Mifare, Oyster and ITSO Cards Hacked Smart Card & Identity News
Mifare, Oyster and ITSO Cards Hacked Smart Card & Identity News Mifare, Oyster and ITSO Cards Hacked Smart Card & Identity News
NFC technology enables mobile phones to behave as conventional contactless cards and to connect to the network via mobile technology. Contactless applications can also work when the phone battery is empty or no network is available. The new solutions therefore combine the advantages of both technologies, providing more security, ease-of-use and availability. The partners of this pilot project intend to convert the project into a real business model. Additional applications, such as the integration of Adasoft secure entry applications used in all Swisscom buildings, will also be discussed. Swisscom provides greater comfort for end users thanks to NFC For Swisscom, NFC is not only a trend-setting technology, but the key to greater comfort for end users, who will be able to access everyday cashless services with their mobile phone. This includes buying everyday items such as snacks and drinks, booking tickets, and more. Thanks to contactless NFC technology, end users will simply have to present their mobile phone and they will be able to buy easily, without cash. Swisscom is supporting the further development of SIM cards as hosts for the new NFC applications. It is actively engaged in the development of new services and working closely with leading mobile phone manufacturers to bring a wide variety of NFC phones quickly to the market. Customers will only be able to benefit from these new services if relevant appliances are available and if all network operators cooperate. Swisscom believes that an agreement between mobile phone companies is vital in order to avoid individual solutions. Thomas Kummernuss, Product Manager and responsible for NFC development at Swisscom, is delighted with the success of the pilot project: “Swisscom believes in the potential of NFC technology in Switzerland: cashless payments, public transport ticketing, access control, etc. will be more secure, comfortable and customer-friendly with a mobile phone. We are also discussing the possibility of a single service offer and a B2B business model. The success of this project is helping us to convince our partners and customers of the advantages and possibilities of the new contactless technology in mobile phones.” Vending machines by market leader, Selecta Selecta is an international trendsetter for easy, safe and fast purchases from vending machines, in private or public areas. The Swiss market leader endeavours to offer its customers up-to-date and trend-setting products and solutions. Contactless technologies like NFC set new priorities in the development of such solutions. Cashless payments at vending machines are a good starting point. Selecta is giving NFC solutions the chance to be accepted on the market, in particular in public and semi-public areas. Pilot projects like the one with Swisscom underpin and strengthen acceptance by consumers. They contribute, through communication, to the creation of further applications and card acceptors, such as in the public transport field or with wholesalers. A union of different worlds thanks to LEGIC’s card-in-card solutions LEGIC’s contactless smart card technology has been world leader for several years. LEGIC is pursuing new directions with its card-in-card solutions. In the form of a virtual card, LEGIC functionality will be applied to dual interface cards or third party NFC mobile phones via the new software solution for smart card platforms. This enables the connection of public transport applications, PC access via PKI or credit cards with LEGIC applications such as access control or cashless payments. Thanks to further extensions of the LEGIC technology – there are already over 50,000 facilities with more than one million LEGIC readers in service – and to a worldwide licence partner network, the possibilities for building on existing and developing new, even more comfortable solutions, are endless. “We’re expecting a lot from the NFC technology in connection with our LEGIC card-in-card solutions. We are world leader in contactless smart card technology for personal identification applications. The fact that the LEGIC all-in-one area can be integrated into third party cards and NFC mobile phones widens the scope of our technology and also makes way for new solutions for our partners, as well as providing advantages and comfort to the end user. In the future, it will be possible to go to work just with a mobile phone and to do without all the different cards”, explained Urs A. Lampe, Vice President Product Marketing & New Business of LEGIC Identsystems Ltd. Smart Card & Identity News • January 2008 18
Buying into Contactless Payment By Debbie Mitchell, Head of Regional Marketing, VeriFone EMEA Debbie Mitchell Contactless payment solutions represent one of the most important card payment innovations of the last decade, and are currently transforming payment at the point of service. Today’s ever more sophisticated consumers expect speed, convenience and simplicity when paying for goods. What’s more, they’re embracing contactless payment and demonstrating that self-service pays dividends in terms of expediency, ease of use and the freedom to chose the time and place best suited to them to make a purchasing decision. Contactless in unattended card payment environments is similarly emerging as a fast growing global development in a variety of scenarios — including ticketing, car parking, self-service kiosks and vending machines — and engendering a monumental change in consumer attitudes and behaviours. Indeed, the days of consumers viewing ‘cash as king’ may well be numbered. A recent report from APACS, the UK’s association for payment clearing services, The Way We Pay 2007: UK Plastic Cards, showed that in 2005 card payments in retail exceeded cash for the first time, and that this gap further increased in 2006. This trend looks set to accelerate further, hastening the demise of hard cash especially for low value payment transactions. The contactless transaction Contactless technology is ideal for speeding up small-value payments that are typically below US$25 where, until now, cash has been the predominant form of payment. Since cash still accounts for a significant proportion of total consumer payments, even in the most developed card markets, this market represents a significant opportunity for contactless payment technologies. Indeed, figures from Datamonitor's Consumer Payments Model show that in 2003 cash still accounted for around 20.4 per cent of the total value of consumer payments in France, Germany, Italy, Spain, UK and the US. Market research firm Tower Group estimates contactless payment can reduce individual transaction times by between 10 to 15 seconds; an assertion that is borne out by the findings of the Smart Card Alliance’s recent investigation of contactless payments in the US. As well as confirming contactless payment technologies enabled faster transactions than EMV, its investigation also reported merchants experienced increased cardholder transaction volumes and average transaction size. Similarly, unattended payment terminals generate enhanced self-service options for consumers and offer an additional convenience that’s helping to propel contactless payment into low value cash-based transactions. Contactless payment certainly effectively delivers against consumer expectations in relation to expediency and rapidity. Rather than inserting a payment card into an EFTPoS device, or swiping it through a magnetic stripe reader, a cardholder simply waves a card — or other contactless token, such as a key fob — within 10cm of a contactless reader. Underpinned by the same advanced technology that secures chip and PIN transactions, consumers have been quick to accept contactless payment as a safe, convenient and fast way to complete low value purchases. For retailers, contactless payments similarly generate significant advantages in terms of reduced cash handling, improved operational efficiencies and in busy retail environments, like quick service restaurants, faster service throughput and reduced queuing. Charting the progress Contactless payment first made the transition from niche technology to a mainstream payment option when, in August 2004, McDonald’s announced an agreement to accept MasterCard PayPass at selected McDonald’s restaurants. By early 2006, industry analyst Datamonitor reported there were over 10 million contactless devices in circulation in the US, with 160,000 acceptance terminals in 30,000 merchant locations. Contactless payment was launched, and today the US represents the world’s largest contactless payment market. In the US, usage of unattended payment terminals is growing between 17 per cent and 20 per cent each year and millions of consumers are now accustomed to contactless payment technologies through electronic toll collection systems — such as EZPass and FasTrack — or through using ExxonMobil’s SpeedPass to make gas and convenience store purchases. This meteoric growth is being replicated elsewhere around the world. In just five years, the contactless Octopus Smart Card & Identity News • January 2008 19
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Buying into Contactless Payment<br />
By Debbie Mitchell, Head of Regional Marketing, VeriFone EMEA<br />
Debbie Mitchell<br />
Contactless payment solutions represent one of the most important card payment<br />
innovations of the last decade, <strong>and</strong> are currently transforming payment at the point of<br />
service. Today’s ever more sophisticated consumers expect speed, convenience <strong>and</strong><br />
simplicity when paying for goods. What’s more, they’re embracing contactless payment<br />
<strong>and</strong> demonstrating that self-service pays dividends in terms of expediency, ease of use<br />
<strong>and</strong> the freedom to chose the time <strong>and</strong> place best suited to them to make a purchasing<br />
decision.<br />
Contactless in unattended card payment environments is similarly emerging as a fast growing global<br />
development in a variety of scenarios — including ticketing, car parking, self-service kiosks <strong>and</strong> vending<br />
machines — <strong>and</strong> engendering a monumental change in consumer attitudes <strong>and</strong> behaviours.<br />
Indeed, the days of consumers viewing ‘cash as king’ may well be numbered. A recent report from APACS, the<br />
UK’s association for payment clearing services, The Way We Pay 2007: UK Plastic <strong><strong>Card</strong>s</strong>, showed that in 2005<br />
card payments in retail exceeded cash for the first time, <strong>and</strong> that this gap further increased in 2006. This trend<br />
looks set to accelerate further, hastening the demise of hard cash especially for low value payment transactions.<br />
The contactless transaction<br />
Contactless technology is ideal for speeding up small-value payments that are typically below US$25 where,<br />
until now, cash has been the predominant form of payment. Since cash still accounts for a significant<br />
proportion of total consumer payments, even in the most developed card markets, this market represents a<br />
significant opportunity for contactless payment technologies. Indeed, figures from Datamonitor's Consumer<br />
Payments Model show that in 2003 cash still accounted for around 20.4 per cent of the total value of consumer<br />
payments in France, Germany, Italy, Spain, UK <strong>and</strong> the US.<br />
Market research firm Tower Group estimates contactless payment can reduce individual transaction times by<br />
between 10 to 15 seconds; an assertion that is borne out by the findings of the <strong>Smart</strong> <strong>Card</strong> Alliance’s recent<br />
investigation of contactless payments in the US. As well as confirming contactless payment technologies<br />
enabled faster transactions than EMV, its investigation also reported merchants experienced increased<br />
cardholder transaction volumes <strong>and</strong> average transaction size.<br />
Similarly, unattended payment terminals generate enhanced self-service options for consumers <strong>and</strong> offer an<br />
additional convenience that’s helping to propel contactless payment into low value cash-based transactions.<br />
Contactless payment certainly effectively delivers against consumer expectations in relation to expediency <strong>and</strong><br />
rapidity. Rather than inserting a payment card into an EFTPoS device, or swiping it through a magnetic stripe<br />
reader, a cardholder simply waves a card — or other contactless token, such as a key fob — within 10cm of a<br />
contactless reader.<br />
Underpinned by the same advanced technology that secures chip <strong>and</strong> PIN transactions, consumers have been<br />
quick to accept contactless payment as a safe, convenient <strong>and</strong> fast way to complete low value purchases. For<br />
retailers, contactless payments similarly generate significant advantages in terms of reduced cash h<strong>and</strong>ling,<br />
improved operational efficiencies <strong>and</strong> in busy retail environments, like quick service restaurants, faster service<br />
throughput <strong>and</strong> reduced queuing.<br />
Charting the progress<br />
Contactless payment first made the transition from niche technology to a mainstream payment option when, in<br />
August 2004, McDonald’s announced an agreement to accept Master<strong>Card</strong> PayPass at selected McDonald’s<br />
restaurants. By early 2006, industry analyst Datamonitor reported there were over 10 million contactless devices<br />
in circulation in the US, with 160,000 acceptance terminals in 30,000 merchant locations. Contactless payment<br />
was launched, <strong>and</strong> today the US represents the world’s largest contactless payment market.<br />
In the US, usage of unattended payment terminals is growing between 17 per cent <strong>and</strong> 20 per cent each year<br />
<strong>and</strong> millions of consumers are now accustomed to contactless payment technologies through electronic toll<br />
collection systems — such as EZPass <strong>and</strong> FasTrack — or through using ExxonMobil’s SpeedPass to make gas<br />
<strong>and</strong> convenience store purchases.<br />
This meteoric growth is being replicated elsewhere around the world. In just five years, the contactless Octopus<br />
<strong>Smart</strong> <strong>Card</strong> & <strong>Identity</strong> <strong>News</strong> • January 2008<br />
19
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