QUARTERLY NEWSLETTER OF THE GLOBAL SMART CARD INDUSTRY JANUARY 2011 ISSUE this issue Welcome to the Chairman’s Letter P.1 International Smart ISCAN Member News P.1‐5 Card Associations Network 2011 Event Calendar P.4 International Smart Card Associations Network ‐ ISCAN ‐ is an international alliance of More than an industry, it is a world of news independent smart card associations combining manufacturers, systems integrators, issuers, Chairman’s Letter ISCAN NEWS potential issuers and From Catherine Johnston, CEO ACT Canada economic or social Every year ISCAN members meet in Q4 to discuss actors involved in the smart card activities. the state of the global market and how we can In Payments – The Canadian Task Force for contribute to progress in the coming year. the Payments System Review is well underway, identifying four payment 2010, a year where everyone was nervous landscape scenarios that could unfold over because of the global financial crisis, saw the Goals of the the next nine years. shipment of the one billionth EMV card and China Network committing to EMV. In fact, Eurosmart Continued on Page 3 announced that the overall growth in shipments ISCAN's major purpose of smart cards was 18% with financial services, is to support the loyalty and retail accounting for 880 million units proliferation of smart shipped. The effect of China converting to EMV • Eurosmart publishes smart cards card usage worldwide will see that number grow over the coming years. shipments for 2010 and 2011 forecasts by promoting results of 2011 is expected to also see double digit growth. tasks and facilitating Continued on Page 4 exchanges of views The contactless market experienced significant between participating growth in 2010 (40%) as well and is expected to national, continental continue that growth by another 28% in 2011. • GlobalPlatform has completed the and global member Who will benefit the most from this growth? associations. By validation of its first Card Specification Time will tell, but those who pair technology with v2.2 Test Suite. gathering their own consumer appeal will always do well. experience worldwide, Continued on Page 2 ISCAN will be a major I encourage you to visit the web sites of each of forum to focus on the ISCAN members to learn more about our local strategic and technical markets. All can be reached through issues and to form a www.ISCAN.ca. On behalf of all ISCAN members, global view of the smart we wish you a successful 2011. I hope the news • China UnionPay signed a collaboration card industry. we publish helps you achieve your goals. agreement of UnionPay card acceptance business with Hungary OPT bank in Catherine Johnston Budapest. Chairman, ISCAN President and CEO, ACT Canada Continued on Page 2 www.iscan.ca Disclaimer: Each ISCAN organization has made an independent contribution to this newsletter and, as such, is not responsible for the content of the other associations PAGE 2 It is designed to evaluate a product's compliance to the GlobalPlatform • The 2011 Mobile & Transit Payments • This is the first time that China UICC Configuration, which supports Summit brings together industry UnionPay cooperates with a local the mobile services sector. stakeholders in Salt Lake City, UT financial institution in Hungary, which GlobalPlatform members participating February 15‐18, 2011 to discuss will lay an important foundation for in the association's compliance current U.S. and international trends in expanding UnionPay card acceptance program can now expect the mobile payments and transit network in Hungary and Central Europe finalization of GlobalPlatform test payments. Invited speakers and markets. China UnionPay and tools qualification early in 2011. Five attendees include mobile operators, representatives of some Chinese banks test tool suppliers – Galitt, FIME, transit operators, mobile device attended the signing ceremony. Zsolt Trusted Labs, Barnes International manufacturers, mobile services Becsey, Secretary of Hungarian and Collis – have all committed providers, chip and card Economy Ministry and Economic and extensive resources to the initiative manufacturers, terminal Ren Hongbin, Commercial Counselor of and are working towards the launch manufacturers, payment brands, Chinese Embassy in Hungary attended of GlobalPlatform Qualified Test issuing banks, payments processors, the meeting for the congratulation. For Tools. FIME and Trusted Labs also and systems integrators. more, please visit： www.e‐cts.net provide laboratory services and have • More signs that EMV chip cards are • The development of China IC Card additionally contributed this coming to the U.S. payments market, market：Because of the competition of expertise, alongside card as Travelex announced in December manufacturers Gemalto and Oberthur the Chip and Pin Cash Passport card, a China IC card market in recent years, Technologies, which have both played reloadable prepaid EMV debit card for prices fell, especially the SIM card prices an active role in the compliance U.S. travelers to Europe and the United fell year after year caused reduced program since the inception of the Kingdom. growth in shipment value, but it passes Test Fest process. • The first NFC‐enabled mobile handsets one hundred million of 2010 for the first • GlobalPlatform has redefined its have reached the retail stores in the time. tagline to 'the standard for managing U.S. The Google Android Nexus S applications on secure chip comes with an NFC chip inside and is 12000 technology'. The new positioning being sold by retail giant Best Buy. 10000 8000 10600 9850 aligns the reality of GlobalPlatform's Other announcements of NFC handsets 9008 6000 8165 7426 impact on the industry with the by Research in Motion, Apple, and 5607 4000 association's current and future Nokia are anticipated in the next few 2000 roadmap for the marketplace. months. 0 Previously positioned as ‘the • The Alliance’s Physical Access Council 2005 2006 2007 2008 2009 2010F international specification body for and Identity Council have jointly Unit : Million RMB smart card infrastructure’, released a new white paper, PIV I for GlobalPlatform acknowledges its Non‐Federal Issuers: Trusted Identities • China Mobile Hangzhou Branch value proposition is now – and has for Citizens across States, Counties, announced the commercial launch of been for quite some time ‐ one that Cities, and Businesses. The white paper the Hangzhou Citizen Card for mobile reaches far beyond the historic provides guidance for government and phone based on Watchdata’s 13.56MHz positioning of the smart card business to issue secure ID credentials SIMpass™ technology. In early March platform. The new wording accurately that meet the federal standards for 2010, China Mobile, Hangzhou Citizen reflects the ability of GlobalPlatform's trust and interoperability. Card Co., Ltd. and Hangzhou City Pass technology to enable the Card Co., Ltd started the pilot program development of trusted end‐to‐end Continued on Page 4 of Hangzhou citizen card on mobile embedded chip solutions, which serve phone and issued 50,000 SIMpass™ multiple actors and support several dual‐interface SIM cards. business models. Continued on Page 3 Continued on Page 4 PAGE 3 Continued from Page 1 • AFPC is a member of the CSG / EPC Continued from Page 2 Group It is chaired by Pat Meredith, FCA. (www.europeanpaymentscouncil.eu) Next steps include an identification of which supports and promotes the barriers, as well as timelines for creation of the Single Euro Payments This marked a new mobile payment trend change. This supports the Area (SEPA). for the people of Hangzhou. After 7 months development of implementation trial, users fully accepted this new trend in • The European Payments Council (EPC) is options and next steps resulting in final lifestyle, carrying Hangzhou citizen card the decision‐making e European recommendations to the Minister of and the city transit card in their mobile Payments Council (EPC) is the decision‐ Finance. The timing of this broad phones. For more, please visit: making and coordination body payment landscape review is critical as of the European banking industry in www.scfc.org.cn Canada finalizes our move to EMV and relation to payments. prepares for mobile payment and NFC. The EPC develops the payment schemes • Cardware 2011: Payment Insights in and frameworks necessary to realize the June is scheduled for June 14th and th Single Euro Payments Area (SEPA). SEPA 15 . Canada's premiere conference for is an EU integration stakeholders draws together issuers, initiative in the area of payments acquirers, regulators, retailers, the designed to achieve the completion of • The 2nd World IC Cards supply industry and others to gain the EU internal market and monetary Summit－Macao 2011 will take place insights into the future of the payment union. at the Venetian Macao‐Resort‐Hotel landscape and to influence change. • Contactless debit: Interac Association Convention Center, Macao on October • During 2010, AFPC have shared with announced that Interac Flash will 27‐28, 2011. Currently held is 13th other stakeholders the definition and debut in summer 2011. RFID ASIA 2011, the new expansion of the maintenance of the Volume‐Book of • Visa Canada: launched their debit Requirements. The last points RFID China brand (www.RFIDasia‐ product in Canada developed by the working group are : expo.com). For more, please • MasterCard Worldwide: announced ‐An agreement on the CSG's ToR and on visit：www.scfc.org.cn the appointment of Betty K. DeVita, Labelling