MULTOS Asian Smart Card

MULTOS,  the  secure,  multi-application  operating system, has been selected by Cable  &  Wireless Hong Kong Telecom SecureNet for the first commercial release of a multi-application smart card in the Asia Pacific region.

C&W  HKT  SecureNet  is  a joint venture company between C&W HKT and Australia’s leading Internet security provider SecureNet Limited.

As  part  of  a  number  of  initiatives developed by Cable & Wireless Hong Kong Telecom and the Hong Kong and Shanghai Banking Corporation to encourage  the  growth  of  e-commerce  in  Hong Kong, over 50,000 cards will be initially  issued  throughout the territory.  The card will include a digital ID certificate,  e-cash,  credit/debit  and  a  loyalty program and will run on the smart-card platform MULTOS which is managed by the consortium MAOSCO.

Geoffrey  Ross,  managing director of SecureNet, said:  “We chose MULTOS because of  its high security standards and multi-functional capabilities. MULTOS allows products (in the form of applications) to be added to and deleted from the card. The  benefit  of the pre-loaded applications means the smart card is ready to be used  once  plugged  into  the  PC  and  doesn?t  require special software to be installed.”

The smart card will enable consumers to shop online using their credit, debit or electronic  cash card without having personal details exposed over the Internet, making e-commerce easier and more secure.

The  cards  will  also  support an Internet-based loyalty program, where loyalty points  will  be  accumulated  and stored on an Internet server for customers to purchase and redeem goods online from a number of merchants.

The  cards  use  SecureNet’s latest Internet-based and Public Key Infrastructure (PKI)  technology  to underpin Hong Kong’s burgeoning e-commerce industry. It is expected  the  facility  will  gain  in  popularity  as more and more people use digital  certificates  as  a  trusted means of identifying, signing and securing their internet and email transmissions.

Ross  concludes:   ‘The development of a multi-application card on MULTOS offers enormous  advantages.   Customers  can choose to buy new applications or discard old  ones  and  can  remotely  load  and delete applications through their PC or public kiosks.’


MULTOS  is  a  secure, multi-application smart card platform. It allows products (in  the  form  of applications) to be added to and deleted from the card. Third party  software  developers  can develop their own MULTOS applications, allowing them to tailor design Value Added Services for the card user.  Such applications include  loyalty,  ticketing,  credit,  debit  and  electronic purse. MULTOS was launched  in  May  1997  and  has  met a great success in the financial services industry.  More  recently, combined with PKI applications, MULTOS has become the basis of a number of world leading e-commerce initiatives.

MAOSCO  is  a  world-wide  consortium which was formed to drive the adoption and manage  the  on-going development of MULTOS as an industry standard platform for smart  cards.  Members  of  the  consortium  include  American Express, Discover Financial   Services,   DNP,   Europay  International,  Fujitsu  (including  its subsidiaries   ICL   and  Amdahl),  Giesecke  and  Devrient,  Hitachi,  Infineon Technologies  (a  subsidiary  of Siemens), Keycorp, MasterCard International and Mondex   International,  Motorola  and  Telstra.  For  further  information  see [][1]

About SecureNet Limited SecureNet’s  key  business is supplying data security solutions to corporate and government  organisations,  including  the  banking  and  finance sectors.  With worldwide  e-commerce  forecast  to  grow  by  more than 130 per cent per annum, SecureNet  sees  its role expanding as a forefront provider of Internet security services and equipment.

SecureNet  specialises  in  the development, design and installation of complete security   solutions,   addressing   the   Internet,  remote  banking,  VPN  and data-critical   applications.    An   industry  specialist  in  smartcard,  PKI, firewalls,  secure  payments  and  security  consultancy, SecureNet has become a trusted  name  in  integrated high-technology security products and services. It also  provides  consultancy  and  custom design and solution services for a wide range of IT applications. Web Site: [][2]



CyberCash 25,000

CyberCash, Inc. announced it has signed up the 25,000th merchant for its industry leading CashRegister Internet payment service.

The addition of to a merchant base that includes, and highlights CyberCash’s continued success in providing industry leading Internet payment services and software.     CyberCash also announced that it has entered the second stage of beta testing for its fraud detection service.  Fraud detection will be generally available in the 3rd quarter of 2000.

“Signing up our 25,000th merchant is an important milestone for CyberCash, underscoring our ability to grow our Internet payment business in a powerful and consistent way.  In the past five months, we have signed up 5,000 new merchants — and couldn’t be more pleased to welcome fast-growing Internet companies like to the CyberCash family,” said James J. Condon, President and Chief Executive Officer of CyberCash.

“ provides new and expecting parents with convenience and peace of mind when they shop online.  We want to ensure that when they make an online purchase at their payment is processed quickly, efficiently and securely.  CyberCash is our answer,” said Preston Bealle, President and Chief Executive Officer of

CyberCash has experienced enormous growth as the leading provider of payment processing services to the exploding Net economy.  Its Internet merchant base has almost doubled in the past year to 25,000.  In addition, CyberCash continues to be a premier source of software for both Internet and physical world payments.  More than 145,000 copies of CyberCash software products have been shipped., CyberCash’s 25,000th merchant, is the largest and fastest growing e-commerce site for baby products.  It can be found at  For more information about CyberCash products, services and partners, visit the company’s Web site at [][1].

About CyberCash

CyberCash, Inc., is the world’s leading provider of Internet payment services and electronic payment software.  The company uniquely provides services to 25,000 Internet merchants and has shipped more than 145,000 copies of its software products.  CyberCash offers the broadest reach in the payment industry with a comprehensive distribution network that includes direct and indirect sales as well as marketing partnerships with financial institutions, Internet service providers, application service providers, storefront solution providers and leading independent software vendors.

About is the largest and fastest-growing e-commerce site for baby products on the Internet today.  Offering the largest selection of baby products in one place from more than 100 trusted national brands, the site offers a streamlined approach designed to make life easier for new and expecting parents, and can be found at [][2].


Details Prez has hired Gretchen H. Bender to the position of President, where she will oversee all operations for the company.

PAIDCard (Prepaid Anonymous Internet Debit Card) is the latest initiative in secure retail and electronic commerce transaction processing. Preliminary market tests show strong acceptance, as the company will go to full market September 1st and will be publicly traded on NASDAQ symbol PDCD.

Ms. Bender comes to PAIDCard from First Bank of Beverly Hills, a subsidiary of Wilshire Financial Services Group (NASDAQ), where she served as Operations Manager in charge of all merchant acquiring activity for the Bankcard Division. Gretchen and her staff serviced a portfolio of nearly 9,000 merchants in the nation’s 48th largest credit card processor.

She was also instrumental in developing and enhancing the Bank’s relationships with CyberCash (NASDAQ), Signio, a division of Verisign (NASDAQ), First Data Resources (NYSE) and NDC e-Commerce (NYSE).

Prior to First Bank of Beverly Hills, Gretchen operated DataBank International, Ltd., a third-party service organization for the Bank of Los Angeles. She was responsible for portfolio profitability and guided DataBank in its development of an international processing solution and additional third party relationships.

Ms. Bender is a Business Administration graduate with a major in Management Information Systems, 1990, from the University of Arizona.

Gary Davies, Chairman of PAIDCard, said, “We are delighted to have an executive with Ms. Bender’s impressive abilities, banking and solid credit card experience with a working knowledge of our specific area of business. She brings with her a world of savvy that we will need to move forward quickly.”

PAIDCard will be available at retail locations and convenience stores nationwide, as well as over the internet. International distribution of the PAIDCard will be developed through affiliate banking relationships and foreign agents.

About, Inc. is an internet banking services company functioning as an agent while finalizing contracts to become a registered sales organization for the processing of MasterCard and Visa transactions. Through their relationships with various banking institutions and with third party processors, the company is able to utilize the Federal Reserve’s Automated Clearing House (ACH) system to deposit and collect funds electronically. Given these capabilities, the company has introduced its own private label card known as PAIDCard (Prepaid Anonymous Internet Debit Card).

The PAIDCard advantage is its ability to alleviate the burden of chargebacks from online and retail merchants, while providing anonymity to the consumer. Fraud is substantially reduced with this method of payment, thus greatly lowering merchant fees and driving added, unexpected revenue to participating e-commerce and retail clients.


Canadian PGA MasterCard

Bank of Montreal MasterCard and the Canadian Professional Golfers’ Association have teamed up to create a value packed MasterCard offering for golfers.

The new Canadian PGA Bank of Montreal MasterCard is available immediately to all members of the Canadian PGA, as well as golf afficionados all over Canada. When using the card for purchases, the Canadian PGA cardholder will be entitled to such benefits as discounts on golf lessons, green fee discount books and Ultimate Golf Vacations.

“Every golfer will want a Canadian PGA Bank of Montreal MasterCard,” said Canadian PGA Chief Executive Office, David Colling. “In addition to the valuable discounts and benefits that cardholders will receive, a portion of the card’s revenue will be used to support junior activities of the Canadian PGA. We are extremely excited about this venture and feel it has tremendous potential.”

With over five million golfers in Canada, the golf participation rate per capita is higher in this country than anywhere else in the world.

“Affinity cards are a terrific way to support non-profit organizations and charitable causes,” said Michelle Field, Vice President, Bank of Montreal MasterCard. “Bank of Montreal MasterCard has over 200 different affinity cards with charitable, academic, athletic and cultural organizations, allowing consumers to choose a card tailored to their own individual interests and needs.”

The Canadian PGA is a membership-based, non-profit organization representing over 3,000 club professionals and tournament professionals across Canada. It is committed to improving and promoting the game of golf by providing the golfing public and the Canadian PGA-approved facilities with the highest quality administrators, teachers, players and promoters of the game, through superior training, education and member development.

Bank of Montreal is the largest issuer of MasterCard cards in Canada. Serving five million customers across the country, Bank of Montreal MasterCard is also the largest card issuer of the AIR MILES(R)+ Reward Program and the only credit card in Canada to offer the FirstHome(R) Program. In addition to Platinum, Gold, US Dollar, student, and low-interest options, Bank of Montreal MasterCard offers co-branded cards with, Star Trek and Shell.


Vatican Cards

Los Angeles-based Maxx International yesterday announced that it signed the first-ever exclusive license agreement with the Treasures of St. Peter’s in The Vatican. The agreement provides Maxx with the exclusive rights to market and distribute Vatican-branded credit, debit and telephone cards. The deal will also seek to develop the first affinity card specifically for the approximate 60 million Catholics in the USA and over one billion Catholics worldwide. Maxx says it is in discussions now with several bank credit card issuers. Maxx will also have rights to sublicense and manufacture pre-paid and post-paid calling cards that carry an imprint of an image of the art works contained in the Vatican Treasury.


Bankruptcy Decline

The number of personal bankruptcy petitions filed in U.S. federal courts has been dropping by an annual rate of 8.3%. According to CardData, the percentage of chargeoffs involving bankruptcy has declined from 42.3% for May 1999 to 37.2% for May 2000. The Administrative Office of the U.S Courts recently reported that personal bankruptcy filings have dropped from 1,378,071 for the year ending 3-31-99 to 1,263,096 for the year ending 3/31/00. For the first quarter 2000, there were 312,335 total bankruptcy filings compared to 330,784 for 1Q/99. For complete bankruptcy statistics visit CardData (

(for year ending March 31)
2000 908,802 381,568
1999 1,017,049 393,245
1998 1,007,213 404,749
1997 862,136 372,369
1996 665,310 300,901
1995 568,565 255,382

Source: Administrative Office of the U.S. Courts


Delta – Amex Renew

Delta Air Lines and American Express Thursday announced an agreement to extend their long-term partnership. The deal involves the cobranded ‘Delta SkyMiles’ credit cards and participation of Delta Air Lines in the ‘Membership Rewards’ program. The co-branded credit card was introduced in 1996. In 1991, Delta became one of the first partners in the AmEx ‘Membership Miles Program’, now ‘Membership Rewards’. The program now has more than 8 million enrollees worldwide. The Delta Air Lines co-branded program is now the third largest co-branded airline mileage in the US following the United Airlines and American Airlines programs.


Down Month

All credit card statistics for card bonds declined during May according to the Fitch ‘Credit Card Index’. While the good news is that chargeoffs and delinquency declined the bad news is gross yields also declined during May. The Fitch database of $214 billion of credit card-backed securities shows the 60-day delinquency rate is now at its lowest level since Aug 1996. Chargeoffs also dipped to the lowest level since the start of this year.

May00 5.38% 18.44% 15.47% 2.89% 5.47%
Apr00 5.43% 19.72% 17.34% 3.01% 5.62%
Mar00 5.50% 19.30% 16.05% 3.21% 5.52%
Feb00 5.45% 18.48% 16.36% 3.06% 5.53%
Jan00 5.53% 19.36% 16.71% 3.17% 5.89%
May99 5.91% 18.65% 15.96% 3.02% 5.64%
CO-chargeoffs; GY-gross yield; MP-monthly payment rate; DL-60+ day
delinquency rate; SP-3-month excess spread

Source: Fitch IBCA Credit Card Index


ATM Gold

Arkansas Federal Credit Union wanted to raise its maximum ATM transaction amount from $300 to $500 but was concerned about the increased frequency of reloading its machine. The solution was found in dispensing the new Sacagawea golden one dollar coin which freed up a note dispenser for $50 bills.The credit union is the first financial institution in the country to dispense the newly minted, golden one dollar coin at an ATM.


PocketCard Discount

Timebeat4teens, a subsidiary of Enterprises Inc. and developer of an Internet destination geared toward the explosive teenage market, announced today it has named PocketCard as a preferred method of payment on its e-commerce site,

Timebeat4teens visitors and their parents can enroll for PocketCard’s high-tech Visa Card by accessing the timebeat4teens site. Timebeat will offer a 20% discount on any item on its site with the use of the PocketCard Visa.

Chairman of Enterprises, Thomas L. Crom, stated, “With teen spending estimated to reach $250 billion in 2000, PocketCard offers teens a way to participate in cashless transactions and thereby encourages e-commerce transactions. PocketCard and Timebeat are complementary partners because we both recognize that the youth generation is a vital, driving force of the new economy. Together, we are granting today’s youth the independence, convenience and security they deserve.”

Crom added, “PocketCard is the preferred payment method for online retailers such as Alloy Online (NASDAQ: ALOY). Unlike Alloy, Timebeat4teens is providing a 20% discount incentive with usage to boost both PocketCard and Timebeat4teens sales.”

Embossed with the URL and the teen’s name, this adult-funded Visa Card will grant teens the freedom to shop anywhere Visa is accepted. Differing from a credit card, PocketCard strictly restricts spending to preset limits. Any attempt to spend more than previously specified is denied at the point of purchase.

PocketCard utilizes the latest Internet technology, which gives the parent or other adult sponsor authority to instantly add funds via the Internet or telephone. As a value-added feature, purchases can be tracked instantly through e-mail alerts.

About PocketCard, Inc.

PocketCard, Inc. invented the financial service product known as sponsored payment cards, which are special purchasing cards for financial dependents with instant funding, reporting and control. PocketCard’s unique service is possible through a patent-pending technology platform that allows instant transfer of money and information-any time, any place-both online and off. PocketCard’s business model is designed to reach families, businesses and individuals with its innovative e-finance and relationship-marking services. PocketCard works with leading credit card issuers, processors, retailers, media and others to continually deliver cutting-edge applications.

About Enterprises is a dynamic Internet company focused on the design and operation of premier interactive websites. Currently numbered at 60 million, young consumers are growing 20% faster than the total U.S. population. Timebeat4teens ( targets this new generation with a line of jewelry, watches, records, clothing, and related merchandise that appeals to teens and young adults. Timebeat will introduce the site, utilizing the latest advancements in Internet technology, during the summer of 2000.


AMEX Mistakes

American Express President/COO Kenneth Chenault acknowledged yesterday that his company made a number of strategic errors over the past 20 years but has been hamstrung by VISA and Master Card rules. Chenault confirmed that AMEX made a mistake in passing up co-branding opportunities with American Airlines and AT&T. He testified, however, that his company would like to enter the debit card market and needs bank relationships to do so. He also gave the AmEx side of a failed merger with Citibank. Looking ahead, Chenault indicated AmEx would like to undercut VISA and MasterCard merchant fees for debit cards. He also detailed discussions AmEx held with MBNA, Bank One and Capital One. Chenault further addressed his opinion of an 18-page Bain & Co. report, commissioned by AmEx, that suggested AmEx use the government to attack the underpinnings of VISA’s business structure. He characterized the report as “ludicrous” and “naive”.


Smart Amusement Card

Schlumberger e-Transactions Solutions, a unit of the Test & Transactions business segment of Schlumberger announced a partnership with Sega Enterprises, Ltd. to provide a new smart card for use in Sega’s network of amusement arcades throughout Japan. Supported by Toppan Label Co., Ltd, it represents Japan’s first entertainment-related smart card system technology.

Sega plans to deploy a smart card system across “Entertainment Stage net@”, the high-speed high-capacity fiberoptic network set to link all its amusement arcades. The new Schlumberger solution will provide membership verification and stored value credits to enable customers to access the vast store of digital contents. Charges for its use will be based on on-line time, and a single smart card will be all that any subscriber needs to use the service.

The smart card will also allow Sega’s partner companies that provide content to market their products more effectively, by accessing customer data stored on a server to target user profiles. When the smart card system is expanded to other Sega arcades in the future, alliance companies will have access to real-time market trend data and sales information in order to customize services such as flexible pricing and time-discounts by outlet.

“No business is evolving faster than networking and e-communications businesses. With 20 years of Schlumberger experience in providing smart card-based solutions, the next generation of consumers can enjoy the convenience and security of a smart card which is also an effective tool for offering further customer incentives,” said Tameyasu Anayama, vice president and general manager of Schlumberger.

The card system has been specially designed and developed for Sega using a proven high security solution from the Schlumberger product line. It functionality can easily be ported on a platform of the EMV specification used across the financial industry. The solution draws on highly flexible and expandable technology enabling Sega to adapt memory size according to member profile and usage. The card will be available at “Entertainment Stage net@” .

Isao Ohkawa, president & CEO, Sega added: “The use of networks is spreading through industries like the entertainment sector at a great speed. net@ is a new model adapted to the needs of a networked society, and the introduction of smart cards is critical to its realization. I am delighted to be working with Schlumberger to make net@ powerful force in the entertainment business.”

Schlumberger, which has well-established technology and product lines particularly in security, ID, loyalty and e-purse, is working with Sega to create a new smart card system for the amusement business that also has potential applications in other industries.

About “Entertainment Stage net@”

“Entertainment Stage net@” is a project which aims to create entirely new business formats by linking amusement facilities with 1 Gbps-class high-speed fiber-optic lines (in terms of maximum communication capacity, approximately 8,000 times the capacity of an ISDN line for household use) and creating an entertainment space that allows real-time communication by means of a range of digital contents over this fiber-optic network.

About Sega

Sega Enterprizes, Ltd. is a nearly $2.5 billion company recognized as the industry leader in interactive digital entertainment media, and is the only company that offers interactive entertainment experiences both inside and outside the home. Sega’s World Wide Web site is located at [][1].

About Schlumberger

Schlumberger is the leading provider of smart card-based solutions worldwide. Drawing on 20 years experience in pioneering smart card innovations, Schlumberger is continuing to evolve the new generation of smart cards, parking terminals, ticketing machines, payphones, banking terminals, servers, software, applications and systems integration that will pay a key role in the 21st century’s digital age. Additional information is available at .

Schlumberger Test & Transactions provides smart card-solutions; semiconductor equipment and services; and corporate IP and network solutions to customers throughout the world. It is a business unit of Schlumberger Limited, an $8.4 billion global technology services company. Additional information is available at [][2].