MasterCard Records Sharp Increase in Smart Card Programs Worldwide

Saturday 22 November 2003 15:01 CET | News

Smart card adoption continues to gather force in most regions of the world. Smart card activity has been particularly strong in the Asia/Pacific region, where the number of EMV smart cards has continued to double each year - to 14.5 million cards today.

The same basic trend holds true in Latin America/Caribbean, South Asia and Middle East Africa and especially Europe, which continues to lead the world with more than 200 chip migration programs now underway. This widespread technology shift has helped to guide recent decisions by MasterCards regional boards in Asia/Pacific, Europe, Latin America/Caribbean, and South Asia and Middle East Africa, who have all recently enacted intra-regional liability shift policies calling for the full-scale adoption of smart cards and chip terminals in the 2005 and 2006 time period. Migration incentives are already in place in most of these regions as well. One of MasterCards key European customers, Credit Mutuel Centre-Est Europe, will be the first bank in the world to issue M/Chip 4 on MULTOS in a massive, country-wide roll out beginning in early 2004. M/Chip 4 on MULTOS is the first EMV payment application to receive EAL4+ certification, the highest Common Criteria certification accepted worldwide. To help ensure a steady stream of MasterCard chip products in the marketplace, MasterCard is working to equip the vendor community with the tools they need to support MasterCard smart card programs around the world. Card vendors including Austria Card, Gemplus, Giesecke & Devrient and Setec have committed to supporting M/Chip 4. MasterCard has also recently signed an agreement with Ingenico, making Ingenico a key supporter of MasterCards M/Chip deployment program. Global Support Programs Last year, MasterCard announced OneSMART MasterCard, a comprehensive, global support program covering every aspect necessary to successfully launch smart cards. With OneSMART MasterCard, all of MasterCards global smart card solutions, technical expertise, and marketing support were consolidated under a single banner. Expanding on this, MasterCard is today unveiling a subset of OneSMART(TM) MasterCard(R), called the M/Chip Deployment Program, which provides a complete solution for MasterCards customers who are migrating their payment cards from the magnetic stripe platform to chip. The M/Chip Deployment Program focuses specifically on addressing all aspects of chip migration and consists of three components: -- The M/Chip application and its enabling infrastructure -- M/Chip Implementation Support Services provided by MasterCard -- Industry products and services based on the M/Chip specification OneSMART Choice for Migration To further enhance their smart card business case, MasterCards customers can leverage MasterCard M/Chip 4 as the technical basis to deliver a range of additional applications, including: -- M/Chip Pre-Authorized - Allows the cardholder to place an amount of cash in a pre-authorized account, which is regulated by the chips open-to-buy counter. The cardholder continues to use the card in an off-line mode until the amount requested exceeds the cards open-to-buy counter, at which point funds must be replenished. This new application extends the Maestro value proposition by enabling debit cards to be issued to new customer segments and accepted by new merchant categories. -- Chip Authentication Program -M/Chip 4 cards can be used in conjunction with MasterCard SecureCode to generate the authentication data necessary to guarantee e-commerce transactions. This program, called the Chip Authentication Program, is a smart card-based authentication solution that MasterCard is making available to its issuers as part of its global MasterCard SecureCode solution. It can also be used for Internet banking and other applications requiring positive cardholder authorization. Three significant Chip Authentication Program implementations were announced this week by Barclaycard in the United Kingdom, Bundesverband der Deutschen Volksbanken und Raiffeisenbanken in Germany and Redecard in Brazil.

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Categories: Payments & Commerce | Cards
Countries: World
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Payments & Commerce