This monthly newsletter provided by CSI presents the latest news and articles on the smart card industry. "CSI-Digest" aims to keep interested parties updated on what is happening, and informed of the major developments in this industry. This newsletter is provided as a free service and is available by email.

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Welcome to the March issue of CSI-Digest. The primary objective of this newsletter is to keep you informed of major global smart card industry developments on a monthly basis.

We will also let you know, where in the world you can meet with us, and will update you on any news relating to CSI.

CSI is delighted to announce that CardBASE2000^® has been chosen for the world's largest multi-bank smart card scheme in Nigeria. A consortium of 19 banks, Smart Card Nigeria plc., has chosen the Issuing, Acquiring and Clearing & Settlement modules of CardBASE2000^® for this scheme. It will initially consist of 22,000 cardholders and 200 merchants, but will quickly be extended to cover millions of cardholders and thousands of merchants.

This month, the world's premier Information and Communications Technology exhibition took place in Hanover, Germany. CeBIT '98 was a great success with over 670,000 visitors to 25 halls in the show. In total, there were a record number of exhibitors and visitors this year, and we were delighted to meet those of you who could make it to our stand.

Overall in the Card Technology industry this year at CeBIT, there was a much greater emphasis on interoperability and the importance of implementing multi-application solutions within card schemes. CSI has long believed that these elements are fundamental to the future of card schemes, and we are very pleased to see a much broader industry emphasis on the same.

Thank you for subscribing to CSI-Digest, and we hope you find it of value.

Regards
Sarah Flynn, Editor

Killen and Associates:
USD26.5 Billion Smart Card Recharge Market in 2005

In a recent report, Killen and Associates have predicted that the smart card recharge market will reach USD26.5 billion by the year 2005. These transaction revenues will be generated from a projected installed base of 8 billion smart cards. According to the company, "Banks face a tremendous threat in stored-value card payments if they choose not to participate. Put bluntly, the smart card becomes the bank."

The Strategis Group:
New Electronic Commerce Study

In a new study, the Strategis Group examines Internet payment systems including primary Internet commerce initiatives, digital cash, smart cards, electronic checking and credit card transaction systems. It also looks at future electronic-commerce opportunities through increased Internet penetration in US households.

News.com:
Gates Says Smart Cards Will Play a Huge Role in E-commerce

In a recent speech to a banking trade association, Microsoft Chairman Bill Gates talked about how handheld computing devices will become as popular as PCs. The concept of the digital wallet, which he has long promoted, will be driven by broader acceptance of encrypted smart cards. Microsoft is building smart card capabilities into upcoming versions of its software.

Techweb:
Electronic Cash Expected to Replace Cash in Europe

According to a senior executive at Siemens-Nixdorf, cash will be replaced by electronic cash cards within the next three years in Europe. The primary reason for this will be the introduction of the Euro being launched on January 1st 1999.

Techweb:
Will Java become Smart Card Standard?

According to industry specialists, "Multiple, cross-industry applications on one card is the killer app" necessary to ensure smart card introduction into the US. Visa predicts that they will issue 300 million smart cards by the year 2002 and some say the Java standard being promoted by Visa will also help smart cards gain acceptance in the US.

Schlumberger:
Schlumberger joins Visa Smart program

Schlumberger has signed a letter of intent to join the Visa Smart program. As part of the program, Schlumberger will provide smart cards based on Java Card technology, terminals and application support to Visa financial institutions.

Visa:
VisaCash and MINIpay form Alliance

Visa and SSB, the Italian national card processor, have agreed to develop interoperability between MINIpay, Italy's national electronic purse and Visa Cash. As a result of the agreement, reloadable MINIpay cards and disposable Visa Cards will now carry the other scheme's logo and will both be accepted at the same terminals. This alliance will further assist in the promotion of interoperability across different card schemes.

ICVERIFY:
CyberCash and ICVERIFY to Merge

CyberCash and ICVERIFY have reached an agreement in principle to merge. It is proposed that CyberCash's Internet offerings will be tightly integrated with ICVERIFY's physical world products, providing customers with a wide variety of features and an easy migration path between the physical and virtual worlds.

SCM Microsystems:
Gemplus and SCM Microsystems sign Manufacturing Agreement

SCM Microsystems and Gemplus have announced the signing of a development and manufacturing agreement for smart card readers. As a result of the agreement, forecasts for orders for smart card readers from Gemplus will amount to approximately US$20 million over the next three years.

Intellect:
Intellect Continues Expansion into Japan

Intellect has announced its further expansion into Japan by signing an agreement to develop and market smart card acceptance devices for vending machines. The devices will support six different electronic cash schemes simultaneously and will be installed into both new and existing vending machines in Japan.

Keycorp:
Keycorp Supplies Hardware for World's Largest Mondex Scheme

Keycorp has secured contracts worth USD4 million to supply smart card terminals to the Hongkong and Shanghai Banking Corporation. The terminals are being used in the Hong Kong Mondex electronic cash scheme, one of the largest Mondex implementations anywhere in the world.

News.com:
Visa Encourages Banks to move to Smart Cards

Visa has predicted that by the year 2002, one third of all their cards will be chip based and they have recruited many technology partners to assist in helping banks migrate from magnetic stripe technology.

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