MasterCard JavaCard

Closing the gap in smart payment card platforms, MasterCard announced Wednesday it will support the ‘JavaCard’ platform for smart cards along with its continuing support for ‘MULTOS’. MasterCard also says it is prepared to support Microsoft’s ‘Windows Powered Smart Cards’ if its members demand it. The decision to support ‘JavaCard’ will help break the platform logjam for U.S. issuers of both VISA and MasterCard. However MasterCard says its ‘MULTOS’ platform is more open than ever and as new members have joined the ‘MULTOS’ consortium, pricing has been simplified. ‘MULTOS’ recently added a new policy which enables card issuers to build their own facility to authorize application loading and deletion. MasterCard offers the ‘M/Chip’ family of credit/debit applications for smart cards. Gemplus announced yesterday type approval from MasterCard and Europay for delivery of the ‘M/Chip Lite’ smart card solution, based on the ‘JavaCard’ platform for its ‘GemXpresso’ card. Schlumberger Test & Transactions also announced that ‘M/Chip Lite’ is now available on its ‘Cyberflex Palmera’ card.


FoneCash Inc. announced it is in discussions with ITE
(Holding) Limited in Hong Kong to form a joint venture, utilizing a wholly
owned subsidiary of FoneCash, Universal Information Technology Limited in the
formation of a merger company which will eventually be qualified to have its
stock trading on the GEM Board in Hong Kong.

The proposed merger of the two companies would have FoneCash owning 80% of
the stock and infusing its wireless technology and skilled hardware design and
software programming staff, while ITE would inject cash and its SmartCard

ITE is a smart card solution provider and system integrator, utilizing a
combination of smart card system expertise and its extensive software library
to design and implement solutions based upon the requirements of its clients.
FoneCash has experience and technical know-how in wireless transmission of
data, particularly in using RFID (radio frequency identification) technology
for contactless systems. The merger company would focus initially on
developing a Smart Tag contactless system for clients who are concerning with
the organization of inventories of huge amounts of goods such as warehouses,
custom houses, the military, libraries and any enterprise where location of
countless components are stored.

“This merger offers an unprecedented opportunity for the Company with a
chance to implement its business strategy, calling for the merger of its
design capabilities with other like companies who want to utilize a hand-held,
wireless processing unit”, stated Daniel E. Charboneau, Chairman and CEO of
Fonecash. “Given our relatively early entrance in the Hong Kong market”, added
Mr. Charboneau, “we are pleased to have the support of ITE, their investors
and their outstanding position in Hong Kong, recently reinforced by their sale
of shares on the GEM Board. Their position will undoubtedly lead other
investors to take a serious look at the merger company and lead to value for
the investors of both parent companies”.

About FoneCash Inc.

Under an exclusive licensing agreement, FoneCash, Inc designs, develops
and manufactures electronic terminals for processing credit and debit cards of
all the major banks issuers whose cards are accepted for payment by merchants
worldwide. The Company’s products includes software and proprietary processing
services that provide end-to-end support of electronic financial transactions,
utilizing wired and wireless networks for the transmission of data. The
Company intends to market a complete processing system that is high quality
and simple to operate. Revenues will be generated from sales/rentals of the
terminals and from transaction charges.


Giesecke & Devrient announced that they will be launching their new card
innovation, the Foil Card this month. This new offering is the flagship of
G&D’s new series of
product innovations for 2001 titled “Stepping Out” — cards that go beyond
traditional borders. The kind of cards that you just can’t get out of your

The new G&D Foil card is a composite card using a process exclusive and
unique to G&D. The final design images created on this Foil card provide an
exciting level of depth and dimension to traditional card graphics. Customers
have their choice of custom Holographics (silver & gold), laser refractive or
rainbow patterns. The foil effect can be applied to the front or the reverse
of the card.

“The challenge for Foil cards in the market so far, is the risk of
delamination,” explained Anna Rossetti, Vice President, Sales & Marketing.
“G&D has taken extra measures with extensive testing and now leads the market
in not only meeting, but exceeding all the specifications required by the ISO
(International Standards Organization).”
With an unprecedented money-back service guarantee, the G&D Foil card
claims the highest level in quality and durability in North America.

About Gisecke & Devrient

Giesecke & Devrient (G&D) is an international technology group with over
thirty subsidiaries worldwide. With nearly 150 years of history, the Giesecke
& Devrient of today upholds their tradition as a trusted leading supplier of
banknotes and security documents; banknote, security paper and currency
automation systems; as well as cards, components and complete multifunctional
Smart Card systems for electronic payments and telecommunications. Giesecke &
Devrient also offers consultancy services and complete solutions for brand
protection and security in e-commerce. The company employs about 5,800 people


In conjunction with the 20th
anniversary celebration of the AADVANTAGE Travel Rewards Program, American
Airlines introduced an enhancement to its distinguished list of
AADVANTAGE partners. Together with the Royal Bank of Canada, American is
launching the Royal Bank AADVANTAGE Visa Gold card.

The co-branded credit card enables Canadians to earn AADVANTAGE miles for
every purchase they make — one mile for every Canadian dollar spent.
Canadian AADVANTAGE members can then redeem these miles for trips on American
Airlines, American Eagle or any other airline partner, as well as for hotel
stays, car rentals and American Airlines Vacations(SM) packages.

As an added incentive, AADVANTAGE is offering 2,500 bonus miles to
AADVANTAGE members who sign up for the Royal Bank AADVANTAGE Visa Gold card.
Additionally, AADVANTAGE members who purchase air travel aboard American
Airlines or American Eagle using the Royal Bank AADVANTAGE Visa Gold card will
earn double purchase miles between May 15 and December 31, 2001.

“We are pleased to work together with Royal Bank, Canada’s premier
financial institution,” said Bruce Chemel, President of AADVANTAGE Marketing
Programs. “For years our Canadian AADVANTAGE members have been asking for a
co-branded card that will enable them to earn AADVANTAGE miles with every

“We are pleased to partner with airlines that know how to reward customer
loyalty, and American Airlines — with the world’s first and largest rewards
program — was a perfect fit,” said Mark Tonnesen, Executive Vice-President,
E-Commerce and Cards, Royal Bank. “The Royal Bank AADVANTAGE Visa Gold card
continues to build on our strategy of offering cardholders a wide variety of
options and features to meet their needs.”

American Airlines and AADVANTAGE already participate in the Royal Bank
Avion Visa Gold Rewards Program. Through a recently launched points
conversion program, AADVANTAGE members can convert their Avion points — which
are earned 1 Avion point per Canadian dollar spent — for AADVANTAGE miles at
a 11 ratio. The Royal Bank AADVANTAGE Visa Gold card is an extension of this


American’s AADVANTAGE Travel Rewards Program — the first and largest of
its kind — began in 1981 with 283,000 members and has grown to more than
43 million members worldwide. AADVANTAGE has more U.S. fliers than any other
frequent traveler program, and it provides more opportunities to redeem miles
than any other program, including the two most popular redemption options,
AAnytime(R) Awards and PlanAAhead(R) Awards. AAnytime Awards, available
‘anytime, anyplace, anywhere’ there is a vacant seat, carry no restrictions,
such as limited seat availability or travel embargo dates. PlanAAhead Awards
— best for times when customers can plan in advance — have restrictions,
such as limited seat availability and some travel embargo dates, but can be
claimed for fewer miles than AAnytime Awards.

About Royal Bank of Canada

Royal Bank of Canada (RY) is a diversified financial services company. It
provides personal and commercial banking, wealth management services,
insurance, corporate and investment banking, and transaction processing on a
global basis. The company employs more than 54,000 people who serve
10 million personal, business and public sector customers in North America and
in some 30 countries around the world. For more information, please visit Canadian residents can apply for
the Royal Bank AADVANTAGE
Visa Gold card by visiting their local Royal Bank branch or Royal Bank’s Web
site at


OMNIKEY, an innovative supplier of cross-technology smart card readers for
business use, has introduced a read/write-device including a fingerprint
sensor. By combining biometric identification processes with market-proven
CardMan smart card technology, CardMan Desktop fingerprint does not only
improve security conditions – it also allows a much easier handling of smart
cards in the many areas where they have come to be used.
Developed by OMNIKEY, the biometric smart card reader stands out against
ordinary read/write devices based upon smart cards through various innovative
product features. From now on, for example, tools like PIN numbers identifying
a particular user will not be necessary any more – a fact which minimizes
security risks and improves handling processes. As biometric technology works
differently, users can dispense with time-consuming administrative procedures
every time access has been denied. Moreover, biometric identification, based
upon the unique character of unchangeable fingerprints, profits from full

Biometric identification processes will especially be used for applications
which require a high security level, for instance home banking, internet and
computer access as well as digital signatures. The target groups for CardMan
Desktop fingerprint include manufacturers of personal computers, financial and
insurance companies as well as health care organizations and public

Says Uwe Schnabel, Head of the Biometry Department at OMNIKEY “The open
CardMan Desktop fingerprint architecture provides OEMs and suppliers of
biometric systems with an easy support of their own identification algorithms.
It also enables integration with applications via standard interfaces such as
Bio-API and PC/SC.”
OMNIKEY will launch CardMan Desktop fingerprint 7120 first in a series of
biometric products, with distribution via OEMs, system integrators and
CardMan Desktop fingerprint 7120, at the attractive price of Euro 100, will be
available from the third quarter of 2001.


OMNIKEY AG is the first cross-technology supplier of smart identification and
payment devices. The company unifies and leverages leading technologies
such as
smart card, radio frequency identification (contactless) and biometrics. These
technologies are used in the development of secure devices with standard
interfaces. The certified products can be integrated into any application and
includes smart card readers, smart card terminals and contactless modules. The
company is headquartered in Wiesbaden in Germany, with offices and R&D
facilities at five other locations.

Smart Visa Ready

Further nudging the smart card drive along in the USA, VISA announced yesterday it is launching its ‘smart VISA Ready’ program for smart card-related products such as personal computers. The new corporate identifier, or mark, will denote that smart-card components, devices and services have met a set of criteria to ensure consistent performance and utility. VISA will require vendors, processors and physical POS merchants to undergo a standardized approval process before granting authorization to use the mark. The mark, similar to the highly recognized ‘Intel Inside’ mark, will appear on device packaging. Compaq Computer Corp. is the first to be approved for the ‘smart VISA Ready’ mark, and will begin incorporating smart card readers into its consumer PC family. Using the Gemplus reader technology, Compaq will release its new ‘smart VISA Ready’ computers later this year. The Compaq/Gemplus readers will also be EMV compliant.


In September 2000, INGENICO was
the first company to achieve EMV Level 1 approval for its full terminal range.
By earning the EMV Level 2 Approval for its countertop range on the 17th of
April 2001, INGENICO confirms once again its leadership in the development of
smart card systems and its commitment to EMVCo standards.

The EMV (Europay, Mastercard, Visa) standard ensures that smart cards and
smart card reading terminal work together to deliver global interoperability
and enhanced security.

“INGENICO’s EMV standards compliance is one of our strategic corporate
objectives,” explained Kazem AMINAEE, Marketing Director Groupe INGENICO. “The
EMVco approval once again demonstrates our expertise in secure payment systems
and we are pleased to report that the EMV Level 2 approval will be easily
extended to Ingenico’s portable and mobile range of EFT POS terminals as well
as Ingenico’s new and innovative offerings for retailers with integrated
payment. As part of our EMV migration program,” added Kazem Aminaee, “Ingenico
is providing consulting and implementation services performed by our
professional services team.”

To be EMV level 2 certified, INGENICO developed a library of
applications, which enables a banking or payment application to be quickly
developed and be EMV 2 certified. The smart card interface and transaction
flow are handled by the library, avoiding any misinterpretation of the EMV
standards during customization. All INGENICO terminals are based on the
INGENICO UNICAPT(TM) architecture, which guarantees physical and logical
security while enabling complete application portability across Ingenico’s
range of EFT POS terminals.

INGENICO has an installed base of 3 millions terminals, most of which
have integrated smart card readers. Many countries have decided to increase
their level of electronic transaction security through the use of smart cards
and the adoption of EMV standards, which INGENICO is well placed to address.
Today, INGENICO is technically and organizationally ready to meet all
international and national markets needs through its substantial global sales
and service network. INGENICO is positioned to build upon its world-wide
leadership in secure payment systems and has created the largest EMV expert
team in the payment industry for both the physical and virtual world-wide

On May 7, 2001, Visa U.S.A. announced an initiative to begin building a
smart card acceptance infrastructure in the U.S. Ingenico is one of three EFT
POS terminal vendors that is participating in this initiative to ensure
wide and global interoperability.

About EMV

The company EMVCo was formed in February 1999. EMVCo will maintain and
enhance the EMV specifications in the most profitable way for the financial
institutions. A comprehensive terminal type approval process was published to
increase the common test area amongst the three founders of the company.
The terminal level 1 or Interface Module (IFM) is that part of the
terminal that deals with the mechanical, logical and protocol interface of the
card and the terminal. The EMVCo terminal level 2 covers the debit/credit

payment Application Kernel. EMVCo accredits laboratories, which will deliver
the test services to the vendor community. The resulting EMVCo letter of
approval for level 1 and level 2 will open doors for vendors who intent to
gain a EMV market share.

About Groupe INGENICO

The Ingenico group is the No. 1 world supplier of secure transaction
systems. It designs and produces terminals and systems for electronic trade,
and their associated software. It has invested heavily in R&D to achieve
technological advances in both hardware and software, which have greatly
contributed to standard-setting in the trade.
Ingenico adapted quickly to other markets evolving in very different
environments. Today, the group is mobilising its know-how to diversify into
emerging markets such as all forms of electronic & mobile commerce.
Ingenico’s growth is accelerated by a policy of making acquisitions and
strategic alliances that has provided it with a strong presence on the five

The company is now 1200 persons strong and is diversifying into emerging
applications, focusing mainly on “B2B” and “B2C” (business-to-business and
business-to-customer) e-commerce and on Internet services.
In 2000, group turnover rose to 235 million Euros, which represents
growth of 30% compared with 1999.

Having sold more than 3,000,000 terminals to date in 40 countries,
Ingenico group is the second leading manufacturer of terminals, all types
considered, and the first for terminals able to handle smart cards.

P-Card Study

A study conducted by a team of academic researchers has projected that purchasing card spending will double over the next two years, elevating the p-card market size from approximately $40 billion to $80 billion. The bulk of the projected spending increases will be driven by traditional purchasing card acquisitions of maintenance, repair, and operating items, computer equipment, and office supplies. However, significant percentage increases are expected in non-traditional card purchases of direct materials inventory, capital goods, and temporary services. The study found that the average savings per purchase transaction with the use of purchase card relative to a traditional purchase order is about $68. Many organizations also reported over 40% reduction in the MRO supplier base and over 80% reduction in the number of petty cash accounts with the use of purchasing cards. The study was conducted by Richard Palmer from Eastern Illinois University, Mahendra Gupta from Washington University, and Antonio Davila from Stanford University.


In a move designed to give its member financial institutions a strategic
advantage, MasterCard International announced that it has made it possible for
its members to issue MasterCard-, Maestro-, and Cirrus-branded smart cards on
the JavaCard platform. With this move, MasterCard is actively supporting
MULTOS, JavaCard and all major proprietary platforms. In addition, MasterCard
is prepared to support Microsoft’s Windows Powered Smart Cards, based on
demand. Today’s announcement represents a key success for MasterCard’s smart
card program, a comprehensive, global solution for moving today’s magnetic
stripe payment cards to chip technology.
By delivering its flagship M/Chip(TM) family of credit/debit applications on
all platforms, MasterCard is responding to the growing desire of its
members to
have maximum flexibility when initiating smart card programs of their own.
“MasterCard actively supports all smart card platforms, freeing our members to
focus on business issues, rather than technology issues when making decisions
regarding their payment programs,” said Art Kranzley, senior vice president,
Global e-Business, MasterCard International. “We understand that some members
want flexibility when it comes to the smart-card platform. We invite other
major players in the global payments industry to join us in our decision to
actively support all technology platform choices available today.”
At the same time, MasterCard continues to stress its strong support for the
MULTOS platform, which remains the company’s preferred operating system for
multiapplication smart cards. “We remain 100% committed to MULTOS as
MasterCard’s preferred smart card operating system because it represents a
totally open, cost-effective, highly secure solution for multiapplication
cards,” said Kranzley. “In fact, today, MULTOS is more open than ever. New
members are joining the MULTOS consortium, pricing has been greatly
and a new policy allows card issuers to build their own facility (i.e., a
Certificate Authority) to authorize application loading and deletion. These
changes respond directly to our members’ business needs.”
Today’s news also reflects growing demand for MasterCard’s M/Chip credit/debit
applications, which in a single software package allows banks to issue
EMV-compliant MasterCard(R)-, Maestro(R)-, and Cirrus(R)-branded smart cards.
To date, M/Chip has been adopted in 24 countries, on 4 continents, and
MasterCard has commitments from members in another 20 countries.
In addition to MULTOS, M/Chip has already been placed on proprietary platforms
from Bull, Giesecke & Devrient (G&D), Gemplus, Oberthur, and Schlumberger.
MasterCard, working with Gemplus, Oberthur and Schlumberger, now offers M/Chip
on JavaCard. In addition, MasterCard has completed the preliminary analysis to
have M/Chip reside on the Windows Powered Smart Cards platform and has applied
for an application developer’s license from Microsoft. M/Chip will be made
available on the Windows Powered Smart Card Platform, pending final security
review and member demand for such services.

“We are pleased with the growth of smart cards around the world,” said Adam
Gluck, vice president of M/Chip product management, MasterCard International.
“Five years ago, there was little interest in payments on smart cards. Today,
the EMV standard is taking off. Now that M/Chip is available on MULTOS,
JavaCard, and a significant number of proprietary operating systems, the
industry is poised for explosive growth.”

MasterCard’s current platform strategy can be summarized as follows

MULTOS – The MULTOS platform remains MasterCard’s preferred operating system
for multiapplication smart cards. MULTOS is the most robust, flexible and
secure smart card platform in the market today. It is the only operating
for smart cards to have been certified with the prestigious ITSEC Level E6
security rating, the highest available. MULTOS is a totally open platform,
which enables a number of different, independently functioning services to be
held on a single card simultaneously. To date, more than 6 million smart cards
have been issued on the MULTOS platform, and more than 75 issuers are now
committed to issuing 20 million additional MULTOS smart cards. More than 70
companies currently supply MULTOS-related products and services.
Control of the MULTOS specification is contractually vested with the
members of
the MULTOS Consortium, consisting of 13 of the industry’s leading suppliers
card associations, who are working to drive the adoption of MULTOS as an open
industry standard for smart cards across all business sectors.
JavaCard – MasterCard has worked with Gemplus, Oberthur and Schlumberger to
port the M/Chip Lite credit/debit application to the JavaCard platform, which
has received broad industry support worldwide. The applications are available
now and allow MasterCard members to issue MasterCard(R), Maestro(R) or
Cirrus(R) cards on the JavaCard platform.
Windows Powered Smart Cards – MasterCard has applied for an application
developer’s license to be ready to place M/Chip on Microsoft’s Windows for
Smart Cards platform, pending final security review and member request for

Proprietary Platforms – MasterCard has worked with members to place M/Chip
on a
variety of proprietary platforms from Bull, G&D, Gemplus, Oberthur, and

MasterCard International is a leader in global e-business. The association is
focused on providing its member financial institutions with customized,
meaningful global e-business solutions that connect them to customers in both
the online and offline worlds. Through its investment in industry innovation,
participation in standards development and business alliances, MasterCard is
staying in the forefront of technology integration to enable anytime, anywhere
payments across multiple channels and various devices. MasterCard’s global
e-business solutions include Internet security, smart cards, mobile
commerce/wireless, e-wallets, business to business electronic commerce, and
numerous emerging technologies.

About MasterCard International

MasterCard International has the most comprehensive portfolio of payment
in the world. More than 1.7 billion MasterCard(R), Cirrus(R) and Maestro(R)
logos are present on credit, charge and debit cards in circulation today. An
association comprised of more than 20,000 member financial institutions,
MasterCard serves consumers and businesses, both large and small, in 210
countries and territories. MasterCard is the leader in quality and innovation,
offering a wide range of payment solutions in the virtual and traditional
worlds. MasterCard’s award-winning Priceless(R) advertising campaign is now
seen in 81 countries and in more than 36 languages, giving the MasterCard
reach and scope unrivaled by any competitor in the industry. With more than 21
million acceptance locations, no card is accepted in more places and by more
merchants than the MasterCard Card. In 2000, gross dollar volume exceeded
US$857 billion. MasterCard can be reached through its World Wide Web site at

ECC for Smart Cards

First Data Corp., a leader in electronic commerce and payment services, and Certicom,, a leading provider of mobile e-business security, announced a strategic licensing agreement. First Data licensed Certicom’s leading elliptic curve cryptography and plans to incorporate the highly efficient technology in a number of areas including smart cards.

Certicom’s ECC technology is ideally suited for securing the new generation of small devices that are limited by low processing speed, network bandwidth, and battery power. Using ECC, digital signatures can be performed on small devices such as smart cards without the additional cost of a cryptographic co-processor found with other systems. The small key sizes and short signature lengths provided with ECC can lead to significant reduction in data storage required to support processing large volumes of transactions.

![][1] “There is an ever-increasing need for strong and efficient tools to protect consumer privacy and insure the integrity of financial transactions,” said Gene Kathol, vice president for First Data Corp. “Our selection of Certicom and their strong cryptographic tools further enables application of digital signatures and encryption into our products to help us continue to provide secure and efficient products for our customers.”

“Certicom has been collaborating with First Data on digital signature technology for years, beginning with our mutual involvement in financial industry standards,” said Richard Depew, executive vice president of Certicom. “We are very pleased to take this important step with First Data towards enabling the market with efficient signature systems that meet the business case for wide scale deployment.”

About First Data Corp.

First Data Corp. (NYSE: FDC), with global headquarters in Denver, powers the global economy. As the leader in electronic commerce and payment services, First Data serves approximately 2.5 million merchant locations, 1,400 card issuers and millions of consumers, making it easier, faster and more secure for people and businesses to buy goods and services using virtually any form of payment. With more than 27,000 employees worldwide, the company provides credit, debit, smart card and stored-value card issuing and merchant transaction processing services; Internet commerce solutions; Western Union(R) money transfers and money orders; and check processing and verification services throughout the United States, United Kingdom, Australia, Canada, Mexico, Spain and Germany. Its money transfer agent network includes approximately 104,000 locations in more than 186 countries and territories. For more information, please visit the company’s Web site at [][2].

About Certicom

Certicom is a leading provider of information security software and services, specializing in solutions for mobile e-business. The company’s products and services are specifically designed to address the challenges imposed by a wireless data environment. Certicom’s solutions incorporate its efficient encryption technology and are based on industry standards for information security that utilize public key cryptography. Certicom’s products are currently licensed to more than 150 customers including Cisco Systems, Inc., Handspring Inc., Motorola, Inc., Nortel Networks, Openwave Systems, Inc., Palm, Inc., QUALCOMM, Inc., Research In Motion Ltd. and Sony International (Europe) GmbH. Certicom’s headquarters and worldwide sales and marketing operations are based in the Silicon Valley in Hayward. For more information, visit Certicom’s Web site at [][3].

[1]: /graphic/certicom/certicom.gif