Smart Card Talk, January Issuue

Smart Card Talk January 2012

•

a Smart Card Alliance ePublication

• Volume 13 : Issue 1

In This Issue:

Looking at the Financial and Mobile NFC Smart Card markets

② Executive Director Letter >> ③ Latin America Letter >>

Dear members and friends of the Alliance, It feels like yesterday that I was talking about our 10th annual Government Conference, first encouraging each of you to join us, and then recapping what was certainly one of the highlights of a very busy and satisfying year for the Smart Card Alliance. Now I invite you to attend the 2012 Payments Summit next month in Salt Lake City, where we’ll be taking a comprehensive look at the future of “all payments.” We

④ Member Profile >>

are very excited about this event, which already has more than 300 registrants. I also invite you to check out our first-ever eYearbook, which is filled with photos of our 2011 events and the networking and knowledge sharing that took place. As always, I thank you for your continued involvement in the Smart Card Alliance, and welcome your feedback. We’re looking forward to a great year.

⑥ Feature Article >> ⑩ From the Alliance Office >> ⑫ Council Reports >> ⑭ Members in the News >> ⑯ Events Calendar >>

Click to Read Letter …

About Smart Card Talk Smart Card Talk is the monthly e-newsletter published by the Smart Card Alliance to report on industry news, information and events and to provide highlights of Alliance activities and membership.

About the Smart Card Alliance Feature Article:

The Benefits of Contactless Open Payments for Transit Millions of smart cards are in use worldwide for transit fare payment. In the past few years, transit agencies have been making plans to move or have moved to accepting contactless open bank cards for fare payment directly at the customer’s point of entry/exit to the transit system. This article presents the benefits of the move to contactless open payments.

Click to Read More …

Member Profile:

ACS

This month Smart Card Talk spoke with Mike Nash, Vice President Emerging Markets, Transportation and Local Government Sector at ACS, A Xerox Company. Mr. Nash is a subject matter expert on bankcard payment processing fare payment systems, and represents ACS on the Transportation Council of the Alliance, where he is actively involved in producing white papers. Mr. Nash joined ACS from ERG Transit Systems, where he held a variety of senior positions.

Click to Read More …

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

191 Clarksville Road Princeton Junction, New Jersey 08550 1.800.556.6828 Fax: 1.609.799.7032 info@smartcardalliance.org www.smartcardalliance.org

executive director’s corner

The Financial and Mobile NFC Smart Card markets Dear members and friends of the Alliance, Now that everyone, including me, has loosened our belts a notch in order to get more comfortable after a month of holiday parties eating cookies and drinking eggnog and other “spirits of the season,” it is time for me to get serious again about what I see in store for the financial and mobile NFC smart card markets in the United States in 2012.

We saw a year of dynamic change in the payments markets in 2011. Visa announced in August that it was accelerating the adoption of EMV and NFC mobile payments with incentives for merchants, compliance requirements for processors, and a fraud risk liability shift for issuers and merchants who don’t follow their lead. That led to an awakening among the bank card issuers, merchants, and mobile payments scheme operators Google and Isis that the EMV train was leaving the station and contactless payments and NFC were going to be part of the payments rails. Once the angst over the impact of the Durbin Amendment subsided, we saw a dramatic shift in attitudes towards international traveler EMV chips cards. In 2011, EMV programs were announced by eight out of the top ten issuers by card volume and industry suppliers shipped well over 1 million cards.

The mobile wallet wars settled into a two party race between Google Wallet and Isis, a joint venture by AT&T, Verizon Wireless, and T-Mobile. Isis played catch up after they shifted their strategy to being an open wallet platform that would welcome Visa, MasterCard, Discover, and American Express branded payments offerings on their platform. Google used its initial platform partners, MasterCard, Citi, Sprint, Samsung, and a dozen merchants, to its advantage to be first to market with pilots in New York and San Francisco in the summer. The company saw the momentum wither later in the year when adoption stalled due to too few NFCenabled handsets in too few retail stores in too few cities around the country. Both merchants and issuers have been disappointed by the initial offerings of these dueling mobile payments schemes and the lessoned learned from these early pilots and business negotiations are likely to shape the mobile payments market in 2012.

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How these developments in 2011 foreshadow what we may see this year depends on what just two companies will do in the next twelve months. MasterCard is the key to how EMV migration for the U.S. market takes shape. If MasterCard comes out aggressively with a bold EMV merchant adoption strategy and a cardholder verification strategy that satisfies big ticket retailers (PIN) and online merchants (one time passcodes) and that also streamlines issuance and transaction acquiring challenges, then they can stimulate the massive investment it is going to take to wean the market off magstripe and jumpstart EMV and NFC payments. If they wait or don’t offer sufficient incentives for merchants to shift operational resources for PCI compliance to infrastructure resources for new POS terminals, then we are in for a long, slow migration.

Apple is the other company that can make an impact. For two years, the iPhone has been rumored to be coming out with embedded NFC. The iPhone 4S released last fall was a major disappointment for people expecting Apple to make a big move with NFC in order to compete with the Android mobile handsets that have overtaken the iPhone in market share. Perhaps at the time they knew better than anyone that NFC phones, Isis and Google were still a year away from proving any serious NFC applications and driving consumer adoption. But that window is now closing as more and more orders for NFC handsets flood the market and as manufacturers add NFC to multiple smart phone products at once. An iPhone with NFC, paired with the iPad and iPod for music and video sharing, iTunes for payments processing, and the iCloud for sharing everything with every device, including your home stereo, auto, and television, creates a whole new value proposition for consumers. Apple has perfected simplicity and NFC makes transacting even simpler than what we do today. Can you picture the lines outside Apple stores when the iPhone 5 with NFC is announced?

So that is my look into the future. If you want to really understand the future of payments and mobile, then plan to attend the 2012 Payments Summit on February 8-10, 2012 in Salt Lake City. I hope you join us.

Sincerely, Randy Vanderhoof Executive Director rvanderhoof@smartcardalliance.org

Dear members and friends of the Smart Card Alliance Latin America & the Caribbean,

to the following members:

The new year brings a time for deep reflections, renewals, hopes and desires. As a resolution at the beginning of the year, I always take the opportunity to revisit SCALA’s strategy, objectives, alliances, and goals to evaluate how we can improve the Alliance’s position to offer significant benefits to member organizations, expand our sense of community, and influence new markets. The first order of business is to introduce SCALA’s newly-elected Executive Committee. Welcome

Chairman: Fernando Mendez, Visa Inc. Vice-Chair: Kim Hangoc, MasterCard Worldwide Secretary: Ismael Dykman, HID Global Observing General Member: Vincent Tenaglia, Global Enterprise Technologies • Observing Financial Institution Advisor: Jorge Krug, Banco do Rio Grande do Sul • • • •

The new Executive Committee will meet on January 23rd in Miami, Florida, to determine the direction of the organization, the activities to be developed, and the educational programs, white papers, and conference events for the year. Each of the newlyelected Executive Committee members has assumed a responsibility with the SCALA members they represent. To further engage our membership in the activities and initiatives we’ll be developing throughout the year, SCALA will publish Executive Committee meeting minutes to all of its member organizations for review.

source is the Visa Smart Debit/Credit (VSDC) Interactive Training Toolkit, available at http://latinamerica.smartcardalliance.org/ pages/activities-education-visa-smart-debit-credit-vsdc-interactive-training-toolkit. This interactive training toolkit helps guide organizations step by step through the process of understanding the migration from magnetic stripe cards to EMV smart cards. The VSDC interactive training toolkit is available in Spanish, Portuguese and English at the SCALA homepage. For a limited time, the toolkit will be offered at $99.00USD vs. its regular price of $299.00USD. I’m also pleased to report that our white paper on “Card Payments Roadmap in Latin America: How does EMV Impact the Payments Infrastructure?” (http://latinamerica.smartcardalliance.org/pages/ publications-card-payments-roadmap-in-latin-america-howdoes-emv-impact-the-payments-infrastructure) prompted a wave of requests from financial institution organizations for copies.

They also contacted us for information to help them in their migration process. As a result, SCALA will be unveiling a plan in the coming months to address the growing concerns of the market for additional information similar to our white paper, including access in the local language, ability to interact with industry experts and assistance in guiding the migration process using content from published white paper.

In terms of a new year’s resolution for SCALA, we plan to make this the best year yet for the organization and its member companies, driving markets through training, exposing potential clients to new products, finding related value-added services, gathering our industry through conference events, and expanding our library of white papers. I encourage all of you take a trip down memory lane and see some of our key 2011 accomplishments in our yearbook publication. For more information please visit: http://www.smartcardalliance.org/pages/publications-2011-e-yearbook.

Wishing all of you a wonderful, successful, prosperous 2012, Edgar Betts Associate Director, Smart Card Alliance Latin America (SCALA) Direct Line: +507-225-9089, email: ebetts@smartcardalliance.org

SCALA is also organizing its first Certified Smart Card Indus­try Professional (CSCIP) course for Latin America & the Carib­bean in the coming months. The course is designed as preparatory training for individuals who want to be certified as industry experts.

The certification process is divided into three sections. First is an ex­tensive training course on Smart Card Fundamentals, next is a CSCIP preparatory training course, and third is the exam. We’ll have dates and more information soon.

SCALA has also added new content and resources for financial institutions in the process of migrating to EMV. The newest re-

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latin america corner

New Year Resolution

member profile

Open payment - making public transit simple.

Open payment - making public transit simple.

This month Smart Card Talk spoke with Mike Nash, can Express, where he held senior international and Vice President Emerging Markets, Transportation domestic leadership roles in Thailand, Hong Kong, and Local Government Sector at ACS, A Xerox Korea, Australia and the US before moving to Visa Company. Mr. Nash is a subject matter expert on International where he initiated VisaCash , elecWe understand the demand for fast, convenient and safe payment alternatives for public transit, so we’re helping bankcard payment processing fare payment systems, tronic purse product, and the first global prepaid create the future today with therepresents Atlas Transit System, our proven Open card, Payment technology.

Atlas captures on safe the Transportation Council Travel Money.so Hewe’re later moved to Amdahl We understand the demand for fast,and convenientACS and payment alternatives for Visa public transit, helping opportunities for cost savings, new revenue streams, improved fare policy flexibility, all while making public transit of the Alliance, where he is actively involved in proas an executive with the Mondex Solution team supcreate the future today with the Atlas Transit System, our proven Open Payment technology. Atlas captures more convenient for riders. ducing We want make fare collection simple you focus more resources on providing whitetopapers.

Nash joined ACS from to help porting MasterCard’s electronic purse product. opportunities for cost savings, new revenue streams, Mr. improved fare policy flexibility, all while making public transit ERG Transit Systems, where he held a variety of top-quality transportation services. more convenient for riders. We want to make fare collection simple to help youMichael focus more resources on providing senior positions, including Global Head of OperatC. Nash can be reached at top-quality transportation services. ing companies, managing outsourced fare collection Michael.nash@acs-inc.com. operations in Melbourne, Sydney, Hong Kong, SinFor more information contact: sanford.weinberg@acs-inc.com gapore, Rome, the UK as well as the US. Mr. Nash’s www.acs-inc.com/transportation.aspx history in the payments industry began with AmeriFor more information contact: sanford.weinberg@acs-inc.com

www.acs-inc.com/transportation.aspx

©2011 Xerox Corporation and Affiliated Computer Services Inc. All rights reserved. ACS® and the ACS design are trademarks of ACS Marketing LP in the United States and/or other countries. XEROX® and XEROX and Design® are trademarks of the Xerox Corporation in the United States and/or other countries. BR961

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©2011 Xerox Corporation and Affiliated Computer Services Inc. All rights reserved. ACS® and the ACS design are trademarks of ACS Marketing LP in the United States and/or other countries. XEROX® and XEROX and Design® are trademarks of the Xerox Corporation in the United States and/or other countries. BR961

1. What are ACS’s main business profile and offerings?

From fare collection to toll solutions and back-office processing to infrastructure installation, ACS, A Xerox Company, provides a full range of systems and services that help solve major transportation problems for governments and travelers in 35 countries around the world.

With 4% of Xerox revenues, about $1 billion, spent on R&D every year, scientists dedicated to transportation projects in our different research centers all over the world are working on innovative transportation solutions while improving the experience of our clients and their customers.

Our transportation solutions include: • Transportation Systems and Services: providing intelligent transportation that creates operational efficiencies for electronic toll collection, commercial vehicle operations and motor vehicles services; • Public Transport: providing fare collection solutions for advanced technologies including smart card applications, and bank card solutions for mass transit as well as fleet management solutions; • Parking and Safety Solutions: providing solutions customized for on and off-street parking and photo enforcement systems all designed to efficiently manage programs for municipalities across the country.

We touch people’s lives every day by…

• Enabling travelers to get to their destinations by processing more than 4 billion electronic toll transactions every year; • Managing 37 billion public transport transactions annually on buses, tramways and subways in 400 cities worldwide; • Processing 20 million parking tickets annually, contributing to our role as the largest provider of services in the government sector; • Serving more than 100M travelers daily; • Operating 1100 car parks in the world.

As part of Xerox, a $22.5 billion leading global enterprise for business process and document management, we have the resources of 134,000 people, global brand strength and innovative technology and services to add relevancy to our offerings and more value for our customers.

2. What role does smart card technology play in supporting your business?

Smart cards are used in the majority of our fare collection systems. Today we support over 400 implementations of fare systems that use smart cards.

3. What trends do you see developing in the market that you hope to capitalize on?

The movement to open payment systems has long been evident to ACS and we have championed solutions long before the industry recognized the power of the new approach. Open payments allow transit agencies to accept bank issued contactless payment cards directly at the point of entry. This eliminates the costs of providing proprietary agency only smart cards and uses capabilities of cellular technology to support on-line processing of all transactions. ACS leveraged its long experience in electronic toll collection to develop a scalable solution for open payments that supports all the same fare collection system features as preceding off-line technologies and adds several more. The ability of an account based system to improve performance in fare collection is being recognized by agencies across the country. ACS has developed a comprehensive solution for public transit agencies and hopes to capitalize on the transition to the new technology by providing the best solution in the market to public agencies.

4. What obstacles to growth do you see that must be overcome to capitalize on these opportunities?

The financial services industry has undergone significant change in the last year.

This has impacted the pace of contactless card introduction in the USA. Hopefully

2012 will see the conversion getting back on track. In the meantime, prepaid card issuers are poised to support transit with contactless prepaid cards. ACS is working with industry groups like the Smart Card Alliance to assist in this process.

5. What do you see are the key factors driving smart card technology in government and commercial markets in the U.S.?

The government has made a commitment to PIV cards and that process will continue. The expansion of PIV to include payment services such as use in public transit will increase the appeal of these cards to government agencies and customers alike.

Commercially, smart cards will advance with the introduction of EMV standards as the U.S. catches up with other markets which have adopted this more secure technology. The U.S. banking industry does not want to have anything less than the most secure form of payments, so the movement to chips is inevitable.

NFC technology is also playing a role as the introduction of mobile phone wallets will expand contactless payments in the next few years. Over the past decade, considerable thought has gone into multiapplication devices such as mobile wallets, but until now the technology has not met consumer needs. That is changing as phones can provide the user interface and application independence to support a shared environment. We can expect to see rapid adoption of these devices in the near future as a result.

6. How do you see your involvement in the Alliance and the industry councils helping your company?

The Smart Card Alliance has offered a positive environment to discuss innovation in transit payments and has taken the initiative to educate its constituents on NFC and other key trends in the marketplace. This is a valuable service to ACS, which uses our membership to help focus our approach and learn from other members.

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feature article

The Benefits of Contactless Open Payments for Transit: An Emerging Approach for Fare Collection The transit and bank card payment industries have historically taken different approaches to processing payments and managing risk. With bank card issuers now offering contactless credit, debit and prepaid cards and instituting new programs for low-value transactions, transit agencies can take advantage of these programs to directly accept contactless bank cards for fare payment at the point of entry where the fare media is ordinarily presented. This can yield significant benefits for transit fare collection vs. other non-cash approaches.

To frame the discussion of the benefits of transit acceptance of contactless open bank card payments, the following model describes one approach for implementation: • Riders use contactless credit, debit, and prepaid cards and devices to pay for fares directly at the point of entry to the transit system (e.g., at the subway gate, on the bus, on a train), and, with some agencies, for parking fees.

• The contactless card or device is read at the point of entry and the transaction is routed to the transit agency’s back office system, where the fare is calculated, the transaction is authorized through the financial processing network, and the rider’s account is managed.

• The transit agency maintains the traditional merchant-acquirer-issuing bank business relationship.

• All contactless credit, debit, and prepaid transit fare payment transactions may be processed through the standard operating infrastructure of the financial payments system and use the standard financial industry processes for clearing and settlement.

The combination of contactless bank card acceptance and changes to architectures and processes to support contactless payments acceptance at entry/exit points offers a number of potential benefits to transit agencies, including: improved flex6

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ibility; enhanced operational efficiencies that result in cost savings; improved customer service; and faster deployment. In addition, accepting contactless bank cards opens up opportunities for partnerships, co-promotion and new revenue streams.

Fare Payment System Architecture Flexibility An open contactless bank card approach uses an account-based architecture, rather than the traditional card-based architecture. The account-based architecture also offers additional benefits to transit agencies for supporting fare policies and other payment media.

In a system using an account-based architecture, the terminal reads information stored on a contactless smart card and sends it to a back office over a communications network. The back office system (or host) maintains the system’s logic, determines whether the card is valid, and returns a signal that enables the terminal to open the gate or to signal the rider and the bus operator whether to allow passage.

The terminal may perform security functions, for example, checking a hot list or positive (cold) list to determine card validity before sending any payment data to the host. The card is typically only accessed with a read function by the terminal.

The back office system uses the data sent by the terminal to apply the relevant business rules and determine a price for the transaction using the agency’s fare policy/rules.

Transaction types and payment methods can vary with this architecture based on the transit agency’s business rules and the types of technologies deployed.

Account-based architectures enable transit agencies to incorporate any contactless smart card into their system as fare media by linking the card to a funding account.

The card can be any card, including cards issued by the Federal government, corporations, or universities.

An account-based architecture also enables easier changes to fare policy; changes are made in the back office system. Neither the cards nor the terminals need to change.

Overall, account-based architectures deliver value to transit agencies beyond simply enabling acceptance of contactless credit, debit and prepaid cards.

Interagency Interoperability When multiple agencies accept contactless bank cards, automatic interoperability is achieved by all agencies and merchants that accept such payment devices. The need for complex regional organizations and compromises to an agency’s policies is no longer present, as in traditional transit fare systems.

Merchants who take advantage of open payment networks expect interoperability to be automatic; transit agencies will see the same benefit as they move to open payments and become merchants.

The links among agencies as merchants for revenue-sharing, common fares and transfers can be added to back office processes later, after deployment.

Flexible Implementation of Government and Pretax Program Benefits on Prepaid Cards Both the Federal and state governments issue prepaid cards to administer certain government assistance programs. Rather than mailing a check to the benefit recipient, the federal or state government provides a prepaid card to the benefit recipient. Each month, the government agency transfers the benefit amount to the prepaid card account of each recipient. Examples of government-funded programs that use prepaid cards include Social Security, Temporary Assistance for Needy Families (TANF), Women, Infants and Children (WIC), state unemployment, and courtordered payments. These cards can include disbursements for child support,

disability programs, pensions, emergency disaster relief, tax refunds, unemployment, benefits, veterans’ benefits, and worker’s compensation.

Pretax program cards are prepaid cards that deposit pretax earnings to a consumer’s account to be used only as specified by current IRS regulations. Pretax programs include transit benefits accounts, healthcare reimbursement accounts, and medical savings accounts.

An account-based architecture would allow transit agencies to accept payment from eligible government benefits and pretax programs that issue contactless prepaid cards.

Flexible Use of ID and Access Media for Fare Payment Many organizations’ ID cards use standard ISO/IEC 14443 contactless smart card technology for physical access to buildings and facilities. An account-based architecture would allow these ID cards to be associated with a transit account; individuals could then use an ID card as a fare payment device. By using an accountbased architecture, a transit agency can team with local card issuers (e.g., Federal agencies, corporate employers, or universities) without requiring that the issuing organization change their processes. For example, the agency could negotiate a contract with a university so that the school pays the agency directly based on the use of student ID cards for rides on the transit system. Alternatively, a student could register the student’s (or parent’s) bank card or bank account with the transit agency to allow payment when the ID is presented for a ride on the system.

tionship, transit can take advantage of the broad-based, market-driven nature of the current global financial payments network.

Maintaining this relationship also enables transit to take advantage of competitive products and services built on open standards, to build on established financial payment card customer behavior and expectations, and to leverage the financial payments industry’s extensive customer and operations support infrastructure.

Well-Defined and GloballyAccepted Security Standards Entities that process credit and debit cards must comply with the Payment Card Industry (PCI) Data Security Standards (DSS). The PCI standards represent a comprehensive security approach that governs the safekeeping of cardholder and other sensitive authentication information as it is processed, stored, or transmitted within a merchant environment. The published security standards and formal approach to revisions provide a common

framework for the transit and financial industries to mutually work to protect data processed by a new open fare payment system. As part of system design, transit agencies should discuss the impact of the PCI standards with their merchant acquirer/processor.

Reduced Payment Media Issuance Transit agencies that accept contactless bank cards may no longer need to issue fare media for a large number of their riders, avoiding the significant costs associated with ticket issuance and with card lifecycle management. Transit agencies can receive the benefits of account-based fare payment without needing to manage and secure the privacy of those accounts directly.

Lower Fare Collection Costs Traditionally, transit agencies function as the fare media issuer and the transaction acquirer, in addition to performing all cash

Merchant Role for Transit Agency The model described in this article allows transit agencies to maintain the established merchant-acquirer-issuing bank business relationship. By maintaining this relaSmart Card Talk

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handling responsibilities. Various types of fare media must be manufactured, shipped, distributed, and monitored; all fare media payment transactions must be acquired and settled. In addition to less media cost, fewer revaluing and media dispensing machines are required. When these costs are combined with the substantial capital acquisition costs and ongoing maintenance expense of fare collection equipment, it is not surprising that agencies must expend a considerable percentage of collected fare revenue to operate and manage their revenue systems.

Open payment systems provide options for transit operators to reduce their role within the fare collection supply chain. Central to the value proposition offered by open payments is the ability to avoid playing the role of the media issuer. The transit agency acts as a merchant and can direct more effort toward operating and improving transit services. When considering open bank card systems, transit agencies should determine the full burden of their overall fare collection costs, including the full lifecycle of equipment; this can then be used to objectively compare the costs for open and closed systems.

Lower Costs from Leveraging Standards-Based Commercial Off-the-Shelf Devices Moving to an open payments environment entails the adoption of a variety of standards developed and maintained for the financial payments industry. That industry includes a wide variety of hardware and software suppliers that have developed products in response to a market much larger than mass transit. As such, transit stands to gain by such scale economies where mass market products fit the operational needs of fare terminals and back office systems. Examples of these benefits will be found in back office software components, communications devices, and a variety of front-end terminal and terminal components. The impact of standards provides a greater probability that new devices and services will be usable by transit agencies without the need for modifications to their systems, as innovators will choose to develop to financial industry standards.

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The clarity in financial industry security standards will also assist in lowering costs by providing a robust infrastructure of compliance professionals who can perform services with a significant degree of efficiency.

The biggest opportunities for front-end devices will be found in the areas of fare product sales and account top-ups where conventional POS devices, handheld terminals, and associated networks will be able to be leveraged. In addition, generally available customer service kiosks may also be used for account management and as top-up terminals. For front-end fare processing devices, the unique environmental demands for transit equipment such as faregates and on-bus equipment will still likely require purpose-built equipment; however, certain components, like readers, may be purchased from a variety of sources.

Standards for messaging simplify interface development, saving time in design and programming efforts. Systems suppliers will also be less frequently called upon to deliver custom hardware solutions, the development of which can be amortized only across the comparatively small market of mass transit.

Improved Customer Service For customers, paying a transit fare would be like any other retail experience and carry with it the complete customer support system, claim resolution process, and protection against loss that comes with financial payment products.

Positive Customer Experience The transit customer experience improves with the use of bank cards for fare payment. Customers use payment cards that they already have, without needing to stop and buy transit-specific fare media or determine the appropriate fare. Customers paying fares with financial industry-issued contactless payment cards can build on their relationship with an issuer of their choice to pay any transit fare. Customers would have fewer cards in their wallets. If multiple agencies in a region accept open

bank card payments, regional travel on public transportation would be easier.

Speed of Deployment In general, transit agencies want to be able to leverage payment mechanisms already present in the marketplace rather than build a system from the ground up with the expectation that by doing so they will be able to simplify and more quickly deploy a solution that holds the promise of lower system acquisition and on-going costs.

The following factors contribute to open bank card payments speeding deployment: • The open standards used for bank card payments allow the use of standards-based hardware, software and processes.

• Lessons learned from one agency’s deployment can be used by other agencies to speed the process.

• Back office development can be leveraged across agencies with an account-based system.

• Contactless open payments can result in interagency cooperation more quickly and easily, since the open payments card or device can be used at any transit agency that accepts contactless bank card payments.

• Deployment times may be shorter if the agency is building on an upand-running platform operated by a service provider. Smaller agencies may also realize some time savings if they are willing to use a softwareas-a-service (SaaS) approach to contracting, since the required assets can be built more quickly.

• Agencies that have a closed smart card platform in place and wish to migrate to an open payments solution may be able to leverage work that has already been done. For example, the communication connections will likely be in place and, if capable of supporting additional transactions, can be used for the upgrade. The equipment, if still serviceable, may be already set for installation of readers that are capable of processing open payment transactions. The upgrade

may consist of a reader swap-out, the addition of or connection to the processing system, an update to the communications equipment on vehicles in tandem with the reader or validator upgrade, and development of customer support functions (such as the web site, customer relationship management system, call center procedures and training).

While an open payments approach for transit in a mature environment may simplify deployment and reduce ongoing support, transit agencies should not expect that the approach itself will lead to a significantly shortened overall deployment cycle. Transit agencies exploring the open payments approach need to look beyond the potential shortened lead time for certain system components, like point of sale readers, and ensure their speed of deployment analysis includes a review of planning and procurement cycles.

Partner Co-promotion Opportunities Another advantage of open payment is that transit can benefit from co-branding opportunities and other promotional programs offered by bank card issuers. Card issuers are expert at database marketing and can work with a transit agency to identify customers who are likely to respond to various product offerings, subject to privacy policies established by the transit agency and/or the financial community. Using the account-based model, temporary promotional products could be introduced with little effort.

Additional Revenue Opportunities Open payment systems, as the name implies, are able to support a number of parties in commercial relationships that can offer additional benefits to transit agencies.

Benefits may come in the form of advertising revenue, revenue-sharing with card issuers, enhanced media distribution systems, and accommodation of smaller transit agencies.

To be successful, transit agencies who want to take advantage of such relationships should approach the other party as a partner. Advertisers do not know the restrictions that agencies operate under, and agencies do not know what features will best appeal to a financial institution, retailer, or other commercial partner. A willingness to work together is likely to result in higher revenues over the long term, rather than seeking guarantees of initial revenues from partners before they have had an opportunity to develop confidence in the chosen approach. The ability to work in an open environment will pay dividends over time, and finding the best approach will take time.

Advertising. Many consumer-facing displays now carry advertising. For example, gas station pump screens and ATMs display ads, with advertisers paying for the use of the display. Advertising could also be displayed on ticket vending machines or smart card reader screens in buses and on platforms. Transit agencies may have hundreds to thousands of devices throughout their systems that can display advertising messages that are downloaded or streamed using device management systems. Additional revenue can be achieved by selling space on these devices.

network-branded cards could designate a share of the revenues from the program to be paid to the transit agency. Such partnerships require discussion either with a bank (for credit and debit products) or a program manager (for prepaid card programs).

Retailers also issue payment cards, and discussions with local managers of major retailers may result in a co-branded, privatelabel card that is compatible with the fare payment system at the transit agency. A relationship with a major retailer to support a common payment card can provide distribution benefits. In many cases, retailers may also be willing to share revenue based on benefits the agency provided to the retailer. For example, free transit to and from the merchant’s location could be offered in return for a share of shopping revenues.

Expanded Distribution. Transit agencies cannot always manage their complex fare media distribution channels adequately.

Such management requires immense amounts of staff time, quick reactions, and thoughtful marketing and planning.

UTA’s card reader

Focused advertising also represents another revenue opportunity for transit agencies.

Any process that assists companies in better locating buyers and encouraging them to make purchases offers considerable value to retailers. Transit agencies often use bus tracking systems to manage their fleets. The tracking information could be used to inform partner companies of the location of potential buyers. Companies located near a rider’s stop could use the rider’s smart phone to offer the rider discount coupons or other benefits. The retailer could be charged a fee or pay a percentage of sales for the transit agency’s participation.

Card Revenue. Transit agencies may be well positioned to share revenues with bank card issuers. Regardless of whether the card is co-branded, an agency’s commercial relationship with an issuer of Smart Card Talk

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Moving to an open payment system can enable transit agencies to take advantage of their partners’ retail channels and practices.

For example, a partner who is already stocking inventory can stock co-branded media. Agencies can then redirect their distribution resources to support other core functions or oversee the open payment system.

Expansion to Small Agencies. Open payment systems use an account-based architecture, which enables additional agencies to join the system with relative ease. The lead agency in an area could offer to provide fare collection services to any peers lacking the resources to purchase or operate a modern fare collection system.

The smaller agency could then be accommodated without having to change its fare collection requirements.

Conclusion The transit community can benefit from a new understanding about the architecture of open payments and its benefits. Like many industries, transit agencies struggle with multiple standards and the challenges of interoperability. By adopting bank industry standards for payment, however, the goal of interoperability is achieved. Increasingly, as shown by pilot projects conducted in the New York-New Jersey region, the open payment operation of the Utah Transit Authority, and several ongoing procurements among large North American transit operators, the industry will develop further insights into the opportunities and benefits of open payments and account-based fare payment approaches.

WEB SITE NEWS Updated web content: • 2011 Smart Card Alliance e-Yearbook • New brief, Benefits of Smart Cards versus Magnetic Stripe Card for Healthcare Applications • New slide show, Transit and Contactless Open Payment: An Emerging Approach for Fare Collection • New white paper, Transit and Contactless Open Payments: An Emerging Approach for Fare Collection • New resources page, Transit Open Payments Resources • New Smart.Transit LinkedIn Group • Conference presentations added to LEAP and CSCIP members-only pages • Implementing PIV-Enabled Physical Access Control Systems: Practical Guidance for Specifying, Integrating and Certifying Systems workshop recording added to LEAP and CSCIP members-only pages • Update to all applications pages with new marketing information and industry topics • Updates to contactless payments, EMV, government ID, healthcare identity management and NFC resources pages • Updates to council public and members-only pages

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About the Article This article is an extract from the white paper, Transit and Contactless Open Payments: An Emerging Approach for Fare Collection, was developed to inform the transit industry of the opportunities, benefits and challenges of accepting contactless open bank cards for fare payment and to inform the bank card industry of unique requirements for transit fare collection.

Smart Card Alliance Transportation Council members involved in the development of this white paper included: Accenture; ACS, a Xerox company; American Express; Booz Allen Hamilton; Bell Identification B.V.; CH2M; Chicago Transit Authority; Collis; Connexem Consulting; Cubic Transportation Systems; Dallas Area Rapid Transit (DART); Discover Financial Services; epay North America; Gemalto; Giesecke & Devrient; HID Global; Identive Group–SCM Microsystems; IDmachines; Infineon Technologies; INSIDE Secure; JC Simonetti & Associates; JPMorgan Chase; Keville Enterprises; LF Consulting; LTK Engineering Services; MasterCard Worldwide; MTA NYC Transit; NJ TRANSIT; NXP Semiconductors; Oberthur Technologies; OTI America; Parkeon; Payment Strategy, LLC; Quadagno & Associates; Scheidt & Bachmann; Southeastern Pennsylvania Transportation Authority (SEPTA); Thales Transport and Security Inc.; U.S. Department of Transportation (DOT)/Volpe Center; Utah Transit Authority (UTA); VeriFone; Visa Inc.; Washington Metropolitan Area Transit Authority (WMATA).

DECEMBER 2011 WEB STATISTICS • • • • • • •

81,702 visitor sessions for the month 2,635 visitor sessions per day 346,055 total page views for the month 141,113 Industry News items viewed 961 Card Reader Catalog items displayed 14,656 PDF downloads 21,257 Product and Service Directory page views

If you have any suggestions on content that you’d like to see on the Alliance web site, please send them to info@smartcardalliance.org.

NEW CSCIP Members John Coker Jo Petitt John Piccininni Douglas Smith

Identive Group Gemalto Identive Group Identive Group

NEW CSCIP/G Members Scott Chillemi Scott Elliott Eric Luxa Rob Zivney

Identive Group Identive Group Identive Group Identive Group

Jan. 2012 Dec. 2011 Nov. 2011 Jan. 2012 Nov. 2011 Nov. 2011 Nov. 2011 Nov. 2011

• PATCO, Lindenwald, NJ Membership Level: Government Member Contact: Kathleen Imperatore, Director, Fare Collection Description: Rail transportation agency between southern New Jersey and Philadelphia • FIS Global, Romcoville, IL Membership Level: General Member Contact: Bastian Knoppers Description: Service bureau providing all facets of the payment process, including ownership of card management platforms and personalization facilities • Stanley Black & Decker, New Britain, CT Membership Level: General Member Contact: Jennie Dannecker, Government Marketing Manager Description: Leading provider of tools, storage systems, security solutions for the federal, state, and local government • GET Group, Waltham, MA Membership Level: General Member Contact: Alex Kambanis, President & CEO Description: Global leader in secure document and information technology solutions • Evertech Latinoamerica, San Jose, Costa Rica Membership Level: General (SCALA) Member Contact: Gina Navarro Vargas, Operation Vice President Description: A payment processor certified by Visa and MasterCard in several countries in Latin America • Homeland Security Consultants, LLC, Washington, DC Membership Level: Associate Member Contact: Philip Lee, Partner Description: a consulting and technical/project management services firm dedicated to providing Identity • BetterBuyDesign, Colorado Springs, CO Membership Level: Associate Member Contact: Steve Mott, Principal Description: A management advisory firm specializing in online and mobile payments and security • Quantum Secure, San Jose, CA Membership Level: General Member Contact: Rochelle Thompson, Marketing Manager Description: SAFE software suite is a COTS-based solution to connect disparate physical security and IT and operational systems • PTI – Pinchpoint Secure, Tipp City, OH Membership Level: General Member Contact: Kirk Stucki, Managing Partner Description: pinchpoint-Secure is a line of selectively enabled passive RFID inlays that only broadcast when prompted by end users

ALLIANCE IN THE NEWS The Alliance has an active communications program to promote industry messages in business, vertical market, and technology publications. Coverage results from both Alliance press releases and interviews with publications writing articles about smart cards. Selected recent coverage is shown below with links to online articles.

January 2012 • ATM Marketplace.com, 1/9/2012, Keynotes announced for Smart Card Alliance 2012 Payments Summit • The Green Sheet, 1/9/2012, MC, Visa, Isis, PayPal experts to headline SCA summit • The Green Sheet, 1/5/2012, SCA accepting proposals for speakers, topics at NFC Solutions Summit • NFC News, 1/5/2012, NFC Forum, Smart Card Alliance gear up for 2012 events December 2012 • Bank Innovation, 12/11/2011, Boosting Healthcare Security with Smart Cards • Contactless News, 12/21/2011, Smart Card Alliance releases 2011 E-Yearbook • Contactless News, 12/12/2011, PKI at the door without an overhaul • DigitalID News, 12/22/2011, Smart Card Alliance releases 2011 E-Yearbook • ISO & Agent, 12/29/2011, ‘More’ Defines The Year In Data Security • SecureID News, 12/21/2011, Smart Card Alliance releases 2011 E-Yearbook • SecureID News, 12/12/2011, PKI at the door without an overhaul • SecureID News, 12/8/2011, NIST tackling PIV, mobile ID • SecureID News, 12/7/2011, New credential from idOnDemand • TMCnet.com, 12/12/2011, Secure Online Banking and Credit Card Security in the U.S.: A Wake-Up Call November 2011 • Contactless News, 11/15/2011, Smart Card Alliance launches educational resources for open fare payment systems • Contactless News, 11/3/2011, Smart Card Alliance announces new exec committee, board • Finextra.com, 11/3/2011, Smart Card Alliance elects board and executive committee • Near Field Communications World, 11/2/2011, Intercede to demo NFC government ID • PYMNTS.com, 11/9/2011, “Smart” Card Security Solutions for Government Agencies [link not available] • SecureID News, 11/3/2011, Smart Card Alliance announces new exec committee, board • The Wall Street Journal, 11/22/2011, J.P. Morgan Adds Chip-Based Cards Smart Card Talk

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from the alliance office

NEW MEMBERS

council reports

Updates from the Alliance Industry Councils HEALTHCARE • The Healthcare Council published the new white brief, Benefits of Smart Cards versus Magnetic Stripe Card for Healthcare Applications. The brief discusses the benefits of smart cards for healthcare applications and the limitations of magnetic stripe cards.

• The Council is now working on two projects: a brief on smart cards vs. biometrics-only solutions for healthcare applications; an update to the smart card technology in healthcare FAQ. • The Council’s LinkedIn group, Healthcare Identity Management, is open for discussion on healthcare identity security and management. The group is open to both members and non-members.

IDENTITY • The Identity Council is currently completing a white paper that includes use cases for non-Federal organizations issuing and using PIV-I credentials.

PHYSICAL ACCESS • The Physical Access Council expanded its charter and now has a new name, the Access Control Council. The Access Control Council will focus on accelerating the widespread acceptance, use, and application of smart card technology for both physical and logical access control. The current Council officers and Steering Committee will remain in place for the expanded Council. The Council welcomes any new members who would like to work on projects related to logical access.

PAYMENTS • The Council’s LinkedIn group, Smart.Payments, is open for discussion on payments and fraud. The group is open to both members and non-members.

Alliance Members: Participation in all current councils is open to any Smart Card Alliance member who wishes to contribute to the council projects. If you are interested in participating in any of the active councils, please contact Cathy Medich.

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TRANSPORTATION • The Transportation Council published the new white paper, Transit and Contactless Open Payments: An Emerging Approach for Fare Collection. The white paper discusses the opportunities, benefits and challenges of accepting contactless open bank cards for fare payment and describes the unique requirements for transit fare collection. The white paper includes detailed profiles of the New York/New Jersey pilots and the Utah Transit Authority full system deployment.

• Transportation Council members involved in the development of this white paper included: Accenture; ACS, a Xerox company; American Express; Booz Allen Hamilton; Bell Identification B.V.; CH2M; Chicago Transit Authority; Collis; Connexem Consulting; Cubic Transportation Systems; Dallas Area Rapid Transit (DART); Discover Financial Services; epay North America; Gemalto; Giesecke & Devrient; HID Global; Identive Group–SCM Microsystems; IDmachines; Infineon Technologies; INSIDE Secure; JC Simonetti & Associates; JPMorgan Chase; Keville Enterprises; LF Consulting; LTK Engineering Services; MasterCard Worldwide; MTA NYC Transit; NJ TRANSIT; NXP Semiconductors; Oberthur Technologies; OTI America; Parkeon; Payment Strategy, LLC; Quadagno & Associates; Scheidt & Bachmann; Southeastern Pennsylvania Transportation Authority (SEPTA); Thales Transport and Security Inc.; U.S. Department of Transportation (DOT)/ Volpe Center; Utah Transit Authority (UTA); VeriFone; Visa Inc.; Washington Metropolitan Area Transit Authority (WMATA).

• The Council published the Transit Open Payments Resources web page, a set of resources on open payments for transit agencies, highlighting agencies that are moving to open payments and Smart Card Alliance resources for agencies.

• The Council established the Smart.Transit LinkedIn Group to stimulate discussion of transportation industry use of open contactless payments. The LinkedIn Group is open to all Smart Card Alliance members and public transportation agencies.

• The Council is working on a new white paper on NFC and transit, which is scheduled to be available by the Payments Summit, February 8-10, 2012 in Salt Lake City, UT.

OTHER COUNCIL INFORMATION • The 2011 Smart Card Alliance e-Yearbook includes a report on each council’s accomplishments in 2011 and the council honor roll of member contributors.

• Members-only council web pages are available at http:// www.smartcardalliance.org/councils. These are passwordprotected pages that contain council working and background documents and contact lists. Each Council area has a separate password since Councils may have different membership policies. If you are a Smart Card Alliance member and would like access to a council site, please contact Cathy Medich.

• A Council meeting calendar is available on the members-only web site at http://www.smartcardalliance.org/pages/memberscouncil-resources.

• If you are interested in forming or participating in an Alliance council, contact Cathy Medich.

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members in the news

HID Global and Yale Locks Open Doors with Verizon Wireless Smartphones at 2012 CES Verizon Wireless Smartphones Containing HID Global’s Embedded Mobile Keys Are Used to Open Doors Fitted with NFC-Enabled Yale Real Living Locks Las Vegas and Basking Ridge, N.J.–From the 2012 International Consumer Electronics Show (CES), Verizon Wireless is collaborating with two ASSA ABLOY companies–HID Global and Yale Locks & Hardware–to demonstrate the benefits of smartphones carrying mobile keys. The demonstration in the Verizon booth (Las Vegas Convention Center, South Hall, Booth #30259) will show how Verizon Wireless smartphones, carrying ASSA ABLOY/ HID Global Mobile Keys, can be used to open doors fitted with Yale Real Living™ locks featuring Near-Field Communications (NFC) technology.

SecureKey Technology To Be Deployed in Intel® Identity Protection Technology Global agreement provides deployment of SecureKey’s online authentication and payment solutions on Intel® Ultrabook™ devices starting in 2H of 2012 Toronto, Canada. January 10, 2012 – SecureKey Technologies today announced that Intel Corporation will utilize SecureKey’s authentication technology as part of Intel® Identity Protection Technology (IPT) beginning on Ultrabook devices with third generation Intel® Core™ technology (code named “Ivy Bridge”). The agreement provides SecureKey with an opportunity to greatly expand the number of devices that will be preconfigured to support SecureKey’s authentication, identity and payment solutions.

Experts from MasterCard, Visa, Isis and PayPal Headline Agenda for Smart Card Alliance 2012 Payments Summit Conference Program Focuses on EMV Migration, NFC Mobile Payments and Open Transit Payments Princeton Junction, N.J., January 9, 2012–Senior experts from MasterCard Worldwide, Visa Inc., Isis, and PayPal will headline the Smart Card Alliance 2012 Payments Summit, the Smart Card Alliance announced today. The main conference will be held February 8th -10th, 2012 at the Hilton Salt Lake City Center in Salt Lake City, Utah. Registration and sponsorship information are available on the Smart Card Alliance 2012 Payments Summit event page. The events begin on February 6th, with a skiing-related social activity at St. Regis Deer Valley, and educational workshops on February 7th.

BearingPoint Awards Gemalto for its Innovation Efficiency Amsterdam, Dec 21, 2011–Gemalto (Euronext NL0000400653 GTO), the world leader in digital security, today announced it has

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won the prestigious BearingPoint innovation management award (“Agile Innovation Award”) for its think tank initiative “BIG” (Business Innovation Garage). BIG provides Gemalto’s 10,000 employees company-wide with a structured process to submit and manage any innovative ideas they have. Ideas covering wideranging fields of application–from communication, payment, transport, Internet access, and machine-to-machine application– are systematically challenged, audited, developed and eventually selectively turned into incubation cells.

Smart Card Alliance Wraps Up 2011 with Release of the First ‘E-Yearbook’ Comprehensive review of important events in 2011, including EMV, mobile payment, identity management and access security Princeton Junction, N.J., December 16, 2011–From the acceleration of EMV and mobile payments to the advancement of open transit payments and cyber security initiatives like the National Strategy for Trusted Identities in Cyberspace (NSTIC), 2011 has been a landmark year for the North American smart card industry. To commemorate the year, the Smart Card Alliance has issued today its first-ever “E-Yearbook.”

Ten Million FINO Customers in India Use Multiple Micro-Banking Applications on Gemalto Smart Cards Amsterdam, Dec 14, 2011–Gemalto (Euronext NL0000400653 GTO), the world leader in digital security, today announces that ten million Financial Inclusion Network & Operations (FINO) customers in India now enjoy the benefits of micro-banking, using Gemalto smart cards, as part of FINO’s broader branchless banking program. FINO is a business and banking technology platform combined with extensive services delivery channel. It has achieved breakthrough in scale and access to affordable financial services to the unserved and underserved masses, totaling 42 million customers in India. More than half of India’s adults today are still not served or under-served by the finance sector1, creating an immense need for financial services to be made accessible to India’s 1.2 billion population.

INSIDE Secure to Provide Nfc Technology and Products to Intel Technology Transfer and Services Agreements Will Help Accelerate NFC into the Mainstream Aix-En-Provence, France, December 14, 2011–INSIDE Secure, a leader in semiconductor solutions for secure transactions and digital identity, today announced it has entered into an agreement with Intel Corporation (NASDAQ: INTC) to provide the company with INSIDE’s NFC products and technologies. The agreement marks a significant milestone for INSIDE Secure and the future of the NFC industry, helping move this emerging technology towards full-scale market adoption.

Gemalto Selected by Isis to Deploy Mobile Payment and NFC Services in the U.S.

Cubic Selected for Chicago Open Standards Fare System Contract

Gemalto to Provide Isis Mobile Commerce Platform with Trusted Service Manager (TSM) Solution

New system will be the first full-scale open payment system in the world and the largest ever automated fare collection contract placed in North America

Austin, TX, Dec 12, 2011–Gemalto (Euronext NL0000400653 GTO), the world leader in digital security, has been selected by Isis to secure its mobile commerce platform through Gemalto’s Allynis Trusted Service Manager (TSM) solution. Isis, the mobile commerce joint venture between AT&T Mobility, T-Mobile USA and Verizon Wireless, will provide consumers and merchants with an open and secure mobile commerce platform that will revolutionize how consumers shop, pay and save.

Intercede, Oxford Computer Group and Gemalto Announce US Sales Alliance Industry Leaders Team to Deliver Personal Identity Verification (PIV) Solutions Based on Microsoft Forefront Identity Manager (FIM) Leicestershire, UK, and Bellevue, WA, December 6, 2011–Intercede Group plc, the developer of the Intercede MyID® Identity and Credential Management System and Oxford Computer Group LLC, a Microsoft Gold Partner for Identity and Security Solutions, today announced they have signed a strategic partnership agreement to deliver PIV solutions to non-Federal organizations.

San Diego, Calif., November 17, 2011–Cubic Transportation Systems, a business unit of San Diego-based Cubic Corporation (NYSE: CUB), has been selected for contract award by the Chicago Transit Authority (CTA) to integrate, deliver, operate and maintain the agency’s next-generation open payments system that will accept bank cards and, ultimately, mobile phone payments. The contract has an estimated value of $454 million, making it the largest automated fare collection contract ever placed in North America.

Cubic will operate and maintain the entire system, resulting in an overall 12-year partnership between Cubic and the CTA.

Gemalto Wins GSN Homeland Security Award in the US for Best Biometric Identification Device Coesys Mobile Enrollment Solution Recognized for Ease of Use and Robustness

Gemalto Deploys First Contactless EMV Payment Cards in Brazil for Santander Universities

Austin, TX - Nov 16, 2011–Gemalto (Euronext NL0000400653 GTO), the world leader in digital security, announces it has won a Government Security News (GSN) Homeland Security award for its Coesys Mobile Enrollment solution. The award, “Best Biometric Identification Device,” recognizes the all-in-one solution which features all biometric data capture and enrollment technology contained in a robust and easy-to-transport field case.

Forecast of rapid growth in the contactless EMV payment market in the country

CTA Board approves modern fare-collection system

Amsterdam, Nov 22, 2011–Gemalto (Euronext NL0000400653 GTO), the world leader in digital security, was chosen by Banco Santander Brasil, one of the largest financial institutions in the world, with more than 90 million customers worldwide, to deploy the first contactless EMV payment system in Brazil. Santander Universities Global Division, responsible for the project, expects to issue thousands of contactless payment cards to Brazilian university students over the next 12 months. This innovation represents the evolution of the University Smart Card, which is already widespread in 12 countries, in more than 200 universities and with 5 million users.

Open standards system will improve convenience for customers, save money

Members submit news each month to the Smart Card Alliance, with news items highlighted on the Alliance web site and in the monthly news letter. Members are invited to submit their news releases (as a Word document) to news@smartcardalliance.org to contribute to the Members in the News content.

November 15, 2011– The Chicago Transit Board today approved an agreement to implement a new, open standards based fare-collection system that will benefit customers, improve operations and save money for the Chicago Transit Authority.

Smart Card Alliance Provides Educational Resources on Contactless Open Payments for Transit Fare Collection Princeton Junction, N.J., November 14, 2011–With several major cities actively pursuing open payment solutions for their transit systems, the Smart Card Alliance Transportation Council today introduced a series of new educational resources on the topic, including a white paper, web resources, and LinkedIn group for industry professionals.

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events calendar

2012 Payments Summit

A Smart Card Alliance conference event Salt Lake City, UT February 8-10, 2012

Mobile World Congress Feb 27-Mar 1, 2012 Barcelona

RSA Conference 2012 Feb 27-Mar 2, 2012 The Moscone Center San Francisco, CA

Cartes North America March 5-7, 2012 The Mirage Hotel Las Vegas, NV

ISC West

March 27-29, 2012 Sands Expo & Convention Center Las Vegas, NV

NFC Solutions Summit 2012

A joint Smart Card Alliance and NFC Forum event San Francisco, CA May 22-24, 2012

Cardware 2012: Payment Insights June 19-20, 2012 Marriott Gateway on the Falls Niagara Falls, ON, Canada

Smart Card Alliance Government Conference 2012 Walter E. Washington Convention Center Washington, DC November 28-30, 2012

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SALT LAKE CITY

The Smart Card Alliance

2012 Payments Summit February 8 – 10 • Salt Lake City, Utah (Pre-conference workshops February 7)

EMV Bank Cards, Mobile Payments and Transit Payments Converge at the 2012 Payments Summit www.SmartCardAlliance.org 1-800-556-6828

The Smart Card Alliance 2012 Payments Summit returns to Salt Lake City again in February 2012 – building on a successful history of great events held in this great city located at the foothills of the snowcapped Wasatch Mountains.

The 2012 Payments Summit has a new theme with a larger meeting space than in previous years. The Smart Card Alliance has combined its rapidly growing Mobile and Transit Payments Summit event with the Roadmap to EMV Payments portion of the 2011 Annual Conference event into a single, larger ALL PAYMENTS SUMMIT focusing on all forms of payments – bank card payments, mobile payments, and transit payments.

2012 is expected to be a tipping point year for the smart card payment industry. As more leading financial institutions announce EMV chip card rollouts to their international travelers, other financial institutions and credit unions will follow suit or risk falling behind their competition. Pressure will rise on U.S. issuers and merchants to begin the migration to EMV for domestic transactions as Canada, Europe, Asia and Latin America continue their rollouts of EMV cards. At the same time, NFC-enabled mobile phones and devices are reaching the

store shelves, putting mobile payments into the hands of millions of consumers, and mobile operators, including AT&T, Verizon Wireless, T-Mobile, and Sprint, have all announced plans to introduce NFC-enabled mobile payments.

Salt Lake City, our host city, will be the site of one of the first Isis mobile payments network implementations sometime in 2012. Transit operators from major cities on the East Coast, Midwest, and the Mountain Region are planning open bank card fare payments pilots and rollouts that are expected to include contactless payments cards, stickers, and NFC-enabled mobile devices.

Join us for what the Smart Card Alliance does best – bringing experienced smart card practitioners and suppliers together with innovative solutions developers and end users across the payments, mobile, and transit markets. The 2012 Payments Summit will include timely, informative conference sessions; in depth educational workshops; exhibits from leading smart card technology suppliers, payments applications and terminal suppliers; and outstanding networking and social events to meet new customers, suppliers, and technology partners.