Engaging, Enabling and Evolving Commerce in Canada since 1989

June 2014 ACTion Newsletter



ACT Canada Partners:

ACCEO logo          

ACCEO - Payment Solutions Partner
The e-business operations expert, ACCEO Solutions is a leader in banking, accounting, and business software, SaaS solutions, and cloud computing. We also offer a wide range of specialized consulting services covering strategic advising, IT management and infrastructure, payment solutions, custom development, and full integration of our own and of our partners' ERP solutions.

G&D logo

GIESECKE & DEVRIENT - NFC / Mobile Solutions Partner
Giesecke & Devrient has introduced a comprehensive mobile wallet solution for NFC services and beyond, brining all the functions of an electronic wallet onto a common platform. Now you can access your mobile services anytime, anywhere: at work or home, while travelling or for  shopping. Click here to learn more.

Interac Logo

INTERAC - Payment Network Partner
Interac Association is a recognized world leader in debit card services. Interac Association is responsible for the development and operations of theInterac network, a national payment network that allows Canadians to access their money through Interac Cash at 60,000 Automated Banking Machines and InteracDebit at 766,000 point-of-sale terminals across Canada. Interac Flash, a secure contactless enhancement of Interac Debit allows Canadians to pay for items instantly with their Interac chip debit card at a reader that supports Interac Flash.

 Payments Business - Media Partner



ATB Financial ~ member since 2006


Canada Post Corporation ~ member since 2006
Capco ~ new member
Discover ~ member since 2011
MeaWallet Inc. ~ new member
Nifty Loyalty Corporation ~ new member
SecureKey Technologies Inc ~ member since 2009


EMA Partners Toronto ~ member since 2013



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 ACT Canada for more details – postings@actcda.com.


Business Development Manager
In order to support its business expansion, Desjardins Card Services is seeking for candidates to contribute gaining new grounds in the acquiring/processing business.
- Using strong connections in the industry, the Business Development Manager will be accountable for identifying, qualifying and signing new national merchant accounts.
- Engage with strategic partners (Credit Unions, VARs), the successful candidate will be responsible to generate/exploit lead-opportunities.

Development Center Manager
Our company is recognized as a leader in the payment industry. With customers in Canada and United States, our Toronto team is focused on innovation, vision and a commitment to delivering quality software solutions that are easily adaptable and exceptionally reliable. The Development Center Senior Manager will provide leadership and build functional strength in Customer Support, QA, Development and Project Management teams with around 30 people and two Managers.

For a full description of these postings, please visit http://www.actcda.com/information/careers/


Biometrics UnPlugged
Sep 15, 2014
Tampa, FL
ACT members receive a 30% off registration until August 1st (15% discount off registration after August 1st)

Mobile Payment Conference
Oct 06 - 08, 2014
Chicago, IL

Smart Card Alliance Government Conference
Oct 29 - 30, 2014
Washington, DC

Aria Resort & Casino, Las Vegas, NV
Nov 02 - 06, 2014
ACT members receive a 20% registration discount

Cartes Secure Connexions
Nov 4-6, 2014
Paris, France


The results are in! Cardware was a success with over 300 people coming together to discuss strategy in the payment and digital identity areas. This year we introduced the payment innovation lightening rounds, with 8 contestants. The audience voted and the top four (in order) were: DirectCash for their DC Tag, Ingenico for their iCMP, Clearbridge Mobile for ClearPay and MeaWallet for their MeaWallet.

Our Annual Innovation Awards will be held in October in conjunction with the official celebration of our 25th anniversary. Watch our web site for details. We are also planning our fall networking event and annual general meeting for late September.

In July, our Strategic Leadership teams kick off their 2nd term for the year, as they choose new mandates and deliverables. Currently we have four teams: Mobile, Point of Sale, Customer Authentication and Multi-App Issuance. For more information, please visit www.actcda.com. Any member many suggest a topic for a new team and we will poll the other members to see if there is enough interest to launch the group.

July will also see our first member fee increase in six years; however, existing members will have one more year before the increase applies. A new membership category has been established for start-up companies. Conditions and pricing may be found on our web site.

Now that the Ontario election is over, the Secure ID report will be finished and published so that provincial and federal government organizations can have access to best practices. Digital identity is both a growing opportunity and concern at a time when some physical government ID is still being printed on paper, so this report is timely.

Over the coming months we will be conducting two market enquiries related to Point of Sale issues with the intention of bringing stakeholders together to find mutually agreeable resolutions.

The fall takes us back into conference mode as we head back to the US to talk about EMV. We'll be presenting an EMV Workshop at the Mobile Payments Conference, October 6 – 8 in Chicago. We have also been approached to talk to cyber security specialists about EMV at a meeting in Washington. Our members will benefit when the security bar is raised in the US, so we are deeply committed to helping the process.

In September, we will meet with key US merchants at the MAG meeting. November will see us in a booth at Cartes, so please drop by.

Here at home we will be working with ITAC, the Information Technology Association of Canada and DIAC, the Digital Identity Authentication Council to advance the work of all three associations related to digital identity. According to the Globe and Mail, the cost of Canadian cybercrime reached $3.2-billion in 2013. Our ability to identify people online so that we can decide whether their transactions can be authorized is crucial. Now that EMV has been proven to effectively deal with counterfeit fraud, this is the next area that must be addressed.

Thank you to everyone who made Cardware a success and please save June 16 – 17, 2015 for our next Cardware.

1. EDITORIAL COMMENT - 88% of executives say
Source: Catherine Johnston, President & CEO, ACT Canada (06/26)

According to a Forrester poll, 88% of executives say they want a conversation, not a presentation. Count me in. I want to be engaged in a dialogue that builds to a conclusion using dynamic reasoning, not a static PowerPoint, no matter how pretty the pictures are.

Conversations give you opportunities to determine how people think. Are they clever, logical and passionate about the subject? Do they respect your time? Emails and PowerPoints have their place, but nothing beats person-to-person communications.

Last week, over 300 people engaged in dialogue at Cardware. And what a range of topics... I heard concern as people thought about how consumers may view privacy related to payment transactions. Then there was the energetic buzz as they talked with peers about their thoughts and plans. I remember thinking that this was the sound of progress.

So unless you are emailing me information that requires little to no response– pick up the phone and talk to me! As for those pretty pictures on PowerPoint, or those slides that are so busy that I have to stop listening to you in order to read them, ditch them. Put all your effort into your speaking points, that is what I really want to hear – and then I want to talk to you about the information you gave me. Both of us will benefit.

Source: The Paypers (06/25)

Canadian regulators have officially passed regulations which concern the use of Bitcoin and other digital currencies, according to the Canadian research and consultancy firm MPN.

Canada's Governor General gave royal assent to Bill C-31, dubbed "An Act to Implement Certain Provisions of the Budget Tabled in Parliament on February 11, 2014 and Other Measures" on 19 June 2014.

The bill contains provisions on Bitcoin and other virtual currencies which require similar reporting and regulatory standards applied by traditional financial markets. The bill deems Bitcoin as a "money service business" and it specifically informs traders in the virtual currencies business. It is expected to cover Bitcoin exchanges and ATMs.

Given the terms of the bill in question, Bitcoin exchanges will now be required to register with the consultancy firm, FINTRAC, report suspicious and other transactions, keep certain records, implement compliance plans and determine if any of their customers are "politically exposed persons."

Bill C-31 applies to Bitcoin companies that have a place of business in Canada and outside Canada, who direct services at persons or entities in Canada.

It is estimated that almost USD 300 million will be invested in Bitcoin start-ups by venture capitalists by the end of 2014 worldwide, with Canada receiving the second largest portion of that funding after the US.

Source: Moneris (06/18)

Canadian businesses now have a new mobile tool to enable increased growth, agility and customer convenience. Moneris Solutions Corporation releases PAYD PRO, the first and only smartphone-based mobile point-of-sale ("mPOS") solution in Canada to accept both Interac Debit and credit card payments. PAYD PRO is also the first mPOS product to include EMV Chip & PIN and contactless payment technology. This revolutionary solution allows merchants to process payments securely, anywhere they do business.

payd-pro-mobile-paymentWith PAYD PRO, merchants connect a portable Bluetooth-enabled PIN Pad to a smartphone or tablet running the PAYD app, to process sales in any physical location. The mPOS solution accepts Interac Debit, Discover, VISA, MasterCard and American Express, giving customers a robust choice in payment options.

"PAYD PRO simplifies and transforms how payments are made outside of the traditional brick-&-mortar environment," says Rob Cameron, Chief Product and Marketing Officer, Moneris. "Whether the merchant is a contractor meeting clients on the road or a vendor at a local farmer's market, PAYD PRO enables them to break away from the confines of a physical POS to increase their sales opportunities."

Studies show that mobile payment technologies are gaining traction at a fast pace, with mPOS expected to make up 46 per cent of all POS terminals in circulation by 20191.

"With Moneris' release of PAYD PRO, the Interac brand's position within the mobile payments space is further strengthened," says Mark O'Connell, President and CEO, Interac Association and Acxsys Corporation. "PAYD PRO is Canada's first mobile POS terminal that offers Interac Debit and Interac Flash, giving Canadian merchants, particularly small businesses, access to secure, innovative and low-cost payment acceptance."

PAYD PRO merchants have no set-up fees, fixed term contracts, minimum processing limits or transaction volume limits, enabling mobile businesses that have not accepted debit or credit cards in the past, a cost-effective way to provide customers an expanded choice of payment options.

The innovative PAYD app allows businesses on the go to enhance cash flow, close sales quickly and efficiently, access real-time reporting, and send receipts via email all within a secure processing environment. PAYD PRO's state-of-the-art security protocols encrypt card data at the time of transaction and leverage a secure Bluetooth connection to protect card data and prohibit unauthorized access.

PAYD PRO is currently available on the Apple iOS platform and will be available for Android users in late 2014.

American Express, Discover, Interac, MasterCard, Moneris and Visa are members of ACT Canada; please visit www.americanexpress.ca; www.discover.com; www.interac.ca; www.mastercard.ca; www.moneris.com and www.visa.ca.

Source: Canada Newswire (06/18)

CIBC and Bell announced an agreement to launch the CIBC Mobile Payment App on Bell smartphones in the coming weeks. CIBC was the first bank in Canada to deliver a mobile payment app to clients, and this expansion gives CIBC clients more choices for making everyday purchases with their smartphone, while giving Bell customers the widest selection in mobile payments from Canadian banks.

"Our clients want the opportunity to pay with their phone at their favourite retailer, and today's announcement with Bell means that we're putting this innovative technology into the hands of more CIBC clients," said Todd Roberts, Senior Vice President, Payments Strategy and Innovation, CIBC. "We believe 2014 will be a pivotal year for growth in mobile payments and we continue to invest in our leadership in this important market, including building strong relationships with wireless providers to make it easy for our clients to bank where, when, and how they like." "Canada's fast growing mobile payment ecosystem is built around advanced wireless networks, a strong and innovative banking sector, and a national retail environment with more contactless sales terminals than almost any other country," said Wade Oosterman, President of Bell Mobility and Chief Brand Officer for Bell. "The addition of the CIBC Mobile Payment App offers Bell customers the most mobile payment choices available, and it's yet another way to take advantage of Bell's world-leading 4G mobile networks and smartphones." Protected by multiple passcodes and with information stored safely on the smartphone's encrypted NFC SIM card, mobile payments are a secure way to make everyday purchases. Mobile payments using NFC (near field communications) technology are already accepted at thousands of popular retailers across Canada for purchases under $100.

The CIBC Mobile Payment App will be available to Bell Mobility customers for free download in the coming weeks from Google Play and BlackBerry World. CIBC clients will be able to use the app on the following devices: Samsung Galaxy S4, Samsung Galaxy S III, Samsung Galaxy Note II, HTC One (M7), BlackBerry Q10, BlackBerry Z10, BlackBerry Bold 9900.

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


Source: Business Wire (06/10)

Digital payments experts Consult Hyperion, in conjunction with the GSMA, today published a guide to help banks and mobile operators understand the Host Card Emulation (HCE) and SIM Secure Element approaches for NFC payments. The guide, "HCE and SIM Secure Element: It's not Black and White", follows the recent introduction of HCE into Android 4.4 (KitKat) and concludes that the SIM Secure Element and HCE approaches to NFC payments each offer important benefits for financial institutions. Further, they should not be viewed as mutually exclusive and a combination of the approaches may be appropriate for differing applications and markets.

"This paper provides a balanced analysis for financial institutions of HCE as an alternative proposition for NFC payments, alongside the existing SIM approach," said Alex Sinclair, Chief Technology Officer, GSMA. "The recent inclusion of HCE into Android opens up the possibility of performing NFC payments without using a SIM Secure Element and HCE could also potentially remove complexity associated with SIM-based NFC payments. At the same time, SIM-based NFC offers a proven secure solution that is being commercially deployed today. The challenge for the mobile operator community is to simplify the provisioning process, further accelerating deployments of SIM-based NFC on a global basis."

"MasterCard has been technology agnostic, enabling mobile payments in a way that allows current card accounts to be used seamlessly and securely from consumers' favorite electronic devices," said James Anderson, senior vice president of emerging payments, MasterCard. "We have deployed SIM and Secure Element-based solutions through partnerships with mobile network operators, OS providers and handset manufacturers, while recently adding support for cloud-based payments. This paper will help both the mobile and payments industries understand the strengths of each approach and allow them to choose the options that align with their business strategies."

Report co-author Steve Pannifer, Head of Delivery at Consult Hyperion said: "The inclusion of HCE into Android has generated a lot of excitement that can only be good for NFC payments. This, combined with the efforts to streamline SIM Secure Element based NFC evident in many markets, will enable NFC payment products to be rolled out with renewed vigour. We hope that this paper will encourage banks and mobile operators to collaborate further in bringing NFC payments to the market. We believe the mobile operators have an important role to play, particularly in providing mobile security and authentication services that are paramount in any payments service."

The guide shows that whilst HCE does indeed simplify some aspects of the NFC ecosystem by allowing mobile NFC payments to be performed without using a SIM Secure Element, this is only part of the landscape. HCE requires a new approach to security in terms of ecosystem integration, risk management and certification processes. In contrast, SIM Secure Element processes are well defined and mobile operators are actively working with the ecosystem to simplify them further.

The report examines the heritage of SIM-based NFC, the lessons learnt from the first deployments and the actions that have been taken to allow service providers to deploy secure, stable and proven mobile payment services at scale. The guide finds that whilst there is significant interest around HCE, the SIM Secure Element approach for mobile payments still has many complimentary advantages and it will be down to the banks to carefully review their needs in each of their operating markets.

"Both the People's Bank of China (PBOC) and China UnionPay have released mobile payment specifications, which require a Secure Element to support NFC mobile payments, in order to provide a secure and reliable payment service. China UnionPay has worked very closely with Chinese operators on large-scale commercial NFC services based on the SIM as Secure Element. In conjunction, China UnionPay is working actively on a feasibility study of new technologies including HCE," said Jiang Haijian, Deputy General Manager, Mobile Payment Dept., China UnionPay.

Consult Hyperion suggests that there are a number of key points for banks to consider as they plan mobile NFC payments:

- Understand your local environment: The local conditions will play a big role in determining the best approach
- Understand your target transactions: It is possible that HCE will be less suited to certain transaction types (e.g. offline, high value) than SIM Secure Element.
- SIM Secure Element and HCE are not mutually exclusive: The most effective solutions over the medium term may be hybrid models where, for example, the SIM is used to address the security and authentication gaps in HCE.

Build flexibility into your strategy: There is likely to be considerable overlap between SIM Secure Element and HCE in terms of the systems and capabilities that are required

Collaborate with the industry: Until there is a level of standardisation around HCE, there remains the risk that banks could adopt solutions that are insufficiently flexible or lock the banks in.

David Baker, Head of the Card Innovation Payments Unit at the UK Card Association notes: "While Host Card Emulation has been hailed as a potential game changer for card-based NFC proximity payments, this report gives valuable advice and guidance on the issues the industry must address -- and highlights the real need for collaboration between ecosystem partners to ensure greater adoption of mobile payment services."

Consult Hyperion and MasterCard are members of ACT Canada; please visit www.chyp.com & www.mastercard.ca.

Source: SecureID News (06/05)

The Province of British Columbia was in a bind. It had a health ID card that was more than 20-years-old with practically no security features and little identity vetting on the backend.

The province is home to 4.5 million residents, yet had issued 9.2 million BC Care Cards. While some were justifiable duplicates, there were still too many cards floating around in the system. "Basically there were a lot of cards and suspected misuse of the health card," says Kevena Bamford, executive director for the Provincial Identity Information Management Program in British Columbia. "The Ministry of Health was challenged to replace the Care Cards, strengthen the process of getting the card and incorporate more security features."

While this was happening, the Ministry of Technology, Innovation and Citizens' Services was looking to expand the functionality of their BCeID service, Bamford says. The BCeID is an online credential that citizens can use to access government services. Typically it was a low-level, self-asserted credential that takes the form of a username and password combination that was federated for use across provincial online services. The citizen could conduct in-person vetting to raise the level of assurance underlying the username and password login. Unfortunately, few citizens opted for this in-person vetting.
Like the BCeID, the Care Card was typically a low security, level one credential. So the Ministry of Technology, whose primary function is supporting other agencies with the delivery of their technology solutions, started to work with Ministry of Health. The goal was to improve the security of the BC Care Card while also increasing the usability and identity assurance behind their eID service.

Enter the ICBC Driver Licensing Services. Every half-decade a license expires and the citizen must show up to renew the credential and provide foundational documentation. Thus, this is the one government agency that has both in-person contact with citizens and has access to the documents that prove citizen identity.

The ministry saw a chance to kill three birds with one stone. When citizens came to renew their driver license, the same foundational documents could be used to receive a health ID card and increase the assurance level of the eID, Bamford says.

Then came another idea. What if one card was used for all three functions? Thus was born the BC Services Card: driver license, health ID and electronic ID all rolled into one contactless smart card that serves as an extremely strong, level three credential.

By the close of 2013, the province had issued 800,000 BC Services Cards, Bamford says. Residents can choose to combine their driver license and Services Card, or have a standalone Services Card. All Services Cards replace the prior Care Card with improved identity proofing and security features and also enroll citizens in the digital identity program. The contactless smart card has an EMV application stored on it that will eventually be used to authenticate an identity.

Uptake on combination cards has been a little slower than expected, Bamford says. There are businesses around British Columbia that require two forms of identification and two of the most common pieces are the driver license and health ID card. Spreading the word to businesses regarding acceptance of the new combination card has been slow.
British Columbia is working with SecureKey to enable the BC Services Card to be used for access to online provincial services. SecureKey also has a contract with the Canadian federal government to enable contactless bank EMV cards to be used for access to federal services, and there is potential to enable the BC Services Card for access to federal resources as well, Bamford says.

The province is working to build authentication service functionality and business cases so the card can be used to digitally access online services, she explains. At the moment, however, the chip is yet to be used. Still, significant value has been gained based on the fact that all 800,000 eID holders have undergone the stronger in-person identity vetting.

The goal is for citizens to have NFC readers attached to their computers where they could tap the card, enter a passcode and then gain access to online government services. One day, citizens might do the same thing at a doctor's office to authenticate their identity in order to receive health services.

Government officials are working on the authentication services and business requirements that will enable the smart card's use, Bamford says. Citizens are being asked how they expect the services to work and what services they would like to see offered.

The results are mixed, particularly around the area of usage history, Bamford says. "Many people in the early focus groups said they would expect to access usage history, similar to a bank account's transaction history," she explains. "Others refuse this concept outright, claiming it's a compromise of privacy and personal security."

Over the course of 2014, the province plans to work with programs and begin to roll out some digital services that can leverage the authentication service, Bamford says. "Citizens of British Columbia are very interested in using the card," she adds. "There are many years ahead of us in building the system as well as dialogue around using the credential."

Source: Pivotal Payments (06/05)

Pivotal Payment is pleased to announce a new product offering to its merchant and partner base, the Ingenico iCT and iWL series terminals. This new offering is part of Pivotal Payments' 2014 product enhancement strategy and comes at an opportune time as merchants are looking for greater value and improvements on how they accept payments at the point of sale.

Our clients rely on Pivotal to provide optimized solutions that best meet their needs and we believe this new line of terminals will deliver on many levels. Built on the market-leading Telium2 technology, the iCT and iWL series' present the ultimate in compact product design and performance. The goal is to improve the overall experience for our clients and we are excited to be continuously cultivating partnerships that help us do so.

The following terminals are now available to our valued merchants and sales partners:
Ingenico iCT250 - Countertop Dial and IP connectivity
Ingenico iWL252 & 255 – Bluetooth and Cellular Terminals

Our point-of-sale terminal line up is continuing to grow and we are working diligently towards the launch of FlexPoint. FlexPoint is a new hardware and software solution designed by Pivotal Payments to make integration simple, straightforward and inexpensive. FlexPoint consists of hardware and proprietary EMV-certified software application that will cater to our clients now and well into the future.

Pivotal Payments and Ingenico are members of ACT Canada; please visit www.pivotalpayments.com & www.ingenico.com.

Source: Investors Business Daily (06/04)

Wal-Mart Stores plans to be the first big retailer to issue more secure chip-enabled credit cards. Members of its Sam's Club stores will be able to apply for them starting June 23.

The new Sam's Club MasterCard will have an embedded chip that makes data on the card more difficult to duplicate, providing added security from fraudulent activity.

Attacks on credit cards and other secure databases are on the rise.

EBay, for example, on May 21 said hackers had gained access to personal data, including passwords, in its database of 145 million user records. EBay has asked customers to change their passwords.

MasterCard and No. 1 card issuer Visa are both pushing hard for rapid adoption of cards with the new technology.

They argue moving away from the black magnetic stripe on the backs of cards will cut down on hacking. Unlike magnetic stripes, chip cards use a onetime code to move data between the chip and a retailer's register, making the data useless to anyone but the parties involved in that transaction.

"This move by Sam's Club makes them a trailblazer in getting chip cards in the hands of businesses and consumers and leading the push toward a safer and more secure customer experience," MasterCard North America President Chris McWilton said.

Among recent high-profile data breaches, fashion house Neiman Marcus said in January that it was working with the Secret Service to investigate a hacker break-in. That incident affected some 1.1 million credit card users.

DataLossDB, a tracking site run by the Open Security Foundation, said that agricultural products maker Monsanto software maker Adobe Systems and Sony have all been hit in recent years by data breaches.

MasterCard, Visa and Walmart are members of ACT Canada; please visit www.mastercard.ca; www.visa.ca & www.walmart.com.

Source: Finextra (06/04)

Multos International announces that Total System Services de Mexico (TSYS), one of the largest financial services provider for credit/debit card issuers, will use its MULTOS chip card technology solutions in their latest EMV services offering to support banks and financial institutions. The new product launch includes support for a full range of technology options from SDA to DDA/CDA and dual interface, utilising MULTOS technology with payment applications from Multos International, approved by the major payment brands. TSYS solutions simplify the entire process for their issuer customers providing them guidance along the full cycle from product planning to final production.

Hugo Torres, IT Director of TSYS de Mexico says, "Multos International offers a wide range of chip technology options to meet our demanding requirements. The impressive level of support for a smooth migration and assistance to facilitate new product introduction for our bank customers, was a fundamental factor in our decision to use MULTOS technology." TSYS has also recently joined the MULTOS Consortium and is already working on several EMV issuing projects in Mexico.

"We are very happy to assist TSYS in their program to implement MULTOS in their facility and being able to offer new smartcard-based services", said Richard Cusson, Managing Director of Multos International, "this further underpins the growing strength and continued relevance of our MULTOS technology offerings for EMV issuing throughout the region, and we look forward to building a strong partnership with TSYS."

MULTOS is a member of ACT Canada; please visit www.multosinternational.com.

Source: Business Wire (06/17)

VeriFone Systems, Inc. announced the introduction of two EMV-ready payment terminals from VX Evolution-its latest line of portable and countertop terminals-to the Kingdom of Saudi Arabia market with its partner, International Turnkey Systems Group (ITS), an integrated IT solutions and software services provider.

The Saudi Arabian Monetary Agency (SAMA), the central bank of the Kingdom of Saudi Arabia, has certified VeriFone's VX 520, the most advanced countertop payment system, and the VX 675, the world's smallest, full-function, wireless handheld payment device. SAMA oversees the Saudi Payments Network (SPAN), the payment system in the Kingdom of Saudi Arabia that connects all ATM and point of sale (POS) terminals.

"VeriFone is committed to providing leading edge, certified terminal solutions to meet the needs of our clients in key markets," said Bulent Ozayaz, president of Southern Europe, Russia, Middle East and Africa for VeriFone. "Working in partnership with ITS, we are able to continue to extend our global payments industry leadership into the Kingdom and ultimately throughout the region."

ITS is a leader in software services and solutions with decades of experience in the Gulf region and hundreds of leading banks and financial institutions as clients. ITS assisted in developing SAMA's high-level information security system, the Saudi Arabian Riyal Interbank Express (SARIE), which provides the mechanism for all Saudi commercial banks to make and settle payments in Saudi Riyals (SAR).

"VeriFone's advanced payment terminals provide the latest capabilities and most robust security to meet the needs of banks and merchants throughout the Kingdom," said Mohamed Nigm, Sector Service Manager of Saudi Arabia for ITS, which will provide local distribution and support. "VeriFone solutions provide a wide range of communications options that meet the needs of virtually any merchant in the Saudi market."

VeriFone's payment devices are compact, easy to install and easy for both merchant and customer to use. They accommodate a wide variety of card payment options including NFC, mobile wallets, EMV, and contactless payments.

VeriFone Systems, Inc. is a member of ACT Canada; please visit www.verifone.com.

Source: Let's Talk Payments (06/20)

DCR Strategies, under brand name TruCash – announced that it is set to launch a consumer-friendly solution that allows eligible cardholders to load funds onto prepaid cards at participating TruCash merchant locations.

The TruCash Reload Network will accept card programs enrolled in MasterCard rePower. The TruCash Reload Network will officially launch on June 21, 2014 at Gold Line locations nationwide, according to the company's press release. Full program execution at thousands of merchant locations is to be completed later in 2014.

"We are taking an already successful concept, the merchant reload network, and have added some unique twists to make prepaid more attractive for both consumers and businesses. Green Dot for instance has created a multi-million dollar business from such opportunities," stated said Diana Fletcher, President of DCR Strategies Inc./TruCash, in a press release. "We hope to hone in on this success by expanding our merchant network and adding new and exciting contactless payment possibilities for the future," she added.

"Prepaid cards are an important tool for many Canadians, offering financial inclusion and an unsurpassed level of flexibility and security compared to cash and cheques," said MasterCard Canada's VP of Prepaid Products, Tom McTague, in the same release. "MasterCard is working hard to make prepaid products easier to use, and the TruCash Reload Network is an important step forward in these efforts," he added.

TruCash will enable cardholders to load funds by simply utilizing cash or other accepted forms of payment at participating TruCash merchants.

Users then swipe their card through an electronic point-of-sale device at checkout.

Reloads are securely processed through the MasterCard rePower Network in real time, giving cardholders access to their funds immediately, says the company.

The MasterCard rePower Network continues to expand globally and is now available in five countries. In Canada, MasterCard rePower is open to any issuer of reloadable prepaid card programs.
TruCash has also partnered with Home Trust to provide acquiring services and Carta Worldwide to provide processing.

"We are pleased to have been selected as a partner in this major initiative," stated Brian Semkiw, CEO of Carta Worldwide, in a press release. "Canada has never seen anything like this and we look forward to extending its capability into mobile account loading from a variety of methods, including contactless."

"Launching this great new prepaid MasterCard is a fantastic opportunity for us at Group of Gold Line to offer our customers yet another product that gets us closer to our goal of facilitating meaningful connections," commented Ata Moeini, CEO and President of Group of Gold Line, in the same release. "The GLPrepaid MasterCard is an empowering tool for Canadians that wish to do secure online shopping, that are underserved or companies that wish to save money by using GLPrepaid as an alternative for their payroll. We are proud to offer it."

MasterCard is a member of ACT Canada; please visit www.mastercard.ca.

Source: Let's Talk Payments (06/12)

Blackberry Limited – announced a new 3 year agreement with EnStream LP, a mobile payments combined venture owned by Bell, Rogers and TELUS, in order to provide a secure platform supporting transaction services between users and leading banks.

"BlackBerry has proven through our decades of experience in enterprise mobility that we have the ideal infrastructure and security capabilities to protect users' data when new capabilities such as mobile payments emerge," stated John Sims, President of Global Enterprise Services, BlackBerry, in a press release. "Together with EnStream and partners like them around the world, BlackBerry can better reach customers and provide a complete solution for banks with opportunities in the mobile payments space," he added.

With this partnership, the company states that EnStream will leverage BlackBerry's infrastructure to enable financial institutions, including Royal Bank of Canada, TD Bank Group, CIBC and Desjardins, as well as mobile operators to securely provision sensitive payment card credentials into any smartphone capable of near field communication.

The total value of transactions using mobile technology is expected to grow from $35 billion in 2012 to $173 billion in 2017, at a CAGR of 31%, according to Gartner estimates.

Supporting mobile payments reinforces BlackBerry's ability to provide unique services that enable enterprise customers deploy secure mobile solutions that help promote productivity among their workforce and drive new revenue streams.

Working with EnStream demonstrates BlackBerry's strategy to extend its core enterprise mobility technologies in new and emerging industries. In order to provide the platform for EnStream, BlackBerry needed to protect the sensitive data associated with financial transactions and meet the stringent requirements of the payment industry.

This included complying with regulations and earning PCI, Visa and MasterCard certification.
EnStream, with BlackBerry, is already serving a number of banks and mobile operators, and is becoming a hub for payment credential delivery to smartphones in Canada," said Almis Ledas, Chief Operating Officer, Enstream LP. "We expect most major Canadian banks and mobile operators to connect through this platform to meet consumer demand for efficient and safe digital transactions."

"Canada is a leading global region in the adoption of technology and mobile payments, making it a key market for MasterCard innovation," stated VP of Emerging Payments at MasterCard, Nicolas Dinh, in a press release. "Safe and secure digital transactions are the backbone of our network and mobile payment ecosystem, and BlackBerry's involvement in the payment chain will help build trust in Canada and abroad," he added.

"Canada is leading the world in mobile payments adoption and Visa's continued focus on innovation is underpinned by our commitment to security and reliability," commented Director of Mobile at Visa, Derek Colfer. "We support BlackBerry's efforts to offer a secure mobile payment service that will help facilitate mobile payments."

CIBC, Desjardins, Enstream, Rogers, Royal Bank of Canada, TD Bank Group, TELUS and Visa are members of ACT Canada; please visit www.cibc.com; www.desjardins.com; www.enstream.com; www.mastercard.ca; www.rogers.com; www.rbc.com; www.td.com; www.telus.com and www.visa.ca.

Source: Smart Payment Association (06/11)

Exactly like Karen Webster, CEO Market Platform Dynamics in her blog post: (http://www.pymnts.com/news/2014/is-the-emv-journey-worth-the-price/#.U5gWrPnV95E), at SPA we are also skeptical. Indeed we only develop and sell payment technology that we fully control and trust.
We are not believers but a pragmatic industry offering the best smart card technology for retail payments. Our cards fit remarkably well the requirements of the financial industry and the consumers, and that's probably the reason for their successful history.

EMV is neither a 20-years-old nor an obsolete technology but simply the best solution

Following the publication of her blog post (http://www.pymnts.com/news/2014/is-the-emv-journey-worth-the-price/#.U5gWrPnV95E), SPA has been in touch with Karen Webster to exchange views with regards to the future of chip card technology in the US.

We appreciated her willingness to discuss with us even if our approach and vision differ substantially from hers. Confronting arguments is always a good way to move ahead. But we disagree with her opinion that the smart card technology is obsolete. We explain hereafter why.

In our opinion, Karen's paper misses a fundamental point: the reason why in an evolving technological world the so called "20-years-old" technology is still cutting-edge. The answer is that smart card technology solve functional and security problems intrinsic to retail payments in a more efficient way that any other alternative. For instance, despite the huge amount of energy and money invested in breaking the card, no one has been able to install a virus or worm and extract the secret information that the card protects.

A second point that Karen somehow overlooks is the fact that in our industry the point is not about reinventing the value exchange between merchants and customers, but to provide them with safe and convenient payment instruments which don't put users at risk... and facilitate that way commercial transactions. Because the trend is to use mobile devices to pay, the smart card technology is offered with different form factors, so that the advantages of the traditional credit & debit smart cards are extended to the mobile payments world (eg. SIM, Secure Element)

The smart card industry is certainly very innovative. Yet in the payments world hype comes after other more important features such as security, speed, control of funds transfer and almost real time settlement. The cardholder knows his/her account data are locally stored in his/her card under his/her own control, because there is a PIN code that only he/she knows. The data generated by the card is dynamic, cryptographically protected and rendered useless for fraud purposes. Phasing out magstripe and SDA cards and replacing them with DDA and CDA EMV cards means overcoming obsolescence of the US market and protecting the users of card payment systems.

The term "obsolete" is to be used with caution. For instance, the aerospace industry was still using discrete electronic components to emulate a microprocessor function many years after the introduction of the microprocessor as a single integrated chip in electronic consumer devices. Nobody claims that hardware technology used by the Aerospace technology is obsolete. The term obsolescence is in itself misleading because it gets rid of the purpose of a technology in a given context. In particular, the smart card technology support advanced security cryptographic services because it is certified against the strongest security requirements... which are public and transparent. It is hard to figure out what obsolescence means in this context.

Karen states correctly that EMV technology could not have prevented the Target security breach. But she fails to explain that attacking databases storing card and cardholder data is first and foremost motivated because of the ease to counterfeit magstripe cards using the stolen data. These data could also eventually be used to impersonate the cardholder for e-commerce and m-commerce payments, when data are entered manually in a merchant payment gateway. Aware of this, the smart card industry proposes hardware secure elements for mobile payments to protect all the stakeholders and specially the online merchants, whose chargebacks will be dramatically reduced if the secure element usage is widely adopted.

It is true and we share her concerns that in the payments world technology migration periods are longer that in other sectors. As pointed out in her article, one of the reasons is that card payments are a two-sided market. This means three things: First migration requires taking into account legacy to protect user experience, second incentives are to be provided for adoption of a new card payment technology and third interoperability standards are essential to achieving market growth. Not surprisingly, these are core business requirements for the EMV Next Generation program.

This leads us to the final part of Karen's article on the need for a global payment standard for any connected device. SPA members invest a lot of time and money in the setting-standard process. That's the reason why we don't support market fragmentation due to the existence of multiple standards or proprietary de-facto specifications. The global interoperability standard for card payments already exists, it is EMV and works remarkably well. Moreover it is complemented with a certification and type approval process. It is true that EMV specifications at present don't cover all the mobile payment methods. This is why in collaboration with US big banks and the European commercial banks of the European Payments Council we are pushing for ISO 12812, the first international standard for mobile payments and mobile banking.

Finally, it is correct that EMV smart cards cannot solve all the security issues. In the payment security industry we are well aware of this, including EMVCo members and card issuers. But it is also true that the technology tackles down card payment fraud to almost zero. The consequence is that fraudsters target weak card implementations and as a result the cardholders of these weak card implementations are put at unnecessary at risk. Considering the Target data breach, the decision by US major banks to speed up their migration plans for the issuance of smart cards is a very wise one.

Source: Delego Software (05/29)

Delego Software Inc. (DSI) announced the launch of DelegoInsights, an enhanced addition to Delego's robust reporting package built on SAP BusinessObjectsTM. DelegoInsights is designed to provide greater insight into electronic payment data stored within the merchant's ERP system.

"DelegoInsights is another innovation designed to simplify payments. By providing the means to analyze and understand payment data, DelegoInsights enables our customers to make better business decisions" said , Larry Chevalier, President & CEO "Delego as a company is driven to innovate, providing its customers with new solutions to make their lives easier."

With quick implementation, DelegoInsights allows for greater insight into electronic payment information stored within the merchant's ERP system. DelegoInsights has a user friendly interface allowing each specific user account operator the ability to customize reports using the drag and drop functionality. Each report can be tailored to the specific users' needs and reporting responsibilities. Report data can be displayed both graphically and as plain text for easy to read reports.

"Every business is different; an analytics tool has to respond to these differences," said Richard McCammon, VP of Integrated Solutions. "The SAP BusinessObjectsTM solution, on which DelegoInsights is based, provides the tools to create informative reports which can be easily understood. By building on a payment centric universe, customers can use Delego provided reports and can further extend capabilities with their own ad-hoc reports."

Delego Software is a member of ACT Canada; please visit www.delegosoftware.com.

Source: Let's Talk Payments (06/11)

Gemalto – announced that it was selected by China Telecom for its UpTeq Multi Tenant NFC SIM to support their commercial rollout of mobile contactless services. China Telecom is a leading operator in China with over 183 Mn subscribers.

The high-end SIM is embedded with Gemalto's LTE management software, enabling China Telecom subscribers to enjoy NFC services with the convenience and speed of mobile broadband.

China has a population of 1.4 billion, half of whom now live in urban areas. This rapid concentration of populations in mega-cities means users have more services to access, while the speed of daily life demands fast NFC solutions. At the same time, China's banking services are moving to EMV, especially in its contactless form, with over 400 Mn contactless chip payment cards issued at the end of 2013.

- China Telecom's massive NFC roll-out is happening just as the contactless ecosystem is being deployed.
- As most mega-cities are already equipped with contactless transport infrastructures, millions of China Telecom subscribers will soon be able to utilizee their smartphones to pay for everyday services.
- China Telecom subscribers will be able to choose from multiple types of NFC-enabled mobile phones to make payments for transportation, dining, shopping and petrol throughout the country.
- Airport check-ins, personal authentication services and employee ID services will be introduced in the future.
- The Gemalto UpTeq Multi-Tenant NFC SIM has been specially developed and customized by Gemalto for China Telecom.
- It is qualified by the operator and is part of a broader family of high-end products certified by China UnionPay.
- China Telecom subscribers will enjoy secure and convenient 24/7 access to mobile contactless services.

"With smartphone penetration in China surpassing 66%2 and over 3 million contactless POS terminals in the field3, the mobile payment ecosystem is in place. The major players in China are launching NFC initiatives, enabling China Telecom's subscribers to experience a rich variety of contactless services," stated Suzanne Tong-Li, President of Greater China and Korea at Gemalto, in a press release. "The UpTeq SIM's additional LTE feature will enable China Telecom to deliver an enhanced NFC experience to their customers, leveraging the accelerated download of NFC applications using their LTE network."

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

Source: Vantiv (06/16)

Vantiv, Inc. announced the launch of its VIABLE EMV testing platform. Based on significant industry research, VIABLE is a solution for merchants designed to simplify the EMV enablement, testing and validation process.

"Merchants using Vantiv's VIABLE solution have full control over their EMV network validation activities," said Patty Walters, senior vice president of EMV corporate strategy at Vantiv. "This new solution truly places merchants in control as they work toward the 2015 U.S. liability shift deadline. As part of the VIABLE rollout and to further assist merchants in jump-starting their EMV enablement, Vantiv is hosting a bicoastal training road show for merchants and partners in the coming months."

Vantiv partnered with ICC Solutions, a global leader in the provision of EMV test tools and associated services, to develop VIABLE and a comprehensive environment that will facilitate the EMV certifications of Vantiv merchants and ISVs.

"Adding EMV to a merchant's integrated payment system can be a significantly complex process," said Dave Maisey, chief executive officer of ICC Solutions. "With 327 business days remaining, merchants are quickly running out of time to validate their systems. VIABLE will save merchants time, money and headaches by offering a significantly improved process in one easy to use tool."

ICC Solutions is a member of ACT Canada; please visit www.iccsolutions.com.

Source: Let's Talk Payments (06/03)

IRIS - Integrated Reporting Is Simple – announced that it had integrated Apriva Payment Gateway's automated boarding interface into its premier sales automation platform and payment transaction tracking system.

Apriva is a mobile communications and payment processing technology provider across North America. The company says that it is trusted by government agencies and businesses of all sizes to provide highly secure communications and wireless transactions across both public and private networks and systems.

- This Apriva integration will enable IRIS clients with the ability to onboard new merchants up to four times faster than traditional manual entry processes.
- Apriva is certified by the Department of Defense, and is compliant with the payment industry's highest Payment Card Industry (PCI) Standards.
- New entrants into the credit card processing industry increase competition.
- For an ISO who has maintained a flat line of profit, efficiency adds a major edge against the rest, according to the company.

"IRIS was able to quickly certify their integration with Apriva to deliver an automated, white labeled boarding tool for the AprivaPay Plus mobile acceptance payment app to a mutual client. We were pleased to have the opportunity to work with IRIS on this integration," stated Sr VP for Information Technology for Apriva, Brian Sadowski, in a press release. "With their streamlined process for boarding and custom reporting, IRIS provides an efficient, time-saving solution for their clients," he added.

"Our clients' time is our primary concern. Clients often present us with ideal applications to integrate. Any application that increases efficiency significantly is on our radar for integration. Apriva fell squarely into a caliber of technological leaders in the payments industry that we strive to work with. With the new Apriva Payment Gateway integration, we are excited to offer onboarding services at this time for registered ISOs of two of the industry's largest payment processors," commented the President of IRIS, Dimitri Akhrin, in the same release. "We do plan on adding additional processing platforms in the next upcoming twelve months."

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

Source: eweek.com (06/16)

Google's new Google Wallet Instant Buy API now makes it easier for mobile iOS users to pay for online purchases using their Google Wallet account without having to key in all their account details each time.

The first-time availability to developers of the new iOS version of the Instant Buy API was announced by Justin Wong, product manager of the Google Wallet team, in a June 11 post on the Google Commerce Blog. The API is meant to help online retailers sell more products to iOS users who want to pay for their purchases of goods or services using Google Wallet while having to type less on their devices.

"Typing shipping and billing information on mobile devices can be a difficult experience, which is one of the reasons why 97 percent of mobile shoppers abandon their shopping carts," wrote Wong. "We introduced Google Wallet Instant Buy to make checkout on mobile sites and Android apps easier and help shoppers speed through the purchase process—often in as few as two clicks."

Developers can now bring the same kinds of Wallet payment features to Websites for iOS users once they sign up to integrate and use the new API, wrote Wong.

Instant Buy gives merchants and developers easy integration that works with existing payment processors, secure payments with 24/7 fraud monitoring and fee-free use from Google, wrote Wong.

Early retail adopters of the new iOS API for Instant Buy include Wish, B&H, Eat24, Fancy, Newegg and Sionic Mobile, he wrote.

In March 2014, Google Wallet gained some new order-tracking features, allowing users to receive status reports and purchase information right on their devices after they make purchases. So far, the improvements are available to U.S. users of Android devices running Version 4.0 or higher, or Apple iOS devices running Version 6.0 or higher. Customers are able to see receipts sent to their Gmail accounts when they are inside the Google Wallet app. And they can view shipping updates, including whether their package is out for delivery, delayed or delivered.

In November 2013, Google gave Google Wallet customers in the United States another convenient way to make purchases using the funds in their Wallet accounts by offering a new Google Wallet Card, a debit card with no annual or monthly fees. The Google-branded debit card lets Wallet customers take money out through ATMs, make purchases anywhere MasterCard is accepted and receive quick notifications on their mobile devices to track their expenditures, according to an earlier eWEEK report. While there are no fees from Google for transferring money to or from the card using a bank checking or savings account, a fee of 2.9 percent is levied when a user sends or receives money to or from a credit or debit card, according to Google. The minimum fee for such a transaction is 30 cents. Some ATM operators also charge an ATM fee to use the card, according to Google.

In September 2013, Google released a new version of its Google Wallet app for Android phones that included improvements for sending money to others, getting special savings on online purchases and tracking purchases. The new version of the Google Wallet app rolled out for all Android phones Version 2.3 and higher.

In May 2013, Google announced that it integrated its Wallet payment services with Gmail, allowing users to safely and securely send money to a recipient in an email. The service, which allows up to $10,000 to be sent in a single transaction, works even if the recipient does not have a Gmail address. The new Google Wallet app also received that capability.

Source: Giesecke & Devrient (06/16)

Mobile phone network operators could make huge savings by drastically reducing the resources needed for stocking SIMs, whether at their head office, distribution center or in stores. This is made possible by Giesecke & Devrient's (G&D) triple SIM card and market-leading subscription management software solution: wireless operators can now stock a single SIM card instead of the many different SIM cards they currently have to. The triple SIM brings together all SIM form factors for different devices on a single card, while the subscription management solution takes care of selecting the correct profile on the SIM chip. This profile determines whether the card is a pre-paid or contract card.

G&D's triple SIM combines all form factors, from ID-1 (credit card format) to the classic plug-in format (2FF), through to the micro-SIM (3FF) and nano-SIM (4FF). In practice, this means that the same SIM card can be used in many different devices. The nano-SIM is slightly thinner than the rest of the card body, thereby meeting ETSI standards. Network operators now only need to stock one physical SIM card variant instead of multiple. The end customer benefits from not having to find out what type of card is needed for their device. Furthermore, if a customer changes their device, the SIM can be adapted to the correct form factor.

In addition, network operators currently have to stock different versions for each SIM card form factor, depending on the individual electronic profile saved on the SIM chip. "With G&D's market-leading AirOn subscription management platform, network operators no longer have to worry about this problem, which significantly simplifies the SIM card ordering process," says Carsten Ahrens, Group Senior Vice President of the Server Software and Services (3S) division at G&D. Such SIM cards also come preinstalled with a subscription management client, which G&D's subscription management platform uses to access the SIM card over-the-air, configure it and provide it with the mobile telephony customer's subscriber data.

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

Source: Global Payments (06/18)

Global Payments Inc. has signed an agreement with Bigcommerce for growing and emerging brands. This agreement will allow Global Payments' merchants the opportunity to enter the fast-growing ecommerce space, reach more customers and grow their businesses by creating a Bigcommerce store. The Bigcommerce platform combines usability with professional services for Global Payments' merchants. Small businesses, particularly retailers, have a need for services such as design support, mobile experience and search engine optimization (SEO) consulting, and this platform provides these services.

"Bigcommerce is another tool that allows our merchants to tap into the ecommerce market and sell online," said Jay Rising, President, Americas for Global Payments. "We are impressed with the ease of integration with Bigcommerce and are thrilled that this platform will help successful brick and mortar retailers expand into ecommerce stores."

"Global Payments works with thousands of successful businesses who we believe can expand their businesses online with our platform," said Melanie Kalemba, Vice President Strategic Business Development of Bigcommerce. "We look forward to working with Global Payments' merchants to help them grow their businesses and reach new customers."

Global Payments Inc. is a member of ACT Canada; please visit www.globalpaymentsinc.com.

Source: Oberthur Technologies (06/24)

Oberthur Technologies and V3D announced their strategic partnership to provide mobile operators with an embedded solution for analyzing and improving the Quality of Experience (QoE) directly perceptible and felt by the mobile user.

With the extensive use of new connected devices and the arrival of new technologies such as LTE, mobile operators are facing higher expectation of end-users in terms of network quality and quality of experience.

In this context, V3D and OT partnership was initiated to combine both companies' best of breed Customer Experience monitoring technologies. OT's Smart Monitoring associated to the V3D's EQual One solution provides mobile operators with an accurate picture of the coverage, call data status, data, browsing, applications and streaming experience of consumers in real time. This joint solution is not restricted only to consumers' devices but also covers the Machine-to-Machine experience capabilities.

"Along with the quality and continuity of service monitoring capabilities already provided by our Smart Monitoring solution, this partnership with V3D allows us to supply our customers with exclusive and meaningful source of QoE data directly from any customers' devices and SIM Cards on the market. Thanks to this solution mobile operators can easily gain a better understanding of their customers' problems and expectations in order to improve the quality of end-user experience" said Marek Juda, Managing Director of the Solutions Business Unit at OT.

"We are very enthusiastic about this partnership with OT, using our solution to strengthen their existing embedded solutions to better serve and satisfy customers. Indeed, it is why V3D chose to place EQual One in the heart of the CEM and Customer Care solutions of the Telecom industry leaders, enriching these solutions – introducing an outside-in approach – with customer experience data gathered directly from end-users devices" comments Philippe VIAL-GRELIER, Chief Executive Officer of V3D.

Oberthur Technologies is a member of ACT Canada; please visit www.oberthur.com.

Source: Elavon (06/25)

MICROS Systems, Inc. and Elavon have integrated their respective gateway and security products to deliver encryption and tokenization for the hotel and food and beverage industries, facilitating a secure environment throughout the entire payment transaction cycle. With the integration work already completed for the MICROS OPERA hotel property management system (PMS) and the primary MICROS food and beverage point-of-sale (POS) platforms, MICROS clients can take immediate advantage of a seamless, secure end-to-end process that combines the existing cost-effective and cutting-edge payment card processing solutions from MICROS with built-in security features like encryption and tokenization from Elavon, providing clients with these benefits:

- Opportunity to streamline PCI compliance process and reduce time and effort associated with maintaining compliance
- Ability to consolidate multiple interfaces and certifications for electronic payment processing
- Ease of implementation, service and support

"MICROS' innovations in payment processing are allowing us to add value to our clients, and expanding our capabilities with Elavon typifies our approach," said Kevin King, Vice President of eCommerce and Payments. "Our integrated approach provides business owners with direct access to a simple-to-implement solution that puts businesses on the fast-track to data security."

Powered by the MICROS Payment Gateway and Elavon's Fusebox gateway solution, this next generation payment environment is built upon decades of proven PMS and payment processing expertise. Robust scalability offers a great fit for businesses of any size with any number of workstations – from a single location business to multi-national brands.

"At Elavon, we are highly focused on providing opportunities that help our clients grow," said Ian Drysdale, EVP and Head of Business Development for Elavon, North America. "Offering an integrated payments approach with MICROS resolves a pain point for hoteliers, retailers and clients who face the complexities of managing a secure end-to-end payments process. We can eliminate the headache so they can focus on delivering great client experiences."

Elavon is a member of ACT Canada; please visit www.elavon.com.

Source: PYMNTS.com (06/13)

If the payments industry learned anything from the recent major card-data breaches, it's the vulnerability of card and personal data left unprotected. As a result, more emphasis is being placed today on the use of tokenization and other measures to protect card data.

Such measures not only will help bolster payments security, but they also create new revenue opportunities for networks and other processors. MasterCard, for example, anticipates additional revenue from offering tokenization services to customers, Mario Shiliashki, MasterCard senior vice president of emerging payments, commented during a June 11 presentation at the Credit Suisse Future of Payments & Commerce Conference.

Later this year, Shiliashki said, the card network will launch the MasterCard Digital Enablement System, which it will offer to issuers and other parties in its network to tokenize and digitize their card payments on their behalf. "If they choose to [adopt tokenization] through us, then, of course, that's a revenue opportunity there," he said. "But generally, again, driving more transactions through the network that are much safer will, I think, be the main driver of the yield there."

Tokens serve as a surrogate to replace the actual 16-digit card number stored in a database. Without the token and the key needed to open, crooks can't use the information to transact. And the keys are kept in highly secure locations away from where transactional data are stored.

"That then allows us to not just have better security for it, but also allows us to segment and block transactions that are away from a particular device or particular environment," Shiliashki said.

Shiliashki also noted that having additional data going through the MasterCard network also provides revenue opportunities.

"Fraud-prevention and detection solutions [represent] one of the things that, of course, we have an interest in and have very good assets in. That said, I think, again, the No. 1 priority right now is increasing the integrity, safety, and security of the network overall and the entire experience, end to end," he said. "If we can then sell additional services on top of that, that of course is great, and we focus on that all the time. But that's not the primary driver of this."

Shiliashki opened his presentation by citing the transition now underway from physical to digital, where people are transacting differently from just a few years ago.

"What we see is a new set of transactions that are happening that don't necessarily fit within the constructs of even five or 10 years ago," he said. "If you think about how we transact, but beyond the transaction – how we talk to each other, how we connect with merchants, how we travel, how we check into this hotel, how we check in at the airport – all these experiences are very different today than they were even a short five years ago."

Among the various other topics Shiliashki addressed during his presentation involved MasterPass rollouts, growing use of the automated clearinghouse (ACH) networks as an alternative to card-based payments, and Host Card Emulation (HCE).

MasterPass, MasterCard's digital platform for wallet services, is available in eight markets and is usable at some 40,000 merchants across those markets, Shiliashki said. "We have a pipeline of many additional markets and many additional merchants," he said. "Ultimately, the goal is to be everywhere MasterCard is, and our goal of about 75 percent of all of the GDV coverage to be in the next couple of years."

Later this summer, MasterCard plans to add the ability to embed MasterPass in-app, enabling customers to browse or do commerce through apps and not browsers, Shiliashki said. "Over 80 percent of all browsing on mobile devices is in apps and not mobile browsers, he said. "So the ability to embed our products, and particularly MasterPass, in-app is one key for us.

Asked about the impact use of ACH systems to bypass network-based card payments, Shiliashki cited PayPal as one of the chief players that has adopted ACH and driven it into the market. Noting comScore data showing a steady 20 percent of PayPal transactions going through as ACH, Shiliashki said cards continue to be used for the overall majority of PayPal's transactions.

Among the chief reasons for cards' continue popularity are the functional benefits, such as immediate authorizations, and consumer preference, Shiliashki said.

"ACH ... was built for infrequent, large payments, which is why it's a batch process system," Shiliashki noted. "It happens daily or, in some cases, much less frequently, especially if you're crossing over a weekend." That relatively slow speed, he said, doesn't fit with consumers' expectation for speed in today's highly digitized society.

Shiliashki noted that MasterCard tries to remain neutral on specific technologies used to support mobile payments. But he said the network sees some benefits in HCE, where Near Field Communication-based contactless payments are supported through the cloud instead of through a secure element in the phone.

"We think it will drive greater adoption of contactless payments in the market, but what we'd like to drive is the solutions that make sense for the particular situation, environment, or mode that you and the merchant are trying to transact in," he said. "And we don't think that there is one single solution that goes across every device, every situation, every environment. There are times when the cloud simply isn't available, and it's better to have something on the phone that is stored on the phone in a secure way."

MasterCard is a member of ACT Canada; please visit www.mastercard.ca.

Source: INSIDE Secure (06/16)

INSIDE Secure announced it has completed the agreement with Intel Corporation which had previously been announced on April 1st.

Under the terms of the concluded agreement, INSIDE Secure has:

- Extended the pre-existing worldwide, perpetual license it had with Intel into a broad, royalty-free and fully paid-up license, with INSIDE Secure retaining ownership of most of the related IP assets and rights;
- Transferred to Intel its MicroRead-v5 next-generation NFC hardware and software modem technology currently under development together with certain related tangible and intangible assets, including certain IP assets.

INSIDE Secure received from Intel US$ 19.2 million in cash at closing. This transaction is fully in line with INSIDE Secure's strategy to focus on embedded security solutions for mobile and connected devices as well as leverage and monetize its NFC technology and intellectual property rights.

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

Source: Wired.com (06/19)

Amazon's long-awaited smartphone is finally here, and if you believe Amazon founder and CEO Jeff Bezos, the Fire Phone will solve all our photo-taking, outdoor-reading, and home-shopping needs.

But the bigger picture is that this new device may also help Amazon better compete with tech giants like Apple and Google in areas that extend well beyond the phone in your hand.

Rumors that Amazon has been working on a smartphone have been circulating for years. Back in 2011, Citigroup analyzed Amazon's supply chain and predicted in a memo that the e-commerce giant might be working on a phone. In September 2012, The Verge published a story saying that the new Amazon phone might be released the very next day. And then, last year, The Wall Street Journal broke the story that Amazon's smartphone would include retina-tracking technology that brings 3D-like imaging to the screen.

The bigger picture is that this new device may also help amazon better compete with tech giants like Apple and Google in areas that extend well beyond the phone in your hand.

On stage at the Fire Phone's much-hyped coming out event in Seattle Wednesday, Bezos confirmed many of those rumors and more. Yes, there will be a phone. Yes, it's being sold exclusively through AT&T. Yes, it includes four front-facing cameras in an effort to give images depth and make games more addictive. Yes, it comes with free Amazon Prime, and yes, it makes it incredibly easy–almost too easy–to buy whatever you want when you want it. And yet, now that Amazon's highly anticipated creation is here, what matters is not just what the Fire Phone can do (for more on that, check out our story from yesterday), but what it lets Amazon do.

There was a time, not long ago, when Amazon was for shopping, Google was for searching and advertising, Apple was for sleekly designed gadgets with even sleeker user interfaces, and Facebook was for keeping in touch with friends. But the bigger these businesses get, the more pressure they face to grow even larger, and the more they covet each other's customers. Being the best at what they do is no longer good enough. Now, these giants want to be the best at what the other guys are doing too. They're all turning into each other. Google is becoming Facebook–and vice versa. Apple is becoming Google–and vice versa. And, naturally, Amazon is following suit.

Yes, with the Fire Phone, Amazon is making an aggressive move into Apple and Google's territory in the smartphone market. On stage, Bezos directly compared the quality of the Fire Phone camera to the iPhone 5S and the Samsung Galaxy S5. He showed off the fact that the Fire Phone is better for outdoor viewing than the alternatives, and he explained that it makes reading on the phone easier, something that Amazon has an understandable interest in with its trove of digital books, because users need only tilt the phone to scroll through the pages.

But perhaps more importantly, Amazon is entering a competition for Google's ad dollars. The bulk of Google's business is still advertising. Even as it works on so-called "moonshot" projects like driverless cars and Google Glass, Google lives by the promise that it has the best service for tracking potential customers and showing them an ad. But Amazon just released a feature on its smartphone called Firefly, which, if truly successful, could bypass Google altogether.

Firefly is essentially search in a button. It lets anyone take a photo of an object and immediately see its listing on Amazon. Firefly can also recognize things it hears, like music on the radio. Of course, the tool lets you buy stuff on Amazon, but third-party apps can also integrate with Firefly. So, for example, if you're listening to a song on the radio, Firefly might give you the option to buy the album from Amazon, buy a concert ticket on Stubhub, create an IHeartRadio playlist of that artist, and in time, much more. Firefly completely bypasses the need to Google that song to find out who the artist is to buy a ticket on Stubhub or set up a playlist on another app. Amazon can woo Google's advertisers without advertising.

In a way, this answers what Google has done in recent years. Just as Amazon is encroaching upon Google's market share, Google is encroaching on Amazon's with a recent push into online shopping. Google no longer wants to simply show consumers an ad, only to have them buy that item somewhere else. It wants to make its advertising proposition even more potent by proving to advertisers that people are actually buying what they're seeing. That's one reason why Google launched its Trusted Stores program a few years back, which awards badges to approved online stores in an effort to engender trust among consumers. And now it's partnering with retailers to, in Amazon-like fashion, actually deliver stuff to your door.

Meanwhile, according to reports, Apple is poised to push even further into the shopping world, exploring its own online payments service. Google is already in payments world, thanks to Google Wallet, but, with its trove of 800 million credit cards on file with iTunes, Apple has good reason to believe that it too could make payments more seamless for consumers and woo many other businesses to its platform. Amazon has a similarly large stash of cards. Might it be next?

But this battle of the tech giants extends well beyond shopping, search, and advertising. Amazon and Google already offer tablets as well. And so does Apple. Amazon and Google are also moving into the living room with the Fire TV and Chromecast, hoping to sell not only videos and music but games. This puts them up against not only each other, but, yes, Apple, with its Apple TV settop.

The goal for all of these companies, with all of these products and services, is not to relinquish an inch of market share to anyone else. As much as they can, they want to own the entire supply chain, from the time a product is advertised, to where and how it's purchased, to the delivery of that product. And if they can own the device that's to do all of those other things, so much the better. On Wednesday, for instance, Bezos told the audience how "tens of millions" of Kindle Fire and Kindle owners have driven the explosive grown of Amazon Prime, Amazon's membership service. No doubt Bezos hopes the Fire Phone will do the same.

The fact that these companies are battling each other is great news FOR the rest of us. Competition forces each company to at least try to come up with something better than the next. And yet, Facebook's own failed smartphone is a perfect example of what can happen when even the strongest companies stray too far from their expertise. With its phone, Facebook was telling consumers that they wanted to use Facebook first for everything, and as the company soon found out, that wasn't entirely true.

With the Fire Phone, Amazon may escape that fate, because it already knows that people want to use Amazon for shopping, for streaming video, for reading books, for shipping, and more. In many ways, a phone is the encapsulation of everything Amazon has ever done, all wrapped up in a 4.7 inch package.

In our 25th year, ACT Canada has been the internationally recognized authority in the market. As the eyes, ears and voice for stakeholders focused on secure payment, mobile, NFC, loyalty, secure identity, and leveraging EMV, we promote knowledge transfer, thought leadership and networking. We help members protect their interests, advance their causes, build their business and grow the market. We take a neutral and non-partisan approach to all issues, facilitating collaboration among issuers, brands, acquirers, merchants, regulators, solution providers, governments and other stakeholders. Over 50% of our members have been with us for more than 5 years, enjoying ongoing value from their affiliation with ACT Canada.  Please visit http://www.actcda.com or contact our office at 1 905 426-6360 x122.

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Andrea McMullen
Vice President
ACT Canada
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email: andrea@actcda.com
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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.