Europay International and MasterCard International introduced the next
generation of m-payment solutions, by implementing a PIN-based, EMV chip card
transaction using a mobile phone. This was made possible by using a
Eurocard®-MasterCard® card and a Motorola Timeport GSM.
This multi-channel, m-payment transaction will be demonstrated at the Motorola
and Oberthur Card Systems stands at the GSM World Congress in Cannes, France
(20-23 February). It is expected that this new method of secure, online
shopping will be rolled-out later this year.

Motorola’s Timeport model of its tri-band, dual slot GSM is now able to accept
Eurocard-MasterCard M/Chip Lite™ cards. Europay and MasterCard developed the
specification and Europay has upgraded its online test merchant site ‘Europay
Shop’ (htttp\ to support these mobile EMV payment
transactions. Oberthur developed the card applications, including the SIM
application for mobile phones.

Crédit Mutuel will issue the first EMV smart cards in France in late 2001.
France Telecom Mobiles has upgraded its mobile payment solution (launched in
June 2000) and is providing the GSM infrastructure. It has also developed the
gateway for the demonstration transactions. In the near future, its customers
will be able to conduct payment transactions with both French and international
e-commerce merchants.

France has been a leader in developing first generation smart cards, and was
the first country to establish a national chip conversion programme, thereby
helping to reduce card fraud. In this significant move, Crédit Mutuel and
France Telecom Mobiles demonstrate their ability to provide consumers with the
latest innovations and initiate the move to global interoperability based on
EMV smart cards. This expands consumer use of the new generation of payment
cards beyond the physical world and into the global, borderless, virtual world.


“Europay, and its strategic partner MasterCard, are delighted to demonstrate
this innovation at the GSM World Congress,” said Olivier Denis, Product
Manager, Mobile Commerce at Europay International. “This project illustrates
the true benefits of EMV-chip cards as the key to a whole range of new retail
channels and brings us even closer to enabling Eurocard-MasterCard and Maestro®
cardholders to shop anytime, anywhere in this new secure e-commerce
environment,” he added.

“This move further emphasises a high level of confidence in EMV-chip beyond the
physical world,” said Pascal Dufour, Senior Manager, New Products Introduction
at Europay International. “We expect continued growth over the next few years
in the use of EMV-chip technology to secure payments over the Internet and
mobile channels,” he concluded.

“Crédit Mutuel believes that one of the best ways to distinguish itself in the
French marketplace is to give our customers the highest level of convenience in
their daily lives,” said Claude Brun, Crédit Mutuel. “We are now beginning to
deliver the full potential of smart card technology to our customers, wherever
they are in the world,” he explained.

“We believe that EMV is an excellent standard to enable France Telecom Mobiles
to develop its mobile commerce services to all its subsidiaries across the
world,” said Guy Lafarge, Marketing Director, France Telecom Mobiles.

Ed Sadowski, General Manager of Internet Software & Content Group, Motorola
EMEA, said “We are delighted to contribute to the first EMV implementation of
a tri-band, WAP-enabled Motorola mobile phone. We see this partnership as key
to Motorola’s commitment to standardise mobile commerce. The introduction of
this new service turns the mobile phone into a ‘mobile Internet access and
payment device’,” he added.

Stephane Mousse, Head of Marketing for Mobile Communications at Oberthur Card
Systems commented, “Oberthur has long championed the migration towards
EMV-compliance in the physical world and we are delighted to be at the heart of
this latest step facilitating EMV-based mobile commerce. This ongoing
collaboration truly demonstrates the capability of the smart card for payments
in the virtual world and brings secure mobile services to consumers’

Royal POS Terminals

Schlumberger Test & Transactions, a business segment of Schlumberger Limited, announced Wednesday that it had been selected by Streamline, part of The Royal Bank of Scotland Group, as one of its core suppliers for point of sale terminals for its UK-merchants. Following an initial pilot, Schlumberger will complement the terminal base of Streamline with MagIC* 6000 smart card-ready POS terminals.

The POS infrastructure will help Streamline take full advantage of the competitive opportunities offered by the new generation of EMV (Europay, Mastercard, Visa)-compatible smart payment cards. Full software compatibility across the MagIC product range makes it an ideal platform for the sustained evolution of new, differentiating services in an increasingly competitive marketplace.

MagIC 6000 terminals are EMVCo Level 2 approved – among the first terminals worldwide to achieve this status – and accept any EMV-compatible smart payment card, as well as traditional magnetic stripe cards.

Project management, technical support and software development teams operate from the Schlumberger UK center in Ferndown, Dorset. “The quality of these specialist skills was of prime importance to the bank. To us, the team behind the product is as important as the product itself,” said Tony Surridge, director of Retailer Card Services for The Royal Bank of Scotland group. “We have been impressed by the quality of the terminal and the commitment from the UK sales and support team. They have delivered and that is very important to a market leading organisation like Streamline.”

“EMV migration is a major strategic milestone for any bank, and our customers deserve tangible proof of our commitment to their marketplace,” said Bertrand Knopf, vice president Schlumberger e-Payment. “Global presence is certainly important, but what our customers really want is expert, reliable, local support. That’s why we’ve invested heavily in building a dedicated technical team for the UK.”

The right terminal infrastructure is widely seen as a critical part of any successful payment strategy. Speed, reliability and ergonomics of terminals are important in shaping attitudes of retailers and customers interfacing with the payment infrastructure. Compact, fast, and friendly MagIC 6000 terminals provide a high level of security, with firewalls and secure application-download facilities. Their extended memory and Secure Application Module capabilities support multiple applications from standard payment cards such as credit/debit and e-purse, to custom services such as loyalty and co-branding.

About Schlumberger

Schlumberger Test & Transactions provides consulting, integration and products for smart card-based transactions, IP (Internet Protocol) network security and wireless services, and for testing and measurement of semiconductor devices. With 2000 revenue of $1.4 billion and over 8000 employees in more than 40 countries, it is a business segment of Schlumberger Limited (NYSE: SLB), a global technology services company with 2000 revenue of $9.6 billion. More information is available at [][1]

About Streamline

Streamline Merchant Services, part of The Royal Bank of Scotland Group, is Europe’s largest card payment acquirer processing over 1 in 3 of all UK card transactions. No one processes more types of major card schemes than Streamline: MasterCard, Maestro, Visa, Visa Debit, Visa Electron, Visa Purchasing, Switch, Solo and JCB as well as many minor schemes. The Royal Bank of Scotland Group is one of the largest in the UK, serving more than 15 million customers.


Hart at Orbiscom

Orbiscom Inc., the leading provider of Controlled Payment Number technology, announces the appointment of Alex W. “Pete” Hart to the Orbiscom Advisory Board.

Mr. Hart will work with Orbiscom’s management team to help meet the company’s corporate objectives and ensure it’s continued market leadership. Formerly, Mr. Hart was President and Chief Executive Officer of MasterCard International.

“Pete brings a priceless level of expertise and guidance to our team,” said Ray Sheridan, Orbiscom’s chief operating officer. “His keen insight will prove invaluable in ensuring Orbiscom’s continued success and proven market leadership.”

Mr. Hart is a financial services veteran with more than 30 years of banking and technology services experience. He serves on the Board of Directors of HNC Software, Sanchez Computer Associates, Destiny Solutions, Ethentica Inc and Global Payments Inc and is an advisor to the Internet Capital Group. Currently, he is engaged in a number of new technology ventures including eHarmony,, Qpass, Solspark and Zone28. As such, his present focus is the Internet and e-commerce, and their impact on the consumer banking industry, with a specialization in emerging payment and distribution systems.

“My acceptance of this position is a clear indication of my enthusiasm for Controlled Payment Number technology, “said Pete Hart. “I was attracted to Orbiscom as they are the only secure payment company currently supporting live implementations of Controlled Payment Number technology and as such have proven their stability, ingenuity and market leadership.”

Most recently, Mr. Hart served as the chief executive officer of Advanta Corporation, a diversified financial services company. Prior to Advanta, Mr. Hart was president and chief executive officer of MasterCard International from 1988 to 1994. Concurrently, he also served as Chairman of the Board of Maestro International, the worldwide debit system, and he was a member of the board of Europay International.

Before joining MasterCard, Mr. Hart spent 10 years at First Interstate Bancorp. While there, he became the founding Chairman of the Board of the CIRRUS System, the global network of shared automated teller machines now owned by MasterCard International.

About Orbiscom Inc.

Orbiscom Incorporated ([][1]) is a software technology service provider that is setting a new standard for controlled, protected on-line payments. The Orbiscom technology, O-power, enables consumers to generate a Controlled Payment Number (CPN) with an established dollar limit valid for all on-line purchases. O-power is compatible with all current payment initiatives – credit, debit, checks – and allows consumers to shop at any e-tailer with confidence. Orbiscom, as the first to develop and successfully implement a Controlled Payment Number Technology, has installed O-power in the United States with MBNA and Discover and in Ireland with Allied Irish Bank. Founded in 1998, Orbiscom Incorporated is headquartered in New York with a development center in Dublin, Ireland, and operation centers in London, Brussels, Sydney and Toronto.



MasterCard has formed an alliance with MobileWay to develop and market an authentication scheme that will verify cardholders to merchants and confirm transactions using their wireless devices. MasterCard and MobileWay also intend to collaborate on development projects to ensure interoperability between MasterCard’s electronic payment systems and MobileWay’s global data network hub. Both firms also plan to develop next-generation m-commerce technologies. The alliance also includes cooperation on a number of key initiatives with the intent to leverage MasterCard’s global payment system and MobileWay’s global network by building upon the efforts of the Global Mobile Commerce Interoperability Group.

No-Show Chargebacks

MasterCard announced yesterday it is changing its chargeback rules to help the hospitality industry fight no-shows. Under the new rules, lodging establishments will have the right to dispute chargebacks when they are received as a result of a guaranteed no-show. For example, when a cardholder claims they did not make a guaranteed reservation or claims they did not authorize the charge. Lodging merchants will now be able to submit documentation to MasterCard showing they obtained the cardholder’s account number, card expiration date, name embossed on the card and address. They can also provide a reservation confirmation number at the time the guaranteed reservation was made in order to defend themselves against guaranteed no-show billing chargebacks. Historically merchants have had limited rights in disputing such claims. Consumers will also now be required to file their dispute in writing. The new changes are effective October 13, 2000 for MasterCard members and lodging merchants.

CEPS Smart Cards

Banksys SA, CEPSCO Española, Europay International, Interpay Nederland NV, Proton World, and VISA International announced Wednesday they will launch the first pilot of internationally-interoperable e-purse smart cards based on CEPS Jan. 15. The pilot will use CEPS-based versions of existing e-purse smart cards: Belgian ‘Proton’ cards, Dutch ‘Chipknip’ cards, Spanish ‘VISA Cash’ cards and ‘Monedero 4B’ cards. The first part of the pilot will run from Jan-Mar 2001 with the issue of about 400 cards to employees of the companies involved. In addition to the existing domestic e-purse brands, the cards will also be branded either ‘Clip’ (Europay International’s international e-purse brand) or ‘VISA Cash’ (Visa’s international e-purse brand). The second phase of the project will run from Apr-Jun 2001, and will use around 1,000 cards, which will be issued to selected existing e-purse cardholders in Belgium, the Netherlands and Spain.


MasterCard International and TradeCard yesterday announced an agreement to develop and pilot a new online payment system for B2B purchases. The new MasterCard-TradeCard payment solution will be the first ever to allow businesses to seamlessly complete B2B e-commerce transactions through a single mechanism. Using TradeCard’s compliance and transaction workflow technology, and MasterCard’s brand, purchasing card platform and global reach, the companies will offer an online payment solution that enables businesses to complete transactions whether large or small, domestic or cross-border, in multiple currencies. Businesses will be able to pay for spot transactions, or track larger, more complicated corporate purchase orders through their transaction cycle and then pay for them when the contract terms have been satisfied. Companies will be able to receive integrated payment information, including transaction-level detail via secure web access. Pilot transactions for the new payment solution are scheduled for the fourth quarter.

Eurocard MasterPhone

eGlobe and Europay International have signed agreements to give Europay’s 243 million cardholders access to eGlobe’s ‘World Direct’ global telephone network and the ‘VoGo Unified’ messaging system. The move will give Europay International ‘Eurocard-MasterCard’ credit cardholders a global calling card enhancement. The service, to be called ‘MasterPhone’, will initially be implemented by Eurocard-MasterCard issuers in Europe. Later this fall, eGlobe will begin introducing its ‘VoGo Unified’ messaging system to all Europay member institutions. The ‘VoGo’ service will be available in 16 languages. Europay International has more than 9,000 member banks offering cards under the Eurocard-MasterCard, Maestro, Cirrus and eurocheque brands. eGlobe originates traffic in more than 100 territories and countries and terminates anywhere in the world.

Priceless Latinos

MasterCard has taken its ‘Priceless’ advertising campaign to the U.S. Hispanic market. The first Spanish-language ‘Priceless’ television commercials are now airing on the Univision and Telemundo television networks. Combined, both networks reach up to 94% of the U.S. Hispanic market. MasterCard has also joined forces with the League of United Latin American Citizens to develop financial education materials and to conduct community workshops. MasterCard hired Vidal Partnership, a Hispanic-owned advertising firm based in New York City, to develop the ads for the U.S. Hispanic audience. The first two ads are titled “Fatherhood” and “Recipe”. To support its latest consumer education programs, MasterCard has also hired Arvizu Advertising and Promotions, a Hispanic-owned firm based in Phoenix, AZ to create materials for various segments of the Hispanic American community. The ‘Priceless’ campaign already airs throughout North and South America, Europe, South Africa, and Asia.

Acquirer Directory

MasterCard launched the ‘MasterCard Merchant & Acquirer Referral Program’ this week to provide merchants, acquirers and MSPs with one central point to network. The ‘MasterCard Merchant & Acquirer Referral Program’ is an online directory to assist merchants, in the U.S. and Canada, interested in accepting the MasterCard card as a payment option, in finding acquirers and MSPs interested in working with them. By submitting an account profile, merchants can view a listing of MasterCard acquirers and MSPs that provide the bankcard acceptance services best aligned to their profile. Similarly, acquirers and MSPs can view a list of merchants that have received their profile and have visited their company website by also submitting a profile.


MasterCard International is expanding its ‘Chip Vendor Services Program’ through the formation of a new subgroup focused on the development and global deployment of digital ID-based smart card applications to authenticate cardholders in mobile and electronic commerce transactions. Eleven key industry leaders have already committed to joining the new program. The current baseline ‘CVSP’ program provides extensive training conducted by experts at MasterCard and Europay International to educate vendor partners about the global EMV specifications, the ‘MULTOS’ operating system, and MasterCard’s M/Chip credit/debit application. To date, employees from 23 organizations have been trained and are actively participating in the CVSP program. Additional digital-ID vendor participants include: ACI Worldwide; Bull Smart Cards & Terminals; CMG; CardsEtc.; Dione plc.; Giesecke & Devrient; Gemplus; ICL; Schlumberger; and Unisys.

Police Terminals

Traffic offenders will soon be able to pay their fines at the point of violation. MasterCard and Elan Merchant Services have launched a wireless acceptance terminal pilot program for Wisconsin State patrol cars which allows the acceptance of credit and debit cards from motorists for moving violation payments. In the past, motorists would have to accompany the officer to the police station to pay their appearance bond. MasterCard is providing Wisconsin State Patrol cars with a ‘Lipman Nurit 2090’ mobile terminal with a built-in printer. The ‘Nurit’ uses the BellSouth Wireless Data network and process transactions in 6 to 8 seconds. The Wisconsin State Patrol says the new program will allow its police officers to reconcile the violation payment and get back on the road in half the time.