Mobile Banking Pilots

De La Rue Card Systems has extended its lead in the delivery of solutions for mobile banking convergence with the announcement of new ground-breaking trials with two of Europe’s leading financial organisations and cellular phone networks.

Pilot schemes with Barclaycard and Cellnet in the UK, and France Telecom and Cartes Bancaires in France, have consolidated De La Rue’s position as the leading SIM card provider and driving force behind secure mobile banking.

One of the world’s leading suppliers of smart cards, De La Rue brings its heritage in banking and expertise in providing innovative solutions to offer a host of new value added services to banks, GSM operators and their customers.

In the United Kingdom, Barclaycard and Cellnet have introduced the first consumer trial of ‘mobile electronic cash machines’ using De La Rue’s SIMphonIC SIM Toolkit solution, a customised Motorola mobile phone and m- Commerce server software from Logica. The trial will enable 1,000 customers to download e-cash over Cellnet’s GSM network on to their Barclaycard by inserting it into a Motorola StarTAC mobile phone. Customers can also use the card as part of the on- going Visa Cash UK trial in Leeds.

To use the new mobile electronic cash machine, a Barclaycard with the added Visa Cash functionality is inserted into a Motorola StarTAC mobile phone. The phone then asks the user to enter the ‘withdrawal’ required, up to a limit of GBP 50, and a bank PIN for security, as with any normal cash dispenser. The e- cash is then deposited onto the Barclaycard via the Cellnet GSM network, and debited from the user’s account, in under a minute. Customers can also check their credit card details, and download e-cash at anytime and in any place where they can use their Cellnet GSM mobile phone. The trial will be rolled out from April 1999.

The whole Mobile Cash service trial has been certified by Visa to ensure the maximum security for customers’ financial and account information.

John Eaton, managing director at Barclaycard said: “This is the third innovative mobile telephony product that has emerged from our partnership with Cellnet. This new service builds on the success of the mobile phone launched in 1997 that allowed customers access to their Barclays Bank and Barclaycard accounts. We are pleased to be working with Cellnet and three of the UK’s leading technology companies to bring mobile cash machines to the marketplace.”

Cellnet’s managing director Peter Erskine commented: “Withdrawing e-cash over your mobile may seem a futuristic idea – but within five years it will be commonplace. We’re delighted that our relationship with Barclaycard has yielded yet another world first.”

Commenting on Visa’s role, Jon Prideaux, Visa’s executive vice president for new products said: “Visa is committed to fulfilling the promise of chip technology, providing real flexibility and convenience to consumers. A cash machine in your pocket really does represent the ultimate in convenience. Downloading Visa Cash via a mobile phone means that you will always be able to obtain the right change for the car park or a bus fare. Today Barclaycard and Cellnet have brought us a step closer to achieving this goal.”

In France, France Telecom Mobiles has developed the first mobile commerce service using De La Rue’s SIMphonIC SIM Toolkit card and Motorola’s StarTAC D mobile phone.

Following an initial trial during the second quarter of 1999, France Telecom Mobiles customers will be able to make secure transactions for goods and services such as gifts and travel scheme tickets ‘over the air’ to merchants. By conforming to Cartes Bancaires security specifications, De La Rue’s SIMphonIC card will provide users with enhanced functionality, convenience and peace of mind.

Didier Quillot, Sales Director of France Telecom

Mobiles explains, “Thanks to this new service, our customers will be able to use their mobile phone for access to day to day goods and services. This mobile commerce service reflects the future of convergence between mobile and banking services.”

Yves Randoux, Administrator of the Cartes Bancaires Group adds, “With this mobile commerce solution, we are offering a new method of payment to our 33 million CB credit card holders. The credit card proves its capacity to adapt to all methods of commerce, including the most modern distribution channels, and by integrating De La Rue’s SIMphonIC card and using PIN codes we are able to provide the highest levels of security and integrity of transactions.”

Christophe Dolique, Business Director GSM, De La Rue

Card Systems, concludes, “By establishing a leadership position in SIM Toolkit applications based on Java card technology, we are able to make mobile commerce a reality today. The card is seen as the essential link between operator, subscriber and bank, ensuring a secure dialog throughout.”

Joachim Hoffmann, Director – Mobile Commerce

Business, Motorola Cellular Subscriber Group, EMEA,

“Motorola is one of the worldwide leaders in telecommunications and has created StarTAC D to bring together the world of mobile phones and smart cards to offer new mobile services to smart card holders.”

NOTES TO EDITORS:

DE LA RUE

De La Rue Card Systems, part of the De La Rue, the ‘cash to cards’ group whose 1998 revenues were GBP 790.2 million, is the number one supplier of VISA and MasterCard products worldwide. A leading provider of smart card solutions to customers in banking, telecoms, loyalty, transport and health, Pay TV and identification, De La Rue’s vision is “that by 2005, 10% of the world’s population will possess a De La Rue smart card.”

Coupling its heritage in banking and security with its expertise in technology innovation, De La Rue is delivering solutions today for electronic and mobile commerce applications. De La Rue is committed to open standards and supports Microsoft Windows card, Java card and MULTOS.

MOTOROLA

Today’s announcement heralds another world’s first for Motorola, a new mobile phone category – the smart card phone. The new StarTAC D is the first integrated dual card cellular phone. More than just a phone, it is a personal transaction terminal – the revolution the smart card industry has been waiting for, overcoming the hurdles of access, convenience and infrastructure.

Motorola is a global leader in advanced electronic systems and services. It liberates the power of technology by creating software-enhanced products that provide integrated customer solutions and Internet access via wireless and satellite communications, as well as computing, networking and automotive electronics. Motorola also provides essential digital building blocks in the form of embedded semiconductors, controls and systems. Sales in 1998 were $29.4 billion.

LOGICA

Logica is a key player in the development of the mobile commerce market. Together with Cellnet it founded the Global Mobile Commerce Forum (GMCF) in November 1997. By integrating enhanced messaging, customer relationship solutions, improved transaction processing and end-to-end security, Logica has created the market leading m-Commerce tm. v3.1 server. Based on Postillion from Mosaic the server supports a range of electronic functions. Logica has 8,000 staff in 23 countries worldwide. For the financial year ending 30 June 1998, Logica’s pre-tax profits were GBP 41.8 million on a turnover of GBP 473 million.

CELLNET / BARCLAYCARD PARTNERSHIP

Cellnet and Barclaycard have worked together since 1995 to provide their customers with a unique range of mobile phone banking services and cheaper mobile calls.

At launch Barclaycard/Cellnet customers were able to get 24-hour access to statement enquiries, credit limit increases and payment of bills.

Since 1997, following major technological advances, customers have been able to view Barclaycard and Barclays Bank account details like mini- statements, credit card limits, balances and next payment dates on their mobile phone display. These services and benefits are available over customised handsets available from Barclaycard.

VISA CASH TRIAL IN LEEDS

Over 1,400 outlets in Leeds currently accept Visa Cash including McDonalds, Kentucky Fried Chicken, Superdrug, WH Smith, and local NCP and Leeds City Council Car Parks. E-cash can be loaded at special loading machines situated in and around Leeds.

Visa Cash is a relatively new payment method that can either be added to re- issued credit and debit cards such as Barclaycard and Barclays Connect or can be issued as a separate card. It has been designed to pay for low value goods and services, typically those bought using loose change. This could be a newspaper, a chocolate bar or a car parking space.

Cardholders simply need to load the card before use by transferring money from either their current or credit card account via special load devices such as the new mobile telephone. They are then free to spend using their ‘cash’. There is no charge for using this facility, and for the first time Barclaycard is able to offer a Visa Certified secure transaction across a GSM network. The phone encrypts the information being sent across Cellnet’s network using a secret code (key) only Barclaycard will be able to decrypt the message.

The concept of stored value has been in existence for many years as a solution to the problems associated with cash handling. Even now, with automated payments, cheques, credit cards and debit cards being used in increasing numbers, the 1998 APACs Payments Market Report shows that cash still accounts for 46 per cent of transactions made in the UK. GBP 454 million of coin is used weekly in making low value purchases with retailers giving out over GBP 446 million of coin per week in change.

Mobile Cash

Barclaycard and the U.K.’s Cellnet announced they will roll-out a pilot in April of mobile e-cash machines last week. The machines will allow consumers to download e-cash over Cellnet’s GSM network onto their Barclaycard by inserting it into a specially designed Motorola mobile phone. About 1,000 participants will also be able to use the card as part of the ongoing ‘VISA Cash’ UK trial in Leeds. To use the new mobile electronic cash machine, a Barclaycard with the added ‘VISA Cash’ function is inserted into a Motorola StarTAC mobile phone. The phone then asks the user to enter the withdrawal required, up to a limit of 50 stg, and a bank PIN. The e-cash is then deposited onto the Barclaycard via the Cellnet GSM network, and debited from the user’s account.