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[garth] 08/5/2007 12:23

MULTOS and Paypass.

From the MULTOS website:

Instead of implementing a closed transit acceptance infrastructure, why not leverage the global acceptance network of the payment schemes and the international standards of EMV and Paypass? By issuing MasterCard PayPass cards, using a contactless EMV application configured for Pre-Authorised Debit payments on dual interface MULTOS chips, issuers can deploy a globally accepted payment card, that can also be used in the transit network. Learn how Kaohsiung City Government of Taiwan was the first transit authority in the world to realise this vision thanks to MULTOS. And now you can even put Paypass MULTOS in your watch!



Case Study details here:

[garth] 08/5/2007 12:18

There are 20billion payments of less than a tenner made in the UK every year.
The new cards will look like existing credit and debit cards but have the Paypass logo on the front.
It's hoped that all of the UK's 150million credit and debit cards will include the new technology within three years.


cash--&method=full&objectid=19061628&siteid=66633-name_page.html

[garth] 08/5/2007 12:03

Longshanks,

It could be this :0) Recall that SMRT partner RBS on smartcards and that they are working with them 'on this sort of thing'..... National upgrade in 2008 the article states.... Will RBS/Mastercard take the opportunity to follow Spain and issue new open source EMV cards that allow adding functionality post-issuance? Multefile is already licenced to Hitachi for its MULTOS cards and Mastercard are original MULTOS sponsors.... All ifs and buts at this stage - but interesting ifs and buts....



MasterCard hoping to launch Oyster-style payment card in London this year
08-May-07

MasterCard is aiming to launch the first contactless payment system in London later this year. The payments giant plans to beat rivals Visa and Apex by launching credit and debit cards with Royal Bank of Scotland using its PayPass system in the autumn.

The new card will allow customers to pay for their goods without the need to swipe a card or sign a receipt, in a way similar to the Oyster card system operated by Transport for London (TfL).

The London MasterCard launch covers the London corridor – north and south of the Thames, running from Waterloo to Canary Wharf. The cards, which will retain the existing chip and pin and magnetic stripe functions, will be issued through RBS, NatWest, MINT and Ulster Bank.

TfL has already signed a deal with Barclaycard and Visa to launch a range of Oyster-branded credit and debit cards, which are also expected in the autumn.

The cards are suited to transactions at fast food restaurants, coffee shops, newsagents, off-licences, bars, pubs, parking facilities and vending machines.

MasterCard UK country manager John Bushby says that consumers will love the convenience, simplicity and security of contactless cards when paying for everyday things.

It has already launched Paypass in the US and it also launched the first scheme in Europe with fast food chain McDonald's last month (MW April 12).

UK banking industry body APACS today confirms cross-industry plans to roll out the technology from September. It says there will then be a national upgrade in 2008.



See also:

Cashless Society Moving A Step Closer

[longshanks] 08/5/2007 11:38

Garth - I heard a piece on the radio this morning about a trial in London for using smart cards to process small payments (

[daru57] 06/5/2007 22:34

Garth

Many thanks for your very comprehensive reply. There is obviously a strong element of wait and see with the many developments in hand at present but on the balance of probability side, SMRT appear to be well placed and I for one am in for the long term and expect to invest further.

Daru

[garth] 06/5/2007 20:05

Daru,

SMRT's operating company, Ecebs (although they seem to be increasingly calling themselves Advanced Smartcard Technology) partner RBS on Smartcards. When I asked previously about the Paypass trial I was told that they were working worth RBS on 'that sort of thing' but it didn't sound as though they were involved with Paypass itself.

What they certainly work with RBS on is ITSO. SMRT provide the ISAMs at about £50 a time (for bulk orders - a little more for smaller orders), RBS manage the transactions and take an annual maintenance fee per ISAM and an incremental fee for each ISAM 'frame download'. The ISAMs are likely to need replacing every 3-5 years. In that respect there is something of a repeating revenue stream for SMRT - but no usage-linked royalty payment.

To put it in context, to fit an ISAM in every bus in the UK to meet the eventual needs of the Concessionary Bus Travel Bill will cost around £3M. What is interesting (and new info) is that some of the bus companies are starting to fit 2 readers - one at the front and one at the back. Every reader needs an ISAM.

The DfT are stipulating ITSO smartcards on all new rail network tenders. Every gate/reader will need an ISAM. Every ticket sale point will need an ISAM. Every back office needs an ISAM.

Because Oyster is being made ITSO compatible, every place that Oyster gets read that a traveller might be legitimately presenting an ITSO card (ie they have travelled into London or are travelling out of London) there needs to be an ISAM.

But Oyster services are now being extended.....

Barclaycard have added Oyster to their cards in order to increase use of 'wave n go' or 'tap n go' electronic purse facilities. The cards are dual chip - so the services are entirely separate. The idea is to get Oyster users to start to use their Oyster card for small purchases. What I don't know is how the revenue distribution is being sorted, whether readers will be just reading the Barclaycard area of the card, or whether the idea is to get terminals in lost of shop where Oyster cards can be topped up - and items purchased at the same time. If Oyster readers are being fitted, then will all of these also be made ITSO compliant? Certainly Local Governments are required to phase in smartcard services. If concessionary travel for pensioners is via ITSO, then will the other Government services be bundled onto the same card too? I expect so. There are trials of concessionary bus travel for young people starting in Kent in June: Gilingham and Canterbury. A permit will be purchased for £50 that will allow free travel at any time. This is part way towards a young person's card.

The French Calypso card is also being made ITSO compliant.......

Most EMV bank cards are non open source and lack the opportunity for adding services later - therefore banks have to wait for reissue to add services. Spanish banks have just gone Java (which along with MULTOS) is open source. the cards are more expensive but allow adding any services you want after issue.

Hitachi have gone for Multefile to add ease for adding services to biometric passports. But with Mastercard a founder member of MULTOS, how long until we see Mastercard issuing MULTOS/Multefile EMV cards with 'wave and go' payments?

I don't know that I've answered your questions. Come back to me if need be - must dash though for the moment. Sorry for rambling.

G.

[daru57] 06/5/2007 15:40

Garth

I would be grateful if you could tell me if I am correct in assuming that SMRTs contribution to Oyster/Barclaycard being made ITSO compliant would be the ITSO SAM
that ecebs provide. If so what are the revenue implications for SMRT ?
With Hitachi and numerous transport etc schemes under trial they appear considerable but this does seem to be a world with a number of players and I would like to think that I have stumbled on one of the best ! Your information stream is invaluable in keeping us up to date with what really appear to be exciting develoments.

[garth] 06/5/2007 14:45

MT ;0)

This on Oyster/Barclaycard. Oyster is being made ITSO compliant. Mastercard has its on contactless payment system, Paypass on trial with RBS.

More on Paypass here:


Transport for London (TfL) and TranSys, the consortium which delivers the Oyster smartcard on behalf of TfL, has announced the successful completion of the technical trial of its new combined Oyster and Barclaycard.

In December 2006 TranSys and Barclaycard revealed plans to combine Oyster and Barclaycard on one piece of plastic. The card also includes Visa contactless technology.

The Barclaycard partnership is TranSys' first agreement to licence Oyster to selected third parties, in order to improve the access and convenience that Oyster offers to travellers in London. The trial is aiming towards passengers being able to make quick and contactless payments and travel around the capital using one card. Oyster has been a huge success with more than 10 million cards issued, making passenger journeys cheaper, easier and quicker.

Since December a technical trial of 60 cards held by Barclaycard employees based in Northampton, has been taking place to test the functionality and reliability of the technology. A contactless terminal was installed in the coffee shop at Barclaycard's head office in Northampton and the cards have been used on the Transport for London network more than 2,500 times to make journeys or add Oyster products to the card. This trial was successful with no issues with the technology being identified.

Cards are now being issued to a larger number of employees, including those based at Barclays head office in Canary Wharf, to enable the technology to be tested under greater volumes. Two contactless terminals have been installed in coffee shops at Barclays in Canary Wharf.

Shashi Verma, Director of Oyster card at Transport for London said: "This is yet another example of Oyster at the forefront of the technology industry. The new card will give passengers the ability to pay for low cost goods and take advantage of Oyster fares on the same card reducing the need to carry cash. It makes the already hugely successful Oyster card even more convenient."

John Stout, CEO of TranSys said: 'Like the Oyster card itself, the key to the success of this initiative is its simplicity. Barclaycard came to us with an idea which could be dovetailed seamlessly with Oyster's existing functionality to deliver added value for Barclaycard customers, without disrupting a service which has become part of London life for millions of people.'

Stewart Holmes, Contactless Project Manager at Barclaycard said: "The technical trial has been a great success with many employees commenting on how easy and simple the cards are to use. The demand for cards has been very high and we are now extending the trial."

Over the next few months an increasing number of cards will be issued to employees, including those of TranSys, TfL and Visa, with the aim of having approximately 2000 trial cards issued before the planned customer launch later in the year.

[mistertibbs] 04/5/2007 17:11

You keep up the good work Garth as the more info you give, the better this gets. Coincidence?

[garth] 04/5/2007 10:23

And we're up again a touch - twice in 2 days. Chart is moving in the right direction with higher highs and higher lows?

G.

[spud] 04/5/2007 08:19

Taken another 100k. Only 200k short of my fill.

spud

[longshanks] 02/5/2007 10:21

...if they maintain 30% ROE that should be no problem.

[garth] 02/5/2007 09:07

Pleasure Longshanks. I'm hoping for a 7-bagger over the next 3 years....

G.

[longshanks] 02/5/2007 08:48

Interesting company. Thanks for all the useful blurb garth.

[garth] 01/5/2007 15:32

With SMRTs involvement in ITSO I would be surprised if they didn't end up involved with this trial in some way:

The use of Near Field Communication technology in mobile phones for public transport ticketing
Initial research into Near Field Communications (NFC) concluded an NFC enabled device could act as a contactless smartcard and 'carry' the public transport ticket in the same way as an ITSO card does today and an NFC device could also act as a terminal either to retail tickets direct to the customer via the GSM/ SMS networks or to validate other smartcard products.

This research will trial NFC enabled phones acting as a carrier of public transport tickets, compliant to the ITSO environment and also as a retail and validator device. The research may involve the development of additional functionality within ITSO which would be demonstrated during the trial. To report on the applicability and commercial benefits of NFC to public transport.

Expressions of interest to be received by 9th October 2006

[garth] 01/5/2007 07:38

Parliamentary debate last week on the Concessionary Bus Travel Bill.


Links through to main parliamentary document)


"25 Apr 2007 : Column 326WH

My hon. Friend the Member for Sheffield, Attercliffe asked specifically whether local scheme additions will remain available. The answer is yes, absolutely, and the Bill makes that provision.

On fraud prevention and the delivery of passes, smart cards contain a chip that can record data, which will be immensely helpful. They have many benefits, including the potential to reduce fraud, precise targeting of concessions, and allowing ease of travel, which is very much in line with our integrated approach and our encouragement to get people on to buses. We are actively exploring the possibility of the passes being smart cards. We propose that they should be used as smart cards in areas that have the necessary readers, but will be flashed up in areas where there are no readers. Again, in our discussions with bus operators and local authorities, the need to be pragmatic about what is possible by April 2008, with an eye to beyond, is paramount."


DYOR.

G.

[garth] 30/4/2007 20:23

ITI Techmedia anti-counterfeiting seminar. SMRT are working for ITITech on this:

[hebgb] 30/4/2007 07:45

Thanks garth.

[rambutan2] 29/4/2007 22:16

just read the sumday times piece, but see that it's already been spotted - it's a no brainer that most payment systems will migrate to the mobi, imho.

[garth] 29/4/2007 16:26

While we are on the topic:

Barclays targets taxis with wave-and-pay tech

'I had that NFC contactless payments infrastructure in the back of my cab once'

By Jo Best

Published: Friday 27 April 2007

After introducing Oyster card-style contactless payments functionality into its plastic, Barclays has been working on a contactless system for taxis.

Barclays and Computer Cab have teamed up to develop a near field communication payments system for taxis, where passengers can pay for a fare by pressing their NFC-equipped credit or debit card against a reader, in the same way many Londoners pay for fares with an Oyster card.

The pair have developed a showcase cab as part of Barclays' ongoing trial to add Visa 'wave and pay' and Oyster capability onto credit cards and debit cards. Barclays hopes to introduce NFC cards later this year.

NFC technology is already in use in mobile phones and cards in Japan and the US but has been slow in coming to Europe. However, mobile companies are still trying to drum up momentum for NFC payments on mobile phones.

A number of operators including O2, Orange and Vodafone this week signed up to support trade body the GSMA's Buy Pay initiative, which aims to encourage the deployment of NFC payments via mobile phones at retail outlets.

A recent report from market watchers ABI Research predicts NFC-enabled mobiles will reach 450 million units in 2011 - nearly 30 per cent of handsets sold that year.

[garth] 29/4/2007 16:13

Hebgb,

See my post 633 above. Multefile can be used in NFC mobiles. Is it yet? I don't know. But from the piece you linked to:

"One of the principal backers of the new technology is MasterCard, which is behind a mobile phone payment system called PayPass on test in the US and France. " (It is also being tested by RBS (SMRT partner them on smartcards) at their Head Office)

As we know, Mastercard were part of the original MULTOS consortium and I'm still hopeful that we might one day get a Multefile on Mastercard announcement. As Multefile should by now be shipping on all Hitachi MULTOS smartcards and as Hitachi were also a MULTOS co-founder it might not be too far-fetched......

If you want a British play on NFC then check out Innovision Research & Technology (INN). It just so happened that I started a new INN thread yesterday...... ;0)

They are a loss-maker so BEWARE. I only have a small stake. They have a low-cost ITSO-certified RFID chip called Jewel. Cubic announced their first Jewel/ITSO reader in the autumn. Cubic also supply the tyechnology behind Oyster.....

INN's Chief Technology Officer is ex-Nokia Technical Director.....

Oh, it all goes round and round....

ITSO are looking to using NFC for ITSO payment.....They also imply that it has potential for road-charging.

The thread is:


Not much on it yet though. I was going to add a bit more before publicising its presence.....

G.

[hebgb] 29/4/2007 15:28

Would any of you well read techies (garth amonst others) mind telling me if this has any relevence here?




The technology that enables payment by mobile phone is called NFC (near field communications). An NFC chip in the handset enables short-range wireless radio communication between the phone and the reader (in a similar way to Oyster travel cards in London), which triggers the payment.

Thanks.

[garth] 27/4/2007 12:27

NFC on MULTOS available Q1 2007:

MULTOS Consortium extends product range

MULTOS consortium has announced the release of a range of new products and services making multi-application Smart Card adoption even easier.

New MULTOS chip platforms - the MULTOS implementers, Keycorp, DNP/Hitachi and Samsung SDS already provide a fully interoperable range of MULTOS modules on a total of 18 different contact or dual interface Infineon, Renesas or Samsung micro-processor chips. Since the decision by the consortium to introduce new and more flexible licensing terms for the MULTOS operating system earlier this year, and the development of a reference implementation of MULTOS to speed the implementation process, two new dual interface MULTOS products from two new MULTOS implementers will be coming to market on the NXP family of silicon in Q1 2007. With the addition of the NXP platforms, end users will now be able to benefit from the wide range of existing MULTOS applications and solutions, combined with Near Field Communications or Mifare functionality provided by the NXP platforms.