HM Medical Clinic

Newsletter - july 1999

July 1999
Rome Fare Collection: Most
Advanced in the World
ATAC, the organisation administering public transport in Rome,has ratified the award of Rome's Metrebus Integrated Smart CardFare Collection project to the ERG Motorola Alliance.
Under the nine-year contract, the Alliance will design, supply andoperate the system for the bus, rail and tram networks in the Italiancapital and the surrounding region of Lazio.
ERG's Chief Executive, Peter Fogarty, said: "The system to beimplemented in Rome will be the most advanced in the world. Itwill involve total out sourcing and combi Smart Cards, and maketravel easier for the travelling public in Rome." Continued on page 123
1999 Smart Card News Ltd., Brighton, England. No part of this publication may be reproduced, stored in a retrieval
system, or transmitted in any form or by any means, electronic, mechanical, optical, recording or otherwise, without the
prior permission of the publishers.

July 1999
Twenty Years in Smart Cards
Calypso Project in Venice
Cards Replace Co-op Stamps
Open Standardised Interface
Gemplus Reorganises
ID Data Acquires McCorquodale
Biggest IC Card Plant in China
Japanese Ski Resort Goes Smart
Bull Order for 5,000 Terminals
New CEPS-compliant E-purse Plan
Cards on the Cover
Schlumberger celebrate 20 years
GemSAFE Creates Trust Model
Co-Op Dividend Gold
GemXpresso 210 Card
133 - 138
Schlumberger: Le Bel Age
Rome, Italy
Unlocking The E-commerce Bonanza
Survival Of The Smartest: Too Many Shows
Can Spoil The Fun
A Healthy Start for SESAM-VITALE 1?
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SMART CARD NEWS • JULY 1999

Rome Fare Collection System
Twenty Years in Smart Cards
Continued from page 121
Schlumberger celebrated 20 years of innovation inthe Smart Card business at a press conference in The Alliance will supply and install approximately Paris last month. The company manufactured the 9,700 validators to read paper and contactless orcombi Smart Card technology throughout the public first commercial Smart Card and is now looking transport system which consists of 5,000 buses, three forward to the way Smart Cards will impact the way light rail lines and 76 rail stations.
we work, travel, communicate and live in the 21stcentury.
In addition, 200 portable Smart Card readers willbe supplied for inspectors and a network of 30 bus The key benefit of Smart Cards remains the depot computer systems and 76 rail station exceptional level of security and privacy they deliver computers will be linked via a communication in a personal and portable form.
network to a central clearing and processingcomputer system.
"The first Smart Card dramatically reduced levelsof bank card fraud," said Olivier Piou, Schlumberger Initially between 300,000 and 500,000 contactless Vice President Smart Card Products. "Today's Smart or combi Smart Cards will be issued and this number Card can secure complex e-commerce transactions.
is expected to increase to over one million within Tomorrow's card will empower the individual and unlock the full benefits of the digital age." The project calls for a sub-set of the system to be He predicted that at the current rate of evolution of installed within eight months, full implementation the Smart Card that by 2005, cards would offer over in Rome in 12 months and full system completion 1Mb memory and processing capability would be within 24 months.
an order of magnitude higher than today. On the The Alliance will be responsible for the management software side we would see the increasing use of and maintenance of the system for a nine-year open systems and the introduction of enhanced operating term with a further five-year option. It security with cryptography and biometrics will also create and operate a monitoring and call- becoming standard.
handling center and be responsible for security,ticket/card sales, data collection, Smart Card issuing At the same time we were seeing the convergence and a reporting system.
of technologies and communication methods:banking services were available over the mobile Passengers will be able to purchase single ride paper phone, soon Internet services would be available tickets and purchase or reload multi-journey or via a host of different media such as digital television, season ticket Smart Cards at 4,000 tobacconists and mobile phones and public payphones, and e-purse newsagents throughout Rome and Lazio.
and city purse developments were seeing theintegration of transport, retail, parking and other The supply of equipment and software for the initial public services.
infrastructure is estimated at approximately US $46million. The Alliance will retain a percentage of the All of these developments required a single portable total fare collection revenue, which in 2000 is identity system that could easily and securely forecasted to be around US $351 million giving a recognise the individual user of the service. The total collected over the initial nine-year contract Smart Card would enable individuals to carry their term of approximately US $3.8 billion. The Alliancewill earn about US $280 million as its gross fee, own personalised digital ID around with them.
representing 7.88 per cent.
According to Piou, "The way that commerce has functioned for the last two millennia via face-to- $ Wendy Watson-Ekstein ERG Group
face contact, written signatures, handshakes andcash, will be fundamentally changed with electronic % +61 89273 1647! [email protected] transactions. "Smart Cards are the solution and in $ Mike Doheny Motorola
the next 20 years every person on the planet will % +1 847 576 6931 use the technology," he predicted (See Schlum- ! [email protected] berger: Le Bel Age, page 133).
USER NAME openup • PASSWORD scninfo
Calypso Project in Venice
In addition to card readers, capable of processingfare payments made by Smart and magnetic cards, Venice is implementing Calypso, a project which the ticketing machines are fitted with banknote aims to integrate bank services, including the readers and coin change handlers. The DLR connectsthe City of London with the refurbished Docklands MINIpay electronic purse, and fare collection for area to the East. The latest extension of 4.2km to transport services, on the same multi-function card.
Lewisham in South East London is scheduled to The aim is harmonisation between the transport open to the public in 2000 and will enlarge the system sector, the services sector and banking services.
to 27km and 36 stations. Passengers will be able topurchase one ticket which is valid for a journey Partners in the scheme are TSP, IBM and Veron, across different rail services, for example, the Ingenico's subsidiary in Italy, who will supply the London Underground and main line rail networks.
contact/contactless cards, terminals and services.
The system is currently under trial and full deploy- ment of equipment is scheduled for June 2000.
$ Dirk Hinze Schlumberger
% +33 (0)1 47 46 79 50 A generic system with add-on developments for each site will accommodate services such as: First African Licensee for Proton
$ Transport fare vouchers, access to and payment of parking facilities, museums, etc Securecard Trust Company (STC), of Lagos, $ Payment in shops, vending machines, telephone Nigeria, is to become Proton World's first licensee $ Information about city services and access to municipal administration for miscellaneous Set up to develop a national Nigerian electronic payments, delivery of certificates purse scheme, STC will start with a pilot in Lagos.
$ Booking of cultural and sports events, museum It is planned to issue 200,000 Proton-based Smart visits and similar activities.
Cards during the initial phase, and the system willbe the first nationwide system to use Proton for Major city companies such as the Venice savings Windows/NT Smart Card management package.
bank CaRIVE, public transport operator ACTV, carpark operator ASM and many museums, the university and cultural centres are involved in $ Dominique Hautain Proton World
implementing the system.
% +32 2 724 5253! [email protected] $ Louis Edozien Securecard Trust Company
Calypso also involves three other European cities - % +234 1 774 6883 Paris, Lisbon and Constance. Details of these schemes have yet to be announced.
New ICSA Board Directors
Contact
$ Catherine Gagneux Ingenico
The Smart Card Industry Association (SCIA) has % +33 (0)1 46 25 82 15 elected four new board directors - Thomas Alvichof Bank of America, Charles Cagliostro of CardTronics Corporation, Bill Norwood of CyberMark DLR Contract for Schlumberger
and Gilles Lisimaque of Gemplus. Cagliostro takesover from Jim Lout as Board Chairman, Peter A contract for the installation of a new ticketing Quadagno of Quadagno & Associates was appointed Board Vice Chairman, Jonathan Adams of Schlum- system as part of the regeneration and extension of berger Smart Cards & Systems was appointed Board London's Docklands Light Railway (DLR) has been Secretary, and Ben Miller of CardTech/SecurTech awarded to Schlumberger.
was appointed Board Treasurer.
The French company will supply 92 ticket vending machines and a central management system which $ Colburn Aker
controls the machines via DLR's own back-bone % +1 202 789 2424 & +1 800 872 5001 SMART CARD NEWS • JULY 1999
Cards Replace Co-op Stamps
instead, they are guided through a menu structureto the desired item and can request specific All 120 Co-operative outlets in the Lincoln region information by pressing the select button on their of England have now been converted to a new mobile phone. In addition, customers can access Smart Card loyalty scheme to replace the traditional other information such as local news, weather and dividend stamps.
TV programmes, compose greeting cards or obtainthe latest jokes.
The outlets include food stores, supermarkets,department stores, pharmacies, filling stations and travel agents.
$ Christian Treinies Giesecke & Devrient
% +49 89 4119 2125 Called Dividend Card, the scheme has been $ Allan Koch Sonofon
implemented by ORGA Card Systems who supplied % +45 72 12 60 30 the cards and issuing service. Over 130,000 cardsare now in use.
PC Smart Card Reader and Modem
The cards enable dividend points to be collectedand spent at the till on a wide range of goods and Intertex, of Sweden, has announced the IX56 PC services, including food, groceries, electrical goods, Card as the first PC Card (PCMCIA Type II) Smart furniture, department store merchandise and petrol.
Card reader with an integrated modem. It is designedfor people travelling with laptops who are using In a further development, a new card called Smart Cards to encrypt the hard disk, log on to the Dividend Gold is being introduced and will replace corporate network, or for home banking.
existing cards of 10,000 cardholders, offeringadditional benefits of a charge account and credit The PC Card modem supports the Microsoft standard PC/SC API and the German CT API.
Keith Darwin, Lincoln Co-operative Society's Chief Executive, said: "Dividend Card is a significant $ Intertex Data
development for Society members. It is a continuation of the principle, adhered to by the ! [email protected] Society since its beginning, whereby dividend ispaid in relation to purchases made." He describedit as a neater and more convenient method of E-commerce Through Cable TV
collecting dividend. PubliCARD has signed a Memorandum of Understanding with General Instrument $ Scott Allen, ORGA Card Systems (UK)
Corporation and WorldGate Communications to % +44 (0)1628 624265 deliver Smart Card-based electronic applications to ! [email protected] consumers through cable television.
The consortium will utilise the Smart Card expertise CNN News by Mobile Phone
of PubliCARD subsidiary, Tritheim Technologies,employing its SmartCOMMERCE software to Giesecke & Devrient has started shipping its deliver e-commerce applications through the STARSIM cards to Danish GSM phone operator consumer's set-top terminal supplied by General Sonofon to launch CNN Mobile, a new information Instrument with WorldGate's Internet on-TV service for mobile phone customers.
CNN Mobile is a news update service provided by Consumers will be able to make secure withdrawals, US company Cable News Network for the GISMO deposits, transfers and payment using Mondex or information service which Sonofon will launch in Visa electronic cash - all while watching TV.
summer 1999.
GISMO is loaded as an add-on application in G&D's $ Megan McDonnell Environics
STARSIM cards. It is no longer necessary for % +1 203 325 8772 customers to write complicated short messages; USER NAME openup • PASSWORD scninfo
Open Standardised Interface
enabling them to write "virtual Smart Card objects"that are platform independent.
A new open standardised interface to simplify theintegration of an operating system onto an integrated The technology is available to any Smart Card circuit has been announced by platform seven, vendor, software or application developer.
formerly the NatWest Development Team.
The smartX developer kit will be available in Q4 Called OCAPI (Open Chip Architecture Platform 1999. SmartX beta 050 is available now as a free Interface), the specification is published on platform download at www.smartxml.com seven's website: www.platform7.com Platform seven says that using OCAPI brings a range $ Flavie Gil Gemplus
of benefits to Smart Card development: card % +33 (0)4 42 36 56 83 software is easier to port from chip to chip; operating ! [email protected] systems benefit from a standardised low levelinterface to hardware; and chip technologies becomeeasier to evaluate and use.
Ready-to-use Extranet Solution
"Together, these benefits can result in lower card Datakey has announced a Smart Card-based ready- development costs and a shorter time-to-market," to-use extranet solution for authentication and said platform seven.
secure Web access for companies moving businessinformation on-line.
Graham Higgins, Head of platform seven,explained: "OCAPI is a contribution by platform Called PrivateAccess, it is, says Datakey, the only seven to the entire Smart Card industry. Currently fully pre-installed and pre-configured extranet we are making it available on a royalty free licence solution in the marketplace today.
The latest addition to Datakey's SignaSURE family Platform seven's Technical Director, Dr David of information security products, PrivateAccess Everett, commented: "The need for a certifiably only allows access to on-line business information secure Smart Card platform requires the definition to specified users. Authentication is provided by of a security kernel that correctly manages the chip Smart Cards and passwords and data integrity and hardware. OCAPI sets out to further interoperability privacy by digital certificates.
by standardising the interface to this kernel." The open specifications have been welcomed by $ Megan McDonnell Environics
ARM, Hitachi, Infineon Technologies, MAOSCO, % +1 203 325 8772 Microsoft, Philips, STMicroelectronics, Sun Micro- systems and Visa International.
De La Rue SIM Cards for TIM
Contact
$ Cathy Duffield platform seven
De La Rue Card Systems is supplying SIMphonIC, % +44 171 714 8007 a new 16K bytes Java powered SIM Toolkit card to Telecom Italia Mobile (TIM).
Among the services being offered via the new SIM Gemplus Unveils smartX Software
card is Mobile Banking which was developed inconjunction with major Italian banks and allows Gemplus has unveiled smartX, a new software TIM subscribers to access their bank balance, pay technology which it says will simplify Smart Card- bills and access their last transactions from the based application development and deployment, mobile phone through a PIN code provided by the and speed time-to-market.
Credit institute.
Based on the eXtensible Markup Language (XML) standard, smartX allows developers to write Smart $ Rhian Griffith De La Rue Card Systems
Card applications independent of manufacturer- % +44 (0)1256 329122 specific card management protocols, essentially SMART CARD NEWS • JULY 1999
Technologies, will manage this new activity basedat Gémenos.
Gemplus says it is undertaking a significantreorganisation to address the challenges of the new In a separate announcement, Gemplus said it has Dr Marc Lassus becomes Chairman of the appointed Steve Weller as GSM Marketing Supervisory Board of Gemplus SCA, replacing Dr Manager. Previously he was with Ericsson in Hasso von Falkenhausen, who is retiring. Dr Lassus product marketing. Owen Squire has been appointed will continue to lead Gemplus' development of as the new Application Consultant - Telecom.
international markets and merger and acquisitionactivity for which he has been personally responsible since Daniel Le Gal was promoted to President and $ Lisa Colley Gemplus
CEO in 1997.
% +44 (0)1705 486444! [email protected] Other changes include: The addition of China as a Schlumberger Readers Approved
region in its own right alongside South East Asia,The Americas, and Europe-Middle East-Africa.
Schlumberger has gained Microsoft approval for itsReflex 20 and Reflex 72 Smart Card readers and Four previously independent divisions - manu- they are now certified as fully compliant with the facturing, research & development, product and standards established by the PC/SC Workgroup, marketing - merge as a new division, headed by PC98 specifications, and Windows 95, 98, NT4 and Bertrand Cambou, who joins Gemplus from 2000 platforms.
"The ‘Designed for Windows' logo is the first thing A number of new appointments have been made.
customers look for when selecting system Chou Fang Soong has been promoted to Executive components," says Lucas Witkam, Product Line Vice President for the South East Asia region Manager for Prepaid Cards & Tools at Schlumberger operating out of Singapore.
Smart Cards and Terminals.
Serge Barthélemy is appointed to Executive Vice "Microsoft certification for our readers means that President for the Greater China Region based in customers can confidently deploy a key element of their IT security infrastructure, quickly and simply,across desktop and mobile PCs. Not only can they Remy de Tonnac, previously in charge of the Asia treat readers like commodity items, they can also region, will be Executive Vice President for the be confident that they conform to the latest PC Americas region, based in Redwood City, Schlumberger provides Smart Card readers for both In a further move, Gemplus has created "Smart desktop and notebook/laptop PCs: Reflex 20 is a Corp," an independent group whose mission will PCMCIA reader for use with notebook computers, be to ensure Gemplus is in the forefront of fast and the serial Reflex 72 is designed for desktop developing new applications markets. It will focus on merger and acquisitions for new vertical markets.
Smart Corp will be jointly managed by Daniel Le The Microsoft approval programme is designed to Gal and Marc Lassus. Chua Thian Yee will leave ensure hardware functionality across the Microsoft the position of Director of Gemplus Japan to work Windows family of operating systems, through a in London with Dr Lassus on the development of formal validation process.
new business activities for the Group.
Initially it will focus on access control and $ Isabelle MarandSchlumberger Test & Transactions Europe
transportation markets worldwide. Jacques Sénéca, % +33 (0)1 47 46 55 42 previously Executive Vice President, Marketing and USER NAME openup • PASSWORD scninfo
ID Data Acquires McCorquodale
in the golf camps, pro shop and dining room.
ID Data continues its expansion into card technology Mike Nass, Cantigny's General Manager, said the with the purchase of the assets and business of Smart Card application is working very smoothly, McCorquodale Card Technology.
so much so that he envisions expanded uses in thefuture, particularly for corporate customers.
Peter Cox, Chairman of UK-based ID Data Group,said: "This strategic acquisition is key to our Gerry Smith, New Business Development Director intention to become a world leader in card solutions.
for ORGA, is pleased with the way Leo integrated With a production capacity in excess of 200 million into Cantigny's existing Windows NT environment.
plastic cards, we can now compete at an international "Leo addresses the biggest challenge facing retailers level with De La Rue, Gemplus and Schlumberger today: how to attract and retain customers. It is in the security, banking and chip card markets, while proving itself to be the easiest-to-use, most cost- expanding our aggressive approach to the loyalty effective Smart Card-based loyalty application and direct mail sectors which are also important to development tool available today." Bob Tolley, President of Smart Card International, ID Data is moving fast to make its presence felt.
describes the Cantigny project as the catalyst for the Last April it announced the formation of a joint launch of the company's Smart Card-enabled golf venture company TTi Card Technology Europe with course program nationally, the only one of its kind Japanese partners the Toshiba Corporation and in the U.S. "These types of speciality applications Toppan Printing Co. In May, ID Data purchased the represent excellent opportunities for Smart Card business and assets of GPT Card Technology, the penetration and growth," he said.
UK's largest card manufacturer.
Contracts announced include a £10 million order $ Gerry Smith ORGA Card Systems
for TTi for five million chip cards from Barclays, % +1 610 993 9810 and a £60 million order to supply phone cards to ! [email protected] GPT Payphone Systems.
$ Bob Tolley SCI
% +1 904 323 0490 $ Peter Cox ID Data Systems
% +44 (0)1536 207000! [email protected] Consult Hyperion Buys Echidna
Consult Hyperion, the UK-based IT management Chip Card for Golf Course
consultancy specialising in e-commerce, hasacquired Echidna Technology, experts in PKI ORGA and Smart Card International have designed (Public Key Infrastructure) development and and delivered the first chip card-based golf course application in the United States for the CantignyGolf & Tennis in Wheaton, Illinois.
Dave Birch, Director of Hyperion, explained: "PKIis now heralded as one of the most suitable means The system utilises ORGA's Leo customer loyalty for ensuring secure Internet communications. When technology, which was officially launched at e-commerce applications are compounded with hardware tokens such as Smart Cards, the user isassured of an extra layer of security and a portable Cantigny is initially incorporating Smart Cards into means of authentication. its Junior Golf Program, with participants rangingin age from 8 to 15. Upon completion of the training "As a new and complex technology still undergoing course, each graduate is issued with a Smart Card development, finding consultants with PKI exper- containing his or her photo, date of birth and a serial ience is extremely difficult," he added.
In addition to serving as a form of identification at $ David Birch Consult Hyperion
the course, the card has two electronic purses which % +44 (0)1483 301793 can be preloaded with monetary value for purchases ! [email protected] SMART CARD NEWS • JULY 1999
Biggest IC Card Plant in China
Gemplus and Welcome Team Up
The largest IC card manufacturing plant in China Gemplus SCA and Welcome Real-time are to launch was inaugurated in the Tianjin New Technology a market development programme to accelerate the Industrial Park, Beijing, last month.
worldwide adoption of multi-function payment andloyalty cards.
A joint venture between Tianjin TelephoneEquipment Factory and Gemplus, of France, the Welcome Real-time's XLS (eXtended Loyalty Tianjin Gemplus Smart Cards Co., has expanded to System) allows the card to store and process the more than 3,000 square metres to create a production electronic equivalent of punch cards and paper capacity of 80 million cards per year.
loyalty cards used by sandwich shops and othersmall retailers to encourage repeat visits.
The new plant is designed and built to accommodatethe latest production machines in clean rooms with "Welcome Real-time's system makes the bank or high security and access control using contactless financial institution issuing the card more IC card badges.
competitive by adding value to the card and gettingcustomers to use their card more often - to use their SIM cards for the domestic mobile phone market card in preference to other cards in the customer's will be manufactured in the plant. Serge Barthelemy, wallet," said Aneace Haddad, the company's CEO of Gemplus Greater China, said: "China has President and CEO.
a very important role in the global mobilecommunication market as it is developing rapidly "It makes the card attractive to consumers, allowing into the largest GSM market in the world. The them to get rid of the paper bonus cards stacking up localisation of SIM cards manufacturing will in the kitchen or making their wallets fat. And it provide Chinese customers with better and faster gives retailers a competitive reason to invest in Smart Card readers by drawing customers back using areliable, automated loyalty program." Contact
$ Lisa Colley Gemplus
Haddad added: "We see the Gemplus partnership % +44 (0)1705 486444 as a powerful asset in establishing key relationships with major card issuers in each region to help themlaunch common acceptance brands for merchantloyalty.
ORGA SIM Cards for Texas PCS
"Today, we are already well on our way to developing ORGA Card Systems has been selected by Sol strategic alliances with major card issuers to brand Communications as the exclusive provider of Smart 100 million Smart payment cards by 2002." Card SIMs (Subscriber Identity Modules) andrelated technical support for its PCS network to be Sami Baghdadi, Gemplus' Vice-President, Elec- launched in Texas later this year.
tronic Business, said: "Welcome Real-time'ssophisticated and easy-to-implement software will ORGA will supply its most advanced 16K dual- help Gemplus achieve our goal of extending the use mode SIM cards to the new operator. In addition, of credit, debit and e-purse cards into retail sectors SOL Communications has contracted for ORGA's dominated by cash and checks." OTA (Over The Air) Express Gateway System. This multiple-application platform will enable SOL He said they were convinced that payment combined Communications to customise subscriber with merchant loyalty was key to the mass activations and modify SIM cards without deployment of Smart Cards.
customers having to physically return to the store.
$ Flavie Gil Gemplus
$ Frank Barbalace ORGA Card Systems
% +33 (0)4 42 36 56 83 % +1 610 993 9810 ! [email protected] $ Marjorie Banes Welcome Real-time
$ Lynn Windle SOL Communications
% +33 (0)4 42 97 58 62 % +1 214 443 9901, ext. 5426 ! [email protected] USER NAME openup • PASSWORD scninfo
Japanese Ski Resort Goes Smart
Duel Interface Smart Cards Plan
Nanopierce Technologies Inc and ORGAKartensysteme have agreed to jointly develop dualinterface Smart Cards using Nanopierce's NCS(Nanopierce Connection System) proprietarytechnology which is designed to provide significantimprovement over conventional electrical andmechanical interconnection methods.
Under the agreement, Nanopierce and Multitape, ofPaderborn, will provide ORGA with chip modulesubstrate tapes treated with NCS for use in dualinterface Smart Cards.
The co-operation includes design, testing and finalreview activities with the ultimate aim of winningEMV Smart Card specification approval.
The Niceko ski resort in Japan is using StarMicronics' Visual Card in a new pass system designed to give skiers more time on the slopes and $ Paul Metzinger Nanopierce Technologies
less time queuing.
% +1 303 592 1010 Three companies run the resort and each has a Chip Card for Digital Signatures
different pricing structure on their ski lifts. Nowthey have developed the pass system which avoids Philips Semiconductors and German Smart Card the need for the skier to take a pass in and out of manufacturer, Giesecke & Devrient, are to develop their pocket every time they use a lift and eliminates a chip card to calculate digital signatures.
the confusion about the different prices. The systemis also being used for the bus services running The chip card and operating system will be designed between the different resorts.
to meet the ITSEC E4 High certification required Niceko ski resort gets Smart
by German legislation for digital signatures, to help Star Micronics Visual Card contains an IC chip for increase confidence by reducing potential fraud in storing information and has a visual display on the the emerging e-commerce market.
front which tells skiers the balance of time or numberof credits remaining.
G&D will use Philips Semiconductors' WE SmartCard controller family and implement their multi- Annette Tarlton, Marketing Manager for Star application card operating system, STARCOS SPK Micronics, explained: "The operation of each gate 2.3, specifically designed to support digital can be monitored remotely by PC, so the resort signatures in e-business and home banking management can see the queuing situation lift by applications. STARCOS SPK 2.3 provides full 1024 lift, and also gain valuable marketing and sales bit RSA functionality including on card keygeneration.
Philips Semiconductors' P8WE5032 chip has At the entrance of every ski lift or gondola, an already been approved by the German Central Credit automatic gate containing a controller has been Control Committee of Banks (Zentraler installed. By simply skiing through, the gate opens Kreditausschuss, ZKA) for the German GeldKarte automatically as information contained in the chip electronic purse.
is transmitted by radio frequency - assuming theskier has sufficient credit remaining on his or her $ Elisabeth Dörner Philips Semiconductors
& +43 2 124 299 270 $ Annette Tarlton Star Micronics UK
$ Ulrike Gaissert Giesecke & Devrient
% +44 (0)1494 471111 % +49 89 4119 1864 ! [email protected] SMART CARD NEWS • JULY 1999
Bull Order for 5,000 Terminals
The Visual Loyalty System allows data to be storedin the normal way and to be displayed using graphics Bull is to supply 5,000 new EFT/POS terminals to and alphanumeric characters on the card surface.
the national Visa networks in Brazil and Peru.
According to Panasonic, thermo-chromic rewritable VisaNet do Brazil has ordered 3,000 payment cards are identical to normal magnetic stripe cards terminals since the beginning of this year, and or Smart Cards with the exception that their upper VisaNet Peru has ordered 2,000 terminals that will surface is coated with a special temperature- be installed at retail outlets before the end of the responsive material. Rewritable messages can be printed in bold white on silver or silver on white,while the rest of the card can be permanently printed The Bull terminals accept both magnetic stripe and in full colour with relevant logos and instructions.
microprocessor cards and will enable Visa banks topursue their magnetic stripe "terminalisation" The system is available as a standalone unit programme for credit/debit applications, while incorporating a fully integrated display or as an on- introducing the use of Smart Cards.
line version designed for direct or modemconnection via an RS232 interface to a host or EPOSnetwork.
Contact
$ Catherine Vincent Bull Smart Cards & Terminals
Orga HealthCard Reader
% +33 (0)1 39 66 42 63 $ Travis Joseph Panasonic Industrial Europe
% +44 (0)1344 853305 Gemplus GemXpresso 210 Card
ORGA Claims Lead in Healthcare
Gemplus has introduced its GemXpresso range ofSmart Cards based on Java Card 2.1 API providing ORGA Card Systems claims market leadership in card issuers with multi-application capabilities and desktop and mobile Smart Card readers for the built-in security, including public key encryption.
German health insurance card (KVG). The companysays it has a 60 per cent market share and over GemXpresso 210PK, a version that supports RSA 150,000 of its readers are now in use.
public key and the Visa Open Platform architecture,has been certified by Visa International for the Visa The desktop HML 500 and mobile HML 825 readers Cash applet.
are designed to work together. The mobile deviceis used to store data from the health insurance card The range incorporates the Java Card secure Virtual and this is then downloaded into the medical practice Machine, an on-board interpreter that makes it system using an adaptor linking it to the desktop possible to download new applications to the Smart Card and upgrade Smart Card applications evenafter the card has been issued.
GemXpresso 210 is available with 16Kb, the 210Lwith 32Kb and the 210PK with 16Kb.
$ Lisa Colley Gemplus
% +44 (0)1705 486444! [email protected] Messages on Cards
Panasonic's latest card reader/writer combinesmagnetic stripe and Smart Card functionality with the ability to print on and erase from the card surface $ Scott Allen ORGA Card Systems (UK)
itself. It is aimed at the loyalty card, membership, % +44 (0)1628 624265 prepaid ticketing and retail applications markets.
! [email protected] USER NAME openup • PASSWORD scninfo
New CEPS-compliant E-purse Plan
payments for products over the phone, it can alsobe used to credit electronic Smart Card wallets and Europay International and Proton World have signed to read telecom operators' phonecards.
an agreement to develop a new Proton-basedelectronic purse application, compliant with CEPS The new phone gives 200 hours of stand-by battery (the Common Electronic Purse Specifications) and time/eight hours of call time, memory to store up make it available, under the Clip brand name, to to 100 names/numbers, caller ID and the possibility Europay members licensed for Proton technology. of three-way conversations.
The first development will be a prototype Proton- Inventel has a range of digital telephones and is technology-based Clip e-purse, which is CEPS- looking for UK and Irish distributors for its products compliant. This will be piloted with a group of as well as partners for the development of Smart Europay member banks before being made available Card applications in it products.
for national roll-outs from 2001 onwards.
CEPS was created by CEPSCO Espanola, Europay, $ Jerome Lucaes Inventel Systems
Visa and ZKA.
% +33 (0)1 42 17 45 45! [email protected] Armand Linkens, Managing Director of Proton ! www.inventel.fr World, said: "This new agreement heralds a majorexpansion for Proton solutions and is a substantialboost towards international e-purse interoper- New Members Join ICMA
The International Card Manufacturers Association Louis-Noël Joly, Director and CEO of Europay, said: (ICMA) has announced the addition of five new "Following last year's agreement with the banking members for the second quarter of 1999.
community in Germany to internationalise their e-purses by adding our Clip brand, this latest Principal members are Korea Telcom Card, of Seoul, announcement further propels our strategy to foster Korea and Microelectronica Espanola, of Madrid, interoperability via CEPS among key e-purse Spain. Associate members are Adriaplast SpA, of Monfalcone, Italy and Zebra Technologies/Eltron,of Camarillo, California, USA. Akzo Nobel Inks He also revealed that Europay's goal was to reach Sweden, based in Trellebrog, has joined as a branch 100 million multi-currency e-purse Clip cards by associate member.
$ Jennifer Hunsinger ICMA
$ Gilliane Palmer Europay
% +1 609 799 4900.
% +32 2 352 5647! [email protected] $ Dominique Hautain Proton World
Singapore Taxis Become Smart
% +32 2 724 5253! [email protected] Singapore's largest taxis company, ComfortTransportation, is to use Hypercom Corporation'sAscendent Advanced Transaction Processor (ATP) Inventel Launches Digital Phone
software with credit card authorisation interfaces tosupport customer card payments throughout the fleet French company Inventel Systems has launched a of 10,000 taxis.
new cordless digital telephone conforming to theDECT (Digital European Cordless Telephony) Tay Huey En, Senior Manager, Comfort Cablink, standard. Called the DG 102, it has an integrated explained: "Ever-increasing competition in the Smart Card reader.
transportation industry demands that a company have a distinct advantage over its competitors. With By linking the telephone with the Smart Card, the Hypercom's Ascendent software, we can offer our DG 102 provides more services to the user such as customers both credit and Smart Card payment functions linked to certification, security and transactions. These are options that no other cab authentication. As well as providing secure on-line company in Singapore offers." SMART CARD NEWS • JULY 1999
Schlumberger: Le Bel Age
influencer in the development and commercial-isation of the chip card as we have come to know.
In February 1979, Schlumberger embarked on itsSmart Card activity with the purchase of 34% of Twenty years later, Schlumberger Smart Cards and Innovatron. The Franco-American oil group was Terminals activities reach the "bel âge", the beautiful venturing into new ground by putting in a bid age, and relish a remarkable achievement.
following an invitation to tender from the FrenchDirection Générale des Télécommunications and In an industry that has seen very few exciting exploits the Groupement d'Intéret Économique (GIE) for and gone through a fair share of restructuring, the use of memory cards and microprocessor cards Schlumberger Smart Cards and Terminal's in telephony and banking applications.
longevity deserves to be underlined.
In August 1982, France Télécom commissioned One could still question the commitment of a Schlumberger to research, develop and manufacture multinational oil group to a nascent Smart Card Smart Card payphones and Smart Cards. 4 months technology. And twenty years later, analysts still later, France Télécom ordered 250,000 Smart Cards, comment on, and rumors persist that the parent group placing the company firmly among the industry is ready to shed the Smart Card division1.
However Irwin Pfister, Executive Vice President of Schlumberger has become the major player and Schlumberger Test & Transactions, is eager to ' Main Micro-Controller Cards Based Applications (July 1999)
Number of Cards in Circulation 1
Number of Micro-
Beginning of
issued in Millions
Not all these cards are necessarily actively used.
The sales of SIM cards are higher than the number of GSM subscribers. This discrepancy is due to the sale of "duo packs", pre-paid cards, and to the presence of stocks at operators and mobile phone retailers.
Depending on rate of hacking.
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Number of Micro Controller Cards Produced in Millions in 1998
Number of Micro-
Name of Project
produced in MillionS
320 network operators, Number of SIM cards produced > 100 French Ministry of French Banking Cards * The GSM association counted 70.3 million subscribers at the end of 1997.
By the end of 1998: the number of subscriber reached 135 million subscribers.
Market Distribution by Main Applications in 1998 in Millions
Proton Cards
SIM Cards
demonstrate that Smart Cards are a strategic revenue business). Most system integrators see the group as earner, and insists on the full integration of the the best equipped to go up the value chain.
business into the group's overall corporate strategy. Though at the current time, De La Rue seems to be more The division's stability obviously derives from the under the spotlight… financial backing of its parent company, but alsofrom its capacity to implement changes (such as the first Java Card) or to quickly adjust to them (its re-organisation towards a "Solutions" oriented SMART CARD NEWS • JULY 1999
Unlocking The E-commerce
"Keymaster was a product that made computers easy to use. It had function keys with character displays, which delivered an effect similar to pull down menus that Microsoft Windows uses but it did One of the innovations in the last decade that has it in hardware," Wood said, "However, it was wiped changed the face of retail and banking would be out when Windows came along." Electronic Fund Transfer at Point of Sale, popularly known as EFTPOS. It took almost five years before Being trounced by Bill Gates only meant that Wood it gained popular acceptance in Australia, but when had to achieve success on a much lesser scale than it did, the whole country expected every store - no Microsoft, but that did nothing to dampen Wood's matter how small - to have it.
keen entrepreneurial spirit. The break came from another Australian icon.
In comes Keycorp, the epitome of Australian can- do spirit. And the prime mover of the company is "The first change for us was Qantas. We were selling its founder and managing director, John Wood. Last them Keymaster and they didn't want to buy it. What year, he predicted that Keycorp will play a bigger they wanted to do was to buy a transaction keypad part of the industry and what a sandbox it turned and they threatened us with a multi-million order.
out to be. Over the last two years, Keycorp has We took the order!" invested in infrastructure and honing its technical capabilities. It has also built up its management And the rest, as they say, is history. Wood recog- team, regional sales offices and more importantly, nising the potential of the market formed a strong put out products in the market that enabled it to take vision for the company, a roadmap that would later a leading role in e-commerce.
guide him outside the boundaries of the Southern Keycorp's growing success can be attributed to several factors. One of them is its management is "We focused on just two things. The first one is headed by industry professionals. In September offering a complete point-of-service solution. So 1998, David Braddock joined Keycorp from whenever electronic commerce is done, we have a Mondex International to head the company's product offering. The second one is providing all European operations. He was later joined by Barry the elements of multi-application codelet- or applet- Hochfield, a fellow ex-Mondex and David based architecture. We want to be known inter- McGuire from Fujitsu Amdahl. In Australia, Tony nationally as the company that does that bit better Eginton, formerly from Hitachi Data Systems Australia, was appointed to lead the Australian sales team, and Richard Cusson from Groupe Bull joined The future of Smart Cards according to Wood, would shortly afterwards as general manager of sales.
be based on innovative technology. The battle With strong Smart Card expertise in its team, how between the platforms will give birth to more break- throughs that will hopefully benefit the most important player of all, the end users.
Sharing the optimism of Wood is Brian Clayton, Wood hails the popularity of the Internet and its chairman of Keycorp Limited. In its recent annual impact in the industry and sees another pathway for general meeting, Clayton announced that 1998 was seamless payment environment.
a very successful year. The company has achieved a revenue of $135 million, pointing out that there "The whole concept of terminals changes. You're was a strong contibution from overseas sales, which not just connecting terminals that passively gather comprised more than half of total sales and a profit transactions. If you're not a web-based services and of $4 million after tax.
pushing services applications out in a virtual environment then you are going to find yourself left The important milestones of the company in recent times are its completion of the first delivery of gaming machine interface units to the NSW betting But standing still has never been an option for Wood.
agency TAB. The company also made headlines He sees the company continually responding to with its worldwide licensing agreement with market demands.
Infenion Technologies, which will see the delivery of more than half a million Multos Smart Card chips.
Terminals as we know them will certainly see some changes in the future - changes only limited to the It wasn't all this glamorous at first. Scroll a few imagination. And if Keycorp can hold its own as years back when Wood, who was hardly out of this an international Smart Card industry player, the teens, came up with an invention that would later dynamic company from downunder can surely catapult him to the international scene.
morph its way to the top.
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Survival Of The Smartest: Too
A bit of French air
Many Shows Can Spoil The Fun
However, the visit to Central Europe was brightenedup with a mini press tour of major French Smart Are Smart Card shows running out of steam or are Card players. Sponsored by the French Technology some of them just simply losing the plot? To say Press Bureau, the trip provided a bird's eye view on that Cards Italy was a disappointment is an how government and private industry can work understatement. Not only was the conference venue together. The tour kicked off in picturesque located in one of the most inaccessible hotels Marseilles to the headquarters of Cybernetix where available in Milan, the content and attendance was the press was met by Marketing Manager John pitiful. The hotel was truly far away from the Blight. One could almost say that the demand for maddening crowd, but it may be for this very reason the market can easily be predicted by the type of that the audience turnout was low. Rome, being machines companies like Cybernetix are central to Italy, might have been a better choice.
developing. According to Blight, China is proving Exhibitors were faced with the daunting task of to be an important market. The company is also in setting up their stands to an almost non-existent the process of upgrading machinery to be shipped audience. Yes, they did their best. The organisers, out to developing markets.
AIC Worldwide, were helpful but there's nothingworse than attending a show where you can hear a Nearer to the coast, Gemplus provides one of the main landmarks in the town of Gemenos. On theday of our visit, its manufacturing plant was in full The yawn factor
throttle, printing and embedding machines churningout thousands upon thousands of Smart Cards. It The dwindling numbers in exhibition audience and was also the same in their other plant located in La conference delegates could be a symptom of an Ciotat. The affable Frederic Spagnou, executive vice industry idling in neutral. Another problem with president and general manager for Gemplus in these exhibitions is they are scheduled back to back Europe, the Middle East and Africa said the company from each other. Then nothing for months on end.
is always in pursuit for new markets and new It makes more sense to spread the shows apart and technology. Their corporate culture is quite differentiate each show with its own theme.
infectious: friendly and very helpful.
Wouldn't it be better if Smart Card exhibitors wereto integrate themselves with other related industries, The facilities in the South of France were for example retail, telecommunications, e- remarkable. At Rousset, IC manufacturer Atmel's commerce? Shows need fresh ideas. At the moment latest manufacturing plant (Fab 7) is a state -of-the-art volume fab with a full capacity of around 6,000 there too many shows and too many conferences all 8-inch wafers per week in a 5,500 square meter geared to the same audience. Even big companies Class 1 cleanroom with less than one 0.5-micron like Gemplus, ORGA and Schlumberger do not have particle per cubic foot of air. What is more impressive the manpower and budget resources to attend each is the company has in place a comprehensive and every exhibition around the world.
disaster management system. It was also interestingto note that their next door neighbour is another chip There is no doubt in my mind that Smart Card maker - STMicroelectronics. The South of France shows are still the best venues for business-to- may well be the country's mini Silicon Valley.
business networking. There's a captive audience andthey have a chance to meet like-minded people Other companies included in the French technology who speak their language, and when done the right roadshow were Ascom Monetel in Guilherand- way, the atmosphere is electric and inspiring. After Granges, Elva in Boulogne-Billancourt where all, we are talking about the original market place.
Smart Card technology is cleverly integrated with However, it is obvious that the old formula doesn't telecommunications, Innovatron in Paris, Schlum- seem to work anymore. The industry has grown up berger in Montrouge and Bull in Louveciennes.
and has become savvy and sophisticated.
Exhibitions and conferences should follow suit in One thing that was evident, the French government order to survive. Let's see if a lesson has been learnt is aggressively promoting homegrown technology in Cards Australia '99.
SMART CARD NEWS • JULY 1999
The rapport between government and private life easier by e-mailing our daily up dated News industry was genuine. That in itself was refreshing On-Line (NOL) service to your desk. As a subscriber - proof that the two can work together.
to our newsletter you will receive this news at noextra cost. You will still receive the monthly Chips in Bavaria
newsletter but because the Smart Card industry isexpanding at such a fast rate, we believe in the need Moving along further North was a visit to Munich for two different media to encapsulate all the in Germany. It was the final leg of the journey. As technological and commercial breakthroughs. By reported in our Online News last month, Hitachi subscribing to the newsletter and receiving the News Semiconductor Europe (HISEE) has invested On-Line daily, you can be confident that you will DM105 million in the company's Landshut be kept informed about the latest Smart Card specific operations. The investment was to shift production news. We can also sell you a licence so that you can from DRAM to new logic products which use distribute the news amongst your company to an Hitachi's capability in 0.25 um multi-level inter- agreed number of people. Our licence prices are connect technology.
extremely competitive. Phone today for a quote! The company sees Europe to be the main driving force behind Smart Cards and identified micro- $ Tara Lavelle General Manager
controller chips for Smart Card applications to be % +44 (0) 1273 236677 one of HISEE's core products. The announcement & +44 (0) 1273 624433 was celebrated with restrained fanfare. According ! [email protected] to the company, the investment is a considerableboost to Hitachi's European operations, demon-strating the company's confidence in both the A Healthy Start for SESAM-VITALE 1?
Landshut manufacturing facilities and the potentialof the European market.
Concerned by the uncontrollable rise of health publicexpenses, the French administration has been The plant is now focused on competitive Front End struggling since the end of the 70s to modernize and (Silicon chip fabrication) operations. Judging from to streamline a costly system of reimbursement of the recent Semiconductor Industry Association sickness related benefits.
report, the investment could be timely. Accordingto the report, semiconductor worldwide sales were Their computerisation and encryption with the help up 11.8% from 1998 May totals to the tune of $11.28 of a Smart Card was chosen as "the global answer billion. Although this is mainly generated by Asia to the needs of the different players in the Pacific and Japan, Hitachi is gearing up for a surge field"according to the French Governmental health in the European market.
insurance agency, the Caisse Primaire d'AssuranceMaladie (CPAM).
It is heartening to see the buzz return in thesemiconductor industry, after all, when the chips This global approach has remained unfortunately are down there's not much fun out there.
incomplete and rather unsatisfying. What willeventually be known as the SESAM-VITALEscheme has turned out to be a lengthy and painful Smart Card News for FREE
If you would like to receive the daily News On-Line The program SESAM-VITALE was officially service to your desk, every working day for free, endorsed in 1986. A Groupement d'intêret then please send your e-mail address to: Économique (G.I.E), was formed in 1993 to orchestrate its deployment. SESAM-VITALE has several objectives: fax to +44 (0) 1273 624433
(offer open to SCN subscribers only) $ To streamline the filing of medical claims forms and cut the time it takes for patients to be We want our subscribers to be the most thoroughly reimbursed from two weeks to a few days.
briefed professionals in the competitive and growing $ To equip the CPAM with a reliable means of Smart Card industry. We would like to make your controlling and verifying information.
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$ To allow health professionals to gain access to downward. Moreover the incentive might not be added IT related services such as telemedicine, convincing enough and Philipe Bedere, who heads access to database international projects for GIE SESAM-VITALE, $ To provide the government with a greater means has admitted that "to get doctors on board, it will of controlling and trimming the national health take more compensation, imposition of fines, or care budget.
A priori every partner - the patients, the practitioners, Not all the blame lies with the medical profession.
the health authority - seem to get something out of The few scattered doctors (2,847) who tried to it. However practitioners have quickly expressedtheir disappointment and frustration with a system transmit the forms electronically encountered requiring a costly infrastructure, and which ties their serious difficulties. The French daily newspaper hands and makes them more easily accountable for Libération recently reported on the numerous bugs and other failures in the system -based on the Réseaude Santé Social 4,5.
The SESAM-VITALE card is, for the end-user nomore than a bit of plastic with a chip on it, the size Forty million cards in circulation, a very poor use, of an average credit card. As for the health care and an appalling level of acceptance amongst the professionals, they don't see the little wonder with medical world. Vitale 1 has failed its launching and the same eyes. The card requires a reader connected one could express some concerns about the future to a computer, a modem and a printer. Nothing release of Vitale 2, the individual card storing the major, but quite a serious investment for a profession health data of its cardholder.
which is, in its majority, quite conservative andparadoxically "ITphobic". Never has the "chicken and egg" dilemma, whichthe Smart Card industry knows so well, been so Between 1986 and the beginning of the national roll blatant. Vitale 1 has turned out to be no more than out, 12 years have passed. Marc Lassus, CEO of an expensive full-scale pilot.
Gemplus explained how he spent years trying toconvince French authorities to store a citizen'smedical data on a Smart Card. Their slowness As far as card manufacturers are concerned, the exasperated him and led him to persuade providers sluggishness of the roll out has caused despair.
of health insurance for pets to adopt Smart Card.
Obviously the volume is now here and the size of Bitter, he concluded, "in France, because of the the scheme is a victory in itself. However it makes government's stupidity dogs are getting Smart Cards no doubt that a number of lessons must have been before people do" 1.
learnt from this experience. One of the main oneswas to play down forecasts for health applications.
In April 1998 the SESAM-VITALE 1 was officiallylaunched and its roll out completed in June 1999.
Market share between Smart Card Manufacturers
Around 40 millions cards are now in circulation inFrance yet very few of them, to say the least, are 1st Market 2nd Market
being used. The "lucky" cardholder that can transferhis medical claim forms electronically is registered Bull & Orga
with one of the 40,000 doctors or health specialistswho have asked for the card. They represent a third of the medical profession targeted. Out of these 40,000 doctors, only 2,847 have sent forms in anelectronic format 2. At this rhythm, it will take 8 years to equip and convert all the doctors… The doctors and the health authorities are at eachothers throats with the latter being forced to giveway: they have recently agreed to give 1 FFr compensation to practitioners for each medical The Wall Street Journal, 08/06/98 claims form sent electronically until the year 2000.
Between 2000 and 2002 the treat will fall to 40 Card Technology, June 1999, p 43 centimes. Needless to say, the savings expected by Secured network connecting the health profession.
the French administration are to be revised Libération, 10/05/99 SMART CARD NEWS • JULY 1999
GemSAFE Creates Trust Model
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1998 Special Report :
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Road Tolling Projects for UK
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charge drivers for entering congested areas.
Smart Cards will be placed in the windscreens of vehicles; roadside sensors will read the cards and the toll will be automatically debited from the card or the driver's account. No charges will be madeduring the trials.
Back in 1993 the previous government tried to organise tests for a road tolling network but six of the eight consortia interested in the project withdrewbecause of delays and the lack of a clear commitment " Please invoice my company
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Nothing seems to have been learned. Instead of boldly developing a unified national scheme, the Expiry Date
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Please return to: Smart Card News Ltd. PO BOX 1383, Rottingdean,
However, the congestion on parts of the UK's Brighton, East Sussex BN2 8WX United Kingdom
motorways at peak periods, could wreck the trials.
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Source: http://www.smartcard.co.uk/members/newsletters/1999/july99.pdf