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Smart Card Talk September 2013

a Smart Card Alliance ePublication

Dear Members and Friends of the Alliance, Earlier this month, Apple released two new iPhone models, both without an NFC chip inside. For some mobile industry analysts, this was another opportunity to declare that NFC is dead and that if NFC was everything that industry proponents claim it is, then surely Apple would be jumping on it. However, the consolation prize for NFC watchers was the addition of the Touch ID biometric reader that comes with the new iPhone, and this has broader implications that bodes well for NFC in the future. Coincidentally, the Smart Card Alliance has just announced five new Expert Series videos we shot last spring at our NFC Solutions Summit with leading NFC experts. I believe you’ll be very interested to see how much of what was in these videos has come to pass in the few months since they were recorded. Please read my Executive Director letter this month to learn more NFC in the news, and our Expert Video Series.

• Volume 18 : Issue 9

In This Issue: ② Executive Director Letter >> ③ Latin America Letter >> ④ Feature Article >> ⑦ Council Reports >>

On the Web: Alliance in the News >> Members in the News >>

Sincerely, Randy Vanderhoof Executive Director, Smart Card Alliance

Event Calendar

Click Here to Read Letter ...

2013 Government ID Security Conference


Oct. 15-16, 2013 Walter E. Washington Convention Center, Washington, DC

Feature Article: 2013 Member Survey

SCALA News: Independence

The Smart Card Alliance 2013 member survey results are in! This month’s article reviews the 2013 results on member satisfaction and perspectives on Alliance activities. Your responses will also help us as we develop programs and events for 2014.

This month the SCALA team has been working on preparing our training programs in the region. We have started by translating our Certified Smart Card Industry Professional (CSCIP) study book into Spanish. This nine (9) module book, which we refer to as the “smart card bible,” is a concentrated body of information containing everything you need to know to become an expert in smart card technology.

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Smart Card Alliance Member Meeting (new!) Dec. 8-10, 2013 Biltmore Hotel, Coral Gables, FL

All Upcoming Smart Card Alliance Conference Events

executive director’s corner

The Value of NFC Dear Members and Friends of the Alliance, NFC was in the news again recently more for what didn’t happen than did. In the annual iPhone new model release watch that just passed with the announcement of the iPhone 5C, once again Apple has decided to forgo including NFC technology in its popular phone. For some mobile industry analysts, this is another opportunity to declare that NFC is dead and that if NFC was everything that industry proponents claim it is, then surely Apple would be jumping on it. I agree that having NFC available in the hands of millions of mostly young, tech savvy, upper-income consumers would be an adrenalin shot for mobile payments scheme operators, merchants and non-payments application developers and would accelerate the consumer demand for NFC use cases like the Isis mobile wallet and mobile identity management. Although more than a dozen models of Android and Windows-based models will be on the shelf in mobile stores, still four out of every ten new smartphones bought this year was an iPhone. The Touch ID biometric reader in the new iPhone gives a boost to NFC watchers. User authentication goes hand-in-hand with any secure transaction. Biometric fingerprint scanning is a much better second factor for authentication than entering a PIN, as most current NFC applications use today, and security is still the most commonly cited reason for consumers to not use mobile wallets. With Apple perfecting biometric fingerprint scanning and raising awareness about its many security advantages, will the manufacturers of NFC-enabled Android and Windows devices be far behind? NFC is still important for Apple’s future since it is a universal standard communications technology that works with all operating systems, and will enable Apple products to connect to the rest of the world’s mobile devices. Over time, the need for Apple products to talk to non-Apple products will grow stronger and NFC will be the link that bridges the two worlds together. It has been a long-established strength of the Smart Card Alliance to bring together -- through our many conference events, webinars, and industry council activities -- the top experts to share their experience and educate the market about current and future trends in the smart card industry. As we move further into the fall season and approach the much-anticipated national launch of the Isis mobile wallet beyond the test cities of Austin and Salt Lake City, we are ramping up our education and awareness program about NFC through our Expert Video Series. These short video clips feature Koichi Tagawa, a general manager with Sony and Chairman of the NFC Forum; Neil McEvoy, CEO of Consult Hy-


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perion; Todd Ablowitz, founder of Double Diamond Group; Tony Sabetti, director of merchant integration and commerce development at Isis; and Peter Cattaneo, vice president at Intercede. The video series covers a broad range of topics from Koichi Tagawa presenting his global vision for adoption of NFC and Neil McEvoy discussing his perspectives on the many uses and applications of NFC. The series goes further into more market-specific NFC uses with Tony Sabetti’s comments on the many marketing possibilities for NFC wallets; Todd Ablowitz speaking about how cloud technologies and NFC complement each other; and Peter Cattaneo addressing the potential uses for NFC in physical and logical access. These latest Expert Series videos are further evidence that the Alliance takes this commitment seriously. Take the time to look at some of the many other Expert Series videos that are available covering current industry topics like EMV payments, health IT security, government PIV and PIV-I credentialing, and NSTIC initiatives supporting cybersecurity. I will end this month’s newsletter with a plug for our two remaining industry conferences for 2013 – the 12th Annual Government Conference, October 15-16 in Washington, DC, and the 1st Smart Card Alliance Member Meeting taking place in Coral Gables, FL, on December 8-10. Our upcoming Government Conference will follow the expanding role of smart cards in government identity and security applications and in healthcare, with the added bonus this year from the co-located User-Centric ID Live Conference program. The User-Centric ID Live program broadens the identity and security discussion to the use of digital identities on the Internet, driven in part by the federally-funded NSTIC program office at NIST. There are only a few weeks remaining to register and make your travel plans to attend the Government Conference and User Centric Live ID events at one easy-to-reach venue. The December Member Meeting is a new event for Smart Card Alliance members only, and combines educational content with in-person industry council workshops and networking events aimed at bringing all of the technology and industry verticals together under one roof. Mark your calendars for this one because it is going to be the highlight event of the year. I look forward to seeing you next month in Washington, D.C.


Randy Vanderhoof Executive Director, Smart Card Alliance

Dear Members and Friends of the Smart Card Alliance Latino America – SCALA,

card technology.

This month the SCALA team has been working on preparing our training programs in the region. We have started by translating our Certified Smart Card Industry Professional (CSCIP) study book into Spanish. This nine (9) module book, which we refer to as the “smart card bible,” is a concentrated body of information containing everything you need to know to become an expert in smart

Translating the CSCIP training materials is one of the priorities for the development of the SCALA Center of Excellence. Our organization has already met with key regional educational entities to house graduate students to help develop smart card technology content. These students will go through a rigorous training based on the CSCIP program. It is our hope that after the program, these bright young minds decide to become part of our industry. In this regard, SCALA has successfully translated the first module of the 250+ page CSCIP study book. This has been accomplished through a great effort from our teams and volunteers who have dedicated personal time to guarantee the accuracy of the information and the translation. In order to ensure that all our CSCIP candidates have a good basis on smart card technology, our organizational committee has scheduled a Smart Card Fundamentals training course on October 30th, 2013. This course will provide participants with the necessary terminology, concepts, and base to enter the CSCIP training program. SCALA has partnered with the Panamanian Banking Association to deliver our Smart Card Fundamentals course in their training facilities, which are exclusive to member banks. We would like to thank other members of the organizational committee for this training program that having been supporting our educational efforts: First Data, Sertracen, and Telered S.A. SCALA has scheduled the first Spanish language CSCIP training program for April 1st – 2nd, 2014.

This honor will help showcase the developments that have occurred in Brazil and have been introduced in the rest of the region relating to smart card technology. As part of the tribute, SCALA has two key responsibilities: chair the track on Brazil: Building Trust in Mobile Life, and judge the SESAME Award in the Hardware category. Recently, we notified our SCALA membership about the decision of our Advisory Board of Directors to raise the General and Leadership Council Membership dues. This increase will allow SCALA to become more self-sustainable and less dependent on the U.S. Smart Card Alliance while still providing unique resources and benefits to member organizations. This is the first membership increase in 7 years, and I’m proud to say that SCALA is a more robust organization than when we started in 2005. Our growth has led us to invest much needed infrastructure and resources to better serve our membership. One of these resources is the Member Handbook, a 25 page document that describes member benefits and offers ways for members to take full advantage of their participation in SCALA. Lastly, I would like to take this opportunity to send our congratulations to our Brazilian and Mexican colleagues for the celebration of their independence day this month.


Edgar Betts Associate Director, Smart Card Alliance Latin America (SCALA)

In related industry news, Cartes, the industry’s biggest conference & exhibition, held in Paris, has selected Brazil as the guest of honor country. This welcome tribute by Cartes should bring much needed attention to our region and from the perspective of SCALA. Brazil has been one of the innovators on the use of smart cards technology for payments and identification. It was a regional pioneer in offline payments, credit & debit cards (One card), EMV, EMV with PKI, multi-applications, etc.

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latin america corner


feature article


80-89 indicating satisfaction, with membership value clearly present; 70-79 indicating low satisfaction, with improvement needed; and 0-69 indicating dissatisfaction. This year our average satisfaction rating was 85.7, declining slightly from 2012’s 86.0 rating; however, satisfaction remained good across all member categories. Satisfaction is highest with active members (those who are involved in councils, 55.1% of respondents). Active members had a satisfaction rating of 88.4 vs. an 82.2 rating from non-active members. In addition, Smart Card Alliance members who are members of the EMV Migration Forum also have higher satisfaction – 86.8 rating vs. 84.1. Figure 1 shows the satisfaction rating by member category.

Report on Member Satisfaction and Value of Alliance Activities

In addition to the composite satisfaction rating, the survey asked members to rate satisfaction with a variety of Alliance activities and programs. A scale of one to five was used, with five indicating the highest satisfaction. Our overall rating for all activities was 4.03, up from 3.75 last year and activities with ratings over 4 included: • • • • • • • •

White papers and reports 2013 Payments Summit Industry Council participation 2012 Government Conference Certified Smart Card Industry Professional (CSCIP) program Smart Card Alliance public and members-only web sites EMV Connection web site Council webinars

Value of Alliance Activities Communications, conferences, councils and council deliverables are highly valued by members. Activities rated as highest value in the 2013 survey were:

Members continue to value Smart Card Alliance activities in 2013 with a strong increase in satisfaction ratings for many Alliance activities and programs. We had 145 members from 78 member organizations (53.8% of all member organizations) respond to our July 2013 survey.

Member Satisfaction To gauge overall satisfaction, we ask members to give us a numeric score between 0-99 to indicate satisfaction, with 90-99 indicating high satisfaction, with Alliance delivering excellent performance; 4

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• Email announcements about Alliance events and council projects • Smart Card Alliance websites – public (industry news) and member sites (white papers, reports and resources; member contact information; past conference proceedings); EMV Connection • Smart Card Talk monthly newsletter • Conferences: networking opportunities; complimentary and discounted registration; speaking opportunities • Industry council participation and deliverables We were pleased to see our new EMV Connection web site had high value to members. Launched in July 2012, this web site has up-to-date resources on EMV for issuers, merchants, acquirers/ processors and consumers. With the start-up of our new affiliated

Figure 1. Satisfaction Rating by Membership Level

Leadership Council





81 82 83 84 85 86 87 88 89

organization, the EMV Migration Forum, the site has expanded to include resources from both the Smart Card Alliance Payments Council and the EMV Migration Forum.

Benefits of Alliance Membership When asked to tell us the top benefits of Alliance membership, members gave us a wide variety of responses. Networking and staying abreast of industry news, market trends and technology continue to be top benefits for members. Top benefits identified in the 2013 survey were: • Networking • Staying abreast of industry news, market trends and technology; education • Collaboration, discussion and thought leadership • Visibility, market exposure, and brand recognition • Contributing to and influencing industry growth and direction • Conferences, speaking opportunities, sponsorships and exhibits • Council participation and white papers • LEAP/CSCIP Benefits in the words of a few members included:

“In regards to the events, these have been the best conferences of all the conferences that I have attended. The focus of the event and the presentation and networking opportunities as well as the specific information being made available during the conferences make this a valuable contribution to the industry.” “I’ve been somewhat immersed in EMV for the past 18 months, and I honestly don’t think we would have been successful in our certification without the resources and contacts we were able to make through both the SCA and EMV Migration Forum. Both organizations make a huge difference in the industry now that the U.S. is finally paying attention.” “I use the Smart Card Alliance information all the time. Please keep up the great work!!!!” “The CSCIP programs are GREAT!!!” “The Alliance continues to serve as a vital information resource to my organization, by providing a variety of functions and meetings to obtain the latest information.” “Through the Transportation Council, we stay abreast of the leading technologies, approaches and issues and are able to serve our customers better as a result.”

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Figure 2. Survey Respondent Participation in Industry Councils

Healthcare Council Access Control Council

Industry Council Involvement


Mobile and NFC Council

Identity Council

Transportation Council

Payments Council

Over 60% of survey respondents participate in one or more industry councils, with our Payments, Mobile and NFC, and Transportation Council members strongly represented in this year’s survey. Overall satisfaction for Council activities increased significantly with all activities rating “very satisfied.” Figure 2 shows the distribution of survey respondents by council.

We’ll also continue to look to the industry councils to define new programs targeting specific vertical markets and to develop educational material that showcases the value that smart card technology can deliver. Industry council participation is an excellent way for members to get directly involved in shaping industry messages and influencing industry direction – cited as one of the key benefits that the Alliance delivers for members.

Member Engagement

Important Industry Issues

As in past years, a large number of respondents are not active in Alliance activities or familiar with many of our programs. We continue to try new communications vehicles to reach out to members to engage new participants and we need to continue and expand this outreach. Through the Smart Card Talk monthly newsletter, member bulletins, email announcements, and participation in our events, members can learn about activities and decide how to get involved.

EMV, mobile, NFC and payments continue to be at the top of the list for the most important industry issues and topics that the Alliance should be working on. The industry issues noted as most important by members in the 2013 survey include:

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• EMV • Mobile / mobile identity / mobile payments • Payments security / fraud / innovation • NFC • Healthcare

None of the above

• Cloud / card-not-present fraud / Internet authentication The Alliance industry councils focus on activities that members feel are the most important for coordinated activity and collaboration among industry stakeholders. Members are encouraged to participate in the councils to tackle industry challenges and help to move the industry forward in critical markets. If you’d like to learn more about what the councils are currently working on, the Smart Card Talk newsletter has an update every month on completed projects and activities that are in progress.

Conclusions We thank everyone who responded to the 2013 member survey! The survey provides extremely valuable input in developing plans for the coming year. We always want to hear from members so if you missed the survey, please let us know any time if you have comments on Smart Card Alliance activities or have ideas for new programs or activities we should launch.

Access Control Council • The Access Control Council submitted comments to GSA providing recommendations on deprecated APL categories.

Health and Human Services Council • The Healthcare Council has changed its name and charter; it is now the Health and Human Services Council. The change was made to extend the Council’s activities to social benefits programs, provide opportunities for additional industry partnerships, and attract new members to the Council. • The Council has had its pre-conference workshop proposal accepted for the HIMSS 2014 Conference. The workshop will be focused on the challenges and opportunities in healthcare identity. The Council is now developing the detailed agenda and inviting speakers. • The Council is collaborating with the Workgroup for Electronic Data Interchange (WEDI) Health ID Card Subworkgroup to provide input on smart cards and biometrics for a WEDI research paper.

Identity Council • The Identity Council is currently defining next projects.

Mobile and NFC Council • The Mobile & NFC Council completed the election of members to open Steering Committee seats, new chair and secretary. Sadiq Mohammed, MasterCard, was elected chair, and Deborah Baxley, Capgemini, was elected vice chair. Stu Cox, Giesecke & Devrient, was elected to the open NFC chip and secure element manufacturer seat; Ivan Plajh, SMARTRAC, was elected to the open NFC tag supplier seat; Tony Sabetti, Isis, was elected to the open value-added service provider seat. • The Council is working on a white paper that evaluates different approaches for securing credentials on mobile devices.

Payments Council • The Payments Council is working on a new white paper on the changing U.S. payments landscape for purchases at physical stores. The white paper will review new innovations in payment trends and devices and offer perspectives on how these trends are changing the way consumers pay and merchants accept card-present transactions.

Transportation Council • The Transportation Council is working on three new projects: an analysis of EMV impact on transit; a cross-industry discussion of key challenges in accepting open payments in transit; a guide for open payments acceptance for small transit agencies. • Council members, Amy Linden, MTA New York City Transit, and Jerry Kane, SEPTA, presented on panel about EMV and transit at the Sept. 17-18 EMV Migration Forum member meeting.

Other Council Information • Members-only council web pages are available at http:// 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. • If you are interested in forming or participating in an Alliance council, contact Cathy Medich.

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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council reports

Updates from the Alliance Industry Councils

from the alliance office

Welcome New Members

• Magnetic Ticket & Label Corp, General member • Watchdata Technologies, SCALA Leadership Council

New CSCIP Recipients

• Maryann Elwell, Deloitte & Touche LLP • Minesh Patel, Gemalto • Paul Snelling, Gemalto

For more news, visit our website at Members can also access white papers, educational resources and other content.

NFC Video Series

This new video series brings together five experts to share their perspectives on NFC technology and its future potential in the United States. Each week, we will feature a new video on a new topic, including innovative NFC applications, marketing possibilities with NFC, and NFC’s relationship with the cloud.  Up first, the Smart Card Alliance features a compilation video of the highlights from all five the interviews – watch it now at to get an overview of the state of NFC technology, and then watch the whole series to learn more.

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. 191 Clarksville Road Princeton Junction, New Jersey 08550 1.800.556.6828 Fax: 1.609.799.7032 8

Smart Card Talk

About the Smart Card Alliance 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.

Smart Card Talk, September Issue  

Smart Card Talk is the monthly e-newsletter published by the Smart Card Alliance to report on industry news, information and events and to p...

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