- Email: [email protected]
Three industry leaders offer end-to-end EMV conversion
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news IBM will offer jobs to about 2000 Amex employees as part of the agreement. The deal includes transferring to IBM the data processing for more than 1 billion daily American Express transactions, hosting the company’s web site and running network servers, data storage and helpdesk support. The deal was announced in the wake of a fall in American Express’ net income, as the global travel slump and the US recession hit its charge card, travel and money-management units. The American Express agreement is IBM’s largest out-sourcing contract, and is based in part on supplying ‘on-demand’ services: a user company’s monthly payments vary as its need for computing expands and contracts. The US operations of Amex, which account for some three in four of the 2000 staff directly affected, started transferring personnel to the new systems in March; this will be followed by a phasing in to IBM of Amex’s international operations beginning in May. In addition to the expected savings to American Express of hundreds of millions of dollars in IT costs over the term of the agreement, having IBM’s resources on demand should provide American Express with added flexibility for adjusting to changing business circumstances. “Our goal in this partnership is to ensure that American Express is the world’s best user of information technology,” said Glen Salow, executive vice president and chief information officer, American Express Company. “In technology operations, this means that computing resources are available on demand at a predictable cost, and are delivered with the highest levels of quality,” he added. American Express – which offers products and services in more than 200 countries – has one of the world’s largest IT operations, processing approximately one billion transactions daily. Its mainframe systems alone provide tens of thousands of ‘mips’ (millions of instructions per second) of computing processing power. IBM will provide data centre and computer services from American Express facilities in Phoenix and Minneapolis. It is also expected to deliver technical support services on-site at American Express locations around the world. However, American Express will continue to retain its core technology competencies, including information technology strategy, strategic technology relationships, the development and maintenance of applications and databases, and the management of its businesses’ technology portfolios. Contact: American Express at www.americanexpress.com
Card Technology Today April 2002
EFTPoS
in brief
Three industry leaders offer end-to-end EMV conversion ACI Worldwide, Compaq and Gemplus International have launched a package to enable medium-sized banks to migrate easily and cost-effectively to smart card technology. The jointly developed EMV Easy solution offers medium-sized card issuers an opportunity to meet the smart card standards set by the Europay, MasterCard and Visa card associations. EMV Easy has been developed for banks issuing up to 750,000 credit/debit cards; it can support peak authorisation loads as high as 20 transactions per second. “We have come together to address a major segment of the card payment industry that was in danger of being left behind,” said Richard Crookston, ACI Worldwide’s programme director for EMV Easy. “Using our out-of-the box approach, mediumsized banks customers can migrate to EMV sooner than they would otherwise have expected. We can reduce the learning curve by bringing together skilled teams from each of the three companies to educate and assist bank staff. Low cost, simplicity and speed of implementation are core features.” Compaq NonStop servers run 80% of all ATM transactions worldwide, 66% of PoS transactions worldwide and 75% of the world’s 100 largest electronic funds transfer networks, pointed out Paulo Ramos, vice-president of the Business Critical Server Group, Compaq EMEA. “Compaq NonStop Himalaya servers, the hardware behind the new EMV Easy solution, are the system of choice in the financial industry,” he claimed. “The EMV Easy initiative is fully in line with Gemplus’ EMV Prime suite of solutions, which aims to reduce the total cost and implementation lead-times of an EMV migration,” said Sophie Escand, director of Marketing, Financial Institutions at Gemplus. “We have included in the EMV Easy package a comprehensive consulting and implementation service in order to accompany customers along the migration path.” The EMV Easy package includes: •
NonStop Himalaya server, including hardware cryptographic processors (Compaq);
•
BASE24 EFT software, including EMV simulator software (ACI);
•
EMV chip cards GEMVision (for Visa members) or GemShare (for Europay/
Giesecke & Devrient is to participate in a joint programme with the IUOE (International Union of Operating Engineers) and several US government agencies to provide a smart ID card for use at disaster sites. The smart ID cards will initially be issued to trainees successfully completing the Hazmat (hazardous materials) course. The smart ID card will replace the paper-based system that is currently used by hazardous material teams and rescue teams at chemical and biological hazardous sites worldwide. In addition to providing secure and accurate authentication of field personnel, the new ID card will replace a range of course-completion certificates. When a Hazmat trainee successfully completes a required course, their smart ID card will be electronically updated. This information, together with other qualifying criteria, can then be electronically verified at the incident site. The idea is to provide fast and accurate authentication, quick retrieval of critical information, and control by the operating agency of the rescue mission at the disaster location. Card-processing house First Data Europe has installed an upgraded version of the TRIAD account-management system supplied by Fair, Isaac. The idea is to provide card issuers with more profitable account-management strategies. Dave Hill of the UK’s Co-operative Bank, whose card transactions are processed by First Data Europe, commented: “This will will help us improve individual account level treatment and increase our overall portfolio profitability.” First Data Europe currently processes some 14 million customer accounts through TRIAD each month. The system allows users to apply Fair, Isaac’s analytics and decision technology to account management. The TRIAD upgrade is part of First Data Europe’s ongoing Project Genesis, a series of IT initiatives. Orange Dominicana and Banco Popular have launched a mobile banking service in the Dominican Republic – along with a prepaid ‘top-up’ mobile phone service. The smart card technology is being provided by Gemplus. Customers of Banco Popular will be able to request details of their bank accounts and perform transactions and payments using their mobile phones. Gemplus’ SIM Browsing technology enables users to carry out transactions through Short Message Services (SMS); transactions are PIN-code protected and digitally signed and encrypted with 3DES. Patrice Pezat of Orange Dominicana said: “Our customers will be the first in Latin America to carry out bank transactions from their mobile phones whenever they want, wherever they are.”
5
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news MasterCard members), with some cards personalised for a pilot phase (Gemplus); •
Pre-contract workshops and post-contract services including implementation and education (ACI, Compaq and Gemplus).
Contact: Gill Greenwood at ACI Worldwide, Tel:+44 208 332 4500, email: [email protected] Ingrid Jansen at Compaq EMEA, Tel:+41 58 444 5528, email: [email protected] Cecile Dupont at Gemplus, Tel:+33 4 42 36 46 37, email: [email protected]
GiroVend’s cashless payment technology provides such services as multiple tariffs, subsidised vending, visitor hospitality and control of free vending. PAT’s smart card systems can incorporate magnetic-stripe and bar-code information; this means that the card can interface with thirdparty applications to provide additional valueadded services, as well as such features as ID and access control and staff-attendance monitoring. Contact: Faith Gibson at GiroVend/PAT, Tel: +44 191 229 9000, email: [email protected]
SIM cards Cashless payments
UK vending specialists launch smart card system GiroVend/PAT, a new force in the UK cashless payment and access control market, is to launch a smart card software platform for vending units, cashless payment loaders and access-control devices. The smart card platform will enable operators of automatic machines to store and forward large amounts of transactions and data and to manage a range of card-based applications on a single back-office system. The two companies, which merged last year, recently unveiled their plans to household names from the retail, pharmaceutical, healthcare, banking, education, corporate and catering sectors at a special forum held at the Henley-onThames Leander Rowing Club. The Girovend element brings to the partnership specialist expertise in cashless payments. PAT (once known as Public Access Terminals) is a specialist in access control. Girovend/PAT is a subsidiary of Transacsys, which is quoted on the UK’s Alternative Investment Market. Projects discussed at the Henley forum included the deployment of a set of centrally configurable rules and permissions for software operation. This should enable users to write their own functions, which can be developed to control a wide range of applications and events. “This allows users to enjoy far greater flexibility in the design and adaptation of products in the cashless payment, photo ID and access control arenas than is currently possible,” said Chief Technical Officer, Nigel Hope. “We want to offer users exactly the features that they require in a single multi-application package.” Girovend/PAT sells automatic devices for vending, catering and visitor and access control. 6
Incard launches 64 KB Java card Italian smart card producer Incard has developed MoKard, a Java-based SIM card with 64KB EEPROM capacity. Telecom operators should be able to design, develop, test and download multiple SIM Toolkit applets on the card. MoKard also satisfies the requirements of the SUN Compatibility Kit, a test suite developed and provided by Sun Microsystems, in order to verify that cards are compliant with Sun specifications for Java Cards. MoKard is based on a RISC core, which provides 6 KB of RAM and 64 KB of EEPROM memory for the requirements of the GSM operator. “The power of the GSM system is still underestimated,” says Incard. “Every GSM handset could be used as a POS (point-of-sale) terminal. This means that the GSM system opens an enormous market. “Of course people are mistrustful about giving their credit card number via a mobile phone handset when they want to buy something. “The mobile-commerce system must be proof against attack by hacker[s]. People must trust in the security of m-commerce transactions.” Incard claims that the MoKard meets this requirement through the cryptographic coprocessor (working with 1024 bit length keys), which allows the RSA algorithm.to be used. Contact: Incard at www.incard.it
Authentication
SchlumbergerSema and Precise Biometrics form fingerprint alliance SchlumbergerSema and Precise Biometrics have agreed to work together to bring to
market smart cards that use the card-owner’s fingerprint as identification authentication. This is to be achieved by integrating Precise Biometrics’ Match-on-Card technology with SchlumbergerSema’s Cyberflex Access and Cyberflex Palmera Java-based smart cards. The Cyberflex Access card has been developed for IT applications, and the Cyberflex Palmera card for banking applications. Precise Biometrics’ technology makes it possible to authenticate a card user by matching the fingerprint to one digitally stored on the smart card. The SchlumbergerSema cards offer the cryptographic functions that make the Matchon-Card application possible, and are able to offer the appropriate application programming interface (API). The two partners say that this technology offers increased security and ease-of-use: the sensitive data are computed directly on the card, without the need to rely on the availability or speed of a network for validation. “Verifying a digital imprint with the user’s actual fingerprint is a highly secure means of authentication, but has remained a major challenge, because the critical data for authenticating the fingerprint had to be stored on the network,” stated Marten Obrink, deputy CEO at Precise Biometrics. “With the biometric profile and the calculations remaining inside the smart card, the risk of this information being compromised is virtually eliminated. The authentication function can be directly accessed via the card’s API; this allows other card applications to easily use the function.” Paul Beverly, vice president of eTransactions, SchlumbergerSema, North America, said: “The card is the ideal portable object for secure identification; the benefits of quickly, effectively and securely verifying the owners’ identity – without the need to access a network – are becoming very important.” Contact: Karen Hodgson at SchlumbergerSema, Tel: + 1 905 315 9719, email: [email protected]
M-ccommerce
Free-phone number for mobile Internet users SchlumbergerSema has formed an alliance with Mobile Economy Ltd to develop applications for mobile Internet usage. An early priority is the implementation of mobile-Internet 800 (mi800), the mobile equivalent of the well-established fixed wire 0800 free phone number. mi800 has been developed by Mobile Economy. The service will
Card Technology Today April 2002
15/Apr/02
10:09 AM
Page 5
(Black plate)
news IBM will offer jobs to about 2000 Amex employees as part of the agreement. The deal includes transferring to IBM the data processing for more than 1 billion daily American Express transactions, hosting the company’s web site and running network servers, data storage and helpdesk support. The deal was announced in the wake of a fall in American Express’ net income, as the global travel slump and the US recession hit its charge card, travel and money-management units. The American Express agreement is IBM’s largest out-sourcing contract, and is based in part on supplying ‘on-demand’ services: a user company’s monthly payments vary as its need for computing expands and contracts. The US operations of Amex, which account for some three in four of the 2000 staff directly affected, started transferring personnel to the new systems in March; this will be followed by a phasing in to IBM of Amex’s international operations beginning in May. In addition to the expected savings to American Express of hundreds of millions of dollars in IT costs over the term of the agreement, having IBM’s resources on demand should provide American Express with added flexibility for adjusting to changing business circumstances. “Our goal in this partnership is to ensure that American Express is the world’s best user of information technology,” said Glen Salow, executive vice president and chief information officer, American Express Company. “In technology operations, this means that computing resources are available on demand at a predictable cost, and are delivered with the highest levels of quality,” he added. American Express – which offers products and services in more than 200 countries – has one of the world’s largest IT operations, processing approximately one billion transactions daily. Its mainframe systems alone provide tens of thousands of ‘mips’ (millions of instructions per second) of computing processing power. IBM will provide data centre and computer services from American Express facilities in Phoenix and Minneapolis. It is also expected to deliver technical support services on-site at American Express locations around the world. However, American Express will continue to retain its core technology competencies, including information technology strategy, strategic technology relationships, the development and maintenance of applications and databases, and the management of its businesses’ technology portfolios. Contact: American Express at www.americanexpress.com
Card Technology Today April 2002
EFTPoS
in brief
Three industry leaders offer end-to-end EMV conversion ACI Worldwide, Compaq and Gemplus International have launched a package to enable medium-sized banks to migrate easily and cost-effectively to smart card technology. The jointly developed EMV Easy solution offers medium-sized card issuers an opportunity to meet the smart card standards set by the Europay, MasterCard and Visa card associations. EMV Easy has been developed for banks issuing up to 750,000 credit/debit cards; it can support peak authorisation loads as high as 20 transactions per second. “We have come together to address a major segment of the card payment industry that was in danger of being left behind,” said Richard Crookston, ACI Worldwide’s programme director for EMV Easy. “Using our out-of-the box approach, mediumsized banks customers can migrate to EMV sooner than they would otherwise have expected. We can reduce the learning curve by bringing together skilled teams from each of the three companies to educate and assist bank staff. Low cost, simplicity and speed of implementation are core features.” Compaq NonStop servers run 80% of all ATM transactions worldwide, 66% of PoS transactions worldwide and 75% of the world’s 100 largest electronic funds transfer networks, pointed out Paulo Ramos, vice-president of the Business Critical Server Group, Compaq EMEA. “Compaq NonStop Himalaya servers, the hardware behind the new EMV Easy solution, are the system of choice in the financial industry,” he claimed. “The EMV Easy initiative is fully in line with Gemplus’ EMV Prime suite of solutions, which aims to reduce the total cost and implementation lead-times of an EMV migration,” said Sophie Escand, director of Marketing, Financial Institutions at Gemplus. “We have included in the EMV Easy package a comprehensive consulting and implementation service in order to accompany customers along the migration path.” The EMV Easy package includes: •
NonStop Himalaya server, including hardware cryptographic processors (Compaq);
•
BASE24 EFT software, including EMV simulator software (ACI);
•
EMV chip cards GEMVision (for Visa members) or GemShare (for Europay/
Giesecke & Devrient is to participate in a joint programme with the IUOE (International Union of Operating Engineers) and several US government agencies to provide a smart ID card for use at disaster sites. The smart ID cards will initially be issued to trainees successfully completing the Hazmat (hazardous materials) course. The smart ID card will replace the paper-based system that is currently used by hazardous material teams and rescue teams at chemical and biological hazardous sites worldwide. In addition to providing secure and accurate authentication of field personnel, the new ID card will replace a range of course-completion certificates. When a Hazmat trainee successfully completes a required course, their smart ID card will be electronically updated. This information, together with other qualifying criteria, can then be electronically verified at the incident site. The idea is to provide fast and accurate authentication, quick retrieval of critical information, and control by the operating agency of the rescue mission at the disaster location. Card-processing house First Data Europe has installed an upgraded version of the TRIAD account-management system supplied by Fair, Isaac. The idea is to provide card issuers with more profitable account-management strategies. Dave Hill of the UK’s Co-operative Bank, whose card transactions are processed by First Data Europe, commented: “This will will help us improve individual account level treatment and increase our overall portfolio profitability.” First Data Europe currently processes some 14 million customer accounts through TRIAD each month. The system allows users to apply Fair, Isaac’s analytics and decision technology to account management. The TRIAD upgrade is part of First Data Europe’s ongoing Project Genesis, a series of IT initiatives. Orange Dominicana and Banco Popular have launched a mobile banking service in the Dominican Republic – along with a prepaid ‘top-up’ mobile phone service. The smart card technology is being provided by Gemplus. Customers of Banco Popular will be able to request details of their bank accounts and perform transactions and payments using their mobile phones. Gemplus’ SIM Browsing technology enables users to carry out transactions through Short Message Services (SMS); transactions are PIN-code protected and digitally signed and encrypted with 3DES. Patrice Pezat of Orange Dominicana said: “Our customers will be the first in Latin America to carry out bank transactions from their mobile phones whenever they want, wherever they are.”
5
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15/Apr/02
10:09 AM
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news MasterCard members), with some cards personalised for a pilot phase (Gemplus); •
Pre-contract workshops and post-contract services including implementation and education (ACI, Compaq and Gemplus).
Contact: Gill Greenwood at ACI Worldwide, Tel:+44 208 332 4500, email: [email protected] Ingrid Jansen at Compaq EMEA, Tel:+41 58 444 5528, email: [email protected] Cecile Dupont at Gemplus, Tel:+33 4 42 36 46 37, email: [email protected]
GiroVend’s cashless payment technology provides such services as multiple tariffs, subsidised vending, visitor hospitality and control of free vending. PAT’s smart card systems can incorporate magnetic-stripe and bar-code information; this means that the card can interface with thirdparty applications to provide additional valueadded services, as well as such features as ID and access control and staff-attendance monitoring. Contact: Faith Gibson at GiroVend/PAT, Tel: +44 191 229 9000, email: [email protected]
SIM cards Cashless payments
UK vending specialists launch smart card system GiroVend/PAT, a new force in the UK cashless payment and access control market, is to launch a smart card software platform for vending units, cashless payment loaders and access-control devices. The smart card platform will enable operators of automatic machines to store and forward large amounts of transactions and data and to manage a range of card-based applications on a single back-office system. The two companies, which merged last year, recently unveiled their plans to household names from the retail, pharmaceutical, healthcare, banking, education, corporate and catering sectors at a special forum held at the Henley-onThames Leander Rowing Club. The Girovend element brings to the partnership specialist expertise in cashless payments. PAT (once known as Public Access Terminals) is a specialist in access control. Girovend/PAT is a subsidiary of Transacsys, which is quoted on the UK’s Alternative Investment Market. Projects discussed at the Henley forum included the deployment of a set of centrally configurable rules and permissions for software operation. This should enable users to write their own functions, which can be developed to control a wide range of applications and events. “This allows users to enjoy far greater flexibility in the design and adaptation of products in the cashless payment, photo ID and access control arenas than is currently possible,” said Chief Technical Officer, Nigel Hope. “We want to offer users exactly the features that they require in a single multi-application package.” Girovend/PAT sells automatic devices for vending, catering and visitor and access control. 6
Incard launches 64 KB Java card Italian smart card producer Incard has developed MoKard, a Java-based SIM card with 64KB EEPROM capacity. Telecom operators should be able to design, develop, test and download multiple SIM Toolkit applets on the card. MoKard also satisfies the requirements of the SUN Compatibility Kit, a test suite developed and provided by Sun Microsystems, in order to verify that cards are compliant with Sun specifications for Java Cards. MoKard is based on a RISC core, which provides 6 KB of RAM and 64 KB of EEPROM memory for the requirements of the GSM operator. “The power of the GSM system is still underestimated,” says Incard. “Every GSM handset could be used as a POS (point-of-sale) terminal. This means that the GSM system opens an enormous market. “Of course people are mistrustful about giving their credit card number via a mobile phone handset when they want to buy something. “The mobile-commerce system must be proof against attack by hacker[s]. People must trust in the security of m-commerce transactions.” Incard claims that the MoKard meets this requirement through the cryptographic coprocessor (working with 1024 bit length keys), which allows the RSA algorithm.to be used. Contact: Incard at www.incard.it
Authentication
SchlumbergerSema and Precise Biometrics form fingerprint alliance SchlumbergerSema and Precise Biometrics have agreed to work together to bring to
market smart cards that use the card-owner’s fingerprint as identification authentication. This is to be achieved by integrating Precise Biometrics’ Match-on-Card technology with SchlumbergerSema’s Cyberflex Access and Cyberflex Palmera Java-based smart cards. The Cyberflex Access card has been developed for IT applications, and the Cyberflex Palmera card for banking applications. Precise Biometrics’ technology makes it possible to authenticate a card user by matching the fingerprint to one digitally stored on the smart card. The SchlumbergerSema cards offer the cryptographic functions that make the Matchon-Card application possible, and are able to offer the appropriate application programming interface (API). The two partners say that this technology offers increased security and ease-of-use: the sensitive data are computed directly on the card, without the need to rely on the availability or speed of a network for validation. “Verifying a digital imprint with the user’s actual fingerprint is a highly secure means of authentication, but has remained a major challenge, because the critical data for authenticating the fingerprint had to be stored on the network,” stated Marten Obrink, deputy CEO at Precise Biometrics. “With the biometric profile and the calculations remaining inside the smart card, the risk of this information being compromised is virtually eliminated. The authentication function can be directly accessed via the card’s API; this allows other card applications to easily use the function.” Paul Beverly, vice president of eTransactions, SchlumbergerSema, North America, said: “The card is the ideal portable object for secure identification; the benefits of quickly, effectively and securely verifying the owners’ identity – without the need to access a network – are becoming very important.” Contact: Karen Hodgson at SchlumbergerSema, Tel: + 1 905 315 9719, email: [email protected]
M-ccommerce
Free-phone number for mobile Internet users SchlumbergerSema has formed an alliance with Mobile Economy Ltd to develop applications for mobile Internet usage. An early priority is the implementation of mobile-Internet 800 (mi800), the mobile equivalent of the well-established fixed wire 0800 free phone number. mi800 has been developed by Mobile Economy. The service will
Card Technology Today April 2002