consumers a broad range of payment alternatives where speed, flexibility and convenience are essential.”
Card Technology Today • May 2007
news Since its launch, MasterCard data shows that the average MasterCard PayPass transaction, credit or debit, is approximately US$20. Consumers also use their payment cards 18% more frequently on average. Roughly 75% of all PayPass transactions are for purchases below US$25 and approximately 45% are for purchases below US$10. As of Q1 2007, there were more than 14 million MasterCard PayPass cards and devices in the market that are accepted at more than 51,000 merchant locations globally. Contact: Louise Herbert at MasterCard, Tel: +32 2352 5647, Email: [email protected]
market
20 billion by 2020 Smart card association Eurosmart has forecast that smart cards will be integral components of Smart Secure Devices in the future and that more than 20 billion are forecast for 2020. The association has launched a paper - “Vision Paper 2020” – which is the culmination of both Eurosmart research and the thoughts of a panel of industry experts who scrutinized future market needs and consumers’ and citizens’ expectations. “Smart Secure Devices will help our lives to be easier, safer and more enjoyable, without jeopardizing our privacy,” explained Eurosmart chairman Jacques Seneca. “In 2020, smart objects will become totally integrated into our everyday lives as our digital proxies, bringing simplicity and convenience in the way services are delivered to us. Smart cards will get diversified into Smart Security Devices leveraging on biometrics, contactless, nanotechnologies as well as software.” The paper speculates what typical day in 2020 will be like, with smart objects being used by consumers and citizens to access and enjoy personalised educational and entertainment experiences, for civil and online identification purposes, to protect and monitor their health against unexpected threats, for access, for transit, for payments, for faster and more convenient shopping experiences and for much more. Smart security technologies also have a considerable role to help bridge the digital divide in less developed parts of the world. The Vision Paper 2020 is available at www.eurosmart.com
id
EDS wins US$66 million contract from the GSA EDS has been selected by the US General Services Administration to provide identity management services to federal government civilian agencies. These services will allow agencies to comply
Card Technology Today • May 2007
with Homeland Security Presidential Directive 12 (HSPD-12), which calls for a mandatory government- wide standard for a secure common form of identification for all federal government employees and contractors. The order is worth US$66 million and will run until September 2011 if all options are exercised. HSPD-12 requires federal agencies to use a standard process to establish and manage an individual’s identity and then issue that individual an interoperable smart card that can be used for both physical and logical access to federal government facilities and information systems. This policy is intended to enhance security, increase efficiency, reduce identity fraud and protect personal privacy. Under this contract, the EDS team will support GSA in issuing identity credentials to approximately 420,000 employees at 42 federal civilian agencies. EDS will provide a shared service solution for endto-end managed services for the following core HSPD-12 system components: •
enrolment – capturing a federal employee’s identity, fingerprint and digital facial images and storing them in the EDS identity management system;
•
system infrastructure – the identity management and card management systems;
•
card production and issuance – processing credential requests, producing Personal Identity Verification cards and issuing them to applicants.
•
card activation – verifying applicants’ identities using biometric scans and then “personalizing” cards with the applicants’ PIN numbers and other information.
EDS’ team includes services and technology companies such as Northrop Grumman, ActivIdentity, Data Systems Analysts, Identification Technology Group, L-1 Identity Solutions, Oberthur Card Systems, and Tibco Software. Contact: Brad Bass at EDS, Tel: +1 703 733 3193, Email: [email protected]
payment
Time for cheques to check out? On the day that major UK-based retailer, Boots, decided to stop accepting cheques, new research by Visa UK showed that cheques are fast becoming an obsolete method of payment among consumers. Moreover, retailers are seeing a general decline in cheque usage with cheques accounting for little more than 2% of UK retail turnover in 2006. The survey commissioned by Visa UK and conducted by the Centre for Retail Research, reflects the views of a representative sample of UK retailers and consumers. It provides compelling evidence of the growing popularity of debit and credit cards over traditional payment methods such as cheques
in brief • Xiring has announced that it is the first to receive APACS certification for an online banking authentication solution in the UK. The first MasterCard Chip Authentication Program (CAP) 2007 certification for APACS was delivered to Xiring for its Xi-Sign 4000 4000, a pocketsize portable, unconnected smart card reader that allows customers to log-in to their online bank services securely. This solution aims to ensure that the person conducting business online or over the telephone is the genuine cardholder and is authorised to make the transaction. Xiring is currently working with major UK banks on their remote card authentication programmes and expects to start massive deployment in the UK. • The Ministry of Transportation in Indonesia has chosen 3M to implement its new Seafarers’ Identity Document (SID). Beginning in the middle of this year, Indonesia will generate new SIDs using the 3M Identity Document Issuance System. Biometric identity verification features of the 3M system convert seafarers’ fingerprints into a biometric template and encode those prints into a two-dimensional bar code printed on the SID. Authorities compare “live” fingerprints of the SID holder with encoded data to positively identify the seafarer and check document authenticity. • The Muehlbauer technology group has this month opened its first production location outside Germany. The site, in Melaka, Malaysia, has been opened in order to strengthen the company’s presence in the whole Asian region and is seen as an additional enhancement and complement to the German locations. More than 60 highly trained Malaysian employees are already occupied in Melaka in the research, development and assembly divisions as well as in service and sales. • Sermepa, a Spanish technical provider for the payments industry, has launched a Visa approved EMV card based on GlobalPlatform specifications. The Advantis JCrypto GP Card will become one of the first EMV smart cards in Europe to be created on an open platform. The new card uses Java card technology and comprises an operating system and EMV applet integrated with the GlobalPlatformbased Operating System in the ROM of the chip, rather than being stored in the external memory. Another feature which is enabled is a post-issuance download capability. It is claimed that issuers from the financial and banking community will be able to load new applications, such as electronic signature or identification applications, onto cards after they have been issued to cardholders.
5
in brief Telecom
18%
Financial Services, Retail, Loyalty 30
-
490
20%
Government/healthcare
350*
40%
140
56%*
Transport
160
12.5%
30
-
Pay TV
-
-
70
-
Corporate Security
20
33.3%
20
-
Others
10
-
15
-
Total
1010*
9.2%
3165
20%
Source: Eurosmart
4
440
2400
• A Common Criteria certified smart card has been introduced by Samsung Electronics. The company announced that two chips designed for combination (contact and non-contact) smart cards, in 72KB and 144KB capacities with embedded EEPROM, have been given Common Criteria (CC) certification and an Evaluation Assurance Level (EAL) 4+ rating. The smart card consists of a 16-bit CalmRISCTM CPU, an RSA public key encryption algorithm, a triple-DES (a symmetric key algorithm for encryption) and an advanced encryption standard (AES) algorithm. Also built into the smart cards is the International Standards Organization (ISO) 14443 A/B type contactless function. The company says it now satisfies the product standards used in such smart card applications as electronic passports and electronic identification.
• Xavier Drilhon has been appointed executive vice president of Oberthur Card Systems. Drilhon previously worked for Arthur Andersen and KPMG Peat Marwick before joining Oberthur in 1997 as director of manufacturing and development. After the reorganization of the company he took charge of the EMEA region, which represents 70% of Oberthur Card Systems’ global sales. He will now work closely with the CEO, as special advisor in fields such as sales & marketing, personalization activities, and mergers & acquisitions.
% Change
-8.3%
• Vodafone and Giesecke & Devrient (G&D) are teaming up to develop a secure storage element for NFC-enabled mobile phones. With Near Field Communication (NFC) technology set to spur new growth opportunities in the mobile telecommunications market, the SIM card is the secure element. Vodafone and G&D are to continue developing the specification to support interoperability between NFC-enabled SIM cards, mobile phone operators, handset manufacturers, and service providers before making it available to a wider audience in the middle of this year.
• Assa Abloy Identification Technologies (ITG) has introduced a new Omnikey smart card reader that combines contact smart card technology with fingerprint recognition. Using stripe sensor technology supplied by AuthenTec, the Omnikey CardMan 7121 allows threefold authentication via card, PIN and fingerprint. Based on the OMNIKEY CardMan 3121, the CardMan 7121 enables various configurations of fingerprint and smart card applications. It works with almost all contact smart cards and related applications, the company claims. The contact-based desktop device is especially designed for logical access control systems in high security environments.
Memory % Change Microprocessor
* Includes projected Chinese national ID project figures of 300 million units
Figure 2: 2007 Worldwide Shipment Forecast
Cards (millions of units) Region
Microprocessor
%
EMEA
1085.9
40.9
Asia Pacific
1208
45.5
Americas
363.7
13.7
Total
2655
Source: Eurosmart Figure 3: 2006 Microprocessor shipments by Region
contactless devices, such as ePassports, e-ID cards, EMV contactless cards (but excluding basic physical access control cards). From a regional perspective there has been a shift in the balance of power with Asia now having overtaken EMEA as the largest market.
contactless
MasterCard launches Europe’s first PayPass enabled watch MasterCard Worldwide has announced the launch of Europe’s first watch equipped with its PayPass contactless technology, in partnership with Garanti Bank in Turkey. Consumers will simply be able tap their new watches on a PayPass reader to make the equivalent of a credit card purchase at more than 600 merchant locations in Turkey, including major names such as Burger King, Starbucks, Cinebonus, TAV (Istanbul Atatürk Airport Otopark), and the Istanbul Ferry Corporation. The PayPass watch allows users to make purchases under 15 euros, with no signature or PIN required. Larger purchases will still require a signature.
In 2006, microprocessor shipments to Asia were 1208 million (45.5% of the market), up from 679.7 million in 2005. EMEA on the other hand went from 906 million microprocessor units in 2005 to 1086 in 2006 (40.9% of the market).
This is an extension of Europe’s first MasterCard PayPass credit programme, which was launched with Garanti Bank in Turkey in June 2006, when the ‘Garanti Bonus Trink’ card with PayPass was launched. The issuance of PayPass watches in Europe follows the launch in June 2006 of the world’s first watch equipped with MasterCard PayPass in Asia, to coincide with the 2006 FIFA World Cup in Germany. That limited edition watch was created in collaboration with Chinatrust, LAKS and On Track Innovations. Cathleen Conforti, Global PayPass product manager, MasterCard Worldwide, said: “Contactless payments have a major role to play in the replacement of cash in European commerce… In various parts of the world today our PayPass feature is in use in non-card forms, such as key fobs, wristbands and mobile phones, offering consumers a broad range of payment alternatives where speed, flexibility and convenience are essential.”
Card Technology Today • May 2007
news Since its launch, MasterCard data shows that the average MasterCard PayPass transaction, credit or debit, is approximately US$20. Consumers also use their payment cards 18% more frequently on average. Roughly 75% of all PayPass transactions are for purchases below US$25 and approximately 45% are for purchases below US$10. As of Q1 2007, there were more than 14 million MasterCard PayPass cards and devices in the market that are accepted at more than 51,000 merchant locations globally. Contact: Louise Herbert at MasterCard, Tel: +32 2352 5647, Email: [email protected]
market
20 billion by 2020 Smart card association Eurosmart has forecast that smart cards will be integral components of Smart Secure Devices in the future and that more than 20 billion are forecast for 2020. The association has launched a paper - “Vision Paper 2020” – which is the culmination of both Eurosmart research and the thoughts of a panel of industry experts who scrutinized future market needs and consumers’ and citizens’ expectations. “Smart Secure Devices will help our lives to be easier, safer and more enjoyable, without jeopardizing our privacy,” explained Eurosmart chairman Jacques Seneca. “In 2020, smart objects will become totally integrated into our everyday lives as our digital proxies, bringing simplicity and convenience in the way services are delivered to us. Smart cards will get diversified into Smart Security Devices leveraging on biometrics, contactless, nanotechnologies as well as software.” The paper speculates what typical day in 2020 will be like, with smart objects being used by consumers and citizens to access and enjoy personalised educational and entertainment experiences, for civil and online identification purposes, to protect and monitor their health against unexpected threats, for access, for transit, for payments, for faster and more convenient shopping experiences and for much more. Smart security technologies also have a considerable role to help bridge the digital divide in less developed parts of the world. The Vision Paper 2020 is available at www.eurosmart.com
id
EDS wins US$66 million contract from the GSA EDS has been selected by the US General Services Administration to provide identity management services to federal government civilian agencies. These services will allow agencies to comply
Card Technology Today • May 2007
with Homeland Security Presidential Directive 12 (HSPD-12), which calls for a mandatory government- wide standard for a secure common form of identification for all federal government employees and contractors. The order is worth US$66 million and will run until September 2011 if all options are exercised. HSPD-12 requires federal agencies to use a standard process to establish and manage an individual’s identity and then issue that individual an interoperable smart card that can be used for both physical and logical access to federal government facilities and information systems. This policy is intended to enhance security, increase efficiency, reduce identity fraud and protect personal privacy. Under this contract, the EDS team will support GSA in issuing identity credentials to approximately 420,000 employees at 42 federal civilian agencies. EDS will provide a shared service solution for endto-end managed services for the following core HSPD-12 system components: •
enrolment – capturing a federal employee’s identity, fingerprint and digital facial images and storing them in the EDS identity management system;
•
system infrastructure – the identity management and card management systems;
•
card production and issuance – processing credential requests, producing Personal Identity Verification cards and issuing them to applicants.
•
card activation – verifying applicants’ identities using biometric scans and then “personalizing” cards with the applicants’ PIN numbers and other information.
EDS’ team includes services and technology companies such as Northrop Grumman, ActivIdentity, Data Systems Analysts, Identification Technology Group, L-1 Identity Solutions, Oberthur Card Systems, and Tibco Software. Contact: Brad Bass at EDS, Tel: +1 703 733 3193, Email: [email protected]
payment
Time for cheques to check out? On the day that major UK-based retailer, Boots, decided to stop accepting cheques, new research by Visa UK showed that cheques are fast becoming an obsolete method of payment among consumers. Moreover, retailers are seeing a general decline in cheque usage with cheques accounting for little more than 2% of UK retail turnover in 2006. The survey commissioned by Visa UK and conducted by the Centre for Retail Research, reflects the views of a representative sample of UK retailers and consumers. It provides compelling evidence of the growing popularity of debit and credit cards over traditional payment methods such as cheques
in brief • Xiring has announced that it is the first to receive APACS certification for an online banking authentication solution in the UK. The first MasterCard Chip Authentication Program (CAP) 2007 certification for APACS was delivered to Xiring for its Xi-Sign 4000 4000, a pocketsize portable, unconnected smart card reader that allows customers to log-in to their online bank services securely. This solution aims to ensure that the person conducting business online or over the telephone is the genuine cardholder and is authorised to make the transaction. Xiring is currently working with major UK banks on their remote card authentication programmes and expects to start massive deployment in the UK. • The Ministry of Transportation in Indonesia has chosen 3M to implement its new Seafarers’ Identity Document (SID). Beginning in the middle of this year, Indonesia will generate new SIDs using the 3M Identity Document Issuance System. Biometric identity verification features of the 3M system convert seafarers’ fingerprints into a biometric template and encode those prints into a two-dimensional bar code printed on the SID. Authorities compare “live” fingerprints of the SID holder with encoded data to positively identify the seafarer and check document authenticity. • The Muehlbauer technology group has this month opened its first production location outside Germany. The site, in Melaka, Malaysia, has been opened in order to strengthen the company’s presence in the whole Asian region and is seen as an additional enhancement and complement to the German locations. More than 60 highly trained Malaysian employees are already occupied in Melaka in the research, development and assembly divisions as well as in service and sales. • Sermepa, a Spanish technical provider for the payments industry, has launched a Visa approved EMV card based on GlobalPlatform specifications. The Advantis JCrypto GP Card will become one of the first EMV smart cards in Europe to be created on an open platform. The new card uses Java card technology and comprises an operating system and EMV applet integrated with the GlobalPlatformbased Operating System in the ROM of the chip, rather than being stored in the external memory. Another feature which is enabled is a post-issuance download capability. It is claimed that issuers from the financial and banking community will be able to load new applications, such as electronic signature or identification applications, onto cards after they have been issued to cardholders.
5