Card Services International (CSI) : Newsletter : September 1997

ISSUE 5 - SEPTEMBER 1997

Welcome to the September 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.

This month, CSI are delighted to announce a multi-million dollar investment package aimed at supporting the on-going development and world-wide marketing of its sophisticated multi-function smart card management system, CardBASE2000. More Info

Regards
Sarah Flynn, Editor

Global Smart Card Advisory Service:
Smart Card Use to Reach 2.3 Billion by Year 2000

The Global Smart Card Advisory Service estimates that by the end of this year, there will be nearly 1.1 billion smart cards and 51 million smart card acceptance devices worldwide. They estimate that by the year 2000, this number will have more than doubled to 2.3 billion cards. The GSCAS also predict that smart card proliferation will be driven by falling costs, increased functionality, and increased revenue generation opportunities, which will bring more value for smart card users.

Killen & Associates:
Smart Card Manufacturing Market Worth $16 Billion by 2005

Killen & Associates predicts a 59% growth rate for smart card manufacturing to the year 2000. This should represent a market opportunity for card manufacturers of $7.6 billion. This growth rate is predicted to taper off to a more steady 16% in the years 2000 to 2005, at which stage the market should be valued at approx. $16 billion.

Logica:
Over 5 million Europeans to Use E-commerce By Year 2000

According IT consultants Logica, mobile commerce will help electronic commerce become a reality and more than 5 million Europeans will use e-commerce by the year 2000. They use an example of commuters requesting tickets for public transport using their mobile phones, and having them delivered electronically into the phones without the need to queue. These electronic tickets can then be read by new smart card ticket barriers being installed in many cities today.

Meridien Research:
Impact of Smart Cards on the US Credit Card Industry

A new report from Meridien Research shows that the US credit card industry could increase its profits by almost 30% by virtually eliminating credit and debit card fraud. The report examines the worldwide market for smart cards in financial services and reviews how financial institutions have used smart cards for insurance, credit and debit transactions, home banking, telepayments and stored value applications.

TechWeb:
Smart Card Portability As the Killer App in the NC world

According to an article by Kimberly Caisse of TechWeb, smart cards may hold the key to pushing network computers beyond the physical confines of the corporate workplace. NC manufacturers have a vision of true portability with the smart card being the only piece of hardware moving with the user. In realizing this vision, the challenge for the industry will be to make smart cards work with every reader they come in contact with, and vice versa.

American Express:
US Marines & Amex test Multi-Application Smart Card

This month, American Express Government Services, and US Marine Corps announced the launch of the US Marine Corps Smart Technologies Pilot. This pilot will help improve travel processes, reduce administrative errors and costs, improve security accesses, save time, and improve convenience. According to Colonel Anderson, commanding officer of the Marine Corps Air Station New River, "Through this effort, the Marine Corps will be testing technologies that will save money and improve our readiness to go to war whenever the need may arise."

Mondex:
Mobile Phones to become Cashpoint Machines

Cellnet UK and Mondex international have teamed up to jointly develop solutions to allow electronic cash to be transferred via digital mobile phones. Cellnet intend that their customers will be able to use their mobile phones to; withdraw electronic cash from their bank account onto their Mondex card, deposit electronic cash onto their Mondex card, transfer cash to other mobile phones by a simple phone call.

RSA Data Security:
Major Trial of RSA-Encrypted Smart Cards in UK and Japan

Visa International plans to trial in the UK and Japan, RSA public-key encrypted smart cards. The cards will be used by merchants to access terminals, which accept VisaCash stored valued cards. The cards are designed to securely authenticate a merchant's confidential financial information, and configure, validate and protect reader terminals that accept VisaCash cards. The trial is expected to involve more than 15,000 cards in the UK and several hundred in Japan.

Mondex:
Mondex Australia announces plans for 1998 national roll-out

In the second half of 1998, Mondex Australia (comprising Australia's four largest banks, ANZ, Commonwealth Bank, National Australia Bank and Westpac Banking Corporation) will introduce Mondex electronic cash throughout Australia. "It is anticipated that over the next five years, approximately 8 million Mondex cards will be issued" according to Don Gregg, Chief Executive of Mondex Australia.

Gemplus:
NTT Data Corporation to Invest in Gemplus

The Gemplus Group have announced that NTT Data have acquired a stake in Gemplus. Gemplus and NTT will work together to develop new applications, products and services for the Internet and electronic commerce markets. According to Marc Lassus, Chairman, CEO and founder of Gemplus, "NTT Data Corporation, one of the world's largest system integrators, is a strategic fit with the Gemplus Group".

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