Tuesday, 28 June 2011

Deutsche Telekom Chooses G&D as Development Partner for SIM Card Solution in NFC Mobile Phones

Giesecke & Devrient (G&D) has been commissioned by Deutsche Telekom AG to develop a new SIM card solution for mobile phones with contactless Near Field Communication (NFC) technology. The functionally expanded SIM card will be used in Deutsche Telekom's networks in future. This is the first time that a contactless technology is being introduced across markets and implemented using a universal SIM card. The solution will go beyond the standardized NFC functions to meet Deutsche Telekom's additional global integration requirements.

New SIM cards with NFC functionality are the key element in future mobile phone payment functions. NFC is a new data transmission technology which allows contactless short-range transfers of data. NFC uses a wireless interface that has a range of several centimetres. G&D's next-generation SIM card operating system SkySIM CX is a secure platform for a variety of contactless applications.

In future, thanks to NFC technology, it will become easy, quick and secure to make payments using mobile phones. The technology is also suited to electronic travel tickets, customer-oriented voucher systems, solutions for logistics and access systems, as well as for signature-based security applications.

By using the latest card technologies (based on Global Platform and ETSI standards); G&D is ensuring that services can be integrated securely both into mobile network operators' system infrastructure and into the networks of participating payment systems. The SIM card's security functions make use of the latest cryptographic methods.

ANZ Will Not Introduce Contactless in Australia

In March this year, Australia's ANZ Bank had teamed up with Visa to pilot an iPhone case that turns the handset into a contactless payments device. However, ANZ has revealed that the pilot project has failed to live up to its expectations, and that the bank will not pursue contactless, phone-based Near Field Communication (NFC) payments in future.

The four week trial saw 50 participants from the Sydney and Melbourne offices of the two companies given a secure microSD memory card that hosts a pre-paid ANZ account that can be topped up over the internet. It would enable them to make payments of under A$100 at the point of sale by waving the phones against contactless Visa PayWave readers that were already installed at over 20,000 outlets across the country.

ANZ Bank told the MicroSD card system used in the trials didn't measure up to the bank's needs, reports ZDNet Australia. ANZ issued a statement saying, "We have found in our research that our participants strongly supported contactless payment as a convenient way to pay, but the MicroSD technology did not meet all of our requirements. At this stage, we will not be progressing with MicroSD as a contactless payment technology platform, but we will continue to look for ways to support contactless payments in the market".

FIME, World's First Lab to Achieve EMVCo Accreditation for Contactless Card Specification v2.0.1

FIME is the world's first laboratory and test tool provider to achieve EMVCo Contactless Specification version 2.0.1 Level 1 accreditation. EMVCo is the EMV standards body collectively owned by American Express, JCB, MasterCard and Visa. FIME is a pioneer in smart card and contactless testing services.

The EMVCo Contactless Specification version 2.0.1 Level 1 will let FIME use its qualified tool and laboratory expertise to certify the compliance of contactless card products to the requirements stipulated at level 1 in this EMVCo Specification.

FIME has also updated its EMV contactless offering to provide automated analogue testing which makes the technology easier to use. The up-gradation increases the reliability of the test results and enables the tool to be operated independently outside of FIME's ISO 17025 accredited laboratories. Contactless card manufacturers and NFC handset developers can purchase the tool to ensure EMV alignment during their research and development activities.

Noel Catherine, Head of R&D at FIME, comments: "There is a lot of media attention around contactless technology and its application within the market. FIME is working with standardisation bodies to ensure it is supporting the current and future needs of this important and advancing industry, as we identify that implementation of contactless payment solutions will continue to increase".

On achieving EMVCo approval, Noel stated: "We are delighted to be the first laboratory to receive EMVCo accreditation for this specification, which demonstrates our experience and expertise to test the latest features and functionality".

Customers Switch How They Pay

As economic pressures on households and businesses mount, people are thinking harder about the ways they pay for things they buy and retailers are investing more in preventing losses to card and cash fraud.

New figures from the British Retail Consortium (BRC), published yesterday (Monday), suggest cautious customers, increasingly reluctant to spend money they have not got, are turning from credit cards to cash and debit cards to better manage their finances.

Retailers are investing to cut the costs they can influence. Fraud losses fell by a huge 37 per cent compared with 2009 as they invested in technology such as the latest secure card readers, new levels of internet security and note checkers at tills.

But the costs retailers cannot control - the charges they have to pay to banks - remain illogical and unjustifiably high. In 2010 retailers taking part in the survey paid out a total of GBP 659 million-pounds in fees for payment processing and cash collection.

On average in 2010, each retailer paid 1.7 pence per cash transaction to have the money transported and banked. Despite the efficiency of electronic systems, the average charge for processing a credit card payment was 37.1 pence compared with a debit card average of 9.2 pence.

Cash is used in 55 per cent of transactions but makes up 11.5 per cent of retailers payment costs. Credit cards are used in only 10 per cent of transactions but account for a staggering 44.5 per cent of retailers' costs. Debit cards are used in 34 per cent of transactions and make up 37.5 per cent of retailers' costs.

The BRC's annual Cost of Payment Collection Survey includes results from nearly eight billion transactions in store and online. They add up to 60 per cent of total UK retail sales, the largest proportion of UK retailing this survey has covered since it began in 1999.

This year's results compare 2010 with 2009. They examine the methods of payment customers are using, costs imposed on retailers by banks for processing those payments and losses to card and cash fraud.

British Retail Consortium Director General Stephen Robertson said: " Ujustifiably-high payment charges are still being taken from retailers. The question is should this money be going into increasing banks' profits or to keeping shop prices down for customers? Reducing the charges banks impose so they genuinely reflect the actual costs involved in processing these transactions is the right answer."

Docomo is Japan's First Mobile Operator to Offer Overseas Phone2Phone Money Transfer

NTT Docomo, Inc. is about to become Japan's first mobile operator to offer a suitable mobile service for overseas payment. On 7th July, Docomo will introduce its new phone-to-phone money transfers named "docomo Money Transfer" in the Philippines.

Payments to the Philippines will be possible from i-mode-compatible DOCOMO phones to SMART Money, a re-loadable payment card operated by Smart Communications, Inc., a subsidiary of DOCOMO partner Philippine Long Distance Telephone Company (PLDT).

Users can confirm receipt promptly by accessing their SMART Money card via a Smart mobile phone. Money can also be send from an i-mode phone in Japan to a beneficiary's account at a participating bank or financial institution in Brazil, South Korea or China. Funds can be collected with a password and usual identification feature.

Google, PayPal See Tremendous Growth of Mobile Payments

Looking at the gigantic growth of the mobile payment industry, online payment giant PayPal announced that the firm is set to process $3 billion in payments from mobile devices this year rather than $2 billion mobile phone payments as predicted earlier.

Per day, PayPal will generate $10 million in mobile payments, from $6 million in as in March. The figure relates to transactions either made via the PayPal mobile application or via online retailers offering mobile e-commerce sites with PayPal functionality.

PayPal Mobile boss Laura Chambers blogged: "Mobile payments are growing at a rate we never could have imagined when we started processing them back in 2006 - in fact, this is the third time we've had to update our mobile 2011 projections".

Search engine giant Google who has launched the Google Wallet service (turns mobile phone into a touch-payment wallet) last month is also highly optimistic about the potentiality of the world mobile phone market. People are increasingly embracing smartphones with so-called NFC or Near Field Communication technology, says the leading mobile services providers.

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