Dear members and friends of the Alliance,

Report on Cartes–IT Security
The big event this month was the Cartes–IT Security conference and exposition in Paris. I had the opportunity to attend this European equivalent of the CardTech/SecurTech conference at the new, larger Nord Villipointe facility at the Parc de Expositions outside of Paris. The exhibit floor was the largest I have seen for a card industry show and attendance was up this year from last, to an estimated 13,000 people. Many Alliance member companies exhibited at Cartes, but there were many more European and Asian companies there that we don't see much of in the US. EMV is a very big subject in Europe and South America as the banking industry is responding to the imposed deadlines for shifting liability for fraudulent card transactions to them if they don't upgrade to chip. There was concentration of traffic in the financial infrastructure and services booths, such as MasterCard, VISA, Hypercom, Ingenico, and First Data Resources. Also the card manufacturers including Gemplus, SchlumbergerSema, Oberthur; chip suppliers Atmel, Infineon, and Philips; and card production and printing provider Datacard Group were packed with people during the three day event. I was impressed by the amount of contactless technology that was demonstrated–from new dual interface chips, to contactless readers and card production equipment. It is evident that contactless smart cards are gaining increasing acceptance worldwide. I used my time on the show floor to speak with many foreign-based companies about their interest in opening US offices and operations promoting the Alliance as an excellent means to gain market recognition and make valuable contacts.

Another reason for my trip to Cartes was to attend the official charter signing and first organizational planning meeting of ISCAN (International Smart Card Associations Network). The founding members of this new international network of smart card organizations are ACT Canada, AFPC (France), EESTEL (France), Eurosmart (European Union), SCAFI (India), SCSSA (Southern Africa), and the Smart Card Alliance. Acting as sponsors for the group and providing venues for group meetings are Cartes–IT Security and CardTech/SecurTech. Lutz Martini, president of Eurosmart, was elected to chair ISCAN and I will serve as Co-chair for the group for the next 12-month period. The group selected "Entitlement ID's Around the Globe" as the global smart card issue to be addressed during the next 6 month period. Members will submit summaries of the major ID projects within each geographic region and report on the types of government ID programs in place, their functions, and issues of importance surrounding their future use. Findings will be released at the next meeting of ISCAN in April at CardTech in Orlando.

Government Activities
A group of Alliance board members have volunteered to participate on a Government Liaison Committee. A first order of business for the committee is the development of a program with the Alliance's Educational Institute to share smart card knowledge with government support agencies, committees, and working groups such as the GSA, NIST, Smart Card Project Manager's Group, and the Interagency Advisory Board (IAB). In addition to EI training, I proposed that the Alliance help organize a Government Smart Card Interoperability Requirements Summit. After consulting with Alliance members and leading government officials prior to last week's meeting, we agreed that what was needed was a forum to discuss the challenges ahead for a government enterprise-wide interoperable smart card system. Speaking before a large gathering of government executives and industry representatives in Washington, I presented the Alliance's proposed government outreach programs. The interoperability meeting was received very positively and I spoke with many government agency leaders and vendors who offered to help organize the event. Coincidentally, at the same meeting, Lee Holcombe, CIO of the new Department of Homeland Security and Jim Dray GSC Principal Scientist, NIST, announced a restructuring of the IAB into and the formation of the Interagency Interoperability Task Force, chaired by Teresa Schwarzhoff from NIST. Over the next few weeks, I will work to align these two efforts in a coordinated fashion.

The Alliance outreach effort continues

  • A group representing the Alliance gave a panel presentation "Smart Cards and Secure Personal Identification Systems" at ITEC–Philadelphia on November 14th. Dave Luden of Gemplus was the group's moderator and presented on smart cards and security. He was followed by Brian Hartley of NBS discussing smart card issuance requirements, and Tim Schroeder of Identicard speaking on smart cards and physical access control.
  • On November 18-20, I will be at CardTech ID in Washington, DC. I will moderate a panel on contactless technologies on Monday, the 18th with Bob Donelson, BLM DOI and chair of the government Physical Access Interoperability Working Group (PAIWG); Capt. Carl Gruenler, US Navy; and Joerg Borchert, Infineon.
  • Looking ahead, another panel of industry experts representing the Alliance will host a panel discussion "Smart Cards in Privacy-Sensitive Secure Identification Systems" at the ISC–West Conference and Exposition on March 26, 2003 in Las Vegas, NV.

February 12-13, Mid-Winter Meeting
The Alliance February meeting committee is putting together plans and program ideas for our upcoming Mid-Winter Meeting at the Salt Lake City Hilton Center Hotel, February 12-13. Details on the program theme and speakers will be available at the Alliance web site in the coming days. Don't forget to look for the latest industry news at the Alliance home page. I will keep you informed and up to date until next month's Smart Card Talk Newsletter.

Randy Vanderhoof
Executive Director
Smart Card Alliance


Regularly updated news, press releases, and articles are simply a click away at your Alliance web site. To include your company's articles, news, and releases in this great industry resource, send electronic submissions to [email protected].

Click on the headline to view the full text. These and other important announcements are available at

  SchlumbergerSema Introduces .NET Card Technology to Bring Smart Card-Enabled Security to the Multimedia World
  Atmel Releases a Complete Family of Serial, USB and PCMCIA Smart Card Reader ICs
  JCB Sets Its Sites on Smart Card Acceptance in U.S.
  SCM Microsystems and MicronPC Collaborate to Supply Security To US Department of Defense
  2002 Round-Up of Gemplus Telecom Activity Shows Smart Card Solutions Driving Industry Developments
  Gemplus Introduces `ResIDent' - A Secure ID Solution for E-Government Programs
  Datakey Smart Card Technology Integrated With VASCO Digipass(R) Desk 850 Secure Pin Pad Smart Card Reader
  Smart Card Shipments to U.S. and Canada Double to 31.2 Million In First Half of 2002
  ERG Transit Systems Signs Teaming Agreement With Northrop Grumman IT For U.S. Mass Transit Projects
  Smart Card Alliance Releases New White Paper - Contactless Technology For Secure Physical Access
  Datakey Smart Card Technology Integrated With Pointsec(R) for PC
  Gemplus Wins Landmark Contract for Sultanate of Oman National Identification Program
  Smart Card Alliance Releases Reports on U.S. Smart Card Retail Payments Infrastructure and Ohio Smart Card EBT Program


2002 SESAMES Awards

The Smart Card Alliance would like to congratulate all the nominees and winners of this year's SESAMES Awards.

Award Category Winner
Best Technological Innovation Infineon Technologies with my-C
Best Software

Retail Logi with Smart-Solution

Best IT Security Application Activcard with Activcard Gold 2.0
Best Transportation Application Sita - Project C-Travel with C-Travel
Best Banking/Finance Application Proton World with EMV Plus
Best Health Card Application Technopuce SA Hemo-TAG
Best GSM Application Oberthur Card Systems with My Personal SIM
Best E-Commerce Application Caissee Nationale des Caisses d'Epargne with ID-Tronic
Best Customer Loyalty Application Xiring with Fan Reader
Best Application of the Applications Technopuce SA with Hemo-TAG


ISCAN Report of International News

Safeway is to be the first UK retailer to introduce chip and PIN technology at the point-of-sale under a national conversion program aimed at clamping down on signature-based card fraud. Safeway has commissioned IBM to implement the system based on EMV chip card technology across the majority of its 500 UK stores by the end of 2002. IBM will work with Ingenico to provide the chip card readers and STS for the data processing software as a fully integrated extension to Safeway's existing payments infrastructure.
Source: Smart Card Society of Southern Africa, Oct 2002

A decision in Brussels to create a controversial ID card will radically alter the way citizens interact with government. The card will have a digital certificate embedded on it, which will allow Belgian citizens to communicate online with government. Each Belgian citizen will have an ID card with their name and photograph on it. An embedded chip will contain two digital certificates, one for authentication and one for their signature. Even children will be issued with the cards, although without the signing facility. The decision sets a precedent that other European governments could follow.
Source: Smart Card Society of Southern Africa, Oct 2002

UK retailer Marks and Spencer is to implement Mosaic Software's solution Postilion in preparation for the UK migration to the use of chip cards and PIN entry at the point-of-sale. The solution, which allows full-stand-in at the POS using off-line PIN with EMV chip cards, will be used centrally to switch payment transactions to all Marks and Spencer acquirer banks for authorization.
Source: Smart Card Society of Southern Africa, Nov 2002

Visa and IATA have agreed to cooperate in developing a global, interoperable smart card standard based on EMV specifications for the airline industry. IATA sets global standards for the airline industry, ensuring among other things that "interlining" can take place–the system which allows tickets issued by one carrier to be used on another carrier's flights.
Source: Smart Card Society of Southern Africa, Nov 2002

The Advanced Card Technology Association of Canada hosted a sell out crowd on October 29th for its first Market Intelligence Roundtable. Issuers and suppliers met to hear the results of the market survey conducted by ACT Canada over the past month. The survey was a snapshot of concerns that might impede advanced card rollouts. The moderator, Paul Gooderham of the Gooderham Group, gave an analysis of the results.
Source: ACT Canada, Nov 2002

Keycorp Ltd has signed a subcontracting deal with PCCW Business eSolutions to provide 1.2 million smart cards for Hong Kong's planned smart identity card system. Keycorp said it expected to get more than $A5 million ($US2.73 million) for the deal. Business eSolutions will use Keycorp's MULTOS operating system to keep personal data stored by Hong Kong's immigration department private and secure. "Projects such as this one provide a firm foothold for Keycorp into these emerging markets as governments around the world grapple with the growing problems of identity fraud," Keycorp chief executive Bruce Thompson said.
Source: ACT Canada, Nov 2002

A report issued by APSCA (Asia Pacific Smart Card Association) detailing the contactless transit fare payment systems currently installed in Asia Pacific countries has been made available to the Smart Card Alliance. The report can be downloaded from the members-only section of the Alliance web site.


GOVSEC call for papers
GOVSEC is seeking proposals for speaking opportunities at its July 2003 conference. The deadline for submissions is November 22. You may submit your presentation via email to [email protected] or via fax to 703-941-5027. Contact Sharon Patterson for a list of the security topics that being considered for next year's conference.

Members-Only Web Site
Have you checked the members-only section of the Smart Card Alliance web site lately? Members can find a wealth of resources there, including presentations from the Smart Card Alliance Annual Conference and June Symposium, Task Force working documents, research, meeting minutes and contact lists, position statements on key industry issues, and other research reports available only to Alliance members. If you have comments on the members-only web site, please email [email protected].



At the CARTES expo in Paris, Alliance President Randy Vanderhoof congratulates Linda Brown of Infineon on the company's 2002 SESAME award for best technological smart card innovation.

Executive Director 's letter
Industry news
From your national office

CardTech/SecurTech ID
November 18-20, 2002
Renaissance Hotel, Washington DC

With a theme, "Identification Technologies for a Secure World," the event will focus on the critical ID initiatives facing the government community committed to heightening homeland security, as well as the smart card, biometrics, and IT vendor communities that support these government efforts. Click to learn more.

Educational Institute 101 and 201
February 11, 2003
Hilton, Salt Lake City, Utah
Details will be on the Smart Card Alliance web site soon.

Alliance Mid-Winter Conference
February 12-13, 2003
Hilton, Salt Lake City, Utah
Save the date for our mid-winter conference. Details will be on the Smart Card Alliance web site soon.

ISC West
March 26-28, 2003
Sands Expo Convention Center, Las Vegas

This conference attracts more than 11,500 attendees and 700 exhibitors. Click to learn more.

The Secure Personal ID Task Force is starting a new project to develop a white paper on how smart cards improve the privacy of secure ID systems. Members are invited to join the Task Force and contribute to the project. Published Task Force white papers and resources are available at the Smart Card Alliance web site, If you are interested in participating in the Secure Personal ID Task Force, please email Cathy Medich or Bill Holcombe, Task Force Co-Chairs.

The Terminal and eTransaction Infrastructure Task Force is starting a new project to develop a white paper on contactless payment technologies and applications. Members are invited to join the Task Force and contribute to the project or to propose new retailer case studies for consideration by the task force for publication. If you would like to join the task force, please email Cathy Medich.

The Digital Security Initiative has released a draft business case in the members-only section of the Smart Card Alliance web site. This business case is for member use and includes calculations of example savings and costs for a smart card-based network security implementation. The DSI also published a new white paper, "Remote Administration Software Attacks on Systems Using Public Key Security with and without Smart Cards." All DSI case studies and white papers are available at If you would like more information on DSI activities, please email Cathy Medich.

Please welcome the following new Alliance member organizations:

TASC Litton–Northrop Grumman


Copies of the proceedings CD for the June Symposium "Smart Cards in Government" can be ordered by contacting the Alliance office at (800) 556-6828.




Smart Card Talk is the monthly electronic newsletter of the world's largest smart card industry organization, providing members with the latest news and information about what's happening within The Smart Card Alliance. If you have news you would like to share, please send it to [email protected].

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