Post on 19-Dec-2015
transcript
Muhammad Wasim Raad 1
2Smart Cards & ecommerce
Perceptions
Were Solution looking for a problem Expensive and inflexible
The breakthrough!
Platform for new services Cost-effective and very flexible
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3Smart Cards & ecommerce
Interface Trends
Platforms Attended POS Unattended POS Remote POS
Interfaces Contact Contactless Combination
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4Smart cards & ecommerce
Functionality
Value management – e.g. EMV, e-purse
Identity or reputation management – digital ID
…locally or remotely
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5Smart Cards & ecommerce
Key Attributes
Secure (or economically secure)
Easy to operate
Standards – terminals, drivers, specifications e.g. PKCS#11, PC/SC, EMV, CEPS
Portable
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6Smart Cards & ecommerce
Multi Channel Access
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7Smart cards in ecommerce
Market Forecasts
Source – Frost and Sullivan
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8Smart cards in ecommerce
Frost & Sullivan, - The Asian smart card market will soar to new heights, especially in mainland China where the technology is expected to penetrate a slew of applications.
IDC, Industry Trends 02/12/00 - China "already appears as the single most promising market for the coming years".
Frost & Sullivan - A Look at the Asian Pacific Smart Card Market, 1999 and Beyond - “by 2004, Asia will command at least a quarter of the revenue market shares worldwide, with China by itself
commanding nearly a third of market.”
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9Smart cards in ecommerce
The new card business
One-to-One Past – every smart card application had to be lovingly hand crafted in assembler for a specific chip and OS combination
Many-to-Many future – standard smart card apps can be added or deleted, moved from one card to another because the chips are running standard multi-app OS’s that any developer can write code for.
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10Smart cards in ecommerce
New smart card “Food Chain”
Chip manufacturer Card fabricator OS provider Application developers Card Issuer and designer and personaliser Application issuers Application managers or service providers Card managers
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11Smart cards in ecommerce
Applications
Market Segment 1997 millions
2003 millions
Yearly Growth
Phonecards 684 3,270 30%
GSM 69 760 49%
Banking 49 690 55%
Loyalty 22 320 56%
Healthcare 16 210 54%
Pay TV 12 150 52%
Ticketing 8 240 77%
Gaming 2 70 78%
Access Control 10 260 72%
Identity 2 50 71%
IT General 1 120 142%
Other 24 170 38%
Total 900 6,310 38%
Gemplus figures – (Proton Report, Sept 2000)
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13Smart cards in ecommerce
Amex Blue
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XII World Productivity Congress 2001
Heading for a Coinless Society with Octopus ?
Rob NobleCEO Creative Star Ltd7th November 2001
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Contents
Octopus Progress Todate
Future Projects Being Pursued
Hong Kong Becoming Coinless?
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What Is The Octopus?
A pre-paid stored value card utilizing contactless smart card technology
Operates within wallet/purse for up to 10cm
Less than 1/3 second transaction time
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Establishing the Octopus Card Base
6.8M inhabitants living in high density corridors
Low car ownership (15%)
Nearly 11 million public transport rides per day
Potential for one public transport card to reach all economically active people
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Formation of Creative Star
In 1994 a joint venture company, Creative Star, was formed by the 5 major public transport operators
Octopus card launched in September 1997
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Octopus Usage
Currently 97% of total Octopus transactions on public transport
Nearly 90% of railway passengers using Octopus
Some 80 service providers accepting Octopus
Now expanding further into private transport/non-transport
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Octopus Applications
Public Transport and related
3 railways, 6000 buses, ferries, Peak Tram, Tramways, public light bus
Car parks
Parking meters
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Octopus in Off-Street Car Parks
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Octopus Applications
Retail
Fast food
Cake shops
Convenience stores
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Octopus Applications
Unattended businesses
Vending machines
Payphones at MTR stations
Photocopiers
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Octopus Applications
Recreational facilities Public swimming pools Racecourses
Non-payment service Access Control for residential estates School Attendance
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Add Value Service Add value service available at:
Ticket Offices/Customer Service Centres
Add Value Machines
Retail outlets which accept Octopus for payments
Maxim’s fast food and cake shops
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Add Value Service (cont’d)
Automatic Add Value Service with banks
$250 added next use after $0 or negative value
Save queuing time for adding value
No worries about insufficient cash
Available at nine banks so far
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Future Projects Being Pursued
Extend use of Octopus as access control device
Extend use of Octopus as identity card
Extend use of Octopus cards in schools
Introduce Octopus across the border in Shenzhen
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Future Projects Being Pursued (cont’d)
Combined Octopus/hotel room key
Combined Octopus/credit card with AAVS
Octopus mobile phones and key fobs
Home personal readers for web micro-payments
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Video Clips of Road Runner
Railway
Bus
Retail
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Hong Kong Becoming Coinless?
Virtually everyone in Hong Kong has an Octopus
Already used extensively for public transport
Being readily adopted for private transport/ unattended environments
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Hong Kong Becoming Coinless? (cont’d)
Soon a critical mass of manned payment SPs and cardholders thinking of retail payments
CS pursuing many new Octopus projects
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Hong Kong Becoming Coinless? (cont’d)
Big savings for operators if coinless Virtuous circle, more SPs and fewer
coins Customers prefer Octopus to heavy,
dirty, slower-transaction coins Large productivity gains if electronic
transactions replace physical coins
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Hong Kong Becoming Coinless? (cont’d)
Coins been around for some 2500 years
Still some HK$6b worth of coins circulating
Real chance world-leading Octopus can help Hong Kong to become first coinless city
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Hong Kong Smart Cards Octopus
8 million cards, 9000 readers 7 million transactions/day
Visacash ComPass Visa (VME) Mondex GSM SIM ePark
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Octopus Transaction time < 300 milliseconds Transaction fees: HK$0.02 + 0.75%
$10 transaction costs $0.095 (0.95%) Applications
Transit Telephones Road tolls Point-of-sale Access control
Anonymous / personalized How does money get to service providers?
Net settlement system operated by Creative Star
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Entities of the E-payment System
Purse Charger
(Bank or third party)
Identification Card Issuer
(Corporate or Service Provider)
Card Holder
(User)
Access Control/E-payment terminal•.Corporate secure Log in
•.Retail POS
•collecting Highway tax
Corporate Information Center
(Database)
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Octopus System
SOURCE: WORLD BANK
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Smart Card Sales Leaders (2000)
VENDOR # OF CARDS SHARE
Gemplus 185,000,000 29%
Schlumberger 152,000,000 24%
Oberthur Smart Cards 85,000,000 14%
Giesecke & Devrient 76,000,000 12%
Orga Card Systems 53,000,000 8%
TOTAL 628,000,000SOURCE: CARDWEB.COM
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Mondex Security Active and dormant security software
Security methods constantly changing ITSEC E6 level (military)
VTP (Value Transfer Protocol) Globally unique card numbers Globally unique transaction numbers Challenge-response user identification Digital signatures
MULTOS operating system firewalls on the chip
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Payment Cards 8-128 Kb Data rate 115 Kb/sec ISO 7816 compliant Visa-certified PIN management and verification 3DES algorithm for authentication, secure
messaging Epurse with payment command set (debit,
credit, balance, floor limit management)SOURCE: GEMPLUS
EMV =EUROPAY INT’L,MASTERCARD,VISA
MPCOS =MULTI PAYMENT CHIPOPERATING SYSTEM
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Wireless Card Authorization
SOURCE: SAMSUNG
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Mondex
Smart-card-based, stored-value card (SVC) Subsidiary of MasterCard NatWest (National Westminister Bank, UK) et al. Secret chip-to-chip transfer protocol Value is not in strings alone; must be on Mondex
card Loaded through ATM
ATM does not know transfer protocol; connects with secure device at bank
Spending at merchants having a Mondex value transfer terminal
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Mondex Components (Hitachi)
Cashless ATM Electronic Cash RegisterPCMCIA Reader/Writer
ElectronicWallet
Key FobBalanceReader
SOURCE: HITACHI
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The National Bank of Kuwait (NBK) has launched the world’s first Visa internet-only payment card program in Kuwait city
Features of NBK card include: preset spending limits, automatic insurance from NBK for all purchases using the card
.
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Smart Cards Will Play an Important Role In Ecommerce:
Provide a secure storage for digital certificates and personal identification
Convenience-Multifunction Card like the JAVA Card and very portable
Log recent activities Can Provide automatic Logins to designated
websites without having to remember passwords and login procedures
Suitable for payment over the internet
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Conclusion
Ecommerce will take off in Asia Smart Card will play an important
role in ecommerce Security is an important issue and
the smart card will add value to it Ecommerce will go wireless Asia has the highest growth rate of
smart card usage in the world