Smart Card Alliance Transportation Council: Open Bank Card Payments, Convergence and NFC Are Priority Topics for 2011

PRINCETON JUNCTION, NJ--(Marketwire - March 24, 2011) -  Educating on the benefits of open bank card payments, as well as convergence of smart card-based ID and transit applications and NFC in transit is the focus for the upcoming year, the Smart Card Alliance Transportation Council said today, also announcing the 2011/2012 officers and steering committee.

"The Transportation Council's goal is to be a solid, reliable resource for transit agencies of all sizes working on updating their fare collection systems," said Craig Roberts, Utah Transit Authority, and chair of the Transportation Council. "This is why we stay up-to-date and provide resources on what is happening today in the transit industry, such as current pilots and open bank card implementations. For 2011, we are also asking 'what's next,' answering the questions agencies have on new technologies and solutions and exploring the ways they can fit into their transit systems."

2010 was a busy year for the Transportation Council, with activities revolving around opportunities for transit agencies to collaborate with the financial bank card industry in accepting open contactless bank cards for fare payment. The Council held a successful Transportation Council members' summit in New York City in September, hosted by MTA NYC Transit, to discuss open contactless bank card payments for transit and learn from the pilot conducted by the New York Metropolitan Transportation Authority (MTA) with New York City Transit (NYCT), Port Authority New York New Jersey (PANYNJ) and NJ TRANSIT. Other accomplishments included an update to the white paper "A Guide to Prepaid Cards for Transit Agencies" for 2011, and the development of an open bank card payments for transit workshop that will be delivered in Miami on March 27^th in cooperation with the APTA Fare Collection Workshop. 

For 2011, the Council will continue the focus on open bank card payments, while adding new projects that reflect the changing transportation and financial industries. This includes projects on convergence, including the possibilities for the convergence of smart card-based ID and transit applications and among transit, parking and toll payments, as well as projects on Near Field Communication (NFC) and the impact NFC is expected to have on transit. 

"In the last few years, the transit and payments industries have become more closely linked. With regulations in the United States facing changes, and new technologies like NFC emerging, it is a good time to seriously look at how these changes will affect the future of transit," said Randy Vanderhoof, executive director of the Smart Card Alliance. "The Transportation Council can always be counted on to address and educate the industry on developing issues like these, so we can expect many additions to their extensive resources in 2011."

The 2011/2012 Transportation Council officers are:

• Chair - Craig Roberts, Utah Transit Authority
• Vice chair, transit - Gerald Kane, Southeastern Pennsylvania Transportation Authority (SEPTA)
• Vice chair, parking - Peter Burrows, Parkeon
• Vice chair, transit - Mike Nash, ACS, A Xerox Company

The Council is managed by a steering committee that includes a broad spectrum of leaders from the transportation, financial services and smart card industries. Current steering committee members include:

• Dave Blue, Cubic
• Doug Deckert, Booz Allen Hamilton
• Mike Dinning, U.S. Dept. of Transportation/Volpe Center
• Steve Frazzini, MTA NYC Transit
• Margaret Free, Giesecke & Devrient
• Greg Garback, Washington Metropolitan Area Transit Authority (WMATA)
• Linh Huynh, INSIDE Secure
• Paul Korczak, Korczak & Associates
• Mike Meringer, VeriFone
• Bob Merkert, SCM Microsystems
• Eric Reese, Chicago Transit Authority
• Martin Schroeder, American Public Transportation Association (APTA)
• Brian Stein, Accenture
• Faye Surrette, MasterCard Worldwide
• Sandy Thaw, Visa Inc.

To download the white papers free of charge, and for more resources from the Smart Card Alliance Transportation Council, visit http://www.smartcardalliance.org/pages/activities-councils-transportation. 

About the Smart Card Alliance Transportation CouncilThe Smart Card Alliance Transportation Council is focused on promoting the adoption of interoperable contactless smart card payment systems for transit and other transportation services. The Council is engaged in projects that support applications of smart card use. The overall goal of the Transportation Council is to help accelerate the deployment of standards-based smart card payment programs within the transportation industry.

About the Smart Card AllianceThe Smart Card Alliance is a not-for-profit, multi-industry association working to stimulate the understanding, adoption, use and widespread application of smart card technology. 

Through specific projects such as education programs, market research, advocacy, industry relations and open forums, the Alliance keeps its members connected to industry leaders and innovative thought. The Alliance is the single industry voice for smart cards, leading industry discussion on the impact and value of smart cards in the U.S. and Latin America. For more information please visit http://www.smartcardalliance.org.

Contact:Deb Montner
Montner & Associates
203-226-9290
dmontner@montner.com

Verifone CEO on Securing Mobile Payments

See Video here: VeriFone CEO on Securing Mobile Payments

DOCOMO and KT Agree to Launch Cross Border NFC Services

Image via CrunchBaseDOCOMO and KT Agree to Launch Cross-border NFC Services
AkihabaraNews


NTT Docomo, one of Japan's 3 biggest players in the telecom market, recently announced an agreement with Korea's leading telecom operator KT Corporation, to use their NFC-technologies (Near field communication) for cross-border services for mobile payments, mass-transit ticketing, promotional coupons, etc., which they will launch in their respective markets of Japan and South Korea from around the end of 2012...<>


Press Release:


NTT DOCOMO, INC. announced today an agreement with South Korea’s leading telecom operator, KT Corporation, to use near field communication (NFC) technologies to develop cross-border services for mobile payments, mass-transit ticketing, promotional coupons, etc., which they will launch in their respective markets of Japan and South Korea from around the end of 2012.

Through their joint Business & Technology Cooperation Committee, the two companies are developing NFC common specifications that will be incorporated in devices, networks and billing platforms for seamlessly connected mobile NFC services. Customers travelling between South Korea and Japan will access the services using compatible Android handsets embedded with contactless IC chips.

DOCOMO also plans to submit an outline of the common specifications to global industry associations and standardization bodies, such as the GSM Association.

With the ultimate goal of building an international environment for compatible NFC services, DOCOMO has formed strategic tie-ups with payment technology company brand Visa Inc., NFC chip and mobile handset manufacturer Samsung Electronics Co., Ltd. and SIM card vendor Gemalto N.V. In addition, DOCOMO will collaborate with Sumitomo Mitsui Card Co., Ltd. and bitWallet, Inc. for enhanced cross-border services.

To prepare for the services, DOCOMO and KT will accelerate development of their existing infrastructures, as well as solicit the participation of NFC-based service providers in various industries. DOCOMO has been providing NFC-based Osaifu-Keitai™ mobile-wallet services in Japan since 2004. KT has been operating a post-paid mass transit service in South Korea since 2002.

DOCOMO will demonstrate the envisioned international NFC services at its exhibition booth during Mobile World Congress 2011 in Barcelona, Spain from February 14-17.

Hyunmi Yang, Executive Vice President of KT, said, “Based on our long commercial experience in various financial-convergence services, the NFC collaboration between KT & DOCOMO will contribute to building a sustainable global ecosystem.”

Bill Gajda, Head of Visa Mobile, Visa Inc., said, “Visa has been instrumental in developing the global standard for mobile payments based on NFC technology. We welcome this project and see great value in extending the security, convenience and global interoperability of NFC-based mobile payments to consumers in Japan and Korea.”

“We are delighted to work with NTT DOCOMO by providing competitive NFC IC technology to develop an NFC ecosystem that offers retail and commercial customers a very high degree of convenience, services, interactivity and security on their mobile devices. Thus, we believe this business collaboration will lead to a market-leading solution, new innovation and broad commercial acceptance around the globe,” said Dr. Dojun Rhee, Vice President of the Marketing Team, System LSI Division, Samsung Electronics Co. Ltd.

“Gemalto is delighted to contribute its world-leading NFC expertise for DOCOMO’s deployment of cross-border mobile contactless services,” commented Tan Teck-Lee, President, Gemalto Asia.

Hideo Otsuka, General Manager of the IT Business Dept. of Sumitomo Mitsui Card Co., Ltd., said, “We’ll aggressively collaborate more with DOCOMO so that we could develop new, fascinating cross-border payment services based on NFC technologies.”

Kazumasa Miyazawa, Chief Strategy Officer, Head of the International Business Dept. of bitWallet, Inc., said, “The specifications announced today are an ideal solution for the development of NFC services worldwide. Through their adoption, we aim to introduce seamless Edy services worldwide.”

NTT Docomo can’t wait to digg into this project, as they are already one of Japan’s leading providers serving over 57 million customers in Japan, including 48 million using i-mode™, a  mobile e-mail/Internet platform, and 55 million using FOMA™, the l 3G mobile service based on W-CDMA.

Related articles

• NTT DOCOMO to remove SIM lock from new phones; To provide (micro) SIM cards [Sexy Japanese phones go West] (intomobile.com)
• Japanese Docomo and Korean KT team-up on cross-border NFC (intomobile.com)
• Japan wants in on NFC (go.theregister.com)
• Japanese Carrier NTT DoCoMo Pulls Out Of U.S. Wireless Show Due To Quake (blogs.forbes.com)
• Cellular Carriers in Japan, China, South Korea to Tie-up (pcworld.com)
• Japan Telecom Networks Won't Be Fully Restored for Months (pcworld.com)

Have Cybercriminals Hacked Visa/MC 3-D Secure?

From InfoSecurity Magazine:

You're probably familiar with the 3-D Secure system of card security for online transactions - aka Verified by Visa (for Visa) and SecureCode (for MasterCard) - but now a security researcher is reporting that cybercriminals may have found a way around the online transaction security. According to former Washington Post security researcher Brian Krebs, a dashboard panel in a cracking utility he accessed online has a tab labelled `Arcot.' "Arcot Systems is the company whose software powers the authentication system used by MasterCard’s SecureCode and Visa's Verified by Visa programs", he says in his latest security blog. "What's interesting is that the thieves could defeat these security systems by gathering personal data on victim card holders, which they appear to have done here", he adds.  <>

Related: Verified by Visa: "Textbook Example of How NOT to Design an Authentication Protocol" -ePayments News Blog

International Payment News Roundup

From VRL/Cards International

McDonalds LatAm set to deploy VeriFone's PAYware

Wed, Mar, 23 2011

E-payments solutions provider VeriFone will supply its PAYware merchant card payment and settlement hosted service to Latin American restaurant operator Arcos Dorados – manager of the McDonald’s brand in the region.Free

LatAm virtual goods market to double by 2012

Wed, Mar, 23 2011

Latin America’s virtual goods market is set to increase by more than 50% to $517m by 2012, according to research by online monetisation platform PlaySpan.Free

Fed passes amendment to CARD Act

Tue, Mar, 22 2011

The Federal Reserve’s proposed amendment to Regulation Z of the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 may have drawn many critics but the controversial rule has been passed.Free

CyberSource launches real-time fraud detection

Tue, Mar, 22 2011

Payments management company Cybersource has developed ‘Decision Manager’ - a real-time fraud detection radar for online merchants.Free

Nokia and UBI take advantage of NPCI's switching fee

Mon, Mar, 21 2011

The National Payments Corporation of India (NPCI) has reduced its proposed switching fee for mobile money transfers from 25 paise to 10 paise in a bid to encourage the use of m-payments.Free

UnionPay strengthens presence in Russia

Mon, Mar, 21 2011

Russian bank Gazprombank will launch Chinese credit-card organisation UnionPay’s card payment service at its ATMs and merchants by the end of the year.Free

Google to test NFC m-payments

Wed, Mar, 16 2011

Google plans to team up with e-payments technology provider VeriFone to begin testing m-payments using near-field communication (NFC) technology in retail locations around the US.Free

Visa announces 2010 LAC results

Tue, Mar, 15 2011

Visa’s payments volume grew by 23.2% in the Latin America and Caribbean (LAC) region last year reaching $270bn, according to the network’s 2010 year-end results.Free

Apple shuns NFC for iPhone

Mon, Mar, 14 2011

The future of contactless m-payments looks shaky once again as tech giant Apple confirms it will not include near-field communication (NFC) chips in its iPhone 5 due for release this year.Free

US consumers eye credit cards in 2011

Mon, Mar, 14 2011

Young consumers in the US are said to be showing more interest in credit cards as the economy gradually starts to pick up, according to a study by the Auriemma Consulting Group (ACG).Free

Conference to Examine Impact of Fed’s Proposed Debit Card Regulations

Banks, Merchants and Consumer Groups Wrangle Over Likely Outcome of Controversial Change to Debit Card Fee Structure

REPEATING...

--(BUSINESS WIRE)--PYMNTS.com:

“What’s the Problem, What’s the Solution, Who Wins, Who Loses”

Host:					PYMNTS.com
What:					A half-day conference will examine the potential impact of proposed Federal Reserve Board regulations on debit card interchange fees. Under the proposed regulations, bank debit card fees charged to merchants for debit card transactions would drop by some 80%. Banks have expressed dismay over what would be a massive revenue loss, while merchants applaud the proposal. The conference will examine what the rules ultimately could mean for consumers, banks and economic efficiency. A final decision by the Fed is expected on April 21, 2011, unless Congress passes legislation to postpone the deadline to allow for further study.
Who:					Economists, law professors and representatives from banks, networks, merchants and consumer groups. Participants will include John Buhrmaster, chairman and president of 1st National Bank of Scotia; Mallory Duncan, senior vice president, general counsel, National Retail Federation; Chris McWilton, president, U.S. Markets, MasterCard Worldwide; and Travis Plunkett, legislative director, Consumer Federation of America.
When:
					Tuesday, March 29, 2011, 9:00 a.m. – 2:30 p.m. ET
					9 a.m., “Reasonable Regulation of Debit Card Fees,” Martin Neal Baily, Bernard Schwartz Senior Fellow in Economic Studies, Brookings Institution, and Chairman of the Council of Economic Advisors under President Clinton.
					10:15 a.m., “The Economic Impact of Durbin on Consumers and Small Businesses,” Richard Schmalensee, professor of Economics, Management and Dean Emeritus, MIT Sloan School of Management, and a member of the Council of Economic Advisors under President George H.W. Bush.
					11:00 a.m., “What’s the Problem, What’s the Solution, Who Wins, Who Loses,” Panel discussion with law professors Adam Levitin (Georgetown), Ronald Mann (Columbia), and Todd Zywicki (George Mason), and economist James Miller III (former OMB Director), moderated by Douglass Eliott (Fellow at Brookings Institution).
					12:30 p.m., Debit Card Stakeholder Roundtable
Where:
					Willard InterContinental Hotel
					1401 Pennsylvania Ave., NW
					Washington, D.C. 20004

About PYMNTS.com

PYMNTS.com is an online media channel that captures user-generated and expert-driven commentary, information, news, and analysis on “what’s next” in the payments sector worldwide. The site provides a platform for industry professionals to share content related to company and product developments, to tap into the collective commentary and analysis from experts, bloggers and industry pundits, and to interact with industry thought leaders and other influencers on topics of critical importance to the future of the sector. A joint venture of Business Wire, a Berkshire Hathaway Company, and Market Platform Dynamics, PYMNTS.com redefines the ways in which B2B news and information is both generated and distributed.

Contacts

Healy Corporate Communications
Sean Healy, 201-857-2520
sean@healycorp.com

Permalink: http://www.busin

VRL: New VRL Research Looks At Contactless Cards Take Up

March 25, 2011 10:59 AM Eastern Daylight Time 

Latest report from VRL highlights a lag between contactless card issuance and merchant acceptance of this form of payment

LONDON--(BUSINESS WIRE)--Top financial and professional services information provider VRL has released a new report ‘Contactless Cards: Tentative Steps’ which examines market take up of contactless card across the US, Europe and Asia Pacific. While there has been significant media attention around the growth of contactless cards, this report looks at whether there is real momentum behind this payment technology.

The picture that emerges is one of fragmentation and complex commercial models, with the majority of merchants unlikely to fund migration to contactless payments unless a clear business case can be identified. This is particularly evident in the US where there are 100 million contactless cards in issue, yet only two percent of merchants are reported to accept this form of payment.

In the report, industry specialist Sarah Richardson-Clarke examines worldwide trends finding that in countries such as Turkey and the UK, card issuers and payment processing companies are paying for the introduction of the required technology to encourage growth. Outside the US, UK card providers are the most proactive, with over 11 million cards in circulation by the start of 2011.

Adoption of contactless cards is most prevalent in the retail convenience market where speed of service is vital. Global companies in this space using contactless cards include McDonald’s and Starbucks. Outside the large convenience retailers however there is little take up. The report also found that contactless and PIN-less payments are capped at £15 in the UK and $25 in the US, above which a PIN or signature is required which somewhat defeats the purpose.

‘Contactless Cards: Tentative Steps’ includes detail on worldwide contactless card schemes including Visa payWave and MasterCard PayPass, and outlines the future evolution of contactless cards, suggesting that contactless mobile payments will likely be the way forward.

For further details on how to purchase a copy of the report or for more information please call Jeannie Lam on +44(0)20 7563 5605 or email info@vrlfinancialnews.com.

VRL industry reports provide the analytical intelligence needed to make better-informed business decisions. Reviewing the most pressing issues and trends impacting on the world of finance, VRL reports cover a broad range of topics.

For more details visit: http://www.vrl-financial-news.com/reports.

Contacts

C8 Consulting Ltd
Cathy O’Neill
01189-001135
cathy@c8consulting.co.uk

A World's First at International CTIA 2011 - CHARGE Anywhere Enables Google®'s Nexus Phone to Accept MasterCard PayPass and Visa Blink NFC Payment Cards - Turning Nexus Phone into an NFC Payment Acceptance Terminal!

SOUTH PLAINFIELD, N.J., March 23, 2011 /PRNewswire/ -- CHARGE Anywhere®, LLC, a leading provider of Mobile Payment solutions and payment gateway services, announced today a revolutionary, technological break-through for NFC mobile payments. CHARGE Anywhere's mobile payment software can now transform Google's Nexus S™ into an NFC payment acceptance terminal.

CHARGE Anywhere's mobile payment application for Android™ platform enables any business to process credit card, check and ACH payments in the field. Now, with this advancement, CHARGE Anywhere can empower any business to take the leap into the future by accepting NFC payments in the field with their Nexus S smartphone. CHARGE Anywhere intends to expand its portfolio of NFC mobile payment acceptance solutions as additional smartphones are released.

"CHARGE Anywhere continues to push the envelope of technological innovation by providing businesses with access to the most advanced and feature rich payment acceptance technology. The CHARGE Anywhere payment platform has always stayed ahead of the payment technology curve and by adding NFC payments ensures that our partnering financial institutions, mobile network operators and distributors always have the most competitive advantage in delivering secure payment technology," said Paul Sabella, President and CEO of CHARGE Anywhere.

CHARGE Anywhere's mobile payments solutions are winners of the 2010 BlackBerry Super App Challenge - Regional Selection, the 2010 CTIA E-Tech Awards in the Mobile Applications - Mobile Payments Category, the 2010 Mobile Merit Awards for Best Overall Enabler Application, the 2009 Best of Interop-PCI Security Solution Award and the 2009 Electronic Transaction Association Technology Innovation Award.

About CHARGE Anywhere, LLC

CHARGE Anywhere is the developer of proprietary Payment Card Industry (PCI) PA-DSS validated CHARGE Anywhere® v2.0.0 Mobile Payment/POS software and PCI DSS Level 1 compliant ComsGate® Payment Gateway. For more information contact them atwww.chargeanywhere.com, or (800) 211-1256.

©2011 CHARGE Anywhere, LLC. All trademarks, service marks, and trade names referenced in this material are the property of their respective owners. Android is a trademark of Google Inc. Use of this trademark is subject to Google Permissions.

SOURCE CHARGE Anywhere, LLC

BOKU Partners with O2 and mpass in Germany for Direct Mobile Billing

March 24, 2011 03:01 AM Eastern Daylight Time 

The mpass system driven by O_2, Vodafone and Deutsche Telekom allows merchants to accept payments for virtual, digital and physical goods.

SAN FRANCISCO & MUNICH--(BUSINESS WIRE)--Telefónica O₂ Germany, a leading provider of broadband and mobile services, and BOKU Inc., the global leader in online mobile payments, today announced a direct carrier billing relationship. O₂ customers can now use BOKU’s payment platform to purchase virtual and digital goods ranging from .09 Euros to 30.00 Euros. O₂ customers pay for goods by entering their mobile number and charging directly to their mobile phone carrier bill.

“Understanding customer needs and merchant requirements in regards to our payment products is essential for continuing our success story in the mobile payment area. A close collaboration with BOKU ensures we position ourselves closely to the key players in the market”

O₂ is part of Telefónica, a leading global provider of broadband and mobile services, and the second largest carrier group in the world. O₂’s mpass system allows direct carrier billing for the purchase of virtual, digital and physical goods.

This new partnership integrates the BOKU mobile payments platform into O₂ Germany’s operator billing interface, enabling the following advanced features:

• Support for one-off and subscription payments in Germany
• Full pricing granularity from .09 Euros to 30.00 Euros
• Authorization and Capture APIs with refund support
• In-App Billing support
• Web Billing support

The Boku service offers consumers a quicker and easier way to pay online when compared with existing credit card solutions.

“This agreement opens up the opportunity for BOKU merchants to offer payment for physical goods as well as virtual and digital goods,” said James Patmore, Managing Director, BOKU in EMEA. “Our partnership with O₂ confirms our vision of evolving online mobile payments into a range of new vertical markets.”

“Understanding customer needs and merchant requirements in regards to our payment products is essential for continuing our success story in the mobile payment area. A close collaboration with BOKU ensures we position ourselves closely to the key players in the market,” said Michiel van Eldik, Managing Director Wholesale and Partner Management, Telefónica O₂ Germany.

“We want to provide our customers with a safe, reliable, and convenient payment solution to pay for goods, be they virtual or physical,” continued O₂’s van Eldik. “BOKU’s mobile payments platform has the right blend of technology and finance-grade infrastructure to mesh well with O₂ customer needs.”

BOKU’s bank-grade mobile payment service is available to online merchants and publishers on a global scale. The BOKU service enables merchants and publishers to drive incremental revenue by offering carrier billing as a payment option to their customers. BOKU is connected to 230 mobile operators in more than 65 countries, and provides access to more than 2.5 billion potential customers who can pay by mobile.

About BOKU:

BOKU is the standard for online payments using your mobile phone, making it easy to purchase goods and charge to your mobile operator bill. BOKU brings bank-grade payments technology and mobile users together on the web, creating a trusted, accessible market for consumers, publishers and carriers alike. Based in San Francisco with offices in Europe and Asia, BOKU reaches over 2.5 billion consumers worldwide. With localization in 28 different languages, BOKU operates in 64 different countries, across 230 different carriers globally. Leading Silicon Valley entrepreneurs and venture capitalists fund BOKU including Benchmark Capital, Index Ventures, Khosla Ventures, DAG Ventures and Andreessen Horowitz. For more information visit: www.boku.com

BOKU and Pay by Mobile are registered trademarks or trademarks of BOKU, Inc., and/or its subsidiaries. All other brand names, product names, or trademarks belong to their respective holders. BOKU reserves the right to alter product offerings and specifications at any time without notice.

About mpass:

mpass is the mobile internet payment system provided by the German telecommunication companies Telekom Germany, Vodafone Germany and O₂ Germany. Since 2008, more than 20 million potential mobile customers with a bank account in Germany are preregistered for this comfortable and secure payment method. The service is not only available to customers of Telekom, Vodafone and O₂, but to all mobile users who are customers of German mobile telecommunication providers. With mpass, Telekom, Vodafone and O₂ have expanded their innovative technology and services range by the additional mobile payment portfolio. Detailed information is also available at www.mpass.de

About Telefónica O₂:

Telefónica O₂ Germany GmbH & Co. OHG belongs to Telefónica Europe and is part of the Spanish telecommunication group Telefónica S.A. The Company offers its German private and business customers postpaid and prepaid mobile telecom products as well as innovative mobile data services based on the GPRS and UMTS technologies. In addition, the integrated communications provider also offers DSL fixed network telephony and high-speed internet. Telefónica Europe has about 55 million mobile and fixed network customers in Great Britain, Ireland, the Czech Republic, Slovakia and Germany.