watch provides hands-free ticketing for mass transit · marketing manager albert andoh...
TRANSCRIPT
January 1999
Volume8
Number 1
© 1998 Smart Card News Ltd., Brighton, England.No part of this publication may be reproduced, stored in a retrievalsystem, or transmitted in any form or by any means, electronic, mechanical, optical, recording or otherwise, without theprior permission of the publishers.
Watch Provides Hands-freeTicketing for Mass Transit Schlumberger is working with Swiss watch group Swatch to addcontactless electronic ticketing capability to watches for use in masstransit services.
Tampere, in Finland, was chosen for the first demonstration of thetechnology as Schlumberger’s contactless Easypass ticketing cardis used in the city’s bus network. Now travellers can buy watcheswhich operate in exactly the same way as the Easypass Smart Card.
In the future, a Swatch watch could provide its owner with a stylish‘electronic passport’ for travelling and paying for goods andservices.
Continued on page 3
www.smartcard.co.uk
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January 1999
Cards on the CoverFirst Card in Sheffield
Page 008Mondex
Page 017GalactICPage 017
Slovakian CardPage 008
Main PhotographEasypass Ticketing Card
[Schlumberger]
Important AnnouncementPlease note that Smart Card News staff members
can now be contacted directly via e-mail.Please see the production credits below for details.
News
003 - 013BoA Introduces FingerprintsCard Top Up Using Mobile PhonesTax Returns on the InternetLitronic and Atmel in NSA ProjectRoyal Bank Mondex PilotThe 1st Card for SheffieldMelbourne as a Smart Card CentreSocial Security ID CardsThailand Smart Payphone NetworkMalaysia MF Card in mid-1999 Proton for Windows/NT
Special Feature
014 - 019Industry Review 1998
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Smart Card News is published monthly by Smart Card News Ltd PO BOX 1383 Rottingdean Brighton East Sussex BN2 8WX EnglandTelephone : + 44 (0) 1273 236677 / 626677 • Facsimile : + 44 (0) 1273 624433 / 300991 • General Enquiries : [email protected] ISSN 0967 196X
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CONTENTS
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Hands-free Ticketing PlanContinued from page 1
In the demonstration in Tampere, an Easypass-compatible chip was integrated inside the body ofthe Swatch watch and connected to an aerial aroundthe edge of the face. Bus passengers can performticketing transactions by simply passing the watchclose to the ticketing terminal as they board a busor enter the transport network.
Schlumberger says the Swatch watch is compatiblewith ISO14443A, the wireless protocol whichaccounts for some 90% of the world’s contactlesselectronic ticket applications.
It is planned to extend the capability of thetechnology by equipping the watches withSchlumberger’s transport-oriented FastOS SmartCard operating system. FastOS provides a standardplatform for contactless applications which iscompatible with a range of specifications fortransport Smart Cards, including IATA’sspecification for airline travel.
Contactsn Isabelle Marand Schlumberger( +33 (0)1 47 46 55 42: [email protected]
n Amanda Blair Swatch( +41 32 343 9093: [email protected]
BoA Introduces Fingerprints
Bank of America has introduced a fingerprintbiometric application based on Smart Cards toprovide secure access to on-line banking services.
It says a limited number of associates are taking partin the program which involves the user storing hisor her login ID, passcode and fingerprint in the chipof their BoA multi-application Visa Cash card. Toaccess on-line banking services via the Internet, theyopen the log-in Web page for these services, inserttheir card into a portable reader and then insert thereader device into the computer’s disk drive. Theythen place a finger on a small scanning deviceattached to the PC, and biometric software matchesthe fingerprint image from the scanner against thatstored in the card’s chip.
A fingerpint match unlocks the chip containing theuser’s on-line banking login ID and passcode,automatically giving access to the first Web page
for BoA’s PC Load Smart Card program. From thispage, users can transfer value from their accountonto the card for purchases with participatingmerchants in the physical and virtual worlds.
Contactn Jeff Hershberger Bank of America ( +1 415 622 0870: [email protected]
Bull/Ingenico Terminals Merger
Bull is merging its payment terminal activities withIngenico as part of a deal in which Bull will exchangeits interests against shares from Ingenico. Theagreement will make Ingenico the number twosupplier of payment terminals worldwide with Bullits biggest shareholder with 31% of the capital.
In an announcement last month, the two companiesoutlined the three objectives of the merger as:
n To offer microchip cards and terminals whichcombine the capabilities of the two companies,in particular their technological and securityexpertise
n To increase market coverage by combining eachpartner’s geographic reach
n To share the R&D capabilities and resources, sothat Bull will have overall responsibility forSmart Cards and systems integration, whileIngenico will look after terminals and readers.
The proposal for the merger will be submitted toIngenico’s Board in early 1999.
Jean-Jacques Poutrel, CEO of the Ingenico groupsaid the strategic alliance with Bull was alsocomplementary to Ingenico’s agreement signed withDe La Rue for the acquisition of their Terminals andSystems division based in Dunfermline, Scotland,and previously known as Fortronic.
The deal is said to be worth around 9.5 million toDe La Rue who will be paid in Ingenico shares whichwill result in it owning 4.4% of the French group.De La Rue will work with Ingenico to explore futureopportunities in the electronic transactions market.
Contactsn Amanda Purdie Bull UK( +44 (0)181 479 2751: [email protected]
n Gerard Compain Ingenico( +33 (0)1 46 25 82 05
NEWS
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Card Top Up Using Mobile Phones
CashCard electronic purse cardholders inSingapore will be able to top up their cards using amobile phone starting in mid-1999 when the newservice is introduced by NETS, the Network forElectronic Transfers (Singapore), working withMobileOne (Asia), Motorola Electronics(Singapore) and Gemplus Technologies.
The new service will combine NETS’ expertise inelectronic funds transfer with telecommunicationsinfrastructure and software provided by mobilenetwork operator M1, Motorola’s dual-slot GSMmobile phones and the SIM card applicationdeveloped by Gemplus.
NETS’ Chief Executive, Wee Tew Lim, said: “Sincethe launch of the Electronic Road Pricing Systemin 1998, CashCards now feature prominently in oureveryday lives. They are accepted in thousands ofretail establishments throughout Singapore. Themobile phone top-up service will provide anotherconvenient channel for our customers.”
The service will require a PIN and a Smart ATMcard obtainable from one of the participating banks- DBS Bank, Keppel Bank, OCBC Bank Group,Overseas Union Bank, Tat Lee Bank and UnitedOverseas Bank.
To log onto the system, the user will insert an ATMcard into the appropriate slot in the mobile phone,key in a PIN and then follow simple instructions.
NETS plans to use the mobile communicationsplatform to introduce a range of electronic bankingand fund transfer services including mobile banking,ticket reservations and bill payments.
Contactn Lisa Colley Gemplus( +44 (0)1705 486444: [email protected]
Chip Card Programme for Korea
Visa International has announced that a major chipcard programme will be implemented in Koreastarting in Yoido, the financial district in Seoul. Thefirst card transaction is expected in late 1999.
The project will be implemented by Visa inconjunction with KEB Credit Service Co., KLBCredit Card Company, Kookmin Credit CardCompany, BC Card Company, LG Credit Card
Company and Samsung Card Company. In the firstphase, the card companies will issue 60,000 SmartCards which will feature one or more functions suchas credit, debit, loyalty programmes and chip card-based electronic commerce.
Visa says that over the next five to six years, allexisting magnetic stripe cards will be migrated toSmart Cards and focus on establishing a commonchip standard based on EMV specifications.
Contactn Mike Liew Visa International Asia Pacific( +65 437 5509 : [email protected]
Card and Chip Companies Merge
US Smart Card company Amazing Controls! Inchas merged with Micromodule Pte Ltd, a microchipmanufacturer and semiconductor packaging plantbased in Singapore. The new company will be calledAmazing Smart Card Technologies (ASCT).
Dr Tan Seng Chuan, Managing Director ofMicromodule, cited the companies’ complementarystrengths and mutual commitment toward thedevelopment of related technologies as the mainreason for the merger.
Don Witmer, previously President of AmazingControls! Inc, becomes President and CEO of thenew company. Dr Chris Goeltner is Directorof Marketing, Robert Kowolik, Director ofEngineering; Terence Warmbier, Vice Presidentof Sales; Chee Men Yu, Vice President of WorldwideManufacturing; and Daryl Stemm, Director ofFinance and Administration.
Contactn Don Witmer Amazing Smart Card Technologies( +1 408 566 0300, ext. 130: www.amazingtechnologies.com
ICL Merges Swedish Companies
ICL has merged its five Swedish companies - ICLSvenska, ICL Sorbus, ICL Retail, ICL FinancialSystems and ICL Financial Terminals - under thenew name ICL Sverige AB.
Contactn Johan Nybom ICL Sweden( +46 8 793 7741 : [email protected]
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Tax Returns on the Internet
The Inland Revenue last month launched a prototypeelectronic commerce platform which will enableindividuals and businesses in the UK to file taxreturns over the Internet - and then promptly shelvedthe scheme pending legislation on digital signatures.
The plan features a Smart Card-enabled kiosk atwhich users will be able to fill in an electronic formand e-mail it to the Inland Revenue. Alternativelythey can use their own PC fitted with a GemplusSmart Card reader.
However, a digital signature is required toauthenticate the user and safeguard the security ofthe transmission so the government has put theprogramme on hold until legislation, scheduled forthis year, sets out regulations for the use of digitalsignatures to authenticate on-line transactions.
Barclays Bank (SCN July 1998, p 130) and NatWest(SCN December 1997 p 221) are piloting SmartCard-based government projects to allow self-employed people to register their status over theInternet with the Inland Revenue, ContributionsAgency and HM Customs & Excise.
Adelaide City Card Launch
Adelaide City Council and Telstra, Australia’slargest telecommunications company, last monthlaunched a trial of the Adelaide City Card, a SmartCard payment and incentive scheme, in a bid toencourage consumers back to the central businessdistrict for retail and leisure activity. Commercialroll-out is planned for the first quarter of 1999.
The scheme is a natural extension to Telstra’sexisting Smart Card program at the University ofAdelaide, but it is the first time that Telstra SmartCard technology has been made available to publicretailers for in-store payments.
Telstra plans to progressively broaden theapplications for which the card can be used in themarketplace and is in discussion with the SouthAustralian Government about other applications toincrease the usefulness and value of the card.
John Stanton, Managing Director of TelstraPayphone & Card Services, said that one attraction
of Smart Cards over other payment options isconvenience.
“Most of us hate to break a $50 note just to pay forsimple purchases such as a newspaper or a cup ofcoffee, or do not want to carry a pocket full of coinsaround to pay for small items,” he said.
The Lord Mayor of Adelaide, Dr Jane Lomax-Smith,said the Telstra Smart Card technology would enablesmall retailers who have previously been unable toimplement card incentive schemes, to offer loyaltyprograms for customers.
Telstra started rolling out Smart Phonecards forpayment in Telstra Payphones in Adelaide inSeptember last year.
At the University of Adelaide, Telstra has also issuedmore than 17,000 students and staff with reloadableTelstra Smart Phonecards for a number ofapplications such as student ID, studentmemberships, building access, library privilegesand electronic purse facilities for a range of paymentsaround campus.
Telstra estimates there are currently more than amillion Smart Phonecards in circulation in Adelaide.
Stanton said: “According to our research, customersare looking forward to merchants in Adelaideaccepting Telstra cards for payment.”
Contactn Genevieve den Otter Telstra Products and Marketing( +61 2 9298 4646
China Develops Own Chip
A new chip for telephone cards has been developedby Datang Telecom Technology Co. and QinghuaUniversity in Beijing, according to China’s Xinhuanews service.
Xinhua said that the chip has been approved by TheMinistry of Information Industry and will beproduced by Shanghai Advanced Semi-ConductorManufacturing Company, a joint venture thatincludes Holland’s Philips and Canada’s NortelNetworks.
The report said that the cost of the new chip wouldbe two-thirds that of imported chips.
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Litronic and Atmel in NSA Project
Atmel Corporation has announced its participationin the Forte’ Project led by Litronic in partnershipwith the National Security Agency (NSA).
Atmel will deliver a 32-bit ARM-based Smart Cardchip design that includes a high-speed UniversalSerial Bus (USB) interface, high capacityEEPROM, ROM and several different hardwareencryption engines among other features.
Atmel was chosen by Litronic for its ability tocombine multiple technologies into a system levelintegration solution for the next generationFORTEZZA cards currently used by the USgovernment.
Placing the features of the FORTEZZA system ona Smart Card is much more cost-effective than thePCMCIA cards in use today. No other Smart Cardchip design integrates as many functional featuresas the Forte’ design. This chip is the first to offerpractical on-board bulk or stream encryption. It isthe first single chip Smart Card solution to provideFIPS 140-1 level 3 security, high performancemultiple encryption technology, and multi-application support.
The Forte’ chip will leverage Atmel’s EEPROMtechnology to provide high memory densitycombined with a large ROM capacity and other logicand analog structures to essentially form a system-on-a-chip for multi-application use.
The Atmel device incorporates cryptographicengines including a fast-math coprocessor for RSAand DSA function, Atmel’s proprietary DES engineand a newly developed SkipJack engine. Atmel hasintegrated a randomizer that was developed inconcert with the NSA, allowing true random numbergeneration for more secure key generation.
Litronic provides multi-platform, standards-basedsecurity environments for government andcommercial users. This total security solutionincludes software, enabling toolkits, supportinghardware and professional services.
The National Security Agency (NSA) InformationSystems Security Organisation (ISSO), NetworkSecurity Group, is tasked with enabling networksecurity solutions for its DoD customers. ProjectForte’ reaffirms NSA’s commitment to enablingsolutions that provide a broad range of cost,performance, and security trade-offs as well assupport for its customers who have the need to
communicate with business, government andfinancial sectors.
Contactsn Jeff Katz Atmel ( +1 408 436 4205: [email protected]
n Cynthia Liu Litronic( +1 949 851 1085 ext. 222: [email protected]
Smart Cards for Golf Fans
Smart Cards will be used by golf fans attending thePhoenix Open to buy drinks and snacks at concessionstands on the Scottsdale TPC golf course during thetournament later this month.
Called the Bank of America Phoenix Open Passport,the cards will be sold at 24 booths at the entrancesand throughout the course. Fans can use cash, creditor debit cards to load a dollar value on the cardswith a minimum of US $5. Any unused balancewill be refunded in cash or can be donated to charity.
The system, developed by Technology@Work, ofJacksonville, Florida, has been used at concerts andmusic festivals in addition to golf tournaments.
Smart Card Industry Awards
A multi-functional, Java-based Smart Card systemwon the payments technology section in theChartered Institute of Bankers/BT FinancialTechnology Innovations Awards. It was developedby Gemplus in conjunction with Sun Microsystems,Visa and Standard Chartered Bank and will be rolledout in Taiwan, Hong Kong and other areas of Asiathis year.
Schlumberger’s Cyberflex field-programmablemobile communications solution won the E-commerce Development of the Year category of theCommunications Awards 98 made annually bytelecommunications publisher Nexus InformationTechnology. It was also runner-up in theCommunications Innovation of the Year section.
Contactsn Isabelle Marand Schlumberger( +33 (0)1 47 46 55 42: [email protected]
n Lisa Colley Gemplus( +44 (0)1705 486444: [email protected]
NEWS
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Royal Bank Mondex Pilot
Royal Bank is to pilot a home cash machine in itsMondex electronic cash trial this year in Sherbrooke,Quebec, Canada.
Bank clients will be able to make electronic cashwithdrawals and deposits from home with an ATM-like device that plugs into home phones. It has beendesigned by Aastra Technologies with Java-basedsoftware developed by AudeSi Technologies Inc.
Francis Shen, Chairman and CEO of AastraTechnologies, said the software allowed the telecomdevice to easily incorporate other e-cash systemsor loyalty applications enabling the product tohandle other Smart Card applications.
“The new Aastra telephony device is an importantaddition to the Mondex Smart Card program,” saidAl McGale, Royal Bank’s Vice President of SmartCards. “From our experience in the Mondex pilotproject in Guelph, Ontario, we have learned thatthe ability to withdraw and deposit e-cash from theconsumer’s home is an important element of theprogram.”
Contactsn Lucie Caron Royal Bank( +1 416 974 1756
n Allan Brett Aastra Technologies( +1 416 736 7070
G&D Expands to Australia and SA
As part of its globalisation strategy, Giesecke &Devrient has opened subsidiary companies inAustralia and South America.
Giesecke & Devrient Australasia Pty Ltd will deliverSmart Cards for the Australian and New Zealandmarkets and production support for G&D initiativesthroughout South East Asia.
The Germany-based Smart Card manufacturerrevealed that its decision to open a company inAustralia was influenced by the great distancebetween the two countries and the fiercelycompetitive nature of the local market where it haslong standing relationships with two of Australia’sthree digital mobile phone operators.
To maintain and grow its market share, the companysays it was necessary to form a local operation.While the initial focus of the plant will be theproduction of GSM Smart Card SIMs (Subscriber
Identity Modules), the intention was to seek out newopportunities, particularly in the financial,transportation and loyalty sectors.
Already GDAUS has been actively supporting theAustralian implementation of Visa Cash with furtherlocal trials of Proton, Mondex and Chipperproviding future potential.
G&D, which opened an office in Argentina in 1997,has launched another new South Americansubsidiary in Sao Paulo, Brazil. The new company,Giesecke & Devrient Brasil, has two divisions: cardsand currency automation systems.
The Cards System Division is currently focusing onpayment transactions and public transport and haswon a contract to supply 400,000 contactless SmartCards for Sao Paulo buses. It also has plans toincrease market share in healthcare and loyaltyapplications as well as telephone cards. There areplans to set up a local card production facility.
Contactn Christian Treinies G&D( +49 89 4119 2125: www.gdm.de
Mobile Banking in Asia
Hong Kong GSM mobile phone operator SUNDAYand its partner Chase Manhattan Card Companyhave introduced Asia’s first mobile banking andcommerce application.
The system allows subscribers to remotely checktheir credit card account, transfer money, and orderand pay for goods available via the operator’s value-added services.
The application is based on a 16K bytes ActivaSmart Card SIM (Subscriber Identity Module) fromSchlumberger.
Recently, the Hong Kong operator launchedSUNDAY Specials, an information-on-demandservice using Schlumberger SIM cards to provideservices such as entertainment information, stockprices, horse racing results, a “mobile cupid” forfinding a partner and even dedicating a song.
Contactn Patricia Ng Schlumberger( +65 746 9676: [email protected]
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The 1st Card for Sheffield
A multi-function Smart Card, called The 1st Card,is being introduced in the city of Sheffield in Englandand will initially feature an electronic cash purseand a retail loyalty scheme.
Involved in the scheme are Sheffield City Council,Sheffield Chamber of Trade, Sheffield InternationalVenues, The City Centre Management Unit,Destination Sheffield and the scheme’s operatingcompany Cumberland Card Care.
Destination Sheffield, the city’s tourist promotionagency, is planning to issue a modified version ofthe card for visitors to the city.
Further applications may be added later such as anelectronic token card parking scheme, inclusion ofa bar code for use in libraries, a payment schemefor public transport and use as a telephone card.
Cumberland Card Care developed the student cardfor the Sheffield Hallam University where it hasbeen issued to 20,000 students and more than 2,400staff. Functions on the card include Mondexelectronic cash and WONGA, a retail discountscheme. The company has just announced that theSHU card has now received the backing of fast foodchain McDonald’s which is operating the schemeat three of its city centre restaurants.
Contactn Martin Ross Hurndal Ross Media
(for Cumberland Card Care)( +44 (0)114 221 0381
Victoria On-line by 2001
Australia’s Victoria, New South Wales Government,plans to put all government and community serviceson-line by the year 2001.
Work has already started on installing a number ofMaxi multi-media electronic commerce kiosks inthe central and business districts of Melbourne.Access is also to be available via the Internet andother dial-up services.
When complete, the system will allow payments forutility bills, rates, fines, vehicle fees, issue reports,certificates, permits and licences. It will also providefor booking, building inspections, tests andinformation and monitor progress, check progressof applications and accounts.
Maxi services will also be available on InteractiveVoice Response (IVR) and, in the future, access willbe through the home television via a link.
John Atkinson, Gemplus’ Country Manager forAustralasia, said a vital part of the Smart key cardtechnology used in accessing these Maxi kiosks isthe integration of public key infrastructure whichenables the usage of Smart Cards on the Internetsecurely. The system features banking encryption(128 bit key length) standard security over bothInternet and kiosks.
Atkinson said that a joint venture between Gemplusand the state government was expected to befinalised by early January 1999. The first phase ofproduction was scheduled for the end of Q1 1999.
Contactn John Atkinson Gemplus Australasia( +61 2 9416 6699
Slovak Rep Moves to Chip Cards
Slovenska Sporitelna - one of the biggest issuers ofMaestro debit cards in the Slovak Republic - ismigrating its card base to EMV-compliant chiptechnology. Trials currently taking place with aEuropay “off-the-shelf” chip solution developed byBull, will lead to the bank migrating its 300,000cardholders to chip cards beginning in the secondquarter of 1999.
Mrs Alena Crhova, General Manager of SlovenskaSporitelna’s Retail Banking Division, said: “We areextremely proud to be the first bank in EasternEurope - and the second in the world (after the UKbanks) - to introduce EMV chip cards.”
Contactn Gilliane Palmer Europay( +32 2 352 5647: [email protected]
EMV Certification for MagIC 9000
Schlumberger’s MagIC 9000 portable Smart Cardpoint-of-sale terminal (SCN November 1998, p 210) has gained EMV (Europay/MasterCard/Visa)certification.
Contactn Sylvie Mazzuca Schlumberger ( +33 (0)1 47 46 79 56: [email protected]
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Melbourne as a Smart Card Centre
French Smart Card manufacturer Gemplus is tomanufacture Smart Cards in Melbourne, Australia,in a A$32.5 million joint venture with Australian-based plastic card giant Leigh-Mardon.
The two companies estimate the market for SmartCards in Australia and New Zealand at $200 millionper annum and expect this to double within three orfour years. The joint venture hopes to capture morethan half of the market.
Interestingly, they see Melbourne as the centre ofSmart Card manufacturing for Australasia andeventually home to a major export industry. Gemplusis to move its Smart Card manufacturing forAustralasia from Singapore to Melbourne.
Contactsn Gary Zentilomo Leigh-Mardon( +61 2 9829 0111
n John Atkinson Gemplus Australasia( +61 2 9416 6699
TV Set-top Boxes to Accept Visa
Visa and cable equipment manufacturer GeneralInstrument Corporation have signed a memorandumof understanding to enable GI’s broadband digitalnetwork system to accept Visa multi-function SmartCards via cable TV set-top boxes. GI will offer theVisa Open Platform to network operators and, withVisa, explore ways to integrate payment and otherinteractive services into the cards.
Visa says cardholders will have potential access toa variety of interactive services such as TV-shopping, pay-per-view using Visa Cash, homebanking, TV programme access control, loyalty andelectronic coupons.
Philip Yen, Visa’s Senior Vice President, EmergingProducts, explained: “Being able to use your VisaSmart Card over the digital TV network creates aworld of new opportunities. One example would beto download special offers or coupons from a TVadvertisement onto your Visa Smart Card. As longas there are common standards, the scope to developnew applications is almost limitless.”
GI’s digital system is already delivering real-timeinteractive digital services for broadband networkoperators including video-on-demand, Internet
access and e-mail.
Contactsn Sharon Corbitt General Instrument Corporation( +1 212 323 1873: [email protected]
n Colin Baptie Visa International( +1 650 432 4671: [email protected]
CEP Specification
Common electronic purse (CEP) specificationswere scheduled to be published on 30 Decemberlast year by the CEPS Group comprising EuropayInternational, Visa Espãna/SERMEPA, VisaInternational and ZKA.
The specifications have been developed by the fourelectronic purse developers to enable the world’spurse programs to work together. They will be madeavailable to security laboratories for evaluation until31 January, 1999 and a final version will then bemade public.
Contactn Stacy Torbit Visa International (EU Region) ( +44 (0)171 795 5390: [email protected]
MIFARE PRO Volume Production
Philips Semiconductors has announced that it isgoing into volume production of its MIFARE PROwhich it describes as the world’s first true dualinterface card IC with a hardware triple-DEScoprocessor. The contactless technology is aimedat banking and transport applications which can existon a single card.
Philips says banks can benefit from the hightransaction volumes generated with contactlessMIFARE schemes in public transport achieving thecritical mass of users needed for large-scaleacceptance of national electronic purse schemes. Inturn, public transport operators and other serviceproviders can securely load their application onto abank card, removing the need and cost of issuingtheir own card.
Contactn Elisabeth Doerner Philips Semiconductors2 +43 3124 299270: [email protected]
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Gemplus’ 20th million MPCOS
Gemplus celebrated the delivery of its 20th millionMulti-application Payment Chip Operating System(MPCOS) since its introduction in 1994, bypresenting a commemorative card to Wee Tew Lim,CEO of NETS, the Network for Electronic Transfers(Singapore).
Nets is the highest user of the MPCOS card for itsCashCard in Singapore where it is estimated thatthere are 1.5 million cards currently in circulation.
Contactn Lisa Colley Gemplus( +44 (0)1705 486444: [email protected]
New Card Issuance Systems
A new series of card issuance systems designed formid-volume card issuers has been announced byDataCard Corporation.
The DataCard 500 Series include two models - the503 which can be configured with a PC-basedsoftware controller and a choice of three cardpersonalisation features, and the 504 which can beconfigured with the controller and fourpersonalisation features.
Both offer an optional card delivery system allowingissuers to print forms, affix cards, fold forms andinsert them into envelopes in line. DataCard saysthe issue rate is up to 500 cards per hour.
Contactn Mark Iverson DataCard( +1 612 988 1763: [email protected]
People on the Move
Ravi Sharma, a former executive of GE MedicalSystems, has been named President of DataCard’shealthcare company with responsibility fordeveloping new consumer-focused healthcaresolutions.
Smart Card loyalty software provider WelcomeReal-time, of France, has appointed Jean-Yves Grall,a former executive with INTEL Corporation, asChief Operating Officer.
NEC Develops FRAM
NEC Corporation (NEC) of Japan has developedthe technology for a Ferroelectric Random AccessMemory (FRAM) cell which it says is suitable foruse as embedded memory in CMOS logic withoutchanging any logic devices or processes.
FRAM can read/write at high speeds and does notrequire power to maintain data storage. The newcell is only 3.2 micron² making it less than one-quarter of the size of previous FRAM cells.
Contactn Aston Bridgman NEC Corporation( +81 3 3798 6511: [email protected]
Chinese Phone Opens Market
The potentially huge Chinese mobile phone markethas been opened up by Schlumberger with thedevelopment of its Chinese Phone Book designedspecifically for Chinese speakers providing akeypad and menus in their own language.
Until now, the lack of a Chinese-capable keypadhas meant that Chinese speakers have been unableto exploit the full Smart storage and retrieval featuresof mobile handsets, constraining the market forservice providers and phone vendors.
The Chinese Phone Book, developed atSchlumberger’s Asia Technical Centre, uses the 16Kbytes Activa SIM (Subscriber Identity Module)Smart Card technology to deliver a menu-drivensolution. It allows the storage of up to 255 telephonenumbers and provides menu-driven functions suchas quick search, abbreviated dialling and calleridentification using a Chinese character display
Contactn Patricia Ng Schlumberger( +65 746 9676: [email protected]
Diversinet/Gemplus Focus on TV
Diversinet Corporation, provider of authen-tication and security authorisation for digitalcommunications and electronic commerce, isjoining with Gemplus to target on-linecommunications and e-commerce for digital andcable TV providers over the Internet.
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new payphones accept chip-based phonecards.
During 1999, Schlumberger will install a further2,300 payphones in the Bangkok metropolitan area,plus a server which will allow parts of the newnetwork to accept electronic payment via magnetic-stripe credit cards as well as phonecards.
Schlumberger’s PF08C payphone features SmartCard and magnetic stripe readers that can beconfigured easily for any standard electronicpayment technology.
Ukraine contract
Schlumberger has also won a contract to provideUkraine with a nationwide network of Smart Card-based payphones.
The contract involves three types of equipment:Schlumberger PF08 Smart Card payphones, Smartphonecards and a PC-based monitoring system.
The network is being installed by Utel - the jointventure of Ukrtelecom, AT&T, Deutsche Telekomand PTT Netherlands.
Contacts
n Sylvie Mazzuca Schlumberger Test & Transactions
( +33 (0) 1 47 46 79 56
n Arkady Polyac Utel
( +380 44 229 8622
2 +380 44 229 8373
New Crypto Java Card
A new Java Smart Card which combines multi-applications with built-in cryptography has beenannounced by Schlumberger.
The card allows transactions, including the remoteloading of applications, to be authenticated usingdigital signatures.
Called Cyberflex Access, the card has 16K bytes ofEEPROM enabling it to store several applicationsor cardlets, together with a comprehensivecryptographic library including RSA, DES and tripleDES algorithms and the SHA-1 hashing utility.
Contactn Isabelle Marand Schlumberger( +33 (0)1 47 46 55 42: [email protected]
Microcontroller for Java Cards
The latest Smart Card IC from STMicroelectronics,the ST19SF64, is aimed at high end telecom, Javacards and similar multi-application cards.
STMicroelectronics has announced that the IC hasbeen selected by Schlumberger for its Cyberflexcard series and will enter volume production in thefirst quarter of this year.
The new device features an enhanced MemoryAccess Control mechanism that provides optimumsupport for secure operating systems in the form ofhardware firewalls. It also features 64K bytes ofEEPROM and 32K bytes ROM allowing it to handlethe most complex applications.
Contactn Maria Grazia Prestini STMicroelectronics( +33 (0)4 50 40 25 40
De La Rue to Supply Egg
De La Rue is to supply Egg - Prudential’s 24-hourdirect banking service - with magnetic stripe bankcards for use at either Midland Bank ATMs or TheRoyal Bank of Scotland Cashline ATMs.
The UK is in the process of changing all bank cardsto chip cards. According to Geof Hanley, Egg’sProject Manager, they will be introducingmicroprocessor cards for customers at a later date.
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Telecom Organ-isation Thailand hasupgraded its pay-phone network withover 1,200 Schlum-berger Smart Cardunits and a payphonemanagement system,in time for the start ofthe Asian Games lastmonth. Installedprimarily in three keyvenues associatedwith the sports event- Bangkok, Pattayaand Chiang Mai - the
Thailand Smart Payphone Network
Schlumberger PF80C payphones at theAsian Games venue - on the groundsof Thamasat University in Rangsit,Bangkok
Schlumberger PF80C payphones at theAsian Games venue - on the groundsof Thamasat University in Rangsit,Bangkok
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Malaysia MF Card in mid-1999
Malaysia will introduce multi-purpose electroniccash Smart Cards in July this year according to theMalaysian Electronic Payment System (MEPS) whoare leading the project and Bank Negara, the firstcommercial bank to become involved.
The Juwara-Sukom Smart Card was pilot testedduring the 16th Commonwealth Games and is nowstarting to be rolled-out. Card use is being extendedto the Plaza Phoenix Shopping Centre in Cheraswhere 90,000 cards will be on sale at RM50 each.
Ahmad Naser Baharom, Head of ProductDevelopment at Bank Bumiputra Malaysia Bhd(BBMB), explained that currently only the E-cashfunction was being offered to the public to enablethem to become familiar with how the card worksbefore the multi-purpose card is introduced.
He said the next phase would be in Bangsar in thefirst quarter of 1999 when they would join withseven other banks to introduce a multi-purpose card,which in addition to storing cash, would incorporatea credit card, bank card, telephone card and otherfunctions.
The Smart Cards are supplied by MicromoduleTechnologies, a subsidiary of Insas Bhd.Micromodule recently announced a merger withUS-based Amazing Controls to form AmazingSmart Card Technologies Inc.
Dr Tan Seng Chuan, Managing Director ofMicromodule Technologies, revealed that the jointventure would manufacture about 50 million cardsper year.
Racom Reorganises Business
Racom Systems, Inc., of Denver, Colorado, isimplementing a new business strategy to license itswireless Radio Frequency (RF) technologies to thesemiconductor and OEM markets.
In an announcement last month, the company saidthat it would continue to service existing contactlessSmart Card customers and applications and offertechnical services.
Racom’s President and CEO, Art Rancis, said theyhad reviewed their business in the light of SmartCard industry revenues lagging behind expectationsand adverse market conditions. During the last fourmonths, Racom has restructured, staff have been
reduced with engineering and R&D remaining theprimary focus, and secured a $350,000 loan on itsFRAM (Ferro-electric memory) RF-ID licensingroyalties from Ramtron International, one of itsprincipal stockholders. It is also pursuing additionalfunding from the investment community.
Rancis said: “Racom has successfully licensed itsRF and FRAM technology to industry leaders Rohm,Fujitsu and Hitachi, and we intend to build uponthat success during the coming year.”
The company says it also made contactless SmartCard system sales to ITT Industries of Berlin,Germany, and Otis, of Cernusco, Italy, andannounced a manufacturing and marketingpartnership with Iris Technologies.
BASIC Programmable Smart Card
ZeitControl cardsystems is promoting its BasicCardwhich it claims can be programmed in an afternoonwith no previous experience required.
There are two versions: the Compact BasicCard with9K ROM, 1K EEPROM and 256 bytes of RAM;and the Enhanced BasicCard with 17K ROM, 4KEEPROM and 256 bytes of RAM. Free supportsoftware can be downloaded at www.basiccard.com
The company says the most important differencebetween a BasicCard and a Java or MULTOS cardis not the programming language, but the price ofbetween US $10-15 compared with a BasicCardcost of US $2-6.
In small quantities, the Compact BasicCard is pricedat DM 4.95 or US $3.10 and the Enhanced BasicCardcosts DM 5.95 or US $3.70. Both versions areavailable now.
ZeitControl plans to develop a MIFARE PROBasicCard (contact and contactless in one chip) inpartnership with Philips Semiconductors with thefirst samples in mid-1999. RSA-based public keyBasicCards and multi-application cards will follow.
Contactn Kornelia Gramatte ZeitControl cardsystems( +49 571 50522-0 : [email protected]
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Proton for Windows/NT
Proton World International is now making its multi-purpose electronic purse Smart Card available tosmall and medium-sized organisations through theProton for Windows/NT platform.
In a major step forward, PWI has announced thefirst distribution contract with GFI Informatique,the French systems consulting, integration andsoftware specialists. The agreement covers France,Spain, Italy, Germany, North Africa and the UK.
The platform enables small and medium-sizedorganisations to adapt the Proton-based system totheir particular requirements. Smart Card schemescan be created, for example, for clubs, amusementparks, schools, universities and local authorities.Several applications can be created on one card.PWI says it is also developing a combinedcontact/contactless card scheme.
Contactsn Dominique Hautain Proton World International ( +32 2 724 5253: [email protected]
n Martine Canaque GFI Informatique( +33 (044 85 88 56 : [email protected]
GlobeID E-purse Services
GlobeID has announced its @dvanced Payment E-Purse Services solution which allows high volumepayment operators to accept Smart Cards as a newInternet payment instrument, and enablecardholders to load stored value onto their card overthe Internet and to use it to pay for purchases on theInternet or in the High Street.
Contactn Courtney Silkman GlobeID Software( +33 (0)1 56 54 19 26: [email protected]
Fortress Announces USB Readers
Fortress U&T have announced the first USB(Universal Serial Bus) Smart Card readers. TheUSB Smart Card and USB Hub Smart Card readersboth use USB interface technology - the newstandard of computer manufactures and Microsoftfor connecting peripherals (keyboard, mouse,speakers etc) to a PC without need of an externalpower supply.
The readers offer full speed USB (122 Mbps) andare complaint with Windows 98, PC/SC Plug andPlay and offer support for T=0 and T=1 protocols.
Although the units were not released until last month,Fortress reports orders of several thousand for early1999.
Contact • for further information or an evaluation kit n Garry Malone ICTS (UK)( +44 (0)171 637 7876: [email protected]
Visa Electron Cards for India
Visa International has announced plans to launchits Electron electronic debit card in India in 1999.Visa’s Country Manager of India, ChandraAgnihotri, said that eight Indian banks, includingANZ Grindlays, Citibank and HDFC bank, will beissuing the Electron card in the first half of 1999.
Doug Lawson, Director of Deposit Access for VisaInternational Asia-Pacific, said that by leveragingnew technologies such as Smart Cards and theInternet, the company will offer consumers newvalue and conveniences.
Visa has also formed an alliance with India’s leadingconsumer payment processing service company,Equifax Venture Infotech, for processingtransactions quickly and securely. The partnershipwill support the growth of point-of-sale terminalsand ATMs and provide a strong platform for theintroduction of Smart Cards and other debit cards.
Visa and OIS E-comm Alliance
Visa International and Dublin-based OfficeIntegrated Solutions (OIS) have formed an allianceto deliver commercial e-commerce solutions tobusinesses throughout Europe.
The alliance will bring together Visa Purchasingand OIS’s e-purchasing system, Purchasing Expert.Together they will allow companies to orderproducts on-line and use features such as cataloguemanagement, automated order submissions,approval routing and order tracking.
Contactn Camilla Saunders Visa International( +44 (0)171 795 5267
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Industry Review 1998
It was a significant year for the continued growthof Smart Card applications worldwide and for thenumber of take-overs, joint ventures and agreementsas the industry readies itself for further growth aswe approach the millennium. We saw the expansionof the major electronic purse schemes and, of course,that announcement from Microsoft that it wasentering the Smart Card arena.
Acquisitions
American Banknote Corporation acquired CPSFinances SA, France’s fifth largest cardpersonaliser, marking its intention of moving intothe Smart Card market in Europe. CPS isMasterCard, Visa and Europay certified and offerscard personalisation and distribution for both stripeand Smart Cards.
Bundesdruckerei GmbHbought additional sharesto take a majority interest in Smart Cardmanufacturer ORGA Kartensysteme GmbH.
De La Ruetook over Smart Card developer XLOGto utilise its experience in application development,digital signature, transaction security and cardpersonalisation. It also announced an outlineagreement to acquire Milan-based Cellograf-SimpSpA, the leading Italian manufacturer of plasticcards for the financial market.
Electrowatt sold off its worldwide payphone andSmart Card activities, including Landis & GyrCommunications SA, headquartered in Geneva,Switzerland, and related business and operationsoutside Switzerland, including ODS Landis & Gyrto an investment group comprising Texas PacificGroup and private Swiss investors. The sale wasrequired by the European Commission as a conditionfor the approval of the merger of Electrowatt andSiemensof Germany.
GPT, the telecommunications systemmanufacturer, bought an equity stake in Vancouver-based QI Technologies Corporation, thusacquiring exclusive world rights to manufacture andsell QI’s SmartKit card reader equipment.
ICL acquired US-based Product Technologies Inc(PTI) which specialises in software for cardmanagement systems and the provision of end-to-end Smart Card solutions, including ICL’sSmartCity which it co-developed with ICL.
PubliCARD Inc completed the acquisition ofTritheim Technologies Inc which has a productline of Smart Card readers for Personal Computersand a Smart Card package called PC Defender, fordata security and electronic commerce. PubliCARDsaid it planned to expand its penetration of the USSmart Card industry.
Transaction Systems Architects Inctook overSmart Card Integrations Limited (SCIL) , aprivately owned corporation headquartered inLondon, UK.
Joint Ventures
Groupe Bull and InfoRéalité created the jointsubsidiary, XIRING , to design and market low-costSmart Card peripherals, such as pocket readers, fora broad market. XIRING also bought thecorresponding assets of the OKI AdvancedProducts Division from the Japanese company.
Intellect, of Australia, formed a joint venture withUK-based Retail Logic, a developer of paymentcard processing software, with plans to develop aSmart Card solution for handling multiple electroniccash schemes and loyalty cards.
Agreements
Bull and Dai Nippon Printing Co (DNP)strength-ened their 10-year co-operation by signing a masteragreement extending the fields covered jointly toresearch and develop new products, production,exchange of licenses and distribution agreements inthe Smart Card field.
De La Rueformed a global alliance with AustralianSmart Card management software provider ChipApplication Technologies (CAT)to jointly marketa multi-application Smart Card solution.
Gemplus and SCM Microsystems, California-based specialists in secure access technologies,signed an agreement for the development andmanufacturing of Smart Card readers including aPC/SC compliant Smart Card reader interoperableacross multiple platforms, and a reader designed tomeet the needs of the German healthcare and bankingmarkets.
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Gemplus also announced it was working with RSComponents to deliver Smart Cards and cardreaders and selected Gemplus products have beenincluded in RSC’s catalogue.
Smart Card manufacturer ORGA Kartensystemeteamed up with DARUMA , a leader in the Braziliantelecommunications industry with a strong presencein the Electronic Funds Transfer market, to jointlypromote Smart Card technology in Brazil.
Schlumberger and IT services company Atosformalised a year-long alliance known as ATIS(Electronic Transactions Integration Services) toprovide turnkey solutions for Smart Cardapplications
Oberthur Smart Cards USA entered into a co-operative agreement with TECSEC Inc, of Vienna,Virginia, specialists in cryptography, keymanagement and Smart Card-based solutions.Under the agreement, TECSEC was to provide itsConstructive Key Management software for SmartCards manufactured by Oberthur.
On Track Innovation (OTI) , of Israel, andVeriFoneformed an alliance to market and integrateOTI’s EYECON contactless Smart Card technologywith VeriFone’s products.
Philips Semiconductorsand Hitachi agreed to co-operate in the development of contactless SmartCards using Philips’ MIFARE technology.
Card production
American Pacific Technology, of San Francisco,California, formed a US $6 million joint venturewith Nanjing Pu-tian for the production of SmartCards in Nanjing, China, and the development ofturnkey Smart Card solutions for the global market.APT is providing 39% of the funding with 61%coming from Nanjing Pu-tain whose mainshareholder is Post and Telecom IndustrialCorporation.
Bull Information Systems (UK) boosted its cardproduction and customisation capability byacquiring the card production and bureau activitiesin Europe of NBS Technologies, of Toronto,Canada. The NBS plant in the UK has an annualproduction rate of more than 60 million cards.
Electronic Data Systems (EDS) ElectronicBusiness unit and Oberthur Smart Cards USAformed an alliance to expand their expertise andofferings in plastic card manufacturing, cardpersonalisation and Smart Cards. The agreementcalled for EDS to transfer all assets from its cardproduction facilities in Westlake, Ohio and LaMirada, California, which produce over five millioncards annually, to Oberthur based in Los Angeles.Oberthur will assume responsibility for allproduction operations and EDS will continue tosupport its client base with expanded card services.
Gemplus formally opened its card manufacturingplant in Singapore.
GPT and Singapore Telecommunications(SingTel) agreed to invest 15 million Singaporedollars to set up a phonecard manufacturing facilityin Singapore with plans to initially produce 60million cards a year for the Asia-Pacific market, andthe establishment of a technology centre to enablenew microprocessor card-based applications to bedeveloped quickly for the region.
Motorola announced that its Smartcard SystemsBusiness (SSB) and China Huaxu Gold Card Co.,signed a joint-venture agreement to combine SmartCard design, manufacture, software development,systems integration and services in China.
Schlumberger’s new Smart Card production plantand personalisation facility in Mexico City wasformally opened with a capacity to produce andpersonalise a total monthly output of five millionmagnetic stripe cards, five million Smart Cards and30 million cheques for the banking sector.
Chips
American Microdevice Manufacturing Inc(AMMI) unveiled a new multi-applicationmicrocontroller based Smart Card with 16K bytesof EEPROM and targeted at the growing Internetsecurity market. Earlier it had announced a newproduct line of Smart Cards for GSM and DCS 1800networks with 8K and 16K bytes of EEPROM tobe followed with a 32K bytes card.
Atmel Corporation unveiled the AT90SC3232CSmart Card integrated circuit microcontrollerfeaturing 32K bytes of Flash program memory, 32Kbytes of EEPROM and 1K byte of RAM.
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It also includes a crypto-coprocessor withpreprogrammed functions for cryptography andauthentication.
Philips Semiconductorsannounced a Smart Cardcryptocontroller with an embedded 32-bit FameXcrypto coprocessor for public key encryption. Calledthe P8WE5032, it featured 32K bytes ROM, 2.3Kbytes RAM and 32K bytes EEPROM. The firstderivative is the P8WE5016, a secured Smart Cardcontroller with 16K bytes EEPROM.
Motorola introduced four new chips with up to 32KEEPROM. Based on Motorola’s M68HC05 chipcore, they will enable card issuers to run multipleapplications on one card. They are also beingproduced on 8-inch (200mm) wafers - an industryfirst for smart chips - using 0.4 to 0.27 micron processgeometries.
Siemens Semiconductorsbegan volume shipmentof its 16-bit cryptocontroller for multi-application,high security Smart Card applications, theSLE66CX160S with a chip surface of less than 20mm², up to 32K bytes EEPROM, 32K bytes ROMand 1.2K bytes of RAM. It also claimed that itsnew SLE66CL160S chip card controller as theworld’s first device to support the two contactlessmodulation methods for transmission in the radiofrequency band, ASK 100% and ASK 10%(Amplitude Shift Keying). The chip has 16KEEPROM, 32K ROM and 1.2K RAM and enablesDES encryption.
Germany’s largest electronics group, Siemens,announced it was to close its £1.1 billionsemiconductor plant in North Tyneside, UK, withthe loss of 1,100 jobs due to the downturn in thesemiconductor industry. The plant was officiallyopened by Her Majesty the Queen in May 1997.
Government
The UK government participated in BarclaysBank Smart Card-based digital signature service,Barclays Endorse, to enable individuals to registertheir self-employed status across the Internet to threegovernment agencies - Contributions Agency,Inland Revenue and HM Customs & Excise.
Plans to launch two large-scale road toll trials - onein Scotland and one in England - to assess thefeasibility of introducing tolls for drivers were
announced by Deputy Prime Minister John Prescottwho invited local authorities to participate in theschemes.
The US Department of the Treasury’s FinancialManagement Service (FMS)conducted severalstored value card projects to investigate electronicpayment technologies. These include schemes atFort LeonardWood, Missouri; Fort Knox,Kentucky; Veteran’s Affairs medical facilities atTampa, Florida and Bronx, New York; Fort Sill,Oklahoma; Lackland Air Force Base, San Antonio,Texas; and the US Air Force Academy in ColoradoSprings.
The US Navy introduced a Smart Card programinvolving electronic cash, healthcare, dental andfood service applications at its Recruit TrainingCommand in Great Lakes, Illinois.
Internet and E-commerce
De La Rue Card Systemsand iD2 Technologiesteamed up to deliver secure financial transactionson the Internet.
Gemplus Corporation and VeriFone announceda worldwide agreement to develop and distributeelectronic commerce solutions for financialtransactions over the Internet using Smart Cards.
Gemplusand VeriSign Inc expanded their strategicrelationship to target enterprises looking to secureon-line communications and commerce over theInternet and private IP networks. In the first phaseGemplus has bundled VeriSign’s Digital IDs withits GemSAFE portable Smart Card-based solutionfor securing network transactions.
Giesecke and Devrientacquired the Security inComputer Networks Division of Telenet GmbHKommunikationssysteme with the aim ofimproving security of financial transactions on theInternet and in electronic commerce generally.
ICL and Visa formed a strategic alliance to delivercommercial e-commerce solutions.
Java cards
Schlumbergerstarted shipping in January its latestJava-based card, the Cyberflex Multi 8K bytesEEPROM Card, offering enhanced support forsecure multiple application.
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It is built on the Cyberflex 2.0 Core technologyintroduced in the previous year by Schlumberger.In Q3 Schlumberger began shipping the CyberflexOpen 16K Java Card
Other manufacturers entered the Java card marketwith Gemplusoffering GemXpresso with a 32-bitRISC processor, Bull opting for 8K bits of EEPROMfor its Odyssey I card, Giesecke & Devrientintroducing the C@PPUCCINO multi- functionalcard and De La Rueannouncing GalactIC.
Telecommunications
Telecommunications giant, Telstra’s plans tobecome a major force in Smart Cards in Australiacontinued with its roll-out of around 30,000 Smartpublic payphones and the introduction of prepaidTelstra Smart Phonecards. Telstra also introducedstudent cards at three Australian educationestablishments, including the University ofAdelaide, for identification, administration andlibrary card functions, with a reloadable electronicpurse to follow.
GSM operator Radiomobil and Expandia Bank,both based in Prague in the Czech Republic,launched the first commercially available SmartCard SIM-based Mobile Banking Service which canoperate with a range of standardised handsets.
Bull entered the GSM market for the first time witha range of SIM cards.
Vodafone, the UK-based mobile phone operator,bought New Zealand’s only GSM cellular networkfor £237 million from Bell-South New Zealandowned by BellSouthand Singapore Technologies.
Electronic Purses
The major electronic purse players continued toexpand their activities worldwide and some of thehighlights are reviewerd here.
GeldKarte
The GeldKarte electronic purse technology of theGerman banks it being promoted outside the country.Luxembourg was the first country in Europe tointroduce the GeldKarte technology in its move to
exchange all ec (Eurocheque) cards with chip cardelectronic purses. The new card will be known asMinicash in Luxembourg and will enable paymentsin Euros. GeltKarte technology is also being usedin trials with French banks (see following page)
Mondex
Mondex, after its take-over by MasterCard a yearago, began gathering strength with franchise holdersstarting to roll-out trials and new franchises beinggranted.
Mondex sold its first franchise in South America toBanco de la Republica Oriental del Uruguay, thelargest bank in Uruguay, and Banco de Montevideo,the country’s third largest bank.
Posten SDS, the high tech subsidiary of theNorwegian state postal organisation purchased thefranchise rights for Mondex in Norway. It was joinedin the franchise by Telenor Conax, a subsidiary ofthe Norwegian state telecommunications company.
In Chile, a Mondex franchise was bought by sixbanks with plans to use the MULTOS, Smart Cardoperating system to develop electronic cash, debitand credit functions on the same card as well asservices such as loyalty programs or electronicticketing.
Ghana Commercial Bank, the country’s largestbank, also took the franchise rights for Mondex.
International financial services group, NationalAustralia Group , purchased a five per cent stakein the share capital of Mondex UK. Along with threeother Australian banks, it holds the Mondexfranchise for Australia and is a participant in otherfranchises in the US, Ireland and Vietnam.
Credomatic International Corporation , themajor card issuer, acquirer and processing agent inCentral America, launched Mondex in Costa Rica.
Bank of Scotland implemented its first Mondexelectronic cash project at Edinburgh Universityproviding ID, access control and electronic purseapplications for staff and students.
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Proton
Proton World International was created tocontinue the development and licensing of ProtonSmart Card applications with Visa, AmericanExpress, ERG and Banksys (developers of thetechnology) as shareholders. They were later joinedby Dutch banking consortium InterpayNederland, which consists of all the banks in TheNetherlands (about 70), as the fifth shareholder.
A multi-purpose reloadable Smart Card based onProton technology and called ECARD, waslaunched in Australia early February by QuickLinkCard Systems, a subsidiary of Perth-based ERG.
Mexican bank Inbursa, part of the Grupo Carso,a major Mexican commercial and financialconsortium, licensed the use of the Proton SmartCard electronic purse technology.
Visa Cash
Visa International began trials of Visa Cash inTaiwan with disposable cards and plans forreloadable cards later.
Visa Cash was also launched in Ireland with Bankof Ireland, AIB Bank and Telecom Eireannin thetown of Ennis. Consumers will be offered theopportunity to load value at home over the phoneusing personal ATMs provided by Telecom Eireann.
In the UK, Visa announced it plans to extend itsVisa Cash programme in the city of Leeds to therest of the country.
An agreement was signed with Italian national cardprocessor, Società per I Servizi Bancari (SSB)todevelop interoperability between MINIpay, Italy’snational electronic purse, and Visa cash. SSB alsoagreed to implement the EMV specifications.
Visa and two of the world’s largest operators ofdomestic electronic purse programs - the ZKA inGermany and SERMEPA in Spain - teamed up todevelop Common Electronic Purse Specifications(CEPS) including the use of public key technology.The specifications will enable cardholders to storetheir national currency, the euro and any othercurrencies on one card and pave the way forworldwide interoperability. The group was laterjoined by Europay.
French trials
The French, who managed to get all the bankstogether to become the first country in the world tochange from magnetic stripe to chip cards, havetaken a fragmented approach to launching electronicpurse cards.
Banking group Crédit Mutuel - which purchased51% of the franchise rights to Mondex - is to pilotthe first Mondex electronic cash cards to hold theEuro. But a consortium of French banks lead byCrédit Agricole and BNP, are to test an electronicpurse based on the German GeldKartesimultaneously in cities in France and Germany.Then there is Modeus, an electronic purse andtransport pass scheme being promoted by Caissed’Epargne, La Poste, Société Générale, BanquePopulaire, France Telecomand transport operatorsRATP and SNCF. Either France is making the casefor interoperability or it is a fight for market share.
Schemes end
First Union and the Metropolitan Atlanta RapidTransit System (MARTA) wound up the Visa Cashprogram which was launched during the 1996Olympic Games in Atlanta, with the parties agreeingthat the way ahead is with contactless technologyand loyalty programs.
Mondex ended its three-year electronic cash trialin Swindon, UK. The much-publicised trial failedto excite the residents with only 14,000 cardholdersand some 700 retailers taking part. Mondex,however, claimed that as a technical testbed itprovided valuable experience and feedback and thattake-up among bank customers at 25% was high forthis type of experiment.
The stored value card trial in Manhattan’s UpperWest Side, which brought Mondex and Visa Cashtogether to test interoperability, also ended - beforeit fizzled out. Some 100,000 Smart Cards were issued- Visa Cash cards by Citibank and Mondexelectronic cash cards by Chase Manhattan.
Merchants were unhappy with the take up bycustomers and about a third eventually returned theirterminals or switched them off. The lesson was thatNew Yorkers at least wanted more than just a pursecard.
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Future offers are likely to be in closed user groupslike university campuses with the card offering otherbenefits such as loyalty points, entry to leisurecentres, paying for travel on public transport oraccessing the Internet.
Some highlights
Microsoft , the world’s largest computer softwarecompany, caused the industry to sit up and takenotice with the announcement of a new Smart Cardoperating system for Windows. Typical solutionsare seen as secure network authentication, securecorporate transactions (such as on-line banking),electronic cash and customer loyalty programs.
TranSys, a consortium of Electronic Data Systems(EDS UK), Cubic Corporation, ICL and W SAtkins , was officially awarded the 17-year LT(London Transport) Prestige contract worth £1billion to develop a new integrated revenuecollection service using Smart Card technology forLondon’s buses and Underground.
In France, the Vitale health project began rollingout with some 29 million Smart Cards beingdistributed to families nationwide to store theirsocial security details and automate thereimbursement of healthcare fees. In a later stage,known as Vitale 2, cards will be issued to individualsmuch to the irritation of medical practitioners whodo not understand the logic of having two issues -and they are French!
Professor Cyborg
Some light relief was provided by Professor KevinWarwick of the Department of Cybernetics atReading University in the UK with the claim thathe was the world’s first cyborg - part man, partmachine - after having a silicon chip transponderimplanted in his arm. A radio frequency signaltransmitted to the transponder, generated the currentto activate the chips which then transmitted a uniquecode identifying him so that doors openedautomatically, lights came on and his PC greetedhim with a recorded message.
Then the Professor persuaded his wife Irena to havea similar implant in an experiment to developtelepathic communications. He predicted that futurechips connected directly to a couple’s centralnervous system would enable lovers tocommunicate by thought alone.
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