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8 Report Desk
Contents
April 2009
8/ Report of IC Card Market of China in 008
8 Tech Desk
/ Contactless Payment Cards – a Choice of Excellence
4/ How Far Will Your Imagination Take You?
8/ Chinese Recent RFID Technology and Its Core Introduction
--On the RF Tag Antenna Manufacturing Process Status
20 COVER STORY
0/ What SMARTRAC Has Done Contributes More to China
--Exclusive Interview with Dr. Christian Fischer, CEO of SMARTRAC
24 Security Desk
4/ Security – The Make or Break Factor for the Boom of
Mobile Banking in China
26 Exhibitors Interactive Desk
6/ Cards Asia 009 Draws Key Industry Players
8/ Beijing Yicheng Xintong Smart Card Co.,Ltd.
30/ Beijing Golden Spring Technology Development Co., Ltd.
30/ Shanghai COS Software Co.,Ltd.
32 Application Desk
3 / What Chip Industry Can Do Confronting the Opportunity
and Challenge?
--Executives’ Viewpoints from China Chip Industry
36/ An Exclusive Interview with Michel LEDUC, Vice President
Marketing & Sales - Neowave
38 Test Tools Desk
38/ An Update on the Cards & RFID Testing Organizations in China
39 News Desk
CARDS TECH & SECURITY www.ait-events.com

Updates you with
the information on smart cards &
RFID technology and markets in
China and in Asia
Tel: 86-10-8586 8930 Fax:86-10-8586 8931
Website: www.scfc.org.cn www.ait-events.com
Email: Card@263.net
Editor’s Message
In this warm Spring, we’re proud to launch the first
issue of CTS of 009, right before the event “Cards
Asia 009”.
This issue has abundant contents covering all respects
of the industry, including carefully selected reports on
China IC cards market as well as monographs focusing
on the hot industrial topics by the executives in the
chips field in China. In the Cover Story, we invite Dr.
Christian Fischer from SMARTRAC to introduce the
developing strategy and achievements of SMARTRAC
in China. At the same time, we’re showing you our
interview with Mr. Michel LEDUC, Vice President of
Neowave on the subject of smart objects, a business
with endless possibilities in the future. In this issue
we’ve added a new column “Test Tools Desk” which
features on the latest development trend on those
authoritative testing institutes for smart cards and
RFID in China. To celebrate the opening of the
trade fair “Cards Asia 009”, we specially arrange a
column “Exhibitors’ Interactive Desk” that provides the
opportunity for the Organizer in Singapore to meet with
the exhibitors from China and to warm up the trade fair
in advance. We sincerely wish a great success with
“Cards Asia 009”!
Publisher
4 CARDS TECH & SECURITY www.ait-events.com

www.scfc.org.cn
CARDS TECH & SECURITY
5

6 CARDS TECH & SECURITY www.ait-events.com

www.scfc.org.cn
CARDS TECH & SECURITY
7

Report Desk
■ By Smart Card Federation of China (SCFC)
At the National Report Meeting of Application
Results of Golden Card Projects in December,
2008 in China, Ms. Zhang Qi, member of the
State Leading Group Office of National Golden
Card Projects Coordination and its Office Director,
pointed out, the launch and implementation
of National Golden Card Projects enhanced
application of various cards were applied to all the
industries of the national economy (more than 20
sectors and industries have joined in construction
of Golden Card Projects so far). With development
of Golden Card Projects, Sector-specific IC card
application programs are launched successively.
IC cards have been widely used in the fields of
telecom, social security, public security, taxation,
mass transport, construction, utility, health-care,
petroleum and petrochemical and management
of organization code. The 7 sector-specific IC
card application programs approved by the State
Leading Group Office of National Golden Card
Projects Coordination have made breakthrough
progress in 2008, with up to 5 billion cards issued
in total. In particular, with sector-specific IC card
applications including telecom, contactless IC card
of the 2nd Generation of National ID Card, Labor
and Social Security, Public Utility and smart traffic,
organizational code, IC gas fueling and medical
care, etc. and with the progress of construction
of card projects in 12 pilot cities, the application
of IC cards has achieved new results in practice
of e-government and e-commerce, and functional
Report of IC Card Market
of China in 2008
expansion and integration of IC cards has been
accelerated. A broader implementation of IC cards
plays an important role in improving modern
management of the industries and government
departments at all levels, implementation of open
government, construction of service government,
providing convenience to the general public
and advancing the national economy and social
informatization progress, etc.
While Golden Card Projects makes progresses,
application of bankcards in China has achieved a
good effects. In particular, during the seven years
from 2001 after the establishment of Unionpay,
annual average growth of inter-bank transaction
volume via bankcards is at 50%, and the inter-
bank transaction volume is increased by 80%.
The electronic payment system with the Chinese
characteristics has been set up. After 2008
Olympic Games and Paralympics Games were
successfully held in Beijing, Capital of China,
the bankcard payment environment of the 6
Olympic cities in China has been improved, which
enhances improvement of payment environment
of the important tourism cities and even the
whole country.
Integration and development of digital 3G
industry, construction of 3G commercialized
network of 3G mobile communication and
general trend of 3-in-1 network have promoted
new applications of IC cards and continuously
expanded wider market. At the same time, RFID
8 CARDS TECH & SECURITY www.ait-events.com

technology, as a new technology with the most
revolution power and core value in the 21st
century, has made a great success in sector-
specific IC card application of Golden Card
Projects of China.
100
50
Report Desk
0
Urban Public Transit IC Card (Unit: 10 thousands)
15000
12000
Source: China Urban Public Transport Association
9000
6000
3000
348.5
0
www.scfc.org.cn
CARDS TECH & SECURITY 9
958.5 8,100
6,000
1,300
1,450 1,730
2001 2002 2003 2004 2005 2006 2007 2008
2
2000
1000
900
800
1500
570
600
370
400
200 100
1000
0
2001 to 2005 By Oct. 2006 By Aug. 2007 By Dec. 2008
500
0
200000
150000
100000
50000
0
200
150
0 5 10 15 20 25 30 35 40
0 100 200 300 400 500 600 700 800
100
50
0
nd 2000
1000
800
1500
600
400
200
1000
0
380 496
500
Generation ID Card (Unit: million)
Source : SCFC
0
2000
1000
800
1500
600
2000
400
1000 200
1000
800
200000
0
1500
600
500
400
150000
200
1000
0
0
100000
0 IC 5Card 10for Tour 15 Guides 20 25(Unit: 30 10 35 thousands) 40
500
50000
2006
33
0
0
200000
2007
35
150000
200 200000
100000
150000
150 50000
100000
0
100
50000
50
200 0
0 150
200
100
15000 150
50
12000
100
2008
40
0 5 10 15 20 25 30 35 40
0 100 200 300 400 500 600 700 800
0 5 10 15 20 25 30 35 40
2008 SIM Cards Issued by China Mobile and
China Unicom (Unit: million)
China Unicom 400
0 100 200 300 400 500 600 700 800
China Mobile
800
0 100 200 300 400 500 600 700 800
50 40 30 20 10 0 0 10 20 30 40 50
9000
6000
3000
0
50
15000
0
12000
50 40 30 20 10 0 0 10 20 30 40 50
0 15000 9000
50 40 30 20 10 0 0 10 20 30 40 50
648
Bankcards Issued (Units: million)
Source : SCFC
2000
1000
1,800 800
1500
600
2000
1,370
400
918
200 1000
1000
762 1,030
0 800
1500
600
500
400
200
1000
0
0
2001 2002 2003 2004 2005 2006 June,2007 Dec. 2008
500
0 ATM Machines Installed (Units: Set)
200000
150000
105,100 156,000
100000
80,000
0 5 10 15 20 25 30 35 40
200000
59,000
95,800
40,000
50000
70,000
150000
0
100000
0 5 10 15 20 25 30 35 40
50000 Chart:
200
ATM Machines in the Financial Network of China during
00 - the end of 008
1500
100
200
50
150
0
100
15000
49.8
12000 50
28.6
35
0 100 200 300 400 500 600 700 800
0 100 200 300 400 500 600 700
50 40 30 20 10 0 0 10 20 30 40 50
800
9000
0
6000
15000 3000
2002 2003 2004 2005 2006 2007 2008
The following charts show the present status and
future forecast for RFID market by 2010.
0
12000
50 40 30 20 10 0 0 10 20 30 40 50
61
Chart: POS Machines in the Financial Network
of China during 2002-2008
Source: China Urban Public Transport Association
182
118
81.7
POS Machines Installed (Units: million)
49,000
2001
2002
2003
2004
Sept. 2005
Sept. 2006
June 2007
Dec. 2008
15,000

Report Desk
500
400
300
200
100
0
100%
80%
60%
40%
20%
0%
Chart 1: Market Size of RFID
Source: China RFID Forum
50
45
40
35
0 30
25
20
15
10
5
05 10 5 10 15 15 20 20 25 25 30 30 35 35 40 40
2004 2005 2006 2007 2008 2009 2010
0 100 0 100 200
Chart
200 300
2:
300
Market
400 400 500
Trend
500 600
of
600
RFID
700 700 800 800
21.4%
24.9%
5.7%
Source: China RFID Forum
2002 2010
Service
Software
Reader
9%
23%
48%
48%
RFID 20%
Label
50 4050 3040 2030 1020 010 00 10 0 2010 3020 4030 5040
50
-10%
Market Product Structure of China's Social -20%
-30%
Security Cards in 2008
0%
500
80%
70%
400
60%
50%
300
40%
30%
20%
200
10%
100
-10%
-20%
0
-30%
0%
80%
70%
60%
50%
40%
30%
20%
10%
100%
80%
60%
40%
20%
0%
Source: CCID Consulting
CPU Card Memory Card
8.05%
8.05%
4.34%
4.34%
91.95% 95.66%
91.95% 95.66%
Sales volume (10 thousand) Sales volume (10 thousand)
Chart 1: Market Size and Growth of Social Security Card
during 2007 Q1-2008 Q2 (by sales volume)
Source: CCID Consulting
2007 Q1 2007 Q2 2007 Q3 2007 Q4 2008 Q1 2008 Q2
Prospect of Market Application of IC
Cards and RFID in the Coming 3 years
With more than a decade development, IC card
market of China has entered a mature stage.
Despite of some problems, it develops towards a
better trend in general. Looking into the coming
years, IC card market will have a better prospect,
reflected in the following aspects:
0 CARDS TECH & SECURITY www.ait-events.com
500
400
300
200
100
0
Sales volume (10 thousand) Growth rate
-29.43%
70.76%
-6.64%
6.12% 13.06%
-26.15%
-10%
-20%
-30%
0%
80%
70%
60%
50%
40%
30%
20%
10%
Chart 1: Market Size and Growth of Social Security
100%
8.05%
4.34%
Card during 2007 Q1-2008 Q2 (by sales amount)
80%
Source: CCID Consulting
60%
91.95% 95.66%
40%
20%
0%
-10%
-20%
-30%
0%
Sales amout (billion) Growth rate
0.4
80%
70%
60%
0.3
50%
40%
0.2
30%
20%
10%
0.1
-10%
-20%
0.0
-30%
2007 Q1 2007 Q2 2007 Q3 2007 Q4 2008 Q1 2008 Q2
0%
0.4
73.6%
80%
70%
60%
0.3
50%
40%
0.2
30%
20%
13.36%
10%
7.8%
0.1 -6.77%
-9.61%
-28.69%
0.0
80
70
60
50
40
30
20
10
0
-10
-20
-30
80
70
60
50
40
30
20
10
0
-10
-20
-30
0.4
0.3
0.2
0.1
0.0

1. Bank and financial service sector: The financial
crisis results in certain loss to some financial
institutions of China. The card-issuing banks in
China underwent fraud risks in 2008. Despite of
conflicts of construction of acceptance market,
potential risks of payment platform and difficulties
faced with the card issuing organization under
the new situations, China places balance of risk
and profit on priority to carefully study and deal
with. Great effort is made to further strengthen
formulation of related standards, enhance
information safety system construction and
public platform construction, monitor information
service construction and consolidate international
technical exchange and cooperation. The cards
conforming to EMV 2000 standards are expected
to have breakthrough growth in the coming three
years to reach tens of millions by 2012.
2. Renewal of the 2nd generation ID cards:
under unified planning of the Ministry of Public
Security, renewal of the 2nd generation ID cards
is completed by the end of 2008. Total of 900
million of the cards have been issued. With
further expand of the application of the 2nd
generation ID cards, the number of the cards
issued will be greatly increased in the coming
three years.
3. Urban public transit card: multi-applications of
the card and implementation of low-fare policies
of public traffic and increase of CPU application
pilot scope advance new round of public traffic
IC cards and urban transit card to increase
dramatically. At the same time, with more and
more frequent regional communication, urban
transit card will develop towards All-in-One
www.scfc.org.cn
trend. The inter-city card will have great market
development potential.
4. Labor and social security card: at present,
the social security cards two distinguished
characteristics: increasing regions where cards
are applied and increasing quantity of cards
applied. With continuous improvement of social
security system of China and well-developed
industrial standards of labor and social security
cards, social security cards started to develop
towards towns and flowing population. The
number of the cards issued in the coming three
years will greatly increase.
5. Development of IC Cards in the RFID field:
RFID application pilots continue to develop in a
healthy and well-organized way. With continuous
progress of technology, RFID’s application will be
further popularized. The fields that RFID will be
used in 2009 include expressway ticketing charges
and smart traffic system, automatic identification
and management of motors, electronics bills,
animal tracking and management and assets
tracking management, etc. RFID is expected to
have a new development in the fields of door
access management, Identification/Verification,
production automation and process control and
personnel management, etc, in the coming three
years.
To sum up, we predict that IC card and RFID
market will see another peak development in the
coming three years.
Report Desk
CARDS TECH & SECURITY

Tech Desk
Contactless Payment Cards –
a Choice of Excellence
■ By Thomas Decker, Director, ePayment, SMARTRAC
Contactless payment is becoming
increasingly popular around the
globe. Today, more than 75 million
contactless cards are in use throughout
the world enabling payment at more
than 100,000 outlets. The spread of
this comfortable form of payment is not
only supported by the payment industry
and associated markets interested
in developing this new business
opportunity, it is also being driven by
the benefits provided to issuers and
retailers and the high acceptance it has
won among customers.
Faster transaction times, a higher level
of convenience due to the ability to pay
hands-free for multiple services with just
one single device, enhanced security
features providing more assurance to
consumers and banks are only some of
the factors in the success of contactless
payment. Another decisive factor in
the broad dissemination of RFID-based
smart cards for contactless payment
processes is the fact that they use
standards-based technology and that
consumers are already accustomed to
the credit card format as a means of
cashless payment. For this reason, the
“card” format is still by far the most
widely used device for ePayment.
Contactless payment cards can use
a variety of transaction models.
Types include contactless credit cards
replacing the conventional magnetic
stripe cards as well as multipurpose
cards combining cashless payment with
additional functions such as customer
l o ya l t y p r o g ra m s . E v e n t h o u g h
contactless payment cards may differ in
terms of application they have one key
component in common: a card inlay
which holds the functional components
of the card, the IC and the antenna.
High quality and reliability of the card
inlay are decisive for ensuring that
consumers have a positive contactless
payment experience. Working closely
with the leading RFID IC manufacturers
and having the single biggest production
capacity in the industry, SMARTRAC
is the manufacturer of choice for
numerous card manufacturers.
High quality ensures a positive
ePayment experience
SMARTRAC’s inlays are characterized
by outstanding durability thereby
ensuring that the credit cards survive
several years of daily use without
failing, working reliably at all times.
This stability is achieved by SMARTRAC’
s patented production technology,
i t s w i re-embedding t e c h n o l o g y,
which ensures that chip and antenna
are invisibly embedded below the
card surface where they are well
protected from outside influences.
With this unique proprietary production
technology and its highly secure
production facilities, which are certified
for the production of RFID inlays
for electronic payment applications,
SMARTRAC has been able to emerge
as the leading inlay manufacturer and
a long-standing supplier to most major
credit card companies.
SMARTRAC offers two different types
of inlays for contactless payment:
“PRELAM ® ” for pure contactless
applications as well as Dual Interface
(DIF) inlays for applications which
require a contact interface in addition
CARDS TECH & SECURITY www.ait-events.com
to RF.
PRELAM ® is a registered trademark
of SMARTRAC and stands for pre-
laminated. The special challenge in
making a PRELAM ® is to embed the
microchip and the antenna in a way
that functionality is not affected by the
subsequent card manufacturing and
printing process.
A PRELAM ® is made out of several
thin layers of PVC or other more
sophisticated materials. After collating
all of these different layers together

including the assembly of all electronic
parts, the whole package is fixed. In the
further production process, this inlay
is laminated, which means, that the
single layers are now melted together
under pressure and high temperature
in special lamination press machinery.
The whole production process results
in a PRELAM ® which is characterized
by the fact that the different layers
of thermoplastic material now appear
as one homogenous sheet with the
microchip and the antenna in its centre.
SMARTRAC’s PRELAM ® inlay technology
is compatible with all combinations
of chips and operating systems for
payment methods.
S M A R T R A C a l s o m a n u f a c t u r e s
and supplies inlays for ePayment
applications based on dual interface
technology. Besides the conventional
dual interface inlay, SMARTRAC also
offers a unique solution which is
marketed under the name Durable Dual
Interface (DDI).
I n c o n v e n t i o n a l d u a l i n t e r f a c e
technologies the module is implanted
into the finished card body. For the
connection between module and
antenna they relay on direct contact via
conductive tape, adhesive or flexible
material which time has shown to be the
main source for failures in the field. By
contrast, the Smartrac DDI inlay comes
ready with an integrated dual interface
module. The module is connected to
the antenna via a thermo compression
bond. This interconnection technology
provides superior durability and
longer life compared to conventional
dual interface technologies. The card
manufacturer only has to punch cavities
for the module in the front print layer
and overlay and subsequently laminate
www.scfc.org.cn
these to make the DDI inlay.
M o reover D D I a l s o reduces t h e
machine investment required of the
card manufacturer in order to enter
the dual interface market. Neither
an expensive milling nor implanting
machine has to be acquired. Only a
simple punch machine for punching
cavities into the print layers has to be
acquired to complement the existing
equipment already found in any card
manufacturing facility for regular
magnetic stripe cards.
DDI Picture
As security demands for payment
applications constantly rise, SMARTRAC
has also opened up a new product line
for active cards. Inlays for active cards
differ from conventional RFID-card
inlays in terms of their components and
functionality. Including a battery, switch,
display and microchip, these cards are
able to generate, for example, one-
time-passwords (OTP) that increase
the security of ePayment processes
significantly. As the generated password
is only valid for one transaction, it
helps protect bank customers from
data abuse - especially in situations
where the card is not used physically
in the payment process. In addition,
customers benefit from greater
convenience as the card format is much
more comfortable than the customary
bulky security tokens.
SMARTRAC inlays for active cards have
very similar physical characteristics to
common inlays for RFID applications.
That means that any experienced card
manufacturer can process them with
its existing machinery to create an ISO
compliant card. Therein lays the charm
of this new product. Compared to the
Tech Desk
bulky and cumbersome security tokens
that are already on the market, you
can easily insert the active card in your
pocket, purse or organizer.
The active card inlays also rely on
SMARTRAC’s advanced, proprietary
wire-embedding technology that has
proven to be best suited for high-
profile applications such as ePayment.
SMARTRAC has developed a specific
lamination technology that is able
to securely embed all electronic
components in the inlay via a hot
lamination process. It should be noted
that SMARTRAC active card inlays
do not necessarily include an RFID
interface, which is optional.
Bringing PRELAM technology to the
world of active cards has resulted in
the first high volume manufacturing
solution for such advanced devices.
Previously used processes, involving
resin and adhesives, often referred to
as cold lamination, are likely to keep
their place in some niche markets.
With this broad technological approach
and its wide product range as well as
with a production capacity of more
than 20 million transponders per
month, SMARTRAC is best suited to
be the partner of choice for ePayment
applications.
CARDS TECH & SECURITY
3

Tech Desk
Denis Scheller
NXP Semiconductors
■ By Denis Scheller
Imagine a trip with the metro
in Beijing or a scenic ride
with a ferry boat through the
pulsating s e a s urrounding
Istanbul. Imagine descending to
the beautiful subway stations in
Moscow to experience a unique
atmosphere. Imagine riding to
the city center of Los Angeles
on a chilly evening feeling the breeze
coming from the Pacific. Imagine going
to an arcade game center right outside
of Shimbashi station in Tokyo. Imagine
going to a soccer game of Arsenal
London in the United Kingdom.
Imagine where to go and what to do
next…
What connects all these
different experiences?
All of the applications use contactless
technology operating at 13.56MHz
based on ISO / IEC 14443 A. The
ISO / IEC 14443 Standard today is
used globally in a vast number of
applications, like Public Transportation,
Banking and Government and ID
markets. Contactless technology has
substituted technologies like magstripe
and/or barcode due to advantages in
terms of convenience and performance,
but also economically solution providers
and transport operators recognize the
How Far Will
Your Imagination Take You
What Smart Paper Ticketing Can Do for Your Solution
benefits of contactless technology. In a
first step, contactless smartcards were
used for mediums with long-term use.
Famous examples are top-up cards and
yearly passes in Public Transportations,
c o n t a c t l e s s b a n k i n g c a r d s a n d
contactless driver’s licenses or ID cards.
In the recent years, there has been
a clear trend towards the adoption of
contactless technology also in limited-
use environments such as Public
Transportation single trip tickets, event
ticketing and gift cards and vouchers.
As the infrastructure acceptance of
contactless cards increases over time,
the adoption barriers for complete
contactless implementations are
reduced significantly.
One of the main drivers was the usage
of smartcards in Public Transportation
(adopted contactless smartcards as
one of the first mass markets), a
broad supply chain and ever more
standardized production equipment
allows volume production of smart
media. The creation of eco-systems
based on Public Transportation
are examples where the intensive
use of the core application, led
to an adoption of contactless
technology in the immediate
environment: e.g. acceptance
of contactless transport cards
in shops(e.g. T-Money in Korea,
SubTe in Buenos Aires or the
EZ Card in Taipei), as loyalty cards
or as ID cards. Once the penetration
of contactless infrastructure reaches
increases, the cost for replacing
magnetic stripe tickets is relatively
low. When the infrastructure to accept
contactless media is already in place,
the cost to upgrade the infrastructure
does not involve any changes in the
hardware of contactless installations.
Changes, if any, can be implemented
by updating the firmware in the reader
infrastructure.
Consider systems that are not using
contactless technologies yet, but intend
to do so in future. At this stage, the
integration of limited-use media can be
4 CARDS TECH & SECURITY www.ait-events.com

directly included in the planning phase
when upgrading the infrastructure to
contactless. The cost associated with this
scenario is higher, because the hardware
front-end system as well as the software
back-end system needs to be installed.
The advantage, on the other hand
is that planners can take a holistic
approach, start from scratch and ensure
that different kind of payment media
can be accepted in the infrastructure
from day one. In recent tender
specification of major transportation
projects throughout the world, it was
apparent that the specification includes
both contactless technology for long-
term use media and the ticketing
applications right from the start.
Why do cities or solution
developers decide to use
contactless technologies for
their ticketing applications in
the first place?
Let us analyze what is behind that
rationale.
One could argue that the cost of smart
paper tickets is much more expensive
than the cost of a standard magnetic
stripe ticket. Looking purely at cost of
the ticket, this statement is correct - but
does it capture the complete picture?
Instead of considering the price of a
ticket only, it is more useful to consider
the total cost of ownership of a system,
taking different categories like
• Maintenance cost
• Operational costs
• Fraud rate (vs. cost of trip)
• Ticket cloning
• Cost to upgrade the infrastructure (if
any)
Into account – independent of whether
it is a transportation network in Beijing,
Istanbul or Los Angeles, a sports venue in
the UK or an arcade game center in Tokyo.
www.scfc.org.cn
Maintenance cost
When talking about maintenance cost,
it is essential to look at the differences
between contact and contactless reader
interfaces in the infrastructure. Contact
interfaces contain mechanical parts
used during the ticket validation, which
over time increase the risk of part
failures. The contactless technology on
the other hand, creates a magnetic field
which powers the IC during the ticket
operation. As there is no direct contact
between ticket and reader, the risk for
part failures can be reduced.
For an installation that means that
c o n t a c t i n t e r fa c e s r e l a t i vely t o
contactless interfaces increase down-
time of a system, are more labor-
intensive (maintenance needs to
happen at the point where the failure
occurs vs. remote failure analysis
in a (online) contactless interface is
possible) and consequently are more
expensive. Examples report that the
allocated amount of a maintenance
budget for contact interfaces can be as
high as 30% of the total maintenance
budget - depending on the size of an
installation.
Operation cost
Besides the benefit of reducing
maintenance cost, contactless smart
paper tickets help to streamline the
operation of ticketing infrastructures by
increasing the transparency of how users
employ a system. Having transparency of
how a system is used is the foundation
to improve processes in a second step,
increasing efficiency and thus reducing
the operation costs. Moscow Metro
claims that after introducing contactless
smart paper tickets in their subway
operations, they were able to reduce the
costs by factor 3.
This can be best explained by looking at
the opportunities that contactless smart
paper ticketing brings to its users:
An operator would be able to collect
detailed information on the degree of
capacity usage of its trains. A system
using smart paper tickets can collect
information where tickets are used
based on the unique identifying number
(UID) which is stored on each limited-
use IC. Whereas the data collection
possibility of traditional payment media
like coins or paper tickets is close to
zero, a contactless system can store at
which locations the UID has been used.
As contactless smart paper tickets are
not personalized, there is no concern
for privacy reasons. By analyzing
the use patterns and by tracking the
entrance and exit locations of UIDs
used in the system, the operator gets a
clear picture when routes are used.
The result is an optimized routing in
terms of headway, number of trains,
length of trains, etc. resulting in a
reduced operation cost. Practically this
means, that the frequency of trains and
the average utilization can be better
controlled. Occasional users enjoy
the same contactless convenience
as season ticket holders such as an
improved service, additional payment
options and faster transaction times.
Contactless infrastructures significantly
reduce queuing time and increase
throughput for all users as they can
move quicker through the system,
reducing boarding time and increasing
the gate capacity relatively to traditional
means of payment.
Tech Desk
CARDS TECH & SECURITY
5

Tech Desk
Fraud and fare evasion
Another topic in ticketing systems is the
level of fraud. Fraud can be associated
with different ways of fare dodging. Per
definition fraud is linked to system users
that do not pay the expected price for
the service they are using. Forms of
fraud can range from very simplistic
approaches to very sophisticated ways
requiring profound technical knowledge.
In closed systems with gates (often
subways or stadiums), users have to
hold a valid medium in order to enter
platforms or venues, whereas in open
systems users only have to present a
valid ticketing medium on request. Even
in closed systems the level of security
varies. When using simple paper
tickets, barcode or magstripe tickets,
it becomes easier for fare dodgers to
copy the ticket either with a color copy
machine and/or a magstripe reader.
Smart paper tickets help to contain
the threat of fare dodging for various
reasons:
First, it is difficult to copy the data
from a contactless IC. Even though
fare dodgers might be able to copy the
design of the ticket, but copying the
content of a contactless IC is a different
matter.
Second, the newest generation of
contactless smart paper ticketing
ICs further improves the safety
measures when integrating new
security features. These features
include protected data access with
3DES, 16-bit counters and cloning
protection, effectively preventing
users from copying content from
one ticket to another. In order to
maximize the security of tickets one
might consider a combination of
security features on the chip with
printing features such as holograms,
micro print or UV printing.
Public Transport operators in Turkey
reported that as a result of introducing
a contactless they were able to
significantly reduce the fraud level after
they introduced contactless ticketing
systems. In reverse, they were able to
increase the revenues.
Infrastructure upgrades
The decisive factor for smart paper
ticketing is infrastructure acceptance.
In order to talk about the acceptance
of smart paper tickets in ticketing
infrastructures, we need to analyze
the initial situation. There can be four
scenarios.
• Contact infrastructure only
• Contact- contactless infrastructure
• Contactless infrastructure only
• Greenfield installation
When considering an infrastructure
u p g ra d e t o a c c e p t s m a r t p a p e r
ticketing, the following points should be
taken into consideration.
• Life time stage of current system
• Existing contract with system
integrator
• Cost of upgrading hardware &
software
• Complexity & time requirements
• ROI
In principle, an infrastructure upgrade
can be implemented any time – it is only
a question of cost. Usually, operators
and solution providers look at the life-
time of the actual system, consider
the current level of amortization and
plan for upgrades once the value
amortization is maximized.
Another important factor is the contract
type with the system integrator who
installed the system. Depending on
the contract, maintenance of existing
infrastructure is covered by payment
of the system owner, an infrastructure
upgrades on the other hand, would
mean new investments. Therefore,
the system owners are more likely to
consider an infrastructure upgrade once
existing agreements are terminated to
cover the costs for the upgrade under a
new contract.
Once the decision for an upgrade
has been taken, a transition phase
until the cost of maintaining the
double infrastructure is higher than
the additional cost associated with
the higher cost of limited use tickets
compared to magnetic stripe or paper
tickets.
Supply chain and availability
A sign for the increased popularity of
smart paper ticketing is the availability
of the final product. 10 years ago, the
production method was very complex
and local presence of manufacturers
was limited. One decade later, the
manufacturing is a standardized
process, equipment is available from
various sources and ticket producers
have penetrated markets with local
manufacturing sites.
W h i l s t p r o c e s s e s b e c o m e m o r e
standardized, automated and are tuned
for mass production, pre-products
become more widely available and as
a result the final product more cost
optimized.
6 CARDS TECH & SECURITY www.ait-events.com

What is NXP’s latest product
offering?
NXP introduced Ultralight C in the
second week of February 2009--
the world’s first low cost contactless
ticketing IC equipped with standardized
o p e n c r y p t o . U l t r a l i g h t C i s
complementing the Ultralight platform
of cost efficient ICs, which are mainly
used for disposable ticketing solutions
such as smart paper tickets in public
transport and event ticketing.
The innovations of Ultralight C enable
the product to be used in loyalty &
prepaid as well as NFC Forum Tag
Type 2 applications. Introducing an
open standard crypto authentication for
low cost ICs with Ultralight C, NXP is
reinforcing its technology leadership in
contactless smartcard ICs.
Ultralight C Innovations
• 1536-bit (192 bytes) EEPROM
memory
• Protected data access via 3DES
authentication
• Cloning protection
• 16-bit counter
• Functional backwards compatible to
Ultralight
In public transport the Ultralight C
platform offers contactless convenience
not only for season ticket holders
but also for occasional travelers.
Passengers enjoy improved service,
new payment options, comfortable and
fast transactions without waiting in line.
Passengers and visitors will experience
reduced boarding times as well as the
convenience of cashless payment. Using
Ultralight C for ticketing makes Public
Transportation more user-friendly and
secure for the passengers, as unwanted
access to the platform can be restricted
to ticket holders.
www.scfc.org.cn
For Public Transport Operators and
Event organizers, Ultralight C means
more security and flexibility in the
ticketing segment. They benefit from
the option to implement a cloning
protection, which enables them to
reduce fraud and tampering with tickets
throughout their systems.
The newly implemented counter allows
solution developers to tailor the limited
use segment according to their needs:
the solution provider can decide to
implement the 16-bit counter as a
transaction counter, as value counter in
prepaid environments or simply as trip
counter depending on the setup of each
individual system.
Ultralight C increases the reliability
& efficiency of different systems by
increasing transparency of statistical
user data. The data can be used to
optimize routing and required capacity
at certain hours (e.g. peak times).
In the end, the data collected helps
to decrease maintenance costs and
operational expenses.
Enhancing the user experience by
enabling new ways of payment and
expansion of services for the operator
is increases the convenience of the
application. Beyond ticketing contactless
low cost solutions are increasingly
used for prepaid applications, loyalty
schemes & Internet transactions.
The Ultralight C is designed to be
compliant with NFC Forum Tag Type
2 specifications to facilitate applications
on a low-cost IC.
Also Ultralight C enables solution
p r o v i d e r s a n d P u b l i c Tra n s p o r t
operators to extend their services to
their customers based on extended
memory of the IC platform. Ultralight C
can hold a joint application (e.g. a Park
& Ride application, combining low value
Transportation with different services
linked to Public Transportation).
Thus, the integration/expansion
effort is relatively low compared to
new applications and the connected
revenue streams for solution providers.
Also, Ultralight C, is compliant to NFC
Forum Tag Type 2, thus enables
solution providers to combine new
technologies like NFC telephones based
on a proven and reliable IC family in
one system. Possible use cases include
blue tooth data handover or smart
poster applications.
Conclusion
Smart paper ticketing is here and the
time is right to evaluate the technology
and its benefits for existing systems and
new installations. Now that many of
the first mover contactless installations
reach the end of their life-cycle and
are ready for a major overhaul, smart
paper ticketing is the perfect fit to
convert installations to fully contactless
systems and harvest the full benefits of
contactless technology.
By adding more security and flexibility
at lower cost, smart paper ticketing
can be the perfect fit for transportation
operators and solution providers
wanting to extend their service
offerings expand their customer base
and increase the cash flow.
W i t h c o s t e f f e c t i v e p r o d u c t i o n
processes, global availability and more
use cases, smart paper ticketing is a
smart choice.
Tech Desk
CARDS TECH & SECURITY
7

Tech Desk
■ By LIU JIE, Beijing Yicheng Xintong Smart Card Co.Ltd
With the popularization and
application of RFID technology,
the Chinese RFID market size has
a rapid growth. At Chinese RFID
identification, security access control,
electronic ticketing, transportation
and other areas of the application
of a certain scale. In recent years,
the overall size of China's RFID show
almost the trend of rising costs year
by year, especially in the second
generation of National ID card renewal,
the Government has a number of sector
projects, from all walks of life change
and rapid development, coupled with a
policy of strong support and technology
breakthroughs, the international retailer
injunction become the driving force
behind the development of Chinese
RFID.
RFID technology in China is mainly in
the low-frequency applications, market
Chinese Recent RFID
Technology and Its Core
Introduction
--On the RF Tag Antenna Manufacturing Process Status
development is quite mature, but with
the gradual decline in the tag price ,
the industry application of the gradual
improvement of the environment,
logistics and supply chain management
will become an important development
in the field of RFID, the entire high-
frequency RFID market will be great
to promote, market growth will be
achieved. experts have forecasted
around 2015, RFID in retail applications,
RFID will be ushered in Chinese growth
during explosive.
For a RFID system, it refers to the
concept of the band through the reader
antenna to send, receive and read
the tag signal frequency range. from
the Concept of application, the radio
frequency tag that is radio frequency
i d e n t i f i c a t i o n s y s t e m o p e ra t i n g
frequency, directly determine the
system characteristics of the various
aspects. Radio frequency tags will
not only determine the principle
of radio frequency identification
system to identify the distance, but
also determines the easy grade of
implementation of the radio frequency
tag and reader, the tag antenna, RF
design and production process.
At present, the antenna coil mainly
adopt following three methods: cabling
technology, Screen printing (screen)and
etching process.
1. Cabling Technology
At the international level, the current
coil manufacturing process of such
penetration are the highest in relative
terms. Materials generally used
their aluminum or copper, and its
production methods are generally at
the completion of a thin film wiring on
8 CARDS TECH & SECURITY www.ait-events.com

the substrate, ultrasonic transducer
wires will be laid to a certain degree
of local heating, and then hit to be
able to quickly melt into the substrate
to a fixed period and thus the shape
and location. In X \ Y direction on the
mobile ultrasonic transducer (including
embedding the head), we can achieve
the antenna coil laid. Because it can
provide the maximum possible signal
to the chip, and the card direction
and the polarization characteristics of
antennas can match signal of card
reader, at the same time, it has good
RF performance on the impedance of
the antenna and applying to goods.
Also its prevalence is very high.
2. Screen Printing Technology
N o w , w i t h t h e c o n s t a n t n e w
development of conductive inks,the
advantages of the antenna of printing
is more and more outstanding,
conductive ink is conductive fine
particles, or other special materials
(such as conductive polymer material,
etc.) components. After Printing on
carrying materials, it can be taken
effection of wire antenna and lead
www.scfc.org.cn
resistors. This ink is printed on flexible
substrates or rigid printed circuit,
which can be made using conductive
ink printed RFID antenna to receive
radio signals dedicated. Currently
using in the production of antenna
technology for mass production, the
printed antenna technology is at
relatively low cost.
3. Etching Technology
Etching technology is the standard
method of production of printed
circuit boards. RFID Products for
Embedded thin film also can be used
to created according to this method,
in this special manufacturing methods,
firstly, to laminate a flat copper foil
flakes(or aluminum) with thickness of
35-70um on a plastic film. and then to
smear photosensitive plastic coating
on copper foil (or foil) layer, after
drying can be carried out through a
positive light. Positive has the shape of
the required pattern, under chemical
developer solution, the light sensitive
part of plastic will be washed off,
here copper will be re-exposed, after
putting into etching pool, copper on
all corvering surface of unexposed
adhesive will be etched out, so finaly
expected shape of the coil will be
come out .
Among low frequency RFID products,
often used the coil (winding and
w i r i n g ) form o f a n t e n n a , h i g h
frequency RFID products, will adopt
a general printing (screen printing)
and the etching process. Of course,
as the chip market diversification of
chip and market demand, the specific
p roduction m e t h o d o f a n t e n n a
should be adopt according to overall
measurement.
C o m p e t i t i o n , i n n o v a t i o n a n d
development is the subject of eternity.
RFID application and popularization
of professional universal, industrial
integration and a new round of
industrial innovation, such as software
engineering and services take more
o p p o r t u n i t i e s for C h i n a ' s R F I D
industry and market development;
independent innovation, key aspect
of competition of industrial chain,
enterprise operational efficiency and
global expansion same take challenges
for the development of Chinese RFID
industry. Enhancing the capability of
independent innovation, building of a
harmonious industrial environment,
and promoting market prosperity
and development which will be the
direction of the joint efforts of the
entire industry. We firmly believe that
China's RFID industry will create more
brilliant future.
Tech Desk
CARDS TECH & SECURITY
9

COVER STORY
To our knowledge, SMARTRAC, as the global leading
supplier of RFID Transponders, focuses its business on
the high security and standard segment.Can you give
a brief introduction to our Chinese readers about the
products lines and market share for the above two areas
as well as the market trend of the global e-passport and
ePayment?
Dr. Christian Fischer:
We used to divide our business into the High Security
and Standard Segment. Effective 1 January 2009, we
have switched over from a functional approach to a
Business Unit structure. We now organize our business
into the four Business Units: e-ID, Cards, Industry &
Logistics and Tickets & Labels.
The Business Unit e-ID covers products for personal
electronic identification in governmental use such as
ePassports, National e-ID cards, electronic driver’s
licences and electronic Visa.
The Business Unit Cards comprises card inlays for
transport, access, ePayment and active card applications
and caters to card manufacturers.
Sokymat Automotive which is part of the SMARTRAC
TECHNOLOGY GROUP since September 2008 is the
platform on which the new Business Unit Industry
& Logistics will be accelerated. It covers RFID tags
for fields of application such as automotive, animal
identification, logistics, industry, laundry and medical.
What SMARTRAC Has Done Contributes
More to China
■ Reporter: Jerry Xu
--Exclusive Interview with Dr. Christian Fischer, CEO of SMARTRAC
0 CARDS TECH & SECURITY www.ait-events.com

The Business Unit Tickets & Labels covers RFID inlays that
cater to tickets and label converters and includes fields of
application such as library, ticketing and airline luggage.
SMARTRAC is the global leader in high-quality RFID
inlays for electronic passports and contactless credit
cards as well as for RFID transponders for public
transportation applications. With the new structure we
have set the prerequisites for further growth in our
existing business as well for the entrance into new
markets in key segments of the RFID industry. For our
customers, the new structure means an even stronger
focus on their respective requirements and needs.
Growth in the e-ID sector is mainly fuelled by international
government decisions to raise security standards for
personal identification documents. While electronic
passports in the meantime have been introduced in
numerous countries around the world, governments are
now heading for the next challenge - the introduction
of further contactless identification documents based on
RFID such as electronic National ID cards and driver’s
licences. With our long-lived manufacturing experience
from ePassport inlays, our proprietary and patented wire-
embedding technology and our global R&D, production
and sales network, we are well positioned to further grow
in this market segment.
Contactless payment is another attractive market
segment where we hold a strong market position.
The main drivers in this segment are the profitable
small transaction business as well as user convenience
www.scfc.org.cn
with credit card companies and banks standing at the
forefront of this development. We are working with the
major players in the ePayment market to offer the best
solutions for contactless payment and to enlarge our
customer base on an international scale.
From your website, we know that your factory established
in US has already started RFID inlays production in volume
this year. At present, your company has already had 4
factories including another 3 factories in Thailand. What
is your positioning preference among these 4 factories?
Which countries and regions do you focus?
Dr. Christian Fischer:
We are glad that the ramp-up and certification stage of
the factory in Minnesota has been completed successfully
and that we were able to start volume production of
secure RFID components in the U.S. In addition, we have
recently opened our fifth factory in Ayutthaya, Thailand.
The newly opened facility near Bangkok provides
additional space for further growth and expansion. It will
be used for the newly created Business Unit “Industry &
Logistics” but it will also help us to optimize our logistics
area and it is also a means for the expansion of the R&D
department.
Since starting mass production of RFID inlays in
2001, we have continuously expanded our production
facilities, technology base, product portfolio, research
& development capacities
and sales force. Today,
we maintain a network of
eleven production facilities
on four continents. All of
them are equally important
for the company as we
address a global customer
base. Being present on
four continents has several
strategic advantages and
customers benefit from our
presence and service direct
on location.
COVER STORY
CARDS TECH & SECURITY

COVER STORY
There is a promising potential for the e-passport
technology and contactless credit cards in which
SMARTRAC has the interests in China. At present, the
e-passport projects have not commenced in China
so far. Do you have the intent of introducing your
good technology and solutions to the Chinese related
authorities? What are the differential advantages in
terms of the applications for the two areas in China
comparing with its neighboring Asian countries?
Dr. Christian Fischer:
We would be pleased to introduce our excellent and
reliable technology and our high-class ePassport
solutions to the Chinese authorities. When it comes to
ePassports and ePayment, the projects in most cases are
very specific with regard to the respective requirements.
Therefore it is hard to compare single projects with
each other. That’s also the reason why we work very
closely with our customers to adapt the product to their
individual needs. What differentiates SMARTRAC from
other market participants is our proprietary, patented
technology and technological expertise and of course
our long lasting experience. In addition, we have the
biggest production capacity in the industry and are thus
able to satisfy large demands within short time frames.
These are some of the factors why we have been chosen
as partner for many ePassport and ePayment projects
worldwide.
China has witnessed the building up of a complete
mature industrial chain of smart cards and has attracted
many overseas companies to invest in the establishment
of plants and representative offices. At the same time,
RFID industry has gained a good start-off with the strong
promotion by the Central Government. What progresses
have you made in exploring China’s market? Give your
market strategy in developing the Chinese market in this
regard.
Dr. Christian Fischer:
We have made pre-arrangements for market entry in
China. We consider China as a very attractive region
to conduct business and therefore we plan to serve
customers in this market together with a local partner.
At this moment, some government driven pilots of RFID
are under trials in the the sectors of transportation and
logistics. The Government intends to draft the Chinese
RFID standards based on these trial pilots. Since
SMARTRAC owns its patents and IPR for contactless
cards and RFID Inlay products, do you plan to introduce
your IP products into China so that your patented
products can be of value to the contribution to the
Chinese RFID standards? What is your thought?
Dr. Christian Fischer:
We watch the developments in China with great interest.
As we are currently in an early stage of making pre-
arrangements for a market entry we will first have to
complete this step.
Last question, is there any influence that the global
financial crisis imposed on your company's business?
How long do you think this crisis will last and affect to
the whole industry? How to maintain the stable glowing
in this financial crisis?
Dr. Christian Fischer:
The present year will be challenging for a lot of
companies in many market segments. But we
are convinced that SMARTRAC will surmount this
exceptional situation. Our focused strategy, strong
financial base and market position are key assets to go
through such a difficult environment successfully. With
regard to the industry as a whole, the infrastructure
programs that governments worldwide are planning to
introduce are suited to open up new chances for the
RFID industry. In addition, RFID technology offers great
advantages to reduce costs and gain in efficiency in
many areas. Therefore the RFID industry as such might
overcome the global economic crises much better than
other industries.
CARDS TECH & SECURITY www.ait-events.com

www.scfc.org.cn
CARDS TECH & SECURITY
3

Security Desk
By Winston Yeo,
Marketing Director
of Telecom BU,
Gemalto Asia.
Security –
The Make or Break Factor for the Boom of Mobile
Banking in China
Mobile phones have become an integral part
of the 21 st century landscape with an expected
penetration of 4.5 billion users worldwide
by 2011. The growth in China is even more
phenomenal and it is estimated that mobile
phone users could reach over 700 million by
2010. Since mobile phones are the one device
that people carry with them most times, it
is regarded as an ideal platform to conduct
various kinds of transcations, especially for
banking purposes.
Mobile banking rising in China
Mobile phones present a cost-effective
solution to consumers for banks, financial
institutions, operators and merchants. The
mobile phone allows them to bridge the
gap where traditional banking and internet
services may be inconveniently located, too
expensive or simply non-existent.
Mobile devices allow users easy, round-
the-clock access to financial services. The
pervasiveness and convenience therefore
encourages adoption of mobile banking,
mobile payment, mobile fund transfer and
other useful services by users everywhere.
As a result of the tremendous geographical
spread of China, the appeal of mobile banking
is even bigger to banks in the country, as
establishing branch outlets or automated
teller machines (ATMs) are not cost-effective
platforms for service delivery.
Therefore, nearly all major banking groups in
China including the Bank of China, Industrial
and Commercial Bank of China, China
Construction Bank, China Merchants Bank
and Agricultural Bank of China have already
offered phone banking services to their
customers.
Security is the determining factor
For banks and financial institutions to take
the popularity of mobile banking to greater
heights, they have to address one primary
concern of customers – security.
The dramatic increase in the use of mobile
phones has been closely followed by the
increase in cases of mobile phone fraud.
Despite various benefits of mobile financial
services, many subscribers are concerned
about security when carrying out financial
transactions over the mobile network. In
fact, a seeming lack of security infrastructure
is seen as the biggest deterrent in the
widespread adoption of mobile financial
services.
Designed to easily integrate within the
existing GSM network infrastructure and the
bank’s back-end operations, Gemalto’s mobile
banking solution includes a secure applet
stored in the SIM card in the user’s phone
and a transactional platform. This platform
securely manages financial operations carried
out over the wireless network between the
bank or mWallet (Store Value Account) and
the SIM.
4 CARDS TECH & SECURITY www.ait-events.com

Gemalto’s technology ensures end-to-end security
by ciphering messages exchanged between the
SIM and the bank (or financial institution) using
the highest existing security standards. Special
keys are embedded permanently in the SIM hence
making it impossible for anybody to duplicate
them. All sensitive data is kept exclusively by the
financial institution. In addition, Gemalto’s strong
2-factor authentication ensures that nobody can
see the data or make transactions other than the
customer.
Banks can create a “triple win” scenario if they
address the psychological concern of customers
with the right solution. Firstly, financial institutions
can strengthen its service offerings, customer
loyalty as well as reduce capital investments for
establishing retail outlets. Secondly, operators
can win new customers, widen their portfolio
of services and increase average revenue per
user. Finally, customers can enjoy a high-level
of convenience of financial services in a secured
manner. End-users have the freedom of managing
their finances at their convenience. They can
access their bank and credit card accounts,
transfer funds, check their account balance, pay
bills and even purchase airtime using easy-to-
navigate screens at any time
In view that 3G in China will be in full swing very
soon, there is ample room for mobile banking to
further develop in the next few years. In order to
leverage this market opportunity, it is essential for
banks and operators to strengthen the security of
their mobile banking delivery, giving assurance to
existing and potential mobile banking customers.
Gemalto’s wide range of products and
solutions offering
Gemalto has created a complete range of
financial services solution for mobile operators
and financial institutions: Its mobile banking offer
provides secure access from a mobile phone for
mobile banking, mobile payment and mobile
money transfer services.
www.scfc.org.cn
> Mobile banking services
Mobile Banking: a solution for customers with
existing bank accounts to get connected to their
banks or financial institutions over the mobile
network. It also give customers without bank
accounts access to financial services.
> Mobile payment services
Mobile payment enables the customer to pay
for services such as pre-paid airtime any time
anywhere, from either a bank account or a mobile
wallet.
> Mobile money transfer services
Transferring money via international or national
remittance hubs enables the following services:
• Bank account or mWallet to mWallet or bank
account
• Cash to Bank account or mWallet
• Bank account or mWallet to Cash
Security Desk
CARDS TECH & SECURITY
5

Exhibitors Interactive Desk
C a r d s A s i a
SINGAPORE 2009, Asia's
largest smart card and identification solutions
exhibition and conference, will see close to 200
exhibiting companies and 5,000 trade attendees
from 36 countries and regions this year. Into its
14th edition, this year's exhibition will occupy 6,488
square metres at Suntec Singapore from 22 – 24
April.
According to RNCOS's "Global Smart Card Market
Outlook" report, the financial/retail sector is expected
to continue to represent the largest application area
for the global smart card industry. And the shipment
of smart cards in financial/retail/loyalty is estimated
to increase by 15% in the current year.
The rising applications of smart cards in diverse
sectors are due to the high security they
provide. Consequently, smart cards are
being widely used in financial applications
such as payment cards and ATM or banking
cards. With robust growth in the global
financial market, particularly in the Asia-
Pacific region, the opportunities for the
global smart card industry have increased
tremendously, says the report.
And Cards Asia addresses this rising
demand. As the Asia Pacific's most diversely
represented event for the smart card and
identification industry, the show serves as
an important platform for the latest card
payments, prepaid cards and identification
solutions. Cards Asia's exhibitors, visitors
With close to 200 exhibiting companies from around the world
showcasing the latest in smart card and identification solutions, Cards
Asia 2009 maintains its largest show in the Asia Pacific region.
Cards Asia 2009 Draws Key Industry Players
and delegates alike use this opportunity to network,
collaborate and seek new investments in card
business prospects.
The annual three-day exhibition will feature market
leaders from Singapore and overseas. These include
ASK, Datacard, HID Global, IBM, Inside Contactless,
NXP Semiconductors, and STMicroelectronics.
"Key industry players, who position themselves to
capitalize on the slowdown to move ahead of their
competition, have chosen Cards Asia to be their
preferred platform to brand, promote and fortify
their market share in Asia”, shares Patricia Cheong,
General Manager, Enterprise & Telecoms at Terrapinn
Singapore, show organizer for Cards Asia.
VISA, the leading operator for the world’s largest
retail electronic payments network, has been a
Review of Cards Asia 2008
6 CARDS TECH & SECURITY www.ait-events.com

sponsor at Cards Asia for past few years.
This year, VISA will showcase their
prepaid solutions on the show floor since
their last appearance in 2002.
Te a m N i s c a , i S e c u r eTe c h , S y n c o
Technology, Charismathics, Aseptic
Technology, and Innovative Card Systems
are some new players exhibiting at Cards
Asia for the first time. These new players
are mainly from China, Germany, Hong
Kong, India, and Japan.
The Cards & Payments Asia 2009 and
Prepaid Cards Asia 2009 conference
will also see a global participation of
more than 16 industry gurus addressing
current pertinent issues facing the industry today
and providing real and practical strategies. Some
of this high powered mix of retail banking speakers
includes Standard Chartered Bank, Bank Mega,
Kasikornbank, HDFC Bank, Bank Danamon,
Bank Negara Indonesia, Bank of Thailand, Citi
Asia-Pacific, UnionBank of the Philippines, and
Qatar National Bank.
Cards Asia exhibition and conference is also held in
conjunction with 6th annual RFID World Asia and 3rd
annual Retail Solutions World Asia.
RFID World Asia 2009 is Asia’s largest showcase of
RFID innovations and multi-applications.
Retail Solutions World Asia 2009 is Asia’s most
www.scfc.org.cn
comprehensive retail solutions showcase.
About Terrapinn
Terrapinn is a global B2B media company which owns
a portfolio of brand names under which it produces
trade conferences, exhibitions, training courses and
online publications. Many of Terrapinn's brands are
world leaders in their respective vertical sectors.
These include Hedge Funds World Series, Real Estate
Investment World Series and the Cards & Payments
Series. Terrapinn produces trade conferences ranging
from Energy & Resources to Telecoms & Media, from
Finance & Investment to Transport & Logistics.
Terrapinn has offices in Dubai, Johannesburg, London,
New York, Singapore and Sydney. You can find out
more about Terrapinn and
its services at our website
www.terrapinn.com.
For more information, please contact:
Wendy Tay
Exhibitors Interactive Desk
Terrapinn Pte Ltd
Senior Marketing Manager
Email: wendy.tay@terrapinn.com
CARDS TECH & SECURITY
7

Exhibitors Interactive Desk
Beijing Yicheng Xintong
Smart Card Co.,Ltd.
Beijing Yicheng Xintong Smart Card Co.,Ltd., located
in Zhongguancun Hi-tech Area of Haidian District
of Beijing, specializes in design and production of
telecom card, IC card, contactless card, magnetic
card, etc.With the spirit of “honest, pragmatic,
efficient, and innovative”, the tenet of “keeping
improving, and providing overall service”, and hard
work by our staff, the annual output has reached
to 0.36 billion pieces. In addition to smart card, we
also supply a series of read-write equipements for all
kinds of IC cards and other cards.
With favourable credit standing, high-quality products,
global marketing network and overall service system,
our company has gained upper reputation and
performed as the pioneer in smart card industry. We
are also among the first batch to be accredited as
the fixed proceesing unit for China Unicom, China
Add: 707, Building4,5#, Changchunqiao Road,Haidian
District,Beijing,China
Tel: 86-10-51664545
Fax: 86-10-82563713
Http: www.bjyicheng.com.cn
Telecom, China Netcom, China Satcom, etc.
With the import and export licence, our company
has been dedicated itself to exploiting the overseas
market, as its partners expanding all the countries and
areas over Southeast Aisa, Middle East, the Occident,
etc. The products are widely used in hi-tech fields of
finance, telecommunication, mobile communication,
tourism, medical treatment, social security, etc.
Since the very beginning, we have always been
sticking to improve technique and quality in phase.
Based on present products line, we also set up a
RFID label production line last year. It can be made
into thin card according to the way of FCP and
label, which widely use in the field of subway, fast
traffic, and bus. Wholeheartedly, we would like to
enjoy our high quality product and solution with
friends of all circles home and abroad.
8 CARDS TECH & SECURITY www.ait-events.com

www.scfc.org.cn
Exhibitors Interactive Desk
CARDS TECH & SECURITY
9

Exhibitors Interactive Desk
Beijing Golden Spring Technology
Development Co., Ltd.
Golden Spring is a global leading supplier of RFID
(including RFID Smart Card, Smart Label, and
Combi-card) production and personalization turnkey
solution. We are providing smart label machines
and RFID smart card machines, software, hardware,
consumables and turnkey solutions all over the world.
All of the China national ID inlay suppliers, Indonesia
national driving license supplier, other high level
Chinese and Asia RFID companies are our customers.
Company already establishes complete systems of
Stand NO.: 4L18
iCOS mobile contactless solution:
We bring a new dimension of “near field” digital
life with iCOS Flex, iCOS NFC-SIM, iCOS mobile
contactless solution for micro-payment, electronic
ticket, loyalty program and others.
Advertiser Index
Shanghai COS Software Co.,Ltd.
Add: Bldg.40, BDA International Business Park, No.2.Jingyuan
North street, Economic-Technological Development Area, Beijing,
China, 100176
Tel: 86-10-6781-7392/95
Fax: 86-10-6781-7393
E-mail: walterzhou@dexinquan.com
Web: www.chinagoldenspring.com www.dexinquan.com
ISO quality management and intellectual property.
From 1998, the R&D team have been designing
and manufacturing over 100 advanced RFID inlay
equipments. The company have a professional
application team to supply technical support and
after sales services for customers all over the world.
Fastest speed, best quality and strong flexibility are
the advantages of our equipments. We believe our
knowledge, experience, and continuous perfection
will easily convert as a real asset for our customers.
Add: 3rd Floor, Tower B, No39, Hongcao Road,
Shanghai, P.R.China
Tel: 86-021-51028722-217
Fax: 86-021-53082700
Contact Person: Raymond Choi
Web: www.cosw.com
The iCOS mobile contactless solution has “near
field” cards, POS, personalization services, OTA
service, cards and loyalty management system.
With these components, it provides more businesses
opportunities and service provisioning channels for
the Telcos and the banks.
Cover Story SMARTRAC Technology www.smartrac-group.com
Inside Front Cover SMARTRAC Technology www.smartrac-group.com
P1 Tatwah Smartech Co,. Ltd. www.twh.com.cn
P3 RFID OnLine www.SCFC.org.cn/RFIDonline.html
P5 Guangzhou Mingsen Mech. & Elec. Equipment Co.,Ltd. www.mingsen.com.cn
P6-7 SC+SL / PTE 2009 www.scsl-china.com
P23 Aerospace Golden Card Co. www.asgcc.com
P29 Beijing Yicheng Xintong Intelligent Card Technology Co.,Ltd. www.bjyicheng.com.cn
P31 Jiangyin Guangxin Anti-counterfeiting Printing Co.,Ltd. www.guangxin.js.cn
P43 Beijing Yxcard Smartech Co,. Ltd. www.yxcard.com
Inside back cover page Watchdata System Co. Ltd. www.watchdata.com.cn
30 CARDS TECH & SECURITY www.ait-events.com

Application Desk
Voice of Managers:
What Chip Industry Can Do Confronting the
Opportunity and Challenge?
■ Report: Alice Yen
Under the law of market
economy, the chip industry
at home and abroad made
a r e m a r k a b l e p r o g r e s s
and proud achievement
amidst competition. In
this process, the managers
in all circles played an
important role. The times
create heroes. Business field
is a battlefield. He who
leads a team to properly
face the opportunities and
challenges and promote
economic growth in peace is
a hero. The senior industrial
elites, business veterans
and market winners must
have their profound insight
and planning to industrial
d e v e l o p m e n t . I n t h e
current issue, we specially
invited Mr. Shi Lei, Board
C h a i r m a n o f S h a n g h a i
Fudan Microelectronics Co.,
Ltd. and Mr. Dong Haoran,
Deputy General Manager of
CEC Huada Design Co., Ltd.
(HED) to share industry
hotspots with us. From this
issue on, we will interview
C h i n e s e a n d f o r e i g n
managers in chip industry
on industry hotspots. Please
pay attention to it!
I. China has formally stepped into 3G era. It is both an opportunity and a
challenge to Chinese chip makers. On the one hand, the requirements of 3G
handsets on chips will directly promote the development and restructuring of
handset chip industry, and the reform of chip technology will bring endless
new energy to wireless communication industry to fuel its robust growth. How
to look at the potential and problems of USIM card market and how to cope
with the subsequent opportunities and challenges again confront our chip
makers……
Mr. Shi:
--Executives’ Viewpoints from China Chip Industry
Shi Lei,
Board Chairman, General Manager and Founder
of Shanghai Fudan Microelectronics Co., Ltd.
The advent of 3G era means data service will supersede voice service to become the
mainstream of handset application. Multi-application, security, copyright management
and other new demands will bring new opportunities for SIM card and also need higher
requirements. At present, traditional Internet is unable to realize a real-name registration
system, while SIM card real-name registration system can satisfactorily solve this problem.
Its role and advantage will be very obvious.
Dong Haoran,
Deputy General Manager of CEC Huada Design
Co., Ltd.
Security-supported multi-application is an issue USIM needs to solve. Technically speaking,
3 CARDS TECH & SECURITY www.ait-events.com

USIM should satisfy the specification of
GP (Global Platform) in addition to chip
architecture, storage capacity and basic
COS, so Java technology becomes an
important aspect of USIM. In addition,
the maturity of NFC technology, urgent
demand of mobile payment and
support to contactless application also
create more imaginary space for the
development of USIM. Basically, SWP
will unify contactless interfaces.
In view of the development of USIM,
the key problem is the unprecedentedly
high relevancy of technology and
application in 3G application. In the
initial stage of business, the industrial
chain is long. It spans from SIM card to
terminal, back-end application system
and operation. They are mutually
influenced and restricted and need the
joint effort of multiple sectors.
IC card industrial chain probably is
the most mature industrial chain
in Chinese semiconductor industry.
Unfortunately, due to excessive
competition in SIM card market, the
profit margin of Chinese chip makers
is squeezed to a very low level.
The existing SIM card market alone
can hardly support the sustainable
development of manufacturers.
Therefore, the transition of SIM card
to 3G USIM is a new opportunity for
capable manufacturers.
Chip makers face challenges in two
aspects. One is the technical aspect,
including the upgrading of hardware
and software. It is relatively easy. The
other is the aspect of IPR. Chinese
native manufacturers involve little
of the formulation of international
standards for GP and Java. Today, IP is
drawing increasing attention. How to
link Chinese native technical standards
with GP and how to properly handle
patents is also a big challenge.
www.scfc.org.cn
Mr. Dong:
On January 7, 2009, 3G license was finally issued under the eager expectation of
the industry. According to the optimistic estimate, by the end of 2009, Chinese
telecommunication industry will fully enter 3G era as symbolized by mass number
distribution. By then, 3G will be put into commercial service in full swing. 3G
application is one of the important moves of the government to stimulate domestic
demand. It will generate great impact on the whole industrial chain and bring new
business opportunities for enterprises.
For smart card industry, as the network construction of operators is still under
way, the impact at the level of cards is not very obvious. However, the three major
operators are promulgating or formulating related SIM card specifications, have
worked out a definite timetable for the commercial use of 3G and are vigorously
pushing on the application of 3G cards.
In the 3G era, as USIM card introduces the concept of UICC multi-application
platform, it realizes a multi-channel mechanism for simultaneous multi-application,
smart card is converted towards cross-domain multi-application platform, USIM
card may upload more non-telecom functions, such as: payment, public bus and
social insurance, and realize “one card multiple use” as advocated by the Golden
Card Office. For chip makers, 3G smart card requires chips to have higher safety,
higher speed and larger capacity. This is both an opportunity and a challenge
to chip makers. Particularly, some operators require support to JAVA card. This
demands higher CPU speed and higher erasing speed of memory. Chip makers
need to make early preparation.
Application Desk
In addition, following the development of 3G, the market will make reshuffle, and
the enterprises with a weak overall strength will be eliminated; the enterprises
in the industrial chain will set more definite market orientation and development
direction under the test of 3G, thus promoting greater development of the industry.
II. Currently, the application of RFID technology is being extended in
China and its market potential is attracting attention of more people.
Both national policy and enterprises’ demand for self-development have
significantly driven the application process of RFID in China. In view of the
intensified focus on RFID technology, how do our chip makers look at its
potential and problems in technical innovation and market development?
CARDS TECH & SECURITY
33

Application Desk
Mr. Shi:
RFID covers a very wide range and
often has a close link with the IT
applied in the industry. Firstly, we
see RFID technology is diversified,
from LF and HF RFID to UHF and
microwave RFID, from passive RFID
to active RFID and so on. If we look
farther, we can see the combination of
identification technology with security,
wireless communication and other
technologies may make the concept of
RFID even broader. In view of different
applications, RFID technology will keep
developing and require RFID chips
to make constant innovation to meet
application demand.
UHF RFID market has drawn people’
s attention for years, but it is still in
a lukewarm state. A key obstacle is
the failure of technology to realize
100% identification. In fact, UHF RFID
market is still in a stage of industry
trial by and large and lacks any
typical, representative, influential and
successful application.
HF RFID technology and market
are more mature. In addition to the
concrete functions of identification,
following the continuous progress in
security and large-volume technology,
HF RFID is extended towards micro
payment, anti-counterfeit and other
“pan” RFID applications. In particular,
t h e t r e n d o f c o m b i n a t i o n w i t h
handset terminal will truly realize
the omnipresence of RFID and RFID
identification equipment. So far, it is
the most noteworthy market with the
most development potential.
Mr. Dong:
All forecast reports regardless of
sources indicate RFID has huge market
potential. I think China is facing two
basic problems with RFID technology:
Firstly, the cost restriction factor of RFID
At present, price is still the greatest obstacle to restrict
the application of RFID technology. It costs millions of
yuan to establish an RFID system. Who will foot the
bill? How to balance the operation cost of an enterprise
and the benefit from the system? Will the application
enhance the competitiveness of enterprises? Most
enterprises won’t take any action before they see the actual application effect. The
demonstrative projects of the government also aim to bring along the application
of RFID in different fields, but so far no obvious effect has been generated, so the
persistent demand on the reduction of system cost and label cost becomes a major
reason why most enterprises put off RFID project.
Taking RFID label for example, at present, foreign chip makers have basically
reached the target: 5 cents of label cost, but it is far from blowout. The
psychological price of chip for most Chinese application service providers is 0.5
yuan in recent period. This sets a clear demand on domestic chip makers. However,
they still have certain distance from this demand in view of current chip making
technology in China.
Secondly, the potential security problem of RFID products
The event that NXP Mifare chip was cracked sounded alarm bell over the security
of Chinese chips and aroused Chinese government, application enterprises and
R&D enterprises’ concern on the security of the application of RFID products. As
China is a populous country, all largest RFID application projects will be generated
in China. In mass distribution, security will become a very prominent issue. For this
reason, HED is making active effort to use domestic security algorithm for RFID,
promote the application system solutions based on domestic algorithm, start with
large government application projects and gradually establish an RFID application
system based on domestic algorithm.
HED will pay close attention to the market development of RFID, actively research
and develop related products, strengthen cooperation with the upstream and
downstream manufacturers in the industrial chain and jointly promote the
development of RFID market.
III. With the law of market economy, Chinese chip industry has realized
marked achievement amidst competition. Our chip makers coming
through this process must have profound insight and planning. In the
face of financial crisis, what valuable suggestions will these senior
managers share with us?
Mr. Shi:
In recent decade, great headway has been made in Chinese chip industry. In
addition to IC card and RFID sectors, Chinese chip companies have also made
remarkable success in consumer electronic chip field. They can secure relatively
34 CARDS TECH & SECURITY www.ait-events.com

successful positions in their interested fields through effort. From
the current development status of Chinese semiconductor industry,
we can see on the one hand the industry enters a mature stage,
the overall capacity and technology level of fab exceed the actual
demand and design capacity. Under the impact of financial crisis,
we can foresee Chinese chip industry will certainly be reshuffled,
some less competitive companies will be eliminated and only a
minority of excellent enterprises will survive.
On the other hand, the progress of design technology lowers the
threshold of IC design. Solutions are no longer designed based on
chips. Instead, chips are defined based on demand. Therefore, in
both international and domestic markets, IC industry faces two
choices: whether chip makers have the capacity to provide system
solutions, or system companies have the capacity to design chips?
For the former, chip makers must be able to lead the industry. It is
a development model for minority industrial leaders; for the latter,
system companies are the closest to customer demand, and the
success rate of the chip products designed by them is the highest.
Therefore, Chinese IC industry should pay attention to the possible
changes of semiconductor industrial chain and timely adjust its orientation.
Mr. Dong:
In the past few years, Chinese chip industry made remarkable headway. Obvious
improvement was also seen in the understanding on application, technical level of
chips and marketability. However, its scale is still small and risk resistance is still low.
Chinese IC design industry always assumes the historical mission of making “China
chip”. In recent years, certain achievement was made and some breakthroughs
were realized in smart card field and consumer electronic sector, but the IC design
of China was still at an elementary level, mainly because products were unitary,
chip design was concentrated in few niche sectors, and the application of whole-
machine systems was not familiar; technical reserve was insufficient, the renewal
and upgrading of products were slow, products were mostly in medium/low-end
market, the products really needed by the market were not developed, while the
products developed didn’t have the right to speak in the market and soon fell
into vicious competition. The past lessons tell us IC industry must spearhead with
application systems and make breakthrough by relying on solutions. The arrival of
3G offers a rare development opportunity for Chinese enterprises. From system
to terminal, a series of demand will be generated and a large industrial ecological
chain will be derived. This will help IC design industry involving in 3G industry to
experience the product development model under which whole-machine system
application is the headstream. They will obtain precious experience in industrial
development and ultimately realize painful and happy industrial growth.
As the application types of smart cards are being diversified and application field
is being expanded in China, RFID will offer more development opportunities for
domestic chip makers, smart card products also need to integrate multiple functions
www.scfc.org.cn
CPU Card
and support more applications;
meanwhile they have to face fiercer
competition from domestic and foreign
chip makers;
Application Desk
These CPU card applications emerging
i n a n e n d l e s s s t ream a re b o t h
opportunities and challenges for chip
makers. Chip makers are required
not only to correctly understand
application demands and put forth
pertinent products, but also to
channel application development with
products. It is not easy for them to do
this and do it well. They are required
to possess chip R&D technology
and correctly judge the market. At
present, HED has intensified basic
R&D and fundamentally guarantee
the introduction of products from the
perspective of the technology needed
by the products; meanwhile it has
also strengthened cooperation with
the upstream and downstream of the
industry to raise the capacity of market
expansion and innovation and jointly
create a bright future with partners!
CARDS TECH & SECURITY
35

Application Desk
Smart Objects Development in European Market
An Exclusive Interview with Michel LEDUC, Vice President Marketing &
Sales - Neowave
■ Reporter: Alice Yan
Q1:
W h a t d i d N e o w a v e
achieve in 2008? Smart
O b j e c t s i s t h e c o r e
business of Neowave,
please share with our
readers your expertise in
Smart Objects?
Michel LEDUC:
Since the introduction of Weneo Smart Objects concept at Cartes 2007,
Neowave has widened its range of products and launch production of:
- Weneo Standard and
- Weneo Pass with ID photo.
These two products are now used in commercial pilots by SNCF
for the TER in Britanny, by RATP in internal pilots. Other pilots are
scheduled in different European towns. These pilots demonstrate the
possibility for end user to reload their contract/ tickets from home with
a Web connected PC. Ease of use and compliance with the existing
environment are now proven.
At Cartes 2008, Neowave has introduced the Weneo NFC, which is the
new NFC mobile companion offering the possibility to communicate
with the mobile from the PC/Web and sharing applications between the
mobile and the USB Smart Object. The Weneo NFC can work both in
card mode and reader mode when connected to the PC.
36 CARDS TECH & SECURITY www.ait-events.com

Q2:
Smart Objects is at the
heart of the contactless
r e v o l u t i o n f o r t h e
secured transactions
world, please introduce
how it ensure security
in contactless payment
and the perspective it
develop?
Q3:
www.scfc.org.cn
What’s your viewpoint
of the impact of the
world financial crisis on
the smart card industry?
W h e t h e r i t h a s a n y
affect on the progress of
Smart Objects? How will
you confront and what
strategy will you take?
Q4:
What’s your vision in
2009? Any new products
to launch? What's your
next marketing focus to
explore?
Michel LEDUC:
Smart Objects are relying on Smart Card security, they offer the same
level of security as the Smart Cards they embed, but they also bring
to Smart Cards, connectivity, the missing link to beneficiate from the
Web services explosion. Contactless small payment transactions with
Weneo are using validated schemes and are relying on embedded
certified Smart Card devices. When needed, Neowave can provide
the appropriate services to ensure secure on-line reloading from the
Web. Smart Objects offer the unique perspective of multi-application
solution combining on-line and contactless applications such as small
payment, loyalty, mass transit, e-ticketing, access control… Real
multi-application schemes can work if they are built around common
needs for a community of users: students in a university, inhabitants
of a town, workers in a company... In addition to basic payment
transaction, Weneo Smart Objects are an attractive platform to perform
a multi-factor strong authentication mechanism to secure e-banking
transaction.
Michel LEDUC:
The world financial crisis has a strong impact on the Smart Card market
and consequently on the Smart Object industry but consequences are
not all negative. In fact the crisis is reinforcing the need for security as
fraud is known as increasing in this type of situation. Security control
for identity management, payment, e-banking, data protection has to
be improved and Smart Object is an innovative media to provide the
required level of security both in contactless applications and Web
services in connected mode. It is also true that the crisis is slowing
down customers’ decision process and cutting budget for innovation.
Meanwhile priority projects are still running, especially when they allow
saving money: for example, in mass transit, Smart Object based on
dematerialization is reducing drastically distribution costs for operators,
and this is available now!
Michel LEDUC:
After the first success of Weneo Smart Objects in mass transit pilots
with SNCF and RATP, we expect now to reach the deployment phase
in 2009 and to launch new pilots in France and Europe. Furthermore,
Neowave will start to address the IAM and corporate security
market offering in one Smart Object a full solution for the enterprise
combining physical and logical security. In 2009, Neowave will expand
its range of Smart Objects with new features and new form factors.
Application Desk
CARDS TECH & SECURITY
37

Test Tools Desk
An Update on the Cards & RFID
Testing Organizations in China
■ By Alice Yan
In the past years, China has seen the increasing
growth of cards and RFID testing organizations in
view of the enhancing development of EMV and the
globalization of the world economy. These bodies have
been building themselves with higher technology and
improved management and services so as to catch up
with the international testing centers. The following is
the brief update on the Chinese institutions of cards and
RFID testing.
China Bankcard Testing Center, established with
the approval of the People’s Bank of China in April,
1998, is the independent third party body equipped
with professional testing technologies. Its major
responsibility is to provide the technical testing services
for the bankcards and the acceptance terminals with
the networking interoperable and safe transaction in
compliance with both international and national quality
and standards as well as the financial sectors, and with
the entrustment of the People’s Bank of China. This
effort has built up the healthy and fast development of
the bankcard industry in China.
The past two years have witnessed the booming
stage from the slow and dumb silence with the heavy
investment into the technical R&D from the central
and local governments to the enterprises. A large
number of key technical obstacles have been solved
as a result of the growing number of leading research
bodies and enterprises that have gained the constant
development. The local RFID technology market has
moved from concepts moving towards policy, standard
and industrialization. In view of this trend, China RFID
Testing Alliance was set up on December 15, 2008. It
has grouped the local Chinese research institutes, testing
and standard organizations to join together and to
conduct scientific study of the captured testing data from
the joint RFID based testing cases before the National
Report will be published by this Alliance.
This Alliance will build up the common platform of RFID
based testing standard with the RFID manufacturers,
system integrators and end-users. Its aim is to jointly
promote the development and applications of RFID
industry under the win-win principle of mutual benefits,
combination of different advantages and sources sharing.
It has the following members:
Article Numbering Center of China,Beijing University
of Posts and Telecommunications, Bureau of Quality
and Technilogy Supervision of DongGuan City, China
National RFID Products Quality Supervision Test
Center, Conformance Test Center for Information
Technology Standards, Hong Kong R&D Centre for
Logistics and Supply Chain Management Enabling
Technologies,Hunan University, Institute of Automation
of the Chinese Academy of Sciences, Postal Scientific
Research and Planning Academy, Shandong Institute of
Standardization, Shanghai Jiao Tong Univerity, The Hong
Kong University of Science and Technology, The RFID
China Alliance.
China has a huge potential market of smart cards and
RFID. 2009 will be the prime time for your company
to come to China, and get well prepared and win your
market share! If you know better and get involved in the
testing standards in China, we will have a good business
opportunity in these two sectors in China.
At present, RFID technology has not yet become a
mature application because so many related application
systems either from RFID technology itself or the
existing know-how remain to be solved, such as how
38 CARDS TECH & SECURITY www.ait-events.com

to make precise evaluation of the constant reactions
from the environmental reference data from RFID
product features, how to give a systematic study of
outstanding impact on the featured model resulting
from the differentiation of RFID devices and how to
effectively improve the precision and reliability of RFID
simulation tools etc. Hence, the tests and inspections to
the features and systems of RFID devices become very
important before the actual operations, which help the
users gain application experience, and also reinforce
the effects and broader choices of the applications of
RFID technology and products. This is also important to
make a key contribution to the further implementation
of RFID technology and e-label products with Chinese
innovations and scientific development.
In the next issues, there will be more reports on the
testing organizations and their activities from China,
which will be of your interest!
News Desk
European
Collis announces the release of the Collis Card Image Editor
www.scfc.org.cn
Test Tools Desk
Recently Collis announces the release of the Collis
Card Image Editor; a new product designed to support
both Issuers and Acquirers with card and terminal
testing.
The Collis Card Image Editor is a powerful tool for
editing EMV card data. It provides an intuitive, easy-
to-use editing functionality of a snapshot of data from
a real EMV Card. It can be used to create & manage
profiles (or card Images), and has been designed
specifically with Issuers and Acquirers in mind. This
unique tool is also a must for every consultant in the
world of EMV. It replaces the various spreadsheets
which are used today.
Collis Card Image Editor provides a virtual image of
data from the EMV Card that can be saved as a card
template for further use in the data preparation system. It can also be saved as a card image for further validation with the
Collis Personalisation Validation Tool. This is very beneficial for Issuers and Personlisation Bureaus to reduce the number of
iterations required before producing correctly personalised physical cards. In other words, no physical test cards need to be
made anymore!
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News Desk
European
UPM Raflatac tags help Sure-Reach to track and
trace operation
UPM Raflatac tags help Sure-Reach Records
Management Sdn Bhd to track and trace
paper-based operation that's vast in
scope, totalling more than one million
paper documents and 500,000 cartons.
The Malaysia-based company is the first in i t s i n d u s t r y
worldwide to apply RFID at the individual document level. Sure-Reach
Records management Sdn Bhd has applied UPM Raflatac’s FlagTag and
DogBone UHF EPC Gen 2 tags to its inventory.
FlagTags, innovative, self-adhesive labels with embedded DogBone tags and
perpendicular antennas are applied to individual documents, while DogBone
tags are applied to the cartons themselves. This twin combination provides
100 % readability in a dense environment, regardless of how documents are
packaged. A large number of RFID tags can be read simultaneously from
cartons that are stored up to three-deep, even when they’re not in direct line-
of-sight with an RFID reader.
The RFID solution improves worker productivity, streamlining critical business
processes including shipping and receiving and inventory management. Incoming
pallets containing tagged boxes from multiple customers pass through RFID
doorway portal readers, reducing human error due to manual scanning. And
inventory management, now fully automated, takes weeks, instead of months.
European
NXP Announces Final Results and Expiration of
its Exchange Offers
Recently NXP B.V. and NXP Funding LLC announced the results of their private
offers to exchange their outstanding debt securities listed in the table below for
(i) new euro-denominated 10% super priority notes due 2013 and (ii) new U.S.
dollar denominated 10% super priority notes due 2013. The New Super Priority
Notes will be guaranteed by certain of the Company’s current and future material
wholly-owned subsidiaries, and will be secured, subject to the terms of the
security documents, on an equal basis with all secured debt outstanding under
the Issuers’ senior revolving credit facility.
The Exchange Offers, which are subject to the terms and conditions described
in the Issuers’ confidential offering memorandum dated March 3, 2009 and the
accompanying letter of transmittal, expired at midnight, New York City time,
on Monday, March 30, 2009. As of the Expiration Date, the following aggregate
principal amounts of Existing Notes had been properly tendered and will be
accepted for exchange into approximately €29 million of New Euro Super Priority
Notes and approximately $90 million of New Dollar Super Priority Notes.
Asia
HID Global Appoints Craig
Sandness to Managing
Director, HID - Asia Pacific
HID Global, the trusted
worldwide leader in
providing solutions for
the delivery of secure
identity, announced
that Craig Sandness
has been appointed
Managing Director of HID – Asia Pacific.
In his new role, Mr. Sandness is responsible
for setting the business objectives, strategy
development and maximizing the company’
s sales revenues and profits across the
Asia Pacific region. Craig replaces previous
Managing Director, William Burns, who held
this role since 2007.
With 17 years of professional achievement,
Craig’s career has been characterized by
strategic worldwide expansion and market
penetration. In his previous role with HID,
Craig served as Vice President of Global
Accounts.
"Craig’s leadership skills and business
expertise position him well for this strategic
role as we continue to drive growth in key
Asia Pacific markets." said Tony Ball senior
vice president of sales, Identity and Access
Management.
Craig joined HID Global in 2006 when
the company acquired Fargo Electronics,
a manufacturer of secure photo ID card
printers. At Fargo, Craig served as Vice
President of International Sales, and was
responsible for building the company’s
international sales efforts, reaching more
than 90 countries. Craig holds a BA degree
in International Management from Hamline
University, located in St. Paul, Minnesota,
USA, where he graduated with magna cum
laude honors.
40 CARDS TECH & SECURITY www.ait-events.com

Asia
Watchdata’s URpass ® Launched, Online and
Micro-Payment Combined
Watchdata’s President Wang Youjun and Vice Presidents, Gao Xiang and Li Kaitai
site payment can be realized together.
www.scfc.org.cn
On March 26, 2009,
with its upcoming
1 5 t h a n n i v e r s a r y
in this November,
Watchdata officially
launched URpass ® on
the press conference.
As a model product
for multi-function,
URpass ® is the first
platform where online
transaction and on-
On the same day, 2009 China IC Card Development Summit was held, whose
theme was safety technology of contactless smart card which Watchdata
pays an everlasting attention to. Mr. Pan Lihua, Chairman of Smart Card
Committee, reviewed the smart card industry in 2008. The global amount
of IC cards shipped witnessed a steady growth, while 5 billion cards were
shipped in general. Telecommunication is the major market where there was a
38% growth. Logic cryptographic cards, for the first time in the past 3 years,
suffered from a decrease. Several IC card producers gathered to discuss
about the trend that CPU smart cards with higher safety would replace logic
cryptographic cards. Mr. Lin Lifeng, product executive of Watchdata, gave a
presentation about the safety and multi-function of contactless cards.
URpass ® of Watchdata presented itself as a solid answer to the China IC
Card Development Summit. Its technical performance completely meets the
demand for trans-industry multi-function of smart cards.
URpass ® provides a business platform where business units could put
business information and users could by means of URpass ® ’s key get safety
authentication, enjoy the exact business information, download coupons and
gain repaid points.
URpass ® is believed to better serve the users and help operators enlarge
the scale of micro-payment business, so that the operators could gain
service fees from people’s consumption and also glorify their image. For the
connected business units, they could share the operators’ clients and post
business information on URpass ® platform to attract more clients. So far,
several ALL-in-One-Card producers are showing interest and intention of
cooperation with Watchdata’s URpass ® . That means people will have another
digital choice.
Earlier on the press conference, Mr. Wang Youjun, Watchdata’s president
declared Media Club of Watchdata was officially set up.
Asia
BCTC Provides Assistance
for Foreign Clients’ Entry
into Chinese Bankcard
Market
Now BCTC can help you to enter Chinese
bankcard market by providing the
following services:
1. Consulting service
Our professional consultants are ready to
give illustration and explanation on:
1) Policies and requirements of People's
Bank of China on foreign enterprises
and banks' entry into Chinese bankcard
market;
2) The main situation of Chinese bankcard
market;
3) The technical specifications presently
used in China on bank card (Including
magnetic stripe card and IC card, etc.),
terminal (Including POS and ATM, etc.)
and other bankcard product.
2. Training Service
Our training team is composed of
experienced enginneers and will hold
training courses mainly focusing on:
1) International, national and industrial
specifications on bankcard and terminal;
2) Bankcard security techniques and risk
prevention solutions;
3) The application and development of
new products and techniques in foreign
and domestic bankcard industry;
4) The analysis and solution for testing
problems on bankcard and terminal.
3. Testing Service
We provide professional tests on card,
terminal and other bankcard products.
Please let us know about the products you
need to test, we will try our best to have
them approved as soon as possible.
News Desk
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