Engaging, Enabling and Evolving Commerce in Canada since 1989

October 2011 ACTion Newsletter


1. Editorial - Secure ID - It's About Time!
2. INSIDE Secure Surpasses Ten Million Unit Milestone For NFC Chip Shipments
3. Oberthur Technologies Partners With Valitor And Visa Europe For Iceland's Mobile Payment Project
4. Will Consumers Use More Than One Mobile Wallet? - Members Only Access
5. GlobalPlatform Publishes Mobile Remote Management Spec For Universal Secure Element
6. Giesecke & Devrient Supplies SIM Cards For Groundbreaking NFC Project In Russia
7. Merchants Not Excited About Mobile Payments - Members Only Access
8. New ID Cards Go Beyond Health Care
9. Gemalto Trusted Services Manager Selected For Singapore's Nation-Wide Near Field Communication (NFC) Roll-Out
10. PayPal Will Debut In Brick-And-Mortar Shops - Members Only Access
11. New Jersey Transit Partners With Google To Offer NFC Mobile Payments
12. Gauge Mobile, Newad Launch NFC-Enabled Ads In Canada
13. Apriva Poised To Offer A Mobile Wallet Aimed At Guarding Acquirers From 'Outsiders'
14. Chase Paymentech Helps Protect Merchants And Consumers From Payment Card Fraud And Data Theft - Launch Of Safetechsm Encryption In Canada Delivers New Option For Improving Data Security Risk
15. RIM Goes NFC For Social Media Sharing - Members Only Access
16. Groupe Aeroplan, Now Carrying On Business As Aimia
17. Moneris Brings Mobile Payment Processing To Smartphones
18. Aconite Launches Mobile Application Management Solution
19. Perception Problem - 74% Of U.S. & Canadian Consumers Don't See Benefit Of Exchanging Personal Information, LoyaltyOne Research Shows
20. Multiple Secure Elements Drive NFC Market Above $1 Billion In 2016 - Members Only Access
21. Visa Mobile Payment System To Launch In Mid-2012
22. Capital One Canada Expands Into Quebec

ACT Canada Partners


Visa operates the world's largest retail electronic payments network and is one of the most recognized global financial services brands. Visa facilitates global commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses and government entities.



MasterCard ~ member since 1999


Mercury Payment Systems ~ new member


Card Resource Group ~ member since 2010


There is a lot of movement in the market, so if you are looking for new employees, we are always aware of some great people. Please contact Catherine Johnston for more details - catherinej@actcda.com.


The 10th Annual Smart Card Alliance Government Conference - Smart Strategies for Secure Identity
November 1-4, 2011
Washington, DC, USA

ACT Canada presents Cardware Connections & Annual General Meeting
The Security of the Supply Chain
Our guest speaker is Michael Moore, Director of Security; Huawei Technologies Canada Co., Ltd
November 4, 2011
OBA Conference Centre
Toronto, ON, Canada
Open to members only

CARTES & IDentification 2011
November 15-17, 2011
Paris-Nord Villepinte Exhibition Centre
Paris, France

2012 Payments Summit, A Smart Card Alliance conference event
February 7-9, 2012
Salt Lake City, UT, USA

NFC Solutions Summit 2012
co-presented by the Smart Card Alliance and the NFC Forum
May 22-24, 2012
San Francisco, CA, USA
ACT Canada members are eligible for a 20% discount. Please contact andrea@actcda.com to get the discount code

Cardware 2012: Payment Insights
June 19-20, 2012
Marriott Gateway on the Falls
Niagara Falls, Ontario, Canada
ACT Canada members receive substantial discounts

Source: Catherine Johnston, President & CEO, ACT Canada (10/31)

Secure ID - it's about time!

I've just come back from the US where new voting regulations require government issued ID and where at least one state is being questioned as to whether minority voters are being disenfranchised because they may not have a suitable ID.

It makes me think about the issue in Canada. My mother who is now in a nursing home has a health card. Unfortunately that cannot, by law, be used as ID. She has a birth certificate, but that cannot be seen as a secure document. If anything happens to her health card, Mom no longer has sufficient documentation to replace it. I expect we will need notaries, or the nursing home and a power of attorney to get a new card.

The time has come for a government issued secure identity card, but with a difference. This card should be one that is requested by the citizen, not one issued by government to everyone. That would follow the concept of the existing Nexus cards that citizens apply for to facilitate cross border travel.

Most government issued cards indicate specific rights, such as the right to drive, receive government paid health care or return home to Canada from abroad. This card would not be related to rights, but would simply confirm that I am the same person to whom the government issued a birth certificate or other ID if I was not born in Canada.

In other words, it says that the government knows me and others can trust that. I'd be happy to pay for the convenience of using such a card. There are a number of government departments that could logically be the issuers, but Passport Canada has done more to authenticate my identity than any of the others, so they would be my choice.

With the technology available today, the card could also be part of an online identification, raising the security bar for e-commerce. Governments, Canadians and businesses - all potential winners!

Source: M2 PressWIRE Via Acquire Media NewsEdge (10/25)

INSIDE Secure announced it has shipped more than ten million MicroRead(R) and SecuRead(R) NFC solutions to date this year to multiple manufacturers of a broad range of mobile NFC devices. This milestone heralds the imminent arrival of mainstream NFC smartphones and devices to global markets as the industry achieves liftoff in 2011, and means that devices with INSIDE NFC solutions will soon be in the hands of millions of people who will use them to enjoy the rich consumer experiences of new mobile services.

"Our MicroRead and SecuRead NFC solutions are contributing to the current market acceleration because they offer clear, demonstrable advantages over competitive offerings for a range of applications," said Charles Walton, chief operating officer at INSIDE Secure. "INSIDE's NFC chip shipments indicate that this market is achieving significant penetration as more and more mobile device and other consumer electronics device makers begin to integrate NFC functionality into their product offerings. It also means that device makers recognize the numerous advantages the MicroRead and SecuRead products offer in terms of performance, efficiency, cost savings and flexibility." "If there was ever tangible evidence needed that NFC is no longer science fiction, but a technology that is about to hit the streets, this is it," said Nick Holland, senior analyst at Yankee Group. "Clearly, NFC is here and now." According to Walton, MicroRead and SecuRead offer a number of compelling advantages to NFC device makers. The MicroRead NFC microcontroller features the lowest standby current in the industry, more than four times lower than other commercial products, resulting in a power-friendly implementation for mobile devices. Device implementations with MicroRead and SecuRead also require significantly fewer external components, resulting in the smallest footprint in the industry at less than 70 mm squared. Further, MicroRead achieves EMVco card emulation compliance with a minimal 40 x 15 mm antenna size - more than 30 per cent smaller than any other commercial product.

With the same exact package size and pin-out as MicroRead, the INSIDE SecuRead system-in-package today offers 25 per cent more secure applet and data storage capacity - 106K bytes - than other commercially available secure elements, and will be expanded to 144K bytes in a first half 2012 release. Based upon an internal benchmark of Visa mobile applet performance, SecuRead is 20 per cent faster than other available NFC implementations, proving most suitable for open bank card payments in emerging transit systems. Support is uniquely provided within SecuRead for over-the-air (OTA) updates of OS functionality, providing the greatest flexibility over the life cycle of NFC devices.

SecuRead features the most substantive applet library in the industry - from payment to transit to ID to retail applications-and is unique in supporting mobile device-based HID iClass physical access control applications within the NFC market.

A third-generation product that sets a new standard for ease of integration, the award-winning MicroRead NFC controller offers the broadest range of NFC options and provides the capacity to implement any secure element, including SIM, SE or SD card, to support any business model. When incorporated into cell phones, PDAs or PCs, MicroRead chips enable them to operate both like RF readers and contactless smart cards or RFID tags. The SecuRead solution started shipping earlier this year, and integrates the MicroRead NFC controller with a high-performance secure element and a GlobalPlatform-compliant Java Card(TM) operating system. Both products are integrated with the INSIDE Open NFC protocol stack to provide best-of-breed solutions within multiple device ecosystems. INSIDE operational capacity now exceeds five million units per month for NFC chip shipments and will increase in 2012 to meet the demands of this rapidly growing market.

Several leading handset makers have introduced smartphones integrating NFC capabilities already this year, and the number of NFC phones introduced is expected to accelerate in 2012. At the same time, mobile operators, banks and other service providers in the U.S. and Europe have started forming associations or more formal joint ventures to prepare for NFC rollouts next year, and are building interoperable platforms for mobile wallets and over-the-air provisioning and management of applications.

INSIDE Secure is a member of ACT Canada; please visit http://www.insidesecure.com.

Source: SmartCardTrends (10/24)

Oberthur Technologies announced that the company has partnered with Visa Europe and Valitor to launch Iceland's first mobile contactless payment project.

Using Oberthur Technologies' SIM card, which provides integrated support for NFC (Near Field Communications) to power mobile contactless payments, the partners will work with Iceland's key mobile network operators, to select 1,000 participants for the initial adoption in January 2012.

The full-scale pilot will begin in the second half of 2012. Due to Valitor's established relationship with the Icelandic banks, combined with 600 mobile contactless Point of Sale terminals already existing in the greater Reykjavik area, this new technology will be easily available to the majority of the country's population.

The partners chose Iceland as the ideal test market for the project based on the size of its population and its concentration in the Reykjavik area. Combined with high mobile and card penetration, Iceland's population profile will enable the partners to monitor cardholders and retailers responses to mobile contactless payments ahead of the full commercial deployment programmed by end 2013.

Oberthur Technologies and Visa are members of ACT Canada; please visit http://www.oberthur.com & http://www.visa.ca.


Available in the ACT Canada Members Only section of our web site. Click on the link below to access this section.

If you are a member of ACT Canada but do not have your login details please contact me - andrea@actcda.com.

Source: Finextra (10/19)

GlobalPlatform has published a document which allows providers of mobile services to develop remote management* platforms that can be extended to manage applications residing on any type of secure element (SE) in a mobile phone.

The impact will be a shorter time to market for service providers choosing to expand support for their application through additional or new mobile phones which use varying SEs, such as a micro SD card, or embedded SE.

The single, standardized administration protocol defined by the new 'GlobalPlatform Device: Secure Element Remote Application Management v1.0' Specification, offers further benefits beyond universal SE compatibility for the remote management of applications. It also features a retry policy, which ensures that when connection to a network is lost - due to poor network coverage or mobile phone power outage for example - management scripts continue to be resent until they successfully reach the desired location within the SE.

The protocol within this new specification is fully compatible with the protocol used within the GlobalPlatform Card Specification v2.2 - Amendment B. This latter document, which was first published in 2008, allows service providers and application developers to remotely manage applets on a SE within a UICC using the HTTP communication and SSL cryptographic protocols.

Gil Bernabeu, Technical Director of GlobalPlatform, comments: "A standardized approach which enables one administration platform to remotely manage applications across all kinds of SEs will stimulate the mass deployment of SEs within mobile phones, and subsequently more secure mobile service applications. The mobile phone landscape is continuously evolving, with new phone models operating on vastly different technology platforms and using different types of SE emerging all the time; as such this technology addresses a real need among service providers in today's market, who are seeking a simplified and standardized approach to remote application management across different handset models. Now that this technology has been published, GlobalPlatform's next focus is on driving its deployment as standard within all phones that support SEs, to ensure that it delivers the optimal benefit to service providers and the wider market on a global scale."

GlobalPlatform is a member of ISCAN, the International Smart Card Associations Network, for more information please visit http://www.globalplatform.org.

Source: Transaction Directory (10/12)

Giesecke & Devrient (G&D) is to manufacture and personalize the NFC-capable SIM cards for an innovative mobile payment system in Russia, in cooperation with Sitronics Smart Technologies (SST), the company's technology partner there. The first commercial NFC project in the Russian Federation was implemented by Lukoil, Russia's biggest oil company, Mobile TeleSystems (MTS), the country's leading mobile network operator and SST. The collaboration will give customers of MTS the convenience of paying their bills at Lukoil filling stations by cell phone. A wide range of commercially available mobile devices can be used for these contactless payment transactions. G&D's commercially available NFC-capable SIM cards are being deployed in the project.

The contactless payment system, which is being set up in Perm, a city of around one million inhabitants in the Ural region, involves equipping the cell phones of MTS customers with an NFC-capable SIM card and a special NFC antenna solution. In order to pay their filling station bills, all that the users have to do is hold their cell phones against the card reader. The invoice amount is debited via an electronic cash function on the SIM card that MTS customers can activate with the provider. The service can be used with a wide range of currently available mobile phone models, for example those of manufacturers Samsung, Nokia, HTC, Sony Ericsson, RIM, Motorola or LG. Following active pre-commercial tests, MTS and Lukoil will launch the commercial phase in November, 2011

As Willem Bulthuis, Group Senior Vice President, Global Marketing & Sales Mobile Security at Giesecke & Devrient, states: "The NFC project in Perm is the first of its kind in Russia. It demonstrates how G&D's innovative SIM card technology enables NFC-capable SIM cards to be used for contactless payments on a wide variety of cell phones. The Russian project thus represents another important milestone toward boosting acceptance of mobile devices in electronic cash applications."

NFC-enabled devices can communicate wirelessly over a range of a few centimeters, making the technology suitable for a host of new services, such as payment by cell phone, the sale of travel tickets, or the access to buildings. These services require special SIM cards, ensuring reliable identification of the person using NFC services.

Giesecke & Devrient is a member of ACT Canada; please visit http://www.gi-de.com.


Available in the ACT Canada Members Only section of our web site. Click on the link below to access this section.

If you are a member of ACT Canada but do not have your login details please contact me - andrea@actcda.com.

Source: ICMA Industry News (10/21)

The replacement for B.C.'s CareCard will provide online access to medical records, and may also be used to confirm B.C. residence and age while keeping other information private.

Health Minister Mike de Jong announced the new "smart card" plan in May, saying it will also offer the option of doubling as a driver's licence. The government is phasing out the existing CareCard, mainly because there are 9.1 million cards in circulation and only 4.5 million residents eligible for the Medical Services Plan.

The new cards will have a photo and an electronic chip, and be renewable every five years. Labour, Citizen Services and Open Government Minister Margaret MacDiarmid said the government hopes to start issuing them in 2012.

Amendments to the information and privacy law now before the legislature would allow secure online access by residents and authorized medical professionals, for prescriptions and lab tests. They may also be used to confirm student status or whether a resident is 19 or over, without releasing other personal information.

Source: FierceTelecom (10/25)

Gemalto announces its selection by IDA as the trusted third party to deploy mobile NFC contactless services across Singapore.

Gemalto will develop and operate its Trusted Services Manager (TSM) solution to securely deploy and manage mobile NFC services such as payment, ticketing, loyalty and other wireless services like the smart poster which allows consumers to interact with advertisements.

With Singapore's three mobile operators all connected to this interoperable NFC infrastructure, banks, payment and service providers will be able to deploy innovative mobile NFC services to all mobile subscribers. This open yet secure platform will also encourage widespread participation by businesses and service providers from wide-ranging industries to join the ecosystem to offer more consumer services, including mobile coupons, mobile tickets and product information.

The complete TSM operation will take place in a secure environment in Singapore, whereby end users' data is provisioned confidentially over the air to their devices.

"Gemalto is delighted to lead this landmark project. We believe that businesses will benefit from new revenue streams while consumers enjoy a greater array of new services - faster, safer and more conveniently," said Tan Teck Lee, President of Gemalto Asia.

"The TTP infrastructure will enable prospective service providers to reach out to all mobile subscribers in Singapore. Such ubiquitous access will spur the growth and adoption of innovative NFC mobile services, and in turn transform Singapore's payment landscape. The CFC award today is an important milestone in the development of the NFC ecosystem that will enable the deployment of payment as well as other services." said RADM (NS) Ronnie Tay, Chief Executive Officer of IDA.

The project is expected to launch commercially to consumers from middle of 2012.

Gemalto is a member of ACT Canada; please visit http://www.gemalto.com.


Available in the ACT Canada Members Only section of our web site. Click on the link below to access this section.

If you are a member of ACT Canada but do not have your login details please contact me - andrea@actcda.com.

Source: FierceMobileIT (10/25)

The New Jersey Transit has made a partnership with Google to enable NFC-based mobile payments for train and bus tickets.

"Our partnership with Google demonstrates that NJ Transit and the state are at the forefront of emerging technology, paving the way for further exploration of new customer service technologies," said Governor Chris Christie.

Google Wallet is a free mobile app that creates the ability to tap and pay for transactions by storing virtual versions of user's credit cards on their mobile phones.

NJ Transit customers can use Google Wallet to purchase transportation tickets at New York Penn Station ticket vending machines and ticket windows, at Newark Liberty International Airport Rail Station (AirTrain) and on some bus routes.

Google Wallet is available on Sprint's Nexus 4G phone. NJ Transit's deal with Google was developed at no cost to the agency.

Source: CR80News (10/06)

Gauge Mobile has teamed up with Newad to launch a series of NFC-enabled advertising displays on college campuses across Canada.

Based on Gauge's Scanvee platform, the solution enables users to simply tap their NFC-enabled smart phone on a Newad display to instantly receive discount coupons, enter contests, provide feedback or purchase products.

According to Gauge, the roll out will see 200 of Newad's large, backlit display boards delivered to select college and university campuses in Canada. The displays will feature Scanvee NFC badges as well as QR codes to accommodate both NFC and non-NFC handsets.

Possible future applications may include NFC-enabled movie posters that let the user view the trailer, check out reviews, find the nearest theater and purchase tickets directly from the display, says Gauge.

Source: Digital Transactions (10/26)

The mobile-wallet race, which has attracted a slew of entrants in recent months, is about to get more crowded on fears that established merchant acquirers could be elbowed out of the nascent mobile-payments business. Apriva Inc., a Scottsdale, Ariz.-based provider of wireless technology for payments, will launch in November a wallet intended to bolster the prospects of the independent sales organizations and other acquirers that resell the company's products and services.

The new product, which will allow consumers to store an array of payment cards along with offers and receipts, will technically be part of Apriva's gateway service, with Apriva managing and serving up data. In development for about two years, the company's app will work on devices running Apple Inc.'s operating system as well as Google Inc.'s Android and Research in Motion Ltd.'s BlackBerry software.

A large merchant has already signed on and will launch the app in the first quarter. About a dozen of the 550 acquirers in Apriva's acquirer network have also agreed to offer the wallet so far to their merchants. Paul Coppinger, Apriva's president, won't name the merchant but says it is a recognizable brand.

The product comes as major companies, many without roots in the card-payments business, are launching mobile-payments systems. Google Inc. unveiled its near-field communication (NFC) system this spring and launched it commercially in September on Samsungs' Nexus S 4G handset on the Sprint network. Isis, a consortium put together by AT&T Inc., Verizon Wireless, and T-Mobile USA, plans to launch its NFC service next year in Salt Lake City, Utah, and Austin, Texas. And PayPal Inc. earlier this month unveiled a wallet that can be accessed at the point of sale either by swiping a physical PayPal card or by typing in a PIN and phone number at the terminal.

Apriva developed its wallet in part because it fears these initiatives will ultimately dissolve the links acquirers have forged with merchants, Coppinger says. "I'm worried about the future of acquirers, that they'll get disintermediated by outsiders," he tells Digital Transactions News. "Google and Isis aren't members of the payments community."

The new product will arm acquirers with a competitive product they can sell to merchants, pricing it either in the discount fee or taking a slice of the discounts merchants grant to consumers, Coppinger says. "It's a way to produce revenue," he says, that allows ISOs to alleviate rate pressure from their clients. "Acquirers are afraid of calling on their merchants because they're afraid [the conversation] will turn into a rate adjustment," he adds.

Apriva's initiative isn't the first wallet intended to be marketed to merchants specifically by acquirers. Cleveland-based SparkBase Inc., for example, sells its PayCloud wallet through ISOs. But it may be the first response by a major company rooted in the payments business to the wallet plans announced, to considerable fanfare, by the likes of Google and Isis. "I want to give bullets to the merchant acquirers to shoot back," Coppinger says.

Apriva is a member of ACT Canada; please visit http://www.apriva.com.

Source: Digital Transactions (10/26)

Chase Paymentech announced the launch of its SafetechSM Encryption in Canada, a solution to help protect merchants and consumers from payment card fraud and data theft. Available to Chase Paymentech Canada point-of-sale (POS) retail customers, Safetech Encryption is breakthrough technology designed to secure cardholder data for card-present transactions.

Safetech Encryption is designed to eliminate the processing, transmission and storage of unprotected payment card account information on retailers' systems. The customer's card data is encrypted and formatted so that the retailer's POS systems process the transaction in typical fashion, but the card data is rendered useless to any other person or system that obtains it. The encrypted data is then transmitted to Chase Paymentech, where it is decrypted and processed through the payment brand networks, such as MasterCard or Visa.

"Data security is a great concern for retailers. Safetech Encryption will ultimately help protect merchants and their customers from the increasing risks associated with global fraud and data breaches at the point of sale," said Sam Jawad, president, Chase Paymentech Canada. "Our ultimate vision is to protect every single transaction originating from Chase Paymentech point-of-sale devices."

Safetech Encryption is designed to prevent vulnerable card data from being stored within the retailer's network, thus if a breach does occur, encrypted payment data is of no use to identity thieves. Safetech Encryption secures all types of payment transactions, including swiped, chip read, contactless and manually keyed transactions. The solution can provide significant reduction to Payment Card Industry (PCI) compliance requirements as the retailer no longer has a need to store unprotected cardholder data in their point-of-sale system or within their networks.

Safetech Encryption has been available in the United States since January and was launched in partnership with VeriFone Systems, Inc. a global leader in secure electronic payment solutions.

"Chase Paymentech is wise to bring this much needed solutions to their merchants," said Carol Coye Benson, managing partner at Glenbrook Partners. "We now live in a world where managing risks associated with payment fraud and data security is part of the daily routine for merchants everywhere. By closely integrating encryption tools with the payment processing work streams, the Safetech approach makes the process more efficient."

Chase Paymentech, MasterCard and Visa are members of ACT Canada; please visit http://www.chasepaymentech.com; http://www.mastercard.ca & http://www.visa.ca.

15. RIM GOES NFC FOR SOCIAL MEDIA - Members Only Access

Available in the ACT Canada Members Only section of our web site. Click on the link below to access this section.

If you are a member of ACT Canada but do not have your login details please contact me - andrea@actcda.com.

Source: Canada Newswire (10/06)

Groupe Aeroplan Inc., now carrying on business as Aimia reconfirmed that, effective October 7, 2011, the company's ticker symbols on Toronto Stock Exchange will be changed and its common shares and cumulative rate reset preferred shares, Series 1 will begin trading under the symbols AIM and AIM.PR.A, respectively.

The ticker symbol changes follow the announcement earlier this week of the company's new name and global brand identity.

"As announced earlier this week, we selected our new name, Aimia, to represent the full-suite, global loyalty business that we have become," said Rupert Duchesne, President and CEO of Aimia. "It encompasses our straightforward passion to build long term, profitable relationships and our goal to become the recognized global leader in loyalty management."

The proxy circular for the next Annual Meeting of Shareholders will include a proposal to amend the company's articles of incorporation to change its corporate name to Aimia Inc.

About Aimia
Groupe Aeroplan Inc., doing business as Aimia, is a global leader in loyalty management. Aimia's unique capabilities include proven expertise in delivering proprietary loyalty services, launching and managing coalition loyalty programs, creating value through loyalty analytics and driving innovation in the emerging digital and mobile spaces. Aimia owns and operates Aeroplan, Canada's premier coalition loyalty program and Nectar, the United Kingdom's largest coalition loyalty program. In addition, Aimia has majority equity positions in Air Miles Middle East and Nectar Italia as well as a minority position in Club Premier, Mexico's leading coalition loyalty program.

Aimia is a member of ACT Canada; please visit http://www.aimia.com.

Source: Moneris (10/13)

Moneris Solutions (Moneris) announced the launch of e-Select plus Mobile App, offering Canadian merchants the ability to accept credit card payments using their smartphones and capture sales on the go.

Merchants can obtain real-time authorization, send email receipts to customers, and generate reports on transaction history through their mobile devices. The bundled card reader accessory plugs into the audio port of the smartphone, allowing credit cards to be swiped for ease-of-use. The Mobile App extends the capabilities of the e-Select plus platform, offering merchants additional convenience and security.

In a recent survey conducted by Moneris, 57 per cent of Moneris Advisory Council members, composed of Canadian small business owners, described their mobile device as a vital asset in the successful running of their businesses. In terms of smartphone usage, 57 per cent of the respondents said they are current users, with BlackBerry� showing the highest level of adoption at 29 per cent.

When it comes to accepting payments with a smartphone, 38 per cent stated that they would be willing to do so, and another 20 per cent were undecided. Many Canadian merchants are looking to be early adopters, with 60 per cent of the respondents stating that they would adopt a mobile payment solution within the first three months of introduction.

Moneris is a member of ACT Canada; please visit http://www.moneris.com.

Source: Aconite (10/26)

Aconite has announced a new issuer solution for managing apps in secure elements on mobiles.

Aconite Mobile Application Manager enables application issuers to install and to manage the life-cycles of apps in the mobile handset's Secure Element using the new standards for mobile application management and security that have been published by GlobalPlatform. With increasing numbers of NFC mobiles now rolling out, there is growing demand for this solution across many sectors, including payments, access, ID, loyalty, ticketing and proximity marketing.

Aconite's extensive global experience with smart payment card systems translates directly into the mobile domain -Aconite's proven solutions for smart card lifecycle management and transaction processing represent a pedigree that guarantees the reliability, scalability and flexibility of Aconite Mobile Application Manager.

To allow an application issuer such as a bank, transit operator or card personalization bureau to deliver their apps to all their customers, irrespective of their brand of phone, mobile network or the type of Secure Element(s) the phone contains, Aconite Mobile Application Manager creates and manages the issuer's Security Domain and provides data preparation and secure delivery of apps and updates. These are sent to the appropriate TSM (Trusted Service Manager) for the individual customer's mobile, which then delivers the apps or updates to the handset.

Aconite Mobile Application Manager frees application issuers from having to manage multiple Security Domains and the interfaces with multiple TSMs. Issuers become independent of TSMs, mobile networks and any other delivery channels and can concentrate on meeting the needs of their customers without the burden of maintaining multiple delivery channel relationships and their complex infrastructures.

Aconite Mobile Application Manager can provide a private channel for an issuer to install and manage apps in their Security Domain on the handset, without any data being visible to a third party such as a TSM or mobile network operator.

Aconite Mobile Application Manager can be owned and operated by an application issuer, such as a bank, transit operator, loyalty scheme, eID provider etc., or by a third party service provider who can offer outsourced services to issuers.

Mike Woods, Aconite CEO, said "Providing a mobile solution for our existing and future customers is a natural extension of Aconite's existing smart card solutions. The mobile market is developing at a rapid pace and in responding to that Aconite will be making further announcements in the near future on its market plans and global mobile partnerships."

Aconite is a member of ACT Canada; please visit http://www.aconite.net.

Source: LoyaltyOne (10/11)

Seventy-four percent of American and Canadian consumers said they don't feel they're receiving a benefit from sharing personal information with marketers, according to the latest survey research from LoyaltyOne.

Just 52% said they somewhat or strongly agree with the statement that companies use their personal data "so they can better serve me." Breaking down the somewhat and strongly agree responders, only 9% said they strongly agree that companies use their information to serve them better.

Hardly more encouraging, 54% said they expect improved customer service in exchange for their data, and 55% said they expect access to exclusive events or offers.

Toronto-based LoyaltyOne, a global provider of loyalty strategies, customer analytics and relationship marketing services, completed online surveys in July 2011 with 1,000 American and 1,000 Canadian respondents. The research was designed to test consumer attitudes about personal data collection and use by marketers.
Findings released today reveal that marketers need to solve an important perception problem about the benefits accruing to the consumer for exchanging personal information.

Underscoring the perception problem -- consumers tallied below 50% in acknowledging several of the basic benefits on the customer side of the personal information exchange equation:

  • Tailored offers based on what I buy (49%)
  • Advanced information on new products and services (41%)
  • Communications based on my preferences (41%)
  • Easier buying process (39%)
  • Preferential treatment (36%)
  • Product assortment improvements based on what they know I buy (36%).

Product discounts, a benefit not necessarily associated with the development of a long-term relationship between customer and company, scored highest (71%) as the offer that consumers expect to receive in exchange for their information.

"The message isn't getting across to the consumer that the primary reason marketers use customer behavior data is to enhance the individual customer experience and build a deeper relationship," LoyaltyOne President Bryan Pearson said.

Pearson directs six global enterprises at LoyaltyOne, including Canada's AIR MILES Reward Program. He has written a book titled The Loyalty Leap: Turning Customer Information into Customer Intimacy, to be published in May 2012 by Penguin Group in both the United States and Canada.

On Nov. 1, 2011, Pearson will lead a 30-minute webinar about responsible data use marketing. The title is Winning Shopper Loyalty in an Age of Privacy Concerns: U.S. and Canadian Research Results. Free registration and information is available at loyaltyevents.webex.com.

The LoyaltyOne research also revealed that consumers' actions sometimes speak louder than their words. When asked, what, if anything, have you done in the past 12 months to protect your personal information, 41% of American and Canadian survey takers said they've used cash instead of a credit card to protect their personal information. Respondents who said they have been notified that their personal information had been compromised were more likely to take action to protect themselves. Those who said they have been negatively affected by a compromise of their personal information were even more likely to take action.

Twenty-three percent of respondents said they decided not to make a purchase from a company out of concern about use of their personal information.

Pearson's five basic principles for using data responsibly to create real value for customers are as follows:

  1. Be Transparent - Express in straightforward language what you are trying to do, what you're achieving, what's in it for the customer, what's not in it for the customer.
  2. Give Consumers a Choice -- In the loyalty program arena, to run a value exchange-based relationship with the consumer you need to gain trust. The best way to gain trust and commitment is by giving customers the opportunity to choose whether they share information. Permission-based or not, responsible marketers can add value for the consumer if data is respected. Problems arise when marketers cross the "creepy" barriers into the ultra-personal areas such as health, finance and sex, and marketing to children.
  3. Safeguard Consumer Data - The best precaution is to keep only the data necessary to serve the customer and take proper steps to protect it. Use data only as directed and always, repeat always, destroy data with care.
  4. Monitor Frequency of Usage - Don't wear out the consumer's trust. Make sure communications aren't too frequent and are relevant to the customer's needs.
  5. Mutuality of Value - Create real value for the customer. It's not about the product exchange, cash, points or coupons. It's about something bigger - relevancy.

Additional details about the LoyaltyOne survey are published in a report titled Challenges Marketers Face in a Privacy-Worried World: A Report on U.S. and Canadian Consumer Attitudes about Responsible Data Collection and Use. The survey is a representative, true random sampling of U.S. and Canadian consumers. Weights were applied by population size to create blended U.S.-Canadian total results. Statistical significance is calculated at the 95% confidence level. The report is available free of charge at www.loyalty.com/knowledge/articles/privacy-perception-problem.

LoyaltyOne is a member of ACT Canada; please visit http://www.loyalty.com.


Available in the ACT Canada Members Only section of our web site. Click on the link below to access this section.

If you are a member of ACT Canada but do not have your login details please contact me - andrea@actcda.com.

Source: ICMA Industry News (10/13)

Financial services giant Visa confirms it will launch its Near Field Communications-enabled digital wallet platform in August or September of 2012, allowing consumers to make real-world and online purchases via smartphone.

Steve Perry, commercial director for Visa Europe, announced the rollout schedule during an appearance at the company's security summit in Hamburg, Germany, and confirmed the system will incorporate rival credit card options. "It will work with not just Visa cards from multiple banks, but other cards like American Express," Perry said. "If the digital wallet isn't as sexy as my current wallet, then it won't take off."

In May, Visa announced it will collaborate with U.S. and international bank partners including U.S. Bancorp, PNC Financial Services, Regions Financial, BB&T Corp, Toronto Dominion's TD Bank and the U.S. arm of Barclays PLC to introduce its digital wallet system, which will store customer credit and debit card account information. Visa acquired monetization platform provider PlaySpan in February, a move to accelerate its expansion into the digital and mobile commerce segments-two months later, Visa made an unspecified investment in Square, whose increasingly popular mobile payment solution enables users to accept credit and debit card purchases anywhere and anytime via iPhone, iPad or Android smartphone.

Visa also has confirmed it will join Isis, the nationwide mobile commerce joint venture spearheaded by Verizon Wireless, AT&T and T-Mobile USA. According to Isis, the additions significantly expand the payment options available to mobile subscribers, at the same time extending the fledgling network's reach to encompass payment terminals already installed at U.S. merchant locations.

Visa is a member of ACT Canada; please visit http://www.visa.ca.

Source: Capital One (09/27)

Research conducted by Capital One Canada shows that in the past year only a quarter (26%) of Quebeckers have taken the time to research different kinds of credit cards. Furthermore, Quebeckers are unique in their credit card preferences with almost half (43%) preferring cash back rewards compared to the rest of Canada (28.5%) who prefer to redeem their rewards for travel.

Capital One is entering the Quebec market with a full spectrum of credit cards, including the highly regarded Aspire Travel MasterCard. Building on the extensive research that was carried out in advance of this expansion, Capital One also recently launched the Aspire Cash MasterCard, which offers 1% cash rewards on all net purchases and a 20% anniversary bonus, all with no annual fee. Aspire Cash was developed based on extensive research on what Quebeckers want in a credit card - more cash rewards and easy redemption without a fee.

"Part of our strategy is to ensure we have products and marketing that will resonate with the Quebec market," said Pascal Bricault, Head of Quebec Marketing for Capital One Canada. "We're here to encourage Quebeckers to look at their options when it comes to credit cards because by taking the time to do their research, consumers could find a card with better benefits, better interest rates and ultimately save themselves money."

Today's announcement is part of Capital One Canada's plan to become a major player in Quebec's credit card marketplace. This supports Capital One's national expansion efforts, which include strategic partnerships with Delta Air Lines, Intercontinental Hotels Group and the Hudson's Bay Company.

"Our launch into Quebec is a key step in our vision to deliver high value and innovative credit cards to all Canadians," said John McNain, Vice-President, Strategy and Marketing for Capital One Canada. "Our entry into this market reinforces our position as a truly national lender, and we look forward to introducing our brand and our products to Quebec consumers."

Capital One is a member of ACT Canada; please visit http://www.capitalone.ca.

For more information, please contact Andrea McMullen at 1 905 426-6360 ext 124 or email andrea.mcmullen@actcda.com.

Please forward any comments, suggestions, questions or articles to andrea.mcmullen@actcda.com. Please note that articles contained in this newsletter have been edited for length, and are for information purposes only.