Engaging, Enabling and Evolving Commerce in Canada since 1989

March 2012 ACTion Newsletter


  1. Editorial - Innovation, Education and Regulation
  2. Canada's Payment Systems Need Mobile Boost, Federal Review Argues
  3. CIBC Introduces A Mobile Banking App Designed Specifically For iPad Users
  4. Chip Technology Helping In The Fight Against Interac Debit Card Fraud
  5. Sears Canada Among First Canadian Retailers To Launch Online Points Redemption Feature
  6. Free Credit Union Mobile App Now Available
  7. Move Over New iPad: Apple Scores Important iWallet Patent - Members Only Section
  8. Discover Implements 2013 EMV Mandate In U.S., Canada And Mexico
  9. Ingenico Integrates Isis Mobile Commerce Application To Advance Mobile Payments In The United States
  10. Aimia Engaged By Standard Chartered Bank To Deliver Loyalty Rewards Services
  11. CPI Card Group And X-Card "First In Industry" To Introduce Powercore
  12. Google Fine Tunes Its Mobile Payments Crusade - Members Only Section
  13. Giesecke & Devrient Implements Secure Access To Cloud Services For Vodafone
  14. QNB Group, Qtel, Oberthur Technologies And Mastercard Introduce First-To-Market Revolutionary Mobile NFC Contactless Payments Program In Qatar
  15. American Express Issues Research On Consumers And Likelihood To Try Technology-Enabled Payment Tools
  16. First Data, AJB Partner To Secure Payments At The Point Of Sale
  17. Inside Secure, SecureKey Technologies Join Forces To Simplify Mobile Authentication And Payments
  18. Square Coming To A Cash Register Near You - Members Only Section
  19. Russia Issues Fime-Tested, Biometric Passports
  20. Gemalto Selected By KDDI For Japan's First Mobile NFC Launch
  21. Launch Of New And Improved Collis Brand Test Tool
  22. Ingenico, Banco Santander And Orange Develop Multi?Brand NFC Mobile In Spain
  23. Oberthur Technologies Collaborates With Ingecom To Integrate High Frequency Chip And Antenna In SIM Card
  24. Barclays Launches Pingit E-Cash System - Members Only Section
  25. Canary Islands Go Contactless With Visa And Ingenico

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.

ACT Canada Thanks Our New & Renewing Members


Chase Card Services ~ member since 2009
Desjardins ~ new member
President's Choice Financial ~ member since 2008


3M Mobile Interactive Solutions Division ~ new member
FIME ~ member since 2006
Imperial Oil ~ member since 2010
Mercator Advisory Group ~ new member
Osler, Hoskin & Harcourt LLP ~ member since 2005
SecureKey Technologies Inc ~ member since 2009


AIRBAL ~ new member
Blake, Cassels & Graydon LLP ~ member since 2007
Touchlogic Corp ~ member since 2011


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.


EMV Universe Roadshow
ACT Canada is preparing a one-day EMV Universe Roadshow ("Roadshow") that will travel to five events in the US. The Roadshow is focused on sharing experiences and learnings gained through Canada's migration to EMV. This Roadshow will be appended to existing US industry events targeted at relevant payments industry stakeholders. ACT has identified five events in Q1 and Q2 2012 that present excellent opportunities for ACT members to showcase their expertise, and exchange key learnings from the Canadian migration to EMV.

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
CSCIP training & workshops to be announced next week 

Source: Catherine Johnston, President & CEO, ACT Canada (03/30)

Innovation, Education and Regulation

As we collect the annual nominations for innovation in payments and identity assurance awards, and now that the Payments Review Task Force report has been issued, it is time to reflect on the value of innovation.

If we identify consumers, merchants, issuers and acquirers as the principal stakeholders in payments, innovative payment products and services must balance value and risk for all of them. Technology will always support innovation and we live with the benefits, but as an old friend of mine used to say, "needs drive the show, not technology".

20 years ago, when I was arguing for the use of smart card technology for payment cards, it would have been innovative, but there was not a compelling need. After a time, fraud became the global need and a move to EMV started. Today we have many more opportunities supported by new technology interfaces, devices and applications. Every one has a compelling value proposition for one or more of the prime stakeholder groups, but that may not be enough. Payments are an essential part of our lives and need to be "protected". The payment card industry has gone to great lengths and considerable expense to mitigate risk. They have required principal stakeholders to do the same by shifting liability to those who fail to employ required security measures.

Canadians have come to expect security in banking and payment based on the accuracy and timeliness of our transactions across the years. We will never know the extent to which regulation contributed to this success, but it did appear to be a positive factor in protecting Canadians from the sub-prime debacle. Continuing on this theme, would consumers be better protected from breaches like the Google wallet if the regulatory playing field was level for all?

We talk about the need to not inhibit innovation, but that can only be within the confines of consumer safety. We regulate food, drugs, electrical appliances and countless other products and services that affect Canadians. We don't allow these sectors to be self-governing. When it comes to payments, are we inhibiting innovation by holding financial institutions to regulations while allowing others to be self-governing? If we do allow self-governance for one group, what will it take to educate Canadians so they can properly understand and manage their own risks? These are questions that must be asked and answered.

Source: Vancouver Sun (03/26)

Canada's economy could get an annual $32 billion boost with a more determined shift to digital payments products and services, according to the final report of a federal review of the nation's payment systems.

But change won't come without government leadership, according to final submissions from the Task Force for the Payments System Review which spent 18 months examining opportunities and challenges involved in decisively moving Canada away from paper-based payments - and blames a lack of innovation by key financial institutions including Canada's major banks.

"We still rely largely on old-fashioned methods of payment such as paper-based processing, and cash and cheques," the review said. "In addition, Canada is falling behind in the international push to generate a secure mobile ecosystem, the revolutionary agent that will deliver extraordinary new commercial and public services to consumers via their smart phones."

Meanwhile, 27 European Union countries, Brazil, Russia, India, and China, "and even Peru and Romania are significantly outpacing Canada's transition to digital payments, with obvious negative implications for Canada's global competitiveness and interoperability."

The review was undertaken for the federal ministry of finance, and blames "stagnation" in payment systems upon "Canada's major banks and other key institutions."

"Their interests are best served by keeping at bay new entrants to the system, the very entrants who would bring the innovations that Canadians need."

A "thoroughly modernized" payments system could save as much as two per cent of GDP productivity annually.

"As important as this massive benefit, a modern Canadian payments system will lead to far greater choice, efficiency and convenience for consumers, businesses, governments and organizations, a swell as a safer, more secure system."

Potential savings include 60-80 per cent reduced invoicing costs, and a one to two per cent of revenue cost reduction by switching from paper to e-invoices.

Recommendations for government action include:

Implementation of electronic invoicing and payments for all government suppliers and benefit recipients.

Partnering with the private sector to create a mobile device-based "ecosystem."

Lead the development of digital identification and authentication systems to support the system while protecting privacy of citizens. The absence of a simple, secure method of authenticating identities online means many online transactions such as purchases or bill paying transactions are unnecessarily "laborious."

Legislate the creation of a payments industry governing body, add public oversight to scrutinize it, and overhaul the payments system.

The Retail Council of Canada said the recommended changes would "fundamentally impact the way Canadians pay for any transaction."

"The report contains a wide range of recommendations which could, if implemented, lead to a fundamental reshaping of Canada's payment system," said council president and CEO Diane Brisebois said in a news release. "RCC will continue to work with the finance minister to ensure that our members' voices and business needs are of primary consideration."

The Task Force's final report is available on its website at http://paymentsystemreview.ca/index.php/papers/.

Source: CIBC (03/28)

CIBC announced the launch of a Mobile Banking App designed specifically for the iPad.

This launch makes CIBC the first major bank in Canada to deliver a native iPad mobile banking app, building on CIBC's leadership in mobile financial services. The app enables CIBC clients to bank on their iPad using new interactive graphics and visuals, and leverages the full screen and capabilities of the iPad.

"Just as we did when we launched the first Mobile Banking App in Canada in 2010, CIBC is moving quickly to deliver banking services to our clients through the technology they use everyday," said Michael Martin, Senior Vice President, Alternate Channels, CIBC. "Our new Mobile Banking App for iPad offers engaging features that utilize the iPad's large, high resolution Retina display, and rich interactive graphics and visuals, making it easier to understand and manage your finances."

"Clients are increasingly looking for greater flexibility and an anytime, anywhere connection to their banking, allowing them to take care of day to day transactions at a time and place that works for them," added Mr. Martin.

Just as they can on CIBC's award winning Mobile Banking App for the iPhone, clients can use the new CIBC Mobile Banking App for iPad to check account balances, transfer funds, pay bills and send Interac e-Transfers.

CIBC is a member of ACT Canada; please visit http://www.cibc.com.

Source: Interac (03/06)

Interac Association announced that Interac debit card fraud losses to financial institutions resulting from skimming declined to $70 million in 2011 from $119 million in 2010 and a high of $142 million in 2009. The number of cardholders reimbursed fell to 154,170 from 205,200 in 2010 and 238,000 in 2009. This represents 0.0229 per cent of domestic debit card volume and the lowest volume of fraud losses since data were recorded in 2003. Cardholders are protected from losses under the Interac Zero Liability Policy*.

"Our collective efforts and significant investments in the fight against debit card fraud, particularly the transition to chip technology, are producing tangible benefits," said Caroline Hubberstey, Head of External Affairs, Interac Association. "The transition to chip technology is all about making a safe system even more secure and that is what's happening. While significant progress is being made, the fight continues and no one is resting on their laurels."

Chip technology is both secure and smart. It gives the card the ability to store and process data securely. Unlike a magnetic stripe, this processing power makes it extremely difficult to copy and reproduce. This processing power is used, together with cryptography to allow the card and terminal to communicate with one another to carry out security checks to ensure the card is valid. Chip technology also enables advancements like Interac Flash?, which is currently being rolled out.

Interac Flash, the contactless enhancement of Interac Debit, leverages EMV-based secure chip processing, instead of magnetic stripe data type processing. This protects Interac Flash enabled cards against skimming, counterfeiting, and transaction replay types of fraud, including electronic pick-pocketing where readers are used to capture information.

"Security is of paramount concern for us," emphasized Hubberstey. "By also choosing to leverage chip technology for Interac Flash enabled debit cards, we have taken strong steps to protect cardholders from tactics that criminals are using to capture data on contactless cards, such as electronic pick-pocketing."

Under Interac rules, card-not-present transactions and fallback to the magnetic stripe are not permitted. Further, given the structure of Interac Online, Internet shoppers can make secure online debit purchases directly from their bank accounts, without the need to provide any personal financial information, including card and account numbers, to online merchants. Stolen Interac debit cards and even PINs cannot be used to complete Internet transactions.

Interac chip debit cards and terminals are currently rolling out across Canada. By the end of this year (2012) all Automated Banking Machines (ABMs) and Interac debit cards will be converted to chip technology and by the end of 2015, all Point-of-Sale (POS) terminals. In many cases, conversion is ahead of schedule. As of the end of 2011, 90 per cent of Interac debit cards and 84 per cent of terminals (ABMs/POS terminals combined) had been converted.

Interac Association is a member of ACT Canada and a Cardware sponsor; please visit http://www.interac.ca.

Source: Sears (03/19

Sears Financial cardmembers can now redeem their Sears Club Points online towards almost anything at sears.ca

For the first time ever, Sears Financial has launched an online points redemption system for its five million plus cardmembers - becoming among the first major retail loyalty programs in Canada to do so.

Sears customers who purchase their products on a Sears Financial(TM) Credit Card earn valuable Sears Club(TM) Points that can be redeemed instantly at Sears stores. The new feature allows Sears Financial credit cardmembers to redeem their Sears Club Points online at sears.ca, towards thousands of products across 50 categories, ranging from women's fashions and cosmetics to appliances and furniture and much more.

To take advantage of the new easy-to-use service, cardmembers must go through the standard checkout process on sears.ca and select a Sears Financial Credit Card as the form of payment. For every 1,000 Sears Club Points redeemed, the cardmember will receive $10 off their purchase.

"To date, Searscardmembers have redeemed over 40 million points through several thousand online redemptions at sears.ca," said Peter Kalen, Senior Vice President of Sears Financial and Sears Home Services. "The overwhelmingly positive response to this new online service indicates to us that this is exactly the type of digital innovation our customers want and need - and we're thrilled to be among the first retailers in Canada to offer it."

To celebrate the launch of this new feature, Sears Financial is offering its credit cardmembers a chance to win one million Sears Club Points - worth $10,000 in rewards at Sears- when they redeem a minimum of 1,000 points online at sears.ca, from March 16 to April 15, 2012.

Sears Financial is a member of ACT Canada; please visit http://www.searsfinancial.ca.

Source: Credit Union Central of Canada (03/20)

Credit Union Central of Canada (Canadian Central) launched a new, free, mobile application that enables users to find credit union locations and ATMs anywhere across Canada via their iPhone, BlackBerry, Android or Windows smartphone.

Called Canadian Credit Union Branch and ATM Locator, the GPS-enabled app provides directions and interactive maps to credit union branches and ATMs available on the ACCULINK service and THE EXCHANGE network across Canada. It also gives an overview of branch hours and services available at each of these locations.

"Canadians have come to expect instant access to information through their smartphones," explained David Phillips, president and CEO, Credit Union Central of Canada. "Providing a way to find locally and nationally-based surcharge-free ATMs and credit union branches through a mobile app is an effective way of addressing mobile user's needs and delivering a positive user experience."

Information in the Locator is updated daily from the Credit Union Information Portal (CUIP), and hosted and maintained by Canadian Central.

"The launch of this project is an excellent example of the collaborative efforts of the credit union system," added Wendy Bradley, senior manager, Payments, Credit Union Central of Canada. "Affinity Credit Union reached out to Canadian Central with the idea of system-wide, customizable mobile app; recommended the development organization we could work with; and volunteered to be the test pilot for the personalization of it. From there, we looped in staff from across the system to provide advice and recommendations, and as a result, we now have another incredible new product offering for our members."

To download the app, Canadians should visit their smartphone app provider:

Credit Union Central of Canada is a member of ACT Canada; please visit http://www.cucentral.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: Discover (03/15)

Discover announced it is implementing a 2013 EMV mandate for acquirers and direct-connect merchants in the U.S., Canada and Mexico. This industry alignment will streamline certification and deployment efforts and enable a manageable transition for all parties involved, including issuers, merchants and acquirers.

To date, Discover has prioritized its global EMV-deployment efforts towards markets which are mandated or have significant chip-card technology presence already. Discover has deployed D-PAS, the company's EMV-compliant payment specification, for the past three years and already has over 1 million cards in market among international issuers. Deployment efforts continue in 2012, with close to 100 issuing and acquiring deployments slated across the Diners Club, PULSE and Discover card networks.

"Enabling EMV in North America is a significant step in Discover's approach toward emerging payments, and clearly a necessary one," said Troy Bernard, Global Head of Chip Payment Technology at Discover. "We believe each payment solution should enable choice and security within its transaction environment, which is why when it comes to EMV, we're giving stakeholders choice and flexibility on how they implement it."

Discover's approach to EMV is both universal and choice-centric, meaning the company will not restrict any channel, verification process or transaction type. Discover will support:

  • All card authentication channels - including online and offline
  • All cardholder verification methods - including both chip & PIN or chip & Signature transactions
  • All commerce channels - including contact and contactless (which includes mobile)

Discover's EMV deployment efforts are already underway domestically. In January 2012, Discover processed its first U.S. EMV card transactions at enabled Walmart locations. Walmart is certified to process D-PAS in both the U.S. and Canada.

Discover is a member of ACT Canada, a Cardware Sponsor & Exchange Place participant; please visit http://www.discover.com.

Source: Integrated Solutions for Retailers (03/12)

Ingenico recently announced its strategic relationship with Isis, the joint venture between AT&T Mobility, T-Mobile USA and Verizon Wireless. This relationship further underscores Ingenico's commitment to advance mobile payments. It enables the Isis Mobile Commerce Application on the new Telium series POS devices to accept payment, loyalty cards, and to redeem coupon offers with the tap of a smartphone. This new business relationship will help fuel the broader adoption of mobile payment technology, providing payment choices to millions of consumers who prefer to use their smartphones for payment transactions in retail stores in the United States.

"With mobility and mobile technology becoming a vital part of today's retail shopping experience, both mainstream consumers and retailers are embracing smartphones as a growing trend to engage and transact in stores. Our commitment to our customers, as a leading POS device and solutions providers, is to continue to innovate on the technology front in order to equip merchants with a versatile secure platform capable of facilitating and accepting diverse forms of payment," said Thierry Denis, president of Ingenico North America. "Our decision to integrate and support the Isis Mobile Commerce Application into our existing line of POS devices represents a logical choice in the evolution of mobile commerce today. With shoppers increasingly using mobile means to interact with brands and retailers, the Isis Mobile Commerce Application will only grow in importance for those merchants seeking to differentiate themselves by connecting with their customers through mobile at the point of payment. Thus, our new relationship enables Ingenico to innovate once again and bring the most advanced mobile solution for today's savvy shopper."

The adoption and usage of mobile devices in the U.S. continues to grow exponentially. According to 2012 Mobile in Focus study by ComScore, nearly 42% of U.S. mobile subscribers now own a smartphone and half of them use their phone to perform retail research while in stores. Moreover, in 2011 ComScore data reflects that nearly one in five smartphone shoppers scanned product barcodes and one in eight performed price comparisons while shopping in a store. On the mobile payment side, a major U.S. online retailer reported that it collected over $4B in mobile payments in 2011, demonstrating that mobile devices have become increasingly valuable to consumers', a trend that is predicted to increase in the U.S. marketplace in 2012.

"As one of the leading POS systems providers, Ingenico has a significant footprint in the US retail market and plays an important role in the payments ecosystem, including the growing mobile payments segment," said Scott Mulloy, Chief Technology Officer, Isis. "By partnering with Ingenico, we are creating a path to expedite the adoption of the Isis Mobile Commerce Application to brick-and-mortar stores. With just a simple tap of their smartphone, millions of shoppers will soon be able to pay, present loyalty credentials, and redeem offers at retailers equipped with Isis ReadyTM Ingenico terminals. "

The new relationship with Isis is an integral part of Ingenico's mobile commerce and payment strategy in the U.S. For several years, the company has been successfully innovating and proactively working on its technology to incorporate mobile NFC-based product and solutions offerings in all segments of retail. Its latest generation of secure Telium series devices comes with embedded contactless, EMV chip card, and NFC-based features that enable merchants to accept all types of payments including mobile payments. Several retailers are already successfully using Ingenico'siSMP, the first PCI PTS v3 certified mobile device designed to turn an iPhone and iPhone touch into a smart mobile payment device, to connect and engage with the consumers "on-the-go" in the store, in the aisle and at the point of sale for line-busting.

In addition, Ingenico made an additional investment and has taken a controlling interest in Boston- based ROAM Data, the leading mCommerce Platform-as-a-Service (PaaS) provider extending physical Point of Sales (POS) and eCommerce to the mobile environment. This strategic investment reinforces Ingenico's global mobile commerce and payment offerings notably for small merchants.

Ingenico is a member of ACT Canada and a Cardware Exchange Place participant; please visit http://www.ingenico.com.

Source: Aimia (03/28)

Aimia announced it has been engaged by one of the world's leading international banks - Standard Chartered Bank (SCB) to enhance its rewards proposition across markets in Asia, Africa and the Middle East.

Aimia will use its experience in loyalty strategy and managing rewards programs to deliver an improved value proposition to SCB's customers. The services will be underpinned by a data driven approach to enhance SCB's rewards programs. Aimia will implement its leading edge proprietary redemption technology platform and will manage the rewards sourcing and fulfillment process.

"This selection by Standard Chartered demonstrates our commitment to delivering a full suite of loyalty services in major markets around the world. We are pleased to be partnering with Standard Chartered Bank, which occupies a unique space in banking with a footprint extending to some of the world's most dynamic markets" said Liz Graham, President and Chief Executive Officer, US and Asia Pacific, Aimia. "This partnership will further develop Aimia's presence in key growth markets and furthers our position as the recognized leader in loyalty management."

"Standard Chartered Bank is committed to our customers and rewards is a key driver, enabling us to deliver a superior banking experience," said TS Anil, Global Head of Cards, Personal Loans and Deposits at Standard Chartered Bank. "The eventual enhancement of the rewards programme will allow us to maximize value for our customers."

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

Source: ICMA Industry News (03/22)

CPI Card Group along with X-Card Holdings, LLC announced the launch of the PowerCore. A CPI card can now span multiple uses by having its own power on-board. Examples range from gift card production with light and sound to financial security cards with one-time pass code abilities (OTP, Dynamic CVV) or magnetic stripe emulation-truly putting control of the card in the hands of the consumer.

An industry first, the PowerCore card can be customized to fit any design needs. Light up a birthday cake on a gift card and play 'Happy Birthday' using this advanced technology. Retailers can customize the number, color, timing and length of the light on the card to highlight a unique design. Retailers can now leverage these cutting edge capabilities to more effectively illustrate their brand through card programs. For financial and security cards, issuers can utilize encapsulated, secure chips with OATH based algorithms to display a one-time-password (OTP) or a dynamic account number or security code, like a DBC/CVV/CVC2.

"We are delighted to be working with CPI Card Group for the assembly and distribution of our hot lamination-ready, powered card technology. CPI has proven to be a leader in the adoption of value-added technologies within the card manufacturing industry," said Mark Cox, founder and president of X-Card Holdings, LLC. "These capabilities, along with a significant global scale, have made our partnership a very logical union."

Always ahead of the curve and striving to achieve the best innovations for customers, CPI plans to leverage future PowerCore developments to provide new options to financial and security card issuers. The design of the PowerCore compliments CPI's significant hot lamination manufacturing process; driving down card costs while increasing quality and scaling output to record levels.

"At CPI, we are always looking for new alternatives to offer customers and working aside X-Card Holdings to launch this cutting-edge technology option has elevated us to new capabilities," said Steve Montross, president and CEO of CPI Card Group. "We truly believe there is a card for every occasion and the PowerCore will allow every event to become a celebration or a high security event."

CPI Card Group is a member of ACT Canada, a Cardware Sponsor & Exchange Place participant; please visit http://www.cpicardgroup.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 (03/15)

Giesecke & Devrient (G&D) has been chosen by Vodafone Germany to develop innovative security solutions based on standard SIM cards. This innovative approach makes life easier for users of smartphones and laptops because it eliminates the need for additional hardware such as smartcards, tokens or card readers to secure access to cloud services. Vodafone's business and public sector customers-who require sophisticated IT security-are one of the groups that stand to benefit most from this new solution. The platform created by G&D will be used for a variety of applications, including additional security for mobile access to intranet and cloud services, full encryption of e-mail and voice communication, and protection of the data stored on mobile devices.

G&D's role in the joint project includes delivery of an authentication application present on the SIM cards, as well as the cloud-based authentication service that is run from the Vodafone computer center. The solution works by installing the authentication application in a specially protected part of the SIM card which interacts with cloud-based functions. This eliminates the need for any additional security hardware.

To gain access to their company network, users are simply required to enter their password when requested by the authentication service. Another option is to use one-time passwords sent by SMS. Remote access functions are available to the IT departments of the companies and local authorities concerned, making it easy for them to manage access by specific users to the applications and devices available.

In addition to controlling access to company networks, the platform enables additional encryption of voice, e-mail, and SMS communication between users. Other features include the use of digital signatures and the encryption of data stored on the mobile device, a feature that is critical if a device is lost or stolen.

Michael Kuemmerle, group executive, Mobile Security at G&D summarizes the key benefits, "Security has an increasingly important role to play in the digital world. The new SIM-based solution which Vodafone is implementing is one way we are securing the mobile future. Our focus is on creating user-friendly, cost-effective applications which meet our customers' needs, in this case without having to introduce additional security hardware."

Jan Geldmacher, CCO of Vodafone Germany's Enterprise Business Unit for corporate customers, is equally pleased with the partnership, "Security is founded on trust. Successfully launching innovative technologies to open up the digital world means keeping people firmly in focus, after all, you will only accept a new technology if you trust it. Giesecke & Devrient is the ideal partner for us here. The government trusts them to print banknotes and passports, so they couldn't be more reliable."

Giesecke & Devrient is a member of ACT Canada, a Cardware Sponsor & Exchange Place participant; visit http://www.gi-de.com.

Source: Oberthur Technologies (03/06)

Qatar National Bank (QNB) Group, Qtel, Oberthur Technologies and MasterCard Worldwide announced the launch of the first mobile Near Field Communication (NFC) payments program in Qatar as the result of a strategic collaboration.

This announcement signifies the introduction of the first mobile contactless MasterCard PayPass payments program in Qatar via an NFC-enabled mobile phone and the first program to also offer consumers a contactless PayPass 'sticker' in the Middle East and Africa. The trial launch of the mobile NFC program took place in line with this year's QITCOM Conference and Exhibition in Qatar.

QNB and Qtel customers in Qatar will soon be able to easily turn their mobile phone from Qtel into their credit card. The mobile contactless payments program, will allow consumers in Qatar to make daily payments with just a tap of their NFC-enabled mobile phone (such as the latest Blackberry 9900 and 9790), eliminating the need to fumble for cash and coins, swipe or hand their card over to a store clerk.

QNB and Qtel customers in Qatar using the new Qtel NFC SIM will be given the option to either leverage their existing NFC PayPass capable mobile phone and sign up for a QNB PayPass-enabled Qtel SIM card, or upgrade their phone to one of the latest Blackberry models to utilize the payments service embedded on the new SIM. QNB customers will also be given the value added option of obtaining a 'sticker' equipped with PayPass technology to affix on their existing mobile phone in order to make payments if they do not have the latest NFC capable mobile phone. Oberthur, who provides QNB's chip personalization service, worked closely with all parties to develop the payments application on the Qtel NFC-enabled SIM and on the MasterCard PayPass 'sticker'.

QNB customers eager to adopt this latest innovative service can visit the Bank's branches at City Center, The Mall, Villagio or Landmark. The new SIM or the Sticker can be instantly obtained for free at any of these branches, with the service being activated within less than an hour. Customers opting for the SIM will also be able to then swap their old SIM into their newly acquired NFC SIM card, also for free, at the closest Qtel shop.

Their mobile number will remain unchanged.

QNB customers will be able to link their contactless-enabled NFC mobile phone to their QNB MasterCard credit card account in order to fund their mobile-initiated payments. Signatures and PINs are not required for purchases of QR100 or less. However, to provide consumers with further protection, they will be prompted to enter a PIN on the PayPass-enabled merchant devices when purchasing items in excess of QR100.

"We believe that consumers and merchants in Qatar deserve a secure, convenient and flexible payments option wherever they go," said Mr. Ali Rashid Al Mohannadi, Executive General Manager and Chief Operating Officer, QNB. "This mobile NFC program is part of our commitment to enhancing the customer experience and supporting Qatar's vision of becoming a digital economy. We are delighted to spearhead the advancement of the payments landscape in Qatar together with Qtel and MasterCard."

Waleed Al Sayed, Chief Operating Officer, Qtel Qatar said; "As one of the markets with the highest mobile penetration in the world, Qatar offers tremendous opportunities in mobile innovation and we know that there is strong customer demand for services that deliver more choice and greater convenience. Qtel is focused upon delivering an ever-improving customer experience for the people of Qatar, and NFC payments will deliver this, enabling people to fully control how, when and where they make their payments. We are delighted to be the first company in Qatar to launch this service, working with other industry leaders such as QNB and MasterCard to help shape the future of mobile payments in Qatar."

Thierry Siminger, Managing Director - RMEA at Oberthur Technologies said; "In order to meet the demand for convergence in mobile and payment industry sectors, our NFC technologies are bridging the gap, allowing our partners to offer consumers an integrated seamless experience in an easy and secure way."

"This payment solution, we believe will reshape the life of cardholders and mobile users in Qatar," said Michael Miebach, president, Middle East and Africa, MasterCard Worldwide. "We're quickly moving into a world beyond plastic, where consumers will shop and pay in a way that best fits their needs and lifestyles with a simple tap, click or touch in-store, online or on a mobile device. Solutions such as the QNB Qtel MasterCard and Oberthur Mobile NFC program, allows us to provide a new consumer and merchant experience, while enhancing the value of electronic payments. As a technology company at the forefront of innovation, we are pleased to play a key role in transforming the payments landscape in Qatar together with QNB and Qtel."

Specially equipped MasterCard PayPass contactless Point-of-Sale (POS) terminals will be available across Qatar, at locations such as cinemas, coffee shops, food corners within large malls starting with City Center and then to be extended to other malls such as Villagio, The Mall. As part of a phased rollout plan, QNB will also work closely with the project principals to provide contactless POS terminals in Qatar's leading smart cities.

Contactless mobile payments provide all players in the payments ecosystem value-added benefits. Merchants will be able to facilitate low value and high value payments across multiple industries, such as at cinemas, fast food outlets and coffee shops, as well as, government departments while serving their customers better through quick-payments. Merchants are also able to function more efficiently, reduce cash handling and competitively differentiate themselves.

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

Source: MobilityTechZone.com (03/27)

American Express announced that new research about the future of payments by American Express shows that over half (52 percent) of consumers ages 18-24 are likely to try new technology-enabled payment tools as they become available compared with 23 percent of those ages 55-65, suggesting that the fate of payments clearly lies in the hands of millennials.

However, the Company said that all consumers agree that security is most important, with 83 percent of consumers ranking it higher than loyalty programs, benefits, fees/costs to use, user friendliness and convenience.

"Millennials will be key to the success of online and mobile payments, but above all else, the research shows that consumers want their payment tools to be safe and secure," said Dan Schulman, President, Enterprise Growth at American Express. "At American Express, we agree. That's why we're developing products and pursuing partnerships for the new digital economy that match technological innovation, a seamless customer experience, and the service, benefits and security of American Express." According to a release, the findings are from recent research commissioned by American Express, including a quantitative survey and focus groups that explored U.S. consumers' attitudes and behaviors with current and emerging payments, such as payments made by prepaid cards, mobile phones, digital wallets, and near field communication (NFC), commonly referred to as "contactless payments." Consumers want trusted institutions not Internet or social media companies to develop new payments, as 62 percent of consumers prefer financial institutions take the lead on new payment methods, rather than wireless providers and internet companies. This also might help suggest why more than three-quarters (77 percent) of consumers are not very confident that social media companies would protect their personal financial information.

Additionally: -75 percent of consumers are confident that financial services companies will do what is needed to protect the security of their financial information.

-83 percent of consumers view security as the single most important concern for consumers when considering a new payment technology, with 62 percent saying that fees are the second most important factor.

-Focus groups supported the findings that, while consumers are open to new technology like NFC, security is still top of mind. One focus group participant questioned how NFC signals were guaranteed secure, while another said, "I don't leave my purse anywhere but I sure left my phone places… the last thing I want is a device that has my whole life on it." How people choose to pay varies by generation, and it is clear that young people are at the forefront in terms of technology adoption. Respondents ages 18-24 are mobile gadget enthusiasts, owning laptops, mobile gaming devices, smartphones and music players, while those over the age of 45 are less likely to own and use these on a daily basis.

In addition to being open to using new digital tools, the research showed how the attitudes of millennials differed from older generations around key issues, such as security.

-Millennials (18-24) continue to be at the forefront of technology, with 86 percent owning a laptop and more than 61 percent owning a smartphone.

-When buying something online, 58 percent of 18-24 year olds find mobile apps somewhat or very convenient compared with only 26 percent of those between 55-65 who find mobile apps somewhat or very convenient.

-Similarly, 69 percent of 55-65 year olds do not feel secure shopping on a social media site, while the same can be said for 55 percent of 18-24 year olds.

Consumers continue to want choice (87 percent) in their payment types, often selecting a payment type based on the payment destination. The evolution in payment types continues, driven in large part by the introduction of mobile technology. Some of the key trends, as described by the Company, include: -Debit card and online payment usage saw the greatest increases over the past five years, increasing by 39 percent and 30 percent, respectively.

-49 percent of respondents reported using checks "less often over the last five years," while 27 percent of survey respondents report never using checks.

-One-third (35 percent) of consumers expressed interest in trying a new option, such as digital wallets, person-to-person platforms or NFC.

-Concerns around prepaid cards for many focus group participants focused on things such as the cards being 'fee heavy' or 'for those with bad or no credit.' However, 19 percent of survey respondents felt that prepaid cards could be good budgeting tools, suggesting that consumer education is needed about prepaid's benefits and how the cards can work in consumers' lives would be useful.

Enterprise Growth, a new business unit at American Express, was formed in late 2010 to expand the company's footprint with new technologies, new types of customers, and new geographies. This includes growth opportunities for payment forms outside of the company's charge and credit products, such as Serve, reloadable prepaid cards, gift cards, travel cards, remittances and virtual currencies. Serve is a next-generation digital payments platform that helps consumers organize money, send and receive funds, and manage payment requests - all from a single, unified online account. The American Express Prepaid Card is a prepaid, reloadable Card that gives consumers a safe and easy way to manage spending for themselves or the people they choose.

This quantitative research survey was conducted by Ipsos Research and commissioned by American Express.

American Express is a global services company, providing customers with access to products, insights and experiences that enrich lives and build business success.

American Express is a member of ACT Canada; please visit http://www.americanexpress.com/canada.

Source: BTN (03/23)

As traditional and emerging payment providers scrap over many aspects of the mobile payments infrastructure being built in the U.S., the top concern for consumers and industry leaders for emerging payments of all types continues to be security.

One solution out there, First Data's TransArmor, has been making headway with merchants.

Under the TransArmor service, when the consumer swipes a card at a payment terminal, his account information is immediately replaced in the merchant's system with a token number that fraudsters should find useless and end-to-end encryption is provided for the transaction.

Because the merchant is not holding on to the customer's information, it's theoretically less responsible for security, less vulnerable to a large data breach and less bound to the requirements of the Payment Card Industry Council's data security standard.

The TransArmor technology has been out for two years and is used by 230,000 merchants. It also works with some mobile payment technologies such as VeriFone's PAYware Mobile. It could be integrated with newer mobile payment technologies such as Square and PayPal's new Triangle device, although it hasn't been yet.

AJB, a Toronto-based provider of payment processing software to merchants - 20 of the top 100 North American retailers are among its clients and its software runs on 300,000 POS devices - plans to start offering First Data's TransArmor security software with its next upgrade.

"For us, this is about continuing to stay ahead of customer demands," says Pat Polillo, vice president of sales at AJB Software. "Security of cardholder data is top of mind with retailers. Since 2002, we've seen an emphasis on securing a consumer's card so it's protected at all times, be it in flight or in storage. In the past two years, we've seen an uptick in our customers looking at end-to-end encryption solutions as the silver bullet to solving their auditing and security responsibilities."

Even among retailer customers that have converted to chip-and-PIN card technology that's considered far more secure than magnetic strip cards, the need for such security is strong, he says.

Canada began converting to EMV (the Europay MasterCard Visa chip card standard) in 2008 and AJB has done more than 30 chip-and-PIN projects with Canadian retailers. "We're finding that a lot of those same retailers who three years ago migrated to chip and PIN are now coming back to us and layering end-to-end encryption and tokenization on top of that," Polillo says.

Although chip and PIN does solve a lot of problems, "for retailers, the one thing chip and PIN doesn't do is reduce retailers' cost to stay PCI compliant," he says.

"A tier-one retailer on an annual basis has to go through an audit, they have to hire an auditor to look at their infrastructure, how cardholder data is being secured, and the steps the retailer is taking to make sure they've got a secure environment. From a resourcing, time and cost perspective, all those goals are substantial."

According to the National Retail Federation, its members have collectively spent more than $1 billion so far on PCI DSS compliance as part of their business operations.

AJB Software is a member of ACT Canada; please visit http://www.ajbsoftware.com.

Source: The Paypers (03/20)

Inside Secure and SecureKey Technologies, the US online authentication services provider, have joined forces to make mobile and online payments and other authentication transactions more secure.

The combined Inside Secure and SecureKey Technologies solution enables a smartphone, tablet, laptop or other device to act as a secure terminal to read chip-based contactless cards for point-of-sale and other authentication applications. The solution will be available to device OEMs as an integral part of Inside Secure'sSecuRead solution. With SecuRead and the SecureKey technology integrated into a smartphone or tablet, these devices are able to support two-factor authentication using a contactless credential on a smartphone or contactless card.

SecureKey develops hardware and software solutions that extend the power of chip-based identity and payment credentials to online and mobile transactions. With SecureKey, financial institutions, health care providers and government organizations can offer their online customers the security of 'tap to authenticate,' 'tap-to-pay,' and other non-NFC two-factor authentication services.

Inside Secure is a designer, developer and supplier of semiconductors, embedded software and platforms for secure transactions and digital security. Inside mobile NFC, secure payment and digital security products provide security for a wide range of information processing, storage and transmission applications. The company services customers across a wide range of markets including mobile payment, identification documents, access control, transit, electronic device manufacturing, pay television and mobile service operators.

Inside Secure is a member of ACT Canada and a Cardware sponsor; SecureKey Technologies is a member of ACT Canada; please visit http://www.insidesecure.com & http://www.securekey.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: SecureID News (03/22)

Biometric e-passports with fingerprint data included, both tested and certified by FIME, are now being issued by the Russian Migration Service.

Appointed by the Federal State Unitary Enterprise, Scientific and Technical Centre, STC Atlas, FIME provided official testing and certification services throughout the development of the machine readable travel documents.

A series of independent and approved tests were carried out at FIME's ISO accredited laboratory to validate compliance of the documents' physical and functional characteristics, in line with standards and specifications defined by the International Organization for Standardization and International Civil Aviation Organization (ICAO).

With the implementation, the state aims to reduce identity theft, increase border and national security and align with European travel document standards. It is intended that this deployment will reach a potential 142 million citizens in the future, including stateless people and refugees.

FIME is a member of ACT Canada and a Cardware Exchange Place participant; please visit http://www.fime.com.

Source: Gemalto (03/29)

Gemalto announces being selected by KDDI for Japan's first commercial launch of mobile NFC services. KDDI serves over 34 million subscribers in Japan. Successfully launched in January, Gemalto provides a one-stop service to KDDI, encompassing its Allynis Trusted Service Manager (TSM) software and UpTeq NFC high-end security device.

The launch is a part of the recently announced Japan Mobile NFC Consortium that brings together the country's three largest operators to coordinate the adoption of multiple international standards for NFC. Subscribers are able to experience various types of contactless services ranging from mobile payments, transportation services, e-driver's licenses, e-ticketing as well as information acquisition from smart posters. The launch sees participation from a wide-range of leading industries including car manufacturers, airlines and cinema operators. The launch in Japan will also allow end users to use NFC services both domestically and outside of Japan.

KDDI's early migration to Gemalto's Upteq NFC high-end security SIM-format device provides a solid protection for the operator's investments in NFC with lower risks and higher returns. KDDI began last year to insert UpTeq NFC in handsets in place of the standard SIM/UICC so they are ready now to mass deploy NFC services. This further permits the operator to progressively incorporate new partners without the need to extensively pre-qualify each and every service and application or anticipate all the subscriber configurations ahead of time. Service providers and KDDI are able to easily deploy and manage new services and install additional applications with full flexibility, after card issuance to end users. KDDI's mobile NFC program will be based on international standards compliant with GSMA's Pay-Buy-Mobile specifications, allowing for faster market rollout and ensuring a high level of security for transactions.

"With more than 45 NFC projects globally, Gemalto has unrivalled experience in managing the complexity of building a mobile contactless ecosystem," said Kenichi Bandou, Senior Manager, KDDI. "As Japan is where mobile proximity started many years ago, with consumers already actively using mobile contactless services, we anticipate quick user adoption of this new service."

"KDDI's decision to proceed with commercialization was based on their subscribers' positive feedback that the pilot program brought much convenience and added value to their daily lives," added Tan Teck-Lee, President Asia, Gemalto. "Built from our extensive engagements across key digital security markets worldwide, Gemalto's end-to-end NFC solution will enable further massive deployment of mobile contactless services across Japan. It is also the first step towards NFC roaming capability, which will enable mobile users to make purchases in globally compatible contactless point of sales wherever they are when they travel abroad."

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

Source: Collis (03/13)

Collis announces the new release of the all-in-one Collis Brand Test Tool for a complete EMV contact and contactless solution. The new release supports test processes of all major brands, including American Express (AEIPS), MasterCard (TIP, M-TIP, NIV), Visa (ADVT, CDET, and ADVT-qVSDC), JCB (TCI), Diners Club, Discover and Interac.

The Collis Brand Test Tool has been developed specifically for acquirers, retailers and processors that are involved in the development, testing and deployment of card acceptance devices. This uniquely designed product provides the solution for acceptance testing of payment terminals for seven payments associations worldwide now: Visa, MasterCard, American Express, Discover Network, Diners Club International, JCB and Interac.

The Collis Brand Test Tool still includes all previously released and qualified functionalities, but offers a different user experience through the addition of new features:

  • The Collis Card Spy and Collis Card Simulator are included and integrated within the new graphical user interface (GUI). This new GUI enhances usability in terms of navigation, search and integration
  • The Collis Brand Test Tool offers complete access to the seven major payment schemes
  • The MasterCard test cases have been updated to reflect the most recent test specifications

On request, the Host Simulation & Utilities module can be added which offers a range of host simulators using different protocols and automated test case selection for MasterCard Subset 1 for M-TIP.

The Collis Brand Test Tool and its components have been accredited and qualified by the leading card payment schemes for formal certifications. The Collis Brand Test Tool is fully backed by Collis' experience in testing POS-terminals and ATMs and provides unique test automation and troubleshooting experience for both contact and contactless devices. Usage of card simulators in combination with the state-of-the-art Collis hardware ensures compliance with the brand acceptance requirements. It also provides unique features for measuring and testing the performance of payment terminals.

Berend van Geffen, Chief Commercial Officer at Collis, says: "Collis continues to provide high quality test tools for the payment market. The previous version of the Collis Brand Test Tool was already assisting our customers with successful accreditation for major payment brands, but the new version is even better. It includes the seven major brands. In addition, we can add domestic brands and host simulation, so this product really is complete. With the increased usability of this product we continue to improve the testing process for our customers.

We are confident that our customers will benefit from this all-in-one Brand Test Tool as it will help them with reducing the time to market and improve their confidence during the test phase. Easy-to-follow instructions, automatic population of reports and the easy set up allow our customers to manage their tests efficiently."

Collis is a member of ACT Canada and a Cardware Exchange Place participant; please visit http://www.collis.nl.

Source: ICMA Industry News (03/15)

Ingenico has worked together with Banco Santander and Orange on the development in Spain of the first payment system with multi?brand NFC mobile, which will enable users in the city of Group Santander, near Madrid, to make purchases of any amount simply by putting their mobile telephone close up to the sales point terminal.

Ingenico has been entrusted with providing state?of?the?art contactless wireless terminals for this pioneer project which will have a test stage in the Group Santander City, with 40 sales points, and in shops in Boadilla del Monte, Madrid. The company has also undertaken the technological development of these terminals so that they can accept payment through NFC technology.

The system developed, based on NFC (Near Field Communications) technology, will also allow its users to make payments in places like restaurants, convenience stores and "vending" machines in the Group Santander City, as well as obtain information from the services that they can find on it, through an advanced system of NFC labels.

The devices installed are the iCT250 model, with compact design and ergonomic styling, offer a huge range of functionality. Their colour screens allow easy reading and promotion of the merchant's brand. Equipped with an unparalleled array of communication technologies, such as fast modem, Ethernet or GPRS, iCT250 deliver any time, anywhere connectivity and contactless EMV payment.

As world leader in payment systems and secure transactions, this device is designed to meet security standards as well as the full PCI PTS V3 certificate.

It is the first time that it has been possible to make contactless payments of any amount with the main payment systems providers, MasterCard and Visa, at the same time on the same terminal. The project has been developed in co?operation with Banco Santander, Orange, Oberthur Technologies, Visa, MasterCard, Redsys and RIM.

Ingenico is a member of ACT Canada and a Cardware Exchange Place participant; visit http://www.ingenico.com.

Source: ICMA Industry News (03/15)

Oberthur Technologies and Ingecom, a supplier of Radio-Frequency products, have collaborated to integrate a high frequency chip and antenna in a SIM card.

In a release, the companies noted: This prototype, AirSIM, allows to identify a mobile user and to communicate with a receiver remotely located.

While Near Field Communications (NFC) technology allows proximity transactions, AirSIM allows field communications at a distance ranging from few centimeters up to 15 meters. This range can obviously be regulated through the detector.

This universal technology does not require an antenna-equipped handset or any software or hardware modifications on the device.

The demonstration at MWC 2012 will showcase an e-ticketing application that illustrates how this technology can be used to save time to passengers and money to transport authorities. Physical access control barriers, accurate billing and paper tickets are seen today as a challenge for a fluid and efficient transportation system. As a consequent, some transport operators remove access control barriers and replace fraud prevention by on-board control. In this context, the AirSIM allows the transport authority to efficiently bill the customer after the trip, depending on the time and also the entry and exit points of the traveller. In parallel, users can access new services through their preferred device without the need of additional cards; their privacy is respected, as they can easily stop the tracking function through a menu.

User identification and accurate positioning can allow many other use cases such as micro-payment without stopping or getting off the car, geo-marketing and associated couponing, access control.

Oberthur Technologies is a member of ACT Canada; please visit http://www.oberthur.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: FINEXTRA (03/28)

Ingenico announced the deployment of wireless terminals for the first program of payments with contactless Visa cards in the Canary Islands.

More than 5,000 clients of the financial entity Cajasiete will be able to benefit from the advantages of payment with the SINcontacto card in more than 500 stores throughout all the islands, putting the Canaries at the forefront of this technology in Spain.

Cajasiete intends to extend this type of payment system to other stores and to more clients throughout the Canary Islands over the next few months. All the cards and stores which enable the use of this technology will be identified with the "Wave" icon to facilitate their recognition.

To start with, 645 Ingenico terminals are being installed in more than 500 stores in all geographic areas of the islands. They are wireless terminals belonging to the iWL220 family, the most compact on the market. Compliant with the most demanding security standards, such as PCI PTS v2 and v3 for contact transactions or PayPass and payWave for contactless, the iWL200 range ensures the integrity of operations in every circumstance. Equipped with several card readers (swipe, chip and contactless), the iWL range also has the advantage of the numerous applications and services available on the Telium2 platform, facilitating card payments in all types of situations.

The wide range of connectivity options, including GPRS, Bluetooth, PSTN and Ethernet guarantee 24/7 communication network access at optimum cost. Based on Telium2 technology, iWL200 also incorporates an ultra-fast printer (up to 30 lines per second), enabling an increase in productivity at the point of sale.

Ingenico is a member of ACT Canada and a Cardware Exchange Place participant; Visa Canada is a member of ACT Canada and a Cardware sponsor; please visit http://www.ingenico.com & http://www.visa.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.