- Email: [email protected]
Passport chips face collision
news Continued from front page ... Driven by continuing EMV-migration rollout and by a greater contribution from the Asia region, Axalto reported that its fourth quarter bank card sales were buoyant, up 22% on the fourth quarter of 2003 to US$51.7 million. The company reported that its average sales price in this sector was also stable as the product mix continued to improve, especially in the EMEA region. Gemplus posted very promising results, boasting a return to net profit (Euro 4.7 million) for the first time since 2000. Revenue at the company climbed to Euro 865 million, up 15% on 2003. The company said that its revenue growth had been stimulated by a ramping up of sales in its wireless and EMV card segments. Wireless revenue was up 33.7 % putting it in the number one spot from a revenue perspective, despite shipping fewer units than Axalto. (Axalto shipped 257 million units, compared with 255.4 million by Gemplus. Meanwhile Axalto made Euro 429 million compared with Gemplus’ Euro558.5 million). Gemplus shipped 51 million payment microprocessor cards, with revenue up 29% yearon-year.
sim
Massive SIM announced by Oberthur Smart card manufacturer Oberthur Card Systems has launched the world’s biggest ever USIM card with a staggering 128 Mbytes of memory. This smashes all previous records for SIM card memory sizes which have been measured in kilobytes up until now, with 32 kbytes being the norm and 128 kbytes being the largest on the market. The vendors hope that the rollout of thirdgeneration networks by an increasing number of mobile network operators, combined with competition for multimedia content revenue, will create a demand for SIMs with this sort of memory size. To make the technological leap, Oberthur teamed up with M-Systems, one of the creators of the USB flash token. Ira Cohen, VP of business development at M-Systems told CTT: “This is a quantum leap for USIM cards, adding a massive amount of memory and functionality.” The size of the card will enable subscribers to store MP3 files (several albums), Java games, video clips, pictures and their personal settings. The content can be easily moved when a user changes handsets.
Card Technology Today February 2005
As well as increased memory capacity the GIGAntIC SIM has a communication speed between the SIM and the phone that is far beyond current industry performance, thanks to the use of data protocols including USB and MMC. Some in the industry have questioned the need for such capacity, saying that consumers are more likely to store information on multimedia cards – it is reported that about one quarter of mobile phones currently being sold have slots for flash cards. Another problem with a SIM card is that the phone goes offline if it is taken out to extract the data. Cohen counters this argument, pointing out that most people don’t remove their memory cards in any case. Helping to validate the business case is the fact that other companies are also working on high capacity products, such as Renesas Technology and Samsung Electronics. “SIMs are now a commodity. This development will allow operators to make some money from SIM cards,” said Cohen. GIGAntIC cards will be available from Oberthur Card Systems starting from the second half of 2005 – the commercial cards could have an even higher capacity, perhaps 256 Mbytes. It is unknown how much they will cost but Cohen says that they will likely be similar in price to equivalent memory cards which currently retail at around US$15 for 128 Mbytes. Additional costs to subscribers are expected to be heavily subsidised by operators, who could not only recoup some of the cost through higher subscription costs, but also by increasing the revenue they generate from each subscriber through the purchasing of multimedia content. Contact: Mona Popilian-Yona at M-Systems, Tel: +972 9 764 4992, email: [email protected] Stéphanie Cau at Oberthur Card Systems, Tel: +33 47 85 56 57, email: [email protected]
visas
Passport chips face collision The European Union is in a quandary over the introduction of biometric-based visas, following findings that the presence of multiple contactless chips within a single travel document can make it extremely hard to read the correct chip. According to an expert technical committee set up to report to the EU’s Council of Ministers, the possibility of so called ‘collisions’ between contactless chips would make it difficult for readers to read the correct chip within the document. This phenomenon could only be avoided if immigration officers used awkward document handling procedures to read the correct chip, which is clearly not desirable.
in brief • Axalto has launched a new subscriber identity module (SIM) solution designed to improve the overall experience of mobile phone users and to support the operator in its service strategy. The solution is based on an implementation of a Web server on the SIM, that hosts the operator’s service portal and secure services. By clicking on an icon in the main menu of their handset, subscribers reach a unique portal that provides easy access to all their services wherever they are hosted – on the network, the handset or the SIM. With this solution, subscribers enjoy a consistent experience independent of the device. For the operator, the solution ensures that subscribers connect to its service portal at the first connection, so helping to secure its position in the service value chain. • Bell ID is to join the MULTOS Consortium. As a result Bell ID will gain a seat on the Systems Forum and Business Advisory Group of the MULTOS standards body. As a member, Bell ID has voting rights over the further development of specifications relating to off-card data preparation and personalisation of MULTOS applications. Bell ID will also have automatic rights to implement the recently released MULTOS step/one offcard specifications for key management and data preparation of EMV and other value added applications. MULTOS step/one is the entry level MULTOS platform for financial institutions migrating to EMV. • Gemplus International has been awarded an EMV consulting contract from Bangkok Bank. According to the supplier this is the first EMV consultancy project involving a leading bank in Thailand. Under the terms of the project, Gemplus will advise Bangkok Bank on the migration path to EMV and the upgrade of the card payment system. Additionally, Gemplus will deliver the functional specifications of the system components and provide project management and technical co-ordination throughout the EMV pilot project. • Chinese smart card manufacturer Watchdata Technologies has announced plans to float on the US NASDAQ. The Beijing-based company has filed an application with the US Securities and Exchange Commission and J.P. Morgan Chase & Co will be chief underwriter.
3
news
in brief • French smart card manufacturer Gemplus International has entered into a partnership with Digigreffe, the registry office of the commercial court of Paris, and Sigillum Technologies. The aim of the partnership is to develop secure online transaction solutions using electronic certificates. Smart cards from Gemplus will act as an " electronic key " that will be used to sign for and encrypt the transfer of electronic documents from Digigreffe. Combined with Sigillum's Keysign software, this key will sign all documents with the extensions .doc, .pdf, .rtf, .txt and .tiff. • Secure electronic transaction solutions provider Keycorp and Thales have said that they will work together to leverage their complementary strengths in development, manufacture and sale of secure payment systems. Keycorp believes the relationship with Thales will enable it to expand the range of products it offers to customers as well as broaden the capabilities of both companies through the exchange of technology expertise. The first milestone in the agreement is for Keycorp to distribute and install Thales Artema payment terminals for specific opportunities in its markets. The second milestone will be the conclusion of a broader agreement covering close technical, sales and marketing cooperation for the development of future terminal products. This involves Keycorp becoming the Centre of Excellence for software architecture, with Thales managing the development of hardware and system software.
Before the problem came to light, the EU had been about to sign off on plans which would have seen fingerprint and facial biometric identifiers loaded onto contactless chips which would have been embedded within the visa. The idea, now known to be flawed, was to then attach these visas to travellers’ passports. The incoming Luxembourg Council presidency has accepted the problems, and has recommended two possible ways forward that were deemed feasible by the technical group. The first option would be to issue a separate smart card with the visa sticker, as a storage medium for the biometric data. The second option would be to store the biometric data in the EU’s Visa Information System (VIS), which is currently expected to be operational in 2007 (see Box). A majority of countries seem to be in favour of the latter, which would require immigration officials to perform a live match of the visa holder’s biometrics against the VIS – a move which some critics say could create longer queues for travellers. This option would also cut out the card industry from this potentially lucrative market. Proponents of the direct database solution dispute the longer-queue argument, telling CTT that this type of solution has been proven effective in the US VISIT programme. They also counter
arguments against the perceived increased cost of a centralised system, pointing out that an online solution would have been implemented in any case, for instances when travellers’ smart cards were unreadable. They also say that the expense of rolling out a smart card solution and associated readers would not be sensible. It was reported that France and Italy were unhappy at having just two options but several delegations supported the presidency’s idea and some also said they would prefer to wait for the VIS system to be implemented, rather than seek any costly intermediary solutions. An EC-insider hinted to Ctt that the work on a centralised biometric system could be accelerated by one year if the go ahead is given, meaning a biometrically-enabled VIS system ready by the end of 2006, rather than 2007. If all the delegations approve this suggestion, the commission will be invited to amend its proposal. The new visa system does not currently apply to the UK and Ireland, which opted out of cooperation on visa rules.
The two visa solutions
In a bid to try and stimulate the market for multi-application smart banking cards four of the world’s leading smart card manufacturers – Axalto, Gemplus International, Giesecke & Devrient (G&D) and Oberthur Card Systems – have teamed up to create the Smart Payment Alliance (SPA). The primary objective of the alliance is to foster and facilitate the use of smart cards to make payments, but clearly there will be an emphasis on trying to promote the idea of using higher specification cards, which could allow value-added applications, such as loyalty programmes. In a statement the alliance said its wants to accelerate the transition from traditional magnetic stripe cards to chip-based cards by:
Option 1 The solution – avisa sticker would be accompanied by a separate smart card. There would be one card issued with every visa. Chip ‘collisions’ could then be avoided as the card can be separated from the passport and be read individually.
• Smart card manufacturers Gemplus and Axalto have entered into a non-exclusive cross-licensing agreement, granting each other broad rights under their respective patents in the areas of smart cards and related devices. The agreement will enable each company to continue developing their respective technologies and to compete more freely in the growing markets for their products. The terms of the agreement are confidential.
Possible problems: Increased cost of rolling out a smart card with associated infrastructure at embassies worldwide. Measures would have to be established to deal with travellers that had lost their biometric-based smart card (probably through interrogation of the central VIS database). Durability of the card solution would also have to be ensured.
• Market forecaster Celent has said that smart cards will have a significant presence in the USA by 2012, despite their slow adoption to date. According to a recent report by the group, several factors will determine the development of smart cards, including the threat of fraud, EMV, and the overall migration of smart cards across the world. Other factors, such as the elimination of cashbased systems, radio frequency technology, and the proliferation of smart technology in other industries, are also spurring the renewed interest in smart cards in the US.
The solution – store the biometric data in the central Visa Information System (VIS) and not on the sticker itself.
4
alliance
Card manufacturers create payment alliance
•
promoting the benefits of smart cards for financial institutions;
•
ensuring optimal interoperability between all system components, for both payment and value-added applications;
•
being represented on standardisation committees and payment associations;
•
describing potential value-added applications and, whenever necessary, establishing joint industry specifications for them.
Option 2
Possible problems: The VIS is not currently operational and the biometric element to it won’t be until 2007 (unless this action speeds up its introduction). At this point in time the central part of the VIS will be operational, but it is unlikely that all Member States would have rolled out the biometric enrolment infrastructure at their embassies worldwide in order to collect the required biometric data. Once operational, possible problems envisaged are that the live checking procedure could be lengthier than an offline system leading to longer queues.
The alliance’s strategy will be to position itself as a partner of EMVCo and help to bolster Visa and MasterCard’s actions on EMV specifications and their implementation.
Card Technology Today February 2005
sim
Massive SIM announced by Oberthur Smart card manufacturer Oberthur Card Systems has launched the world’s biggest ever USIM card with a staggering 128 Mbytes of memory. This smashes all previous records for SIM card memory sizes which have been measured in kilobytes up until now, with 32 kbytes being the norm and 128 kbytes being the largest on the market. The vendors hope that the rollout of thirdgeneration networks by an increasing number of mobile network operators, combined with competition for multimedia content revenue, will create a demand for SIMs with this sort of memory size. To make the technological leap, Oberthur teamed up with M-Systems, one of the creators of the USB flash token. Ira Cohen, VP of business development at M-Systems told CTT: “This is a quantum leap for USIM cards, adding a massive amount of memory and functionality.” The size of the card will enable subscribers to store MP3 files (several albums), Java games, video clips, pictures and their personal settings. The content can be easily moved when a user changes handsets.
Card Technology Today February 2005
As well as increased memory capacity the GIGAntIC SIM has a communication speed between the SIM and the phone that is far beyond current industry performance, thanks to the use of data protocols including USB and MMC. Some in the industry have questioned the need for such capacity, saying that consumers are more likely to store information on multimedia cards – it is reported that about one quarter of mobile phones currently being sold have slots for flash cards. Another problem with a SIM card is that the phone goes offline if it is taken out to extract the data. Cohen counters this argument, pointing out that most people don’t remove their memory cards in any case. Helping to validate the business case is the fact that other companies are also working on high capacity products, such as Renesas Technology and Samsung Electronics. “SIMs are now a commodity. This development will allow operators to make some money from SIM cards,” said Cohen. GIGAntIC cards will be available from Oberthur Card Systems starting from the second half of 2005 – the commercial cards could have an even higher capacity, perhaps 256 Mbytes. It is unknown how much they will cost but Cohen says that they will likely be similar in price to equivalent memory cards which currently retail at around US$15 for 128 Mbytes. Additional costs to subscribers are expected to be heavily subsidised by operators, who could not only recoup some of the cost through higher subscription costs, but also by increasing the revenue they generate from each subscriber through the purchasing of multimedia content. Contact: Mona Popilian-Yona at M-Systems, Tel: +972 9 764 4992, email: [email protected] Stéphanie Cau at Oberthur Card Systems, Tel: +33 47 85 56 57, email: [email protected]
visas
Passport chips face collision The European Union is in a quandary over the introduction of biometric-based visas, following findings that the presence of multiple contactless chips within a single travel document can make it extremely hard to read the correct chip. According to an expert technical committee set up to report to the EU’s Council of Ministers, the possibility of so called ‘collisions’ between contactless chips would make it difficult for readers to read the correct chip within the document. This phenomenon could only be avoided if immigration officers used awkward document handling procedures to read the correct chip, which is clearly not desirable.
in brief • Axalto has launched a new subscriber identity module (SIM) solution designed to improve the overall experience of mobile phone users and to support the operator in its service strategy. The solution is based on an implementation of a Web server on the SIM, that hosts the operator’s service portal and secure services. By clicking on an icon in the main menu of their handset, subscribers reach a unique portal that provides easy access to all their services wherever they are hosted – on the network, the handset or the SIM. With this solution, subscribers enjoy a consistent experience independent of the device. For the operator, the solution ensures that subscribers connect to its service portal at the first connection, so helping to secure its position in the service value chain. • Bell ID is to join the MULTOS Consortium. As a result Bell ID will gain a seat on the Systems Forum and Business Advisory Group of the MULTOS standards body. As a member, Bell ID has voting rights over the further development of specifications relating to off-card data preparation and personalisation of MULTOS applications. Bell ID will also have automatic rights to implement the recently released MULTOS step/one offcard specifications for key management and data preparation of EMV and other value added applications. MULTOS step/one is the entry level MULTOS platform for financial institutions migrating to EMV. • Gemplus International has been awarded an EMV consulting contract from Bangkok Bank. According to the supplier this is the first EMV consultancy project involving a leading bank in Thailand. Under the terms of the project, Gemplus will advise Bangkok Bank on the migration path to EMV and the upgrade of the card payment system. Additionally, Gemplus will deliver the functional specifications of the system components and provide project management and technical co-ordination throughout the EMV pilot project. • Chinese smart card manufacturer Watchdata Technologies has announced plans to float on the US NASDAQ. The Beijing-based company has filed an application with the US Securities and Exchange Commission and J.P. Morgan Chase & Co will be chief underwriter.
3
news
in brief • French smart card manufacturer Gemplus International has entered into a partnership with Digigreffe, the registry office of the commercial court of Paris, and Sigillum Technologies. The aim of the partnership is to develop secure online transaction solutions using electronic certificates. Smart cards from Gemplus will act as an " electronic key " that will be used to sign for and encrypt the transfer of electronic documents from Digigreffe. Combined with Sigillum's Keysign software, this key will sign all documents with the extensions .doc, .pdf, .rtf, .txt and .tiff. • Secure electronic transaction solutions provider Keycorp and Thales have said that they will work together to leverage their complementary strengths in development, manufacture and sale of secure payment systems. Keycorp believes the relationship with Thales will enable it to expand the range of products it offers to customers as well as broaden the capabilities of both companies through the exchange of technology expertise. The first milestone in the agreement is for Keycorp to distribute and install Thales Artema payment terminals for specific opportunities in its markets. The second milestone will be the conclusion of a broader agreement covering close technical, sales and marketing cooperation for the development of future terminal products. This involves Keycorp becoming the Centre of Excellence for software architecture, with Thales managing the development of hardware and system software.
Before the problem came to light, the EU had been about to sign off on plans which would have seen fingerprint and facial biometric identifiers loaded onto contactless chips which would have been embedded within the visa. The idea, now known to be flawed, was to then attach these visas to travellers’ passports. The incoming Luxembourg Council presidency has accepted the problems, and has recommended two possible ways forward that were deemed feasible by the technical group. The first option would be to issue a separate smart card with the visa sticker, as a storage medium for the biometric data. The second option would be to store the biometric data in the EU’s Visa Information System (VIS), which is currently expected to be operational in 2007 (see Box). A majority of countries seem to be in favour of the latter, which would require immigration officials to perform a live match of the visa holder’s biometrics against the VIS – a move which some critics say could create longer queues for travellers. This option would also cut out the card industry from this potentially lucrative market. Proponents of the direct database solution dispute the longer-queue argument, telling CTT that this type of solution has been proven effective in the US VISIT programme. They also counter
arguments against the perceived increased cost of a centralised system, pointing out that an online solution would have been implemented in any case, for instances when travellers’ smart cards were unreadable. They also say that the expense of rolling out a smart card solution and associated readers would not be sensible. It was reported that France and Italy were unhappy at having just two options but several delegations supported the presidency’s idea and some also said they would prefer to wait for the VIS system to be implemented, rather than seek any costly intermediary solutions. An EC-insider hinted to Ctt that the work on a centralised biometric system could be accelerated by one year if the go ahead is given, meaning a biometrically-enabled VIS system ready by the end of 2006, rather than 2007. If all the delegations approve this suggestion, the commission will be invited to amend its proposal. The new visa system does not currently apply to the UK and Ireland, which opted out of cooperation on visa rules.
The two visa solutions
In a bid to try and stimulate the market for multi-application smart banking cards four of the world’s leading smart card manufacturers – Axalto, Gemplus International, Giesecke & Devrient (G&D) and Oberthur Card Systems – have teamed up to create the Smart Payment Alliance (SPA). The primary objective of the alliance is to foster and facilitate the use of smart cards to make payments, but clearly there will be an emphasis on trying to promote the idea of using higher specification cards, which could allow value-added applications, such as loyalty programmes. In a statement the alliance said its wants to accelerate the transition from traditional magnetic stripe cards to chip-based cards by:
Option 1 The solution – avisa sticker would be accompanied by a separate smart card. There would be one card issued with every visa. Chip ‘collisions’ could then be avoided as the card can be separated from the passport and be read individually.
• Smart card manufacturers Gemplus and Axalto have entered into a non-exclusive cross-licensing agreement, granting each other broad rights under their respective patents in the areas of smart cards and related devices. The agreement will enable each company to continue developing their respective technologies and to compete more freely in the growing markets for their products. The terms of the agreement are confidential.
Possible problems: Increased cost of rolling out a smart card with associated infrastructure at embassies worldwide. Measures would have to be established to deal with travellers that had lost their biometric-based smart card (probably through interrogation of the central VIS database). Durability of the card solution would also have to be ensured.
• Market forecaster Celent has said that smart cards will have a significant presence in the USA by 2012, despite their slow adoption to date. According to a recent report by the group, several factors will determine the development of smart cards, including the threat of fraud, EMV, and the overall migration of smart cards across the world. Other factors, such as the elimination of cashbased systems, radio frequency technology, and the proliferation of smart technology in other industries, are also spurring the renewed interest in smart cards in the US.
The solution – store the biometric data in the central Visa Information System (VIS) and not on the sticker itself.
4
alliance
Card manufacturers create payment alliance
•
promoting the benefits of smart cards for financial institutions;
•
ensuring optimal interoperability between all system components, for both payment and value-added applications;
•
being represented on standardisation committees and payment associations;
•
describing potential value-added applications and, whenever necessary, establishing joint industry specifications for them.
Option 2
Possible problems: The VIS is not currently operational and the biometric element to it won’t be until 2007 (unless this action speeds up its introduction). At this point in time the central part of the VIS will be operational, but it is unlikely that all Member States would have rolled out the biometric enrolment infrastructure at their embassies worldwide in order to collect the required biometric data. Once operational, possible problems envisaged are that the live checking procedure could be lengthier than an offline system leading to longer queues.
The alliance’s strategy will be to position itself as a partner of EMVCo and help to bolster Visa and MasterCard’s actions on EMV specifications and their implementation.
Card Technology Today February 2005