Wednesday, August 17, 2011

ViVOtech Ships EMV Payments and NFC mCommerce-Ready Reader

SOURCE: ViVOtech, Inc.
August 17, 2011 14:51 ET
ViVOpay 8100 Designed to Meet Visa Technology Innovation Program; Potential Savings to Merchants of $2 Billion Annually by Eliminating PCI-DSS Validation Costs
SANTA CLARA, CA--(Marketwire - Aug 17, 2011) - ViVOtech, the near field communication (NFC) software and systems company, today announced the immediate availability of a new point of sale (POS) terminal for payments and NFC mobile commerce that could save eligible merchants more than $2 billion a year in annual Payment Card Industry Data Security Standard (PCI-DSS) validation costs under a Visa Inc. initiative.
ViVOtech's new ViVOpay 8100 terminals accept traditional swipe cards with magnetic stripes, chip cards, contactless cards, and NFC-enabled mobile phones, as required by the Visa initiative announced last week to accelerate the migration to Eurocard-MasterCard-Visa (EMV) contact and contactless chip technology in the United States.
To motivate merchants, Visa announced on August 9, 2011: "Effective October 1, 2012, Visa will expand its Technology Innovation Program (TIP) to the U.S. TIP will eliminate the requirement for eligible merchants to annually validate their compliance with the PCI Data Security Standard for any year in which at least 75 percent of the merchant's Visa transactions originate from chip-enabled terminals. To qualify, terminals must be enabled to support both contact and contactless chip acceptance, including mobile contactless payments based on NFC technology."
The industry association Smart Card Alliance estimates annual PCI-DSS fraud-protection validations cost businesses more than $2 billion a year.
"Viva Visa!" said Michael (Mick) Mullagh, CEO of ViVOtech, which has shipped more than 850,000 contactless and NFC readers worldwide. "It's about time the U.S. joins the rest of the world, which has been using highly secure contact and contactless chip technology for nearly a decade. We applaud Visa's efforts to advance adoption here. And, we have the affordable technology available today in the new ViVOpay 8100 for merchants to take advantage of Visa's incentives while benefiting from rich NFC mobile commerce."
Much More than EMV-ReadyThe new ViVOpay 8100 includes ViVOtech NFC checkout technology that enables merchants to accept and process coupons, personalized offers, loyalty programs and payments through the merchant's proprietary mobile applications.
With the ViVOpay 8100, consumers just insert, swipe or tap their payment cards, or tap their NFC mobile phones to pay or electronically redeem a coupon or discount voucher. The device also accepts Personal Identification Number (PIN) entry for secure debit transactions. Combined with ViVOtech's mLoyalty, coupons, and social networking software, the ViVOpay 8100 allows merchants to deliver personalized services to customers' NFC-enabled mobile phones.
The ViVOpay 8100 works with the most popular payment terminals and electronic cash register (ECR) systems used by merchants today, adding powerful new capabilities that include:
  • PCI 2.1 certification: Highly secure PIN pad provides protection from obsolescence beyond 2014.
  • Integrated mobile payments and promotions module: Built-in support for NFC mobile payments, marketing and loyalty programs.
  • Support for multiple transactions: Enables Chip-and-PIN and signature-based credit and debit transactions using mag-stripe, contactless and NFC mobile phones.
  • ISO 14443 contactless and ISO 18092 peer-to-peer NFC, and MiFare Technologies.
  • Remote download: Post-deployment firmware updates via remote download eliminate the need for additional hardware or device resetting.
  • Customer-friendly keypad: Compliant with standards for the visually disabled, with a recessed keyboard providing maximum privacy.
  • Advanced connectivity: Ethernet connectivity along with serial and USB communication support for multiple connectivity options to work with a versatile set of mobile-enabled applications.
The ViVOpay 8100 is designed to meet Visa Technology Innovation Program (TIP) requirements as well as support new NFC-based mCommerce opportunities. The new reader comes with a secure 32-bit ARM9 processor, the Linux operating system, 16MB Flash, 32MB SDRAM, as well as integrated EMV smart card, contactless NFC and mag-stripe readers. To learn more or to purchase the ViVOpay 8100, visit:
About ViVOtechViVOtech, the near field communication (NFC) software and systems company, enables rich mobile commerce solutions for in-store payment, loyalty, marketing, and merchandising. Merchant, payment, mobile, web and advertising companies use ViVOtech solutions to enhance customer experience and grow their business. ViVOtech's NFC software and systems are the broadest, most tested and deployed worldwide. Founded in 2001, Silicon Valley-based ViVOtech provides the key building blocks of the NFC ecosystem: smart applications for enhancing the customer experience, wallet and trusted service manager (TSM) software, and point of sale systems. ViVOtech's investors include Alloy Ventures, Citi Ventures, Draper Fisher Jurvetson, DFJ Gotham, EDBI, First Data Corporation, Miven Ventures, Motorola Mobility, Motorola Solutions, Nokia Growth Partners, NCR, SingTel Innov8 and Sprint. Join the NFC revolution at

Mobile Payments 101...Just the Basics

By IB Times Staff Reporter | August 17, 2011 9:52 AM EDT
A mobile payment is "any payment" for goods and services that is initiated from a smartphone or similar device. Mobile payments can be broken down into two main types: remote payments or proximity payments.
As the names imply a remote payment occurs when the consumer makes a payment to a recipient that is not in their location, while proximity payments occur when the consumer and retailer are in the same location.
Boiling things down, remote payments are simply transactions whereby the phone is accessing the traditional Internet payment gateways, such as message based, browser based, application based, and mobile banking.
"It is proximity payments that, in our opinion, will drive the shift in personal consumption expenditures (PCE) away from cash and are, therefore, of more interest to investors," said Dan Perlin, an analyst at RBC Capital Markets.
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Numeric Code
The numeric code payment process requires the consumer first to enrol in the program by providing personal details (name, payment method, etc., much of this information could be saved in a mobile wallet).
After registration, the consumer can download an application or store a short code for SMS transactions (text messages). To initiate a transaction, the consumer elects to pay for something using the previously registered account.
The payment decision reserves funds in the selected funding account, and the consumer is provided with an authorization code. The cashier enters the authorization code provided by the consumer and the POS terminal validates the code (similar to validating a credit card), and the transaction is competed.
Bar Codes
Given the graphics capabilities of Smartphones and other mobile devices, it is relatively easy to generate a bar code on the screen.
The bar codes simply incorporate information into a series of black and white parallel lines (called one-dimensional) or into other geometric patterns (called two-dimensional). These are the ubiquitous symbols seen on packaged foods, airline boarding passes, packages sent for delivery, etc.
The technology dates back to the 1960s and was especially adopted by food retailers in the 1970s (in the US). The technology is only one-way -- from the bar code to the reader; though manySmartphones now have the ability to read bar codes using software and an integrated camera.
One major advantage is that no special equipment should be needed only that the particular codes generated are integrated with the existing system. Two major US retailers use a bar-code based system already, Starbucks and Target.
Both programs rely on a previously loaded prefunded gift card and are tied in with loyalty programs. The system is relatively simple: download an app, use it to get the card information on the phone and then use the app to display the bar code when ready to pay.
Near-Field Communications Chips
Most of the recent "Mobile Payment" announcements have simply been accessing an existing payment network via a new technology such as a near-field communication chip embedded inside a Smartphone or a memory card inserted into the Smartphone, included in a mobile SIM card, a key fob, or even a sticker about the size of a quarter.
In Perlin's opinion, near-field-communication (NFC) will be the technology of choice as it is based on already existing established technology – radio-frequency identification (RFID) first patented in the 1980s, already has an established protocol so there is general interoperability between different manufacturers, and only communicates for very short distances (essentially the devices must touch) which removes the threat of the information being accessed by a party outside of the transaction.
Perlin sees three main ways of enabling NFC technology on a Smartphone (essentially a way of putting a computer chip on the phone): externally, via an internal dedicated chip, and incorporating the chip and its information into the phone’s SIM card (subscriber identity/identification module).
External NFC Chips
Since an NFC chip is remarkably small (Hitachi currently claims the record with a chip that measures 0.05mm by 0.05mm), the chip, its power source, and an antennae can be incorporate in a wide variety of forms.
For example, First Data has experimented with putting the electronics in an adhesive sticker that can be attached to just about anything, while both MasterCard and Visa have experimented with placing the chips in small key fobs or credit cards themselves.
In addition to this "low tech" method, the technology has also been incorporated onto microSD and other mobile phone external attachments such as Device Fidelity’s microSD card and iPhone wallet.
Internal Dedicated Chip
According to Near Field Communications World, there are currently at least 11 mobile devices that have a NFC-chip incorporated inside the device. For example the Google Nexus S manufactured bySamsung is available at retail locations (running off the Google Inc.'s Android platform).
In early May, Research In Motion (RIM) announced that two new versions of the BlackBerry Bold will have built-in NFC capability and should be available in the fall.
Finally, various technology sources (press reports, commentary, etc.) have both Apple Inc. andMicrosoft Corp. working on incorporating NFC technology in their respective operating systems.
One of the questions to be decided, however, is where the information sent by the chip is stored -- in the chip, on the Internet or in the Smartphones built-in memory.
SIM chips
A mobile device’s SIM card (subscriber identity/identification module) stores the network-specific information used to identify and authenticate the user.
There are currently SIM cards that incorporate a built-in NFC chip (for example, in late March Gemalto announced a SIM-card design with NFC that it certified for use on the MasterCard PayPass mobile payments system).
Perlin believes that one possible friction point to the rollout of NFC-based mobile payment will be the question as to who controls the consumer/payment authentication information.
If that information is directly incorporated on the SIM card then the mobile network would generally control it while enabling the SIM card, with its information, to be swapped between devices.
If it is on an external or internal dedicated chip then theoretically any of the various parties (handset manufacturer, operating system developer, wallet software provider, etc.) could control the information.
It is this information that Perlin sees as key to providing the mobile advertising and other value-added features of mobile payments.
Bluetooth technology is another form of near-field communication that acts in a very similar way to an NFC chip.
Theoretically, two Bluetooth-enabled devices would be able to send information between each other. Bluetooth theoretically transmits faster than NFC chips and has a longer range than NFC (according to industry standards).
The longer range, however, increases the possibility that the information is intercepted in some way. A company called Rollplay is already working on Bluetooth mobile payment solutions.

Singapore Payment Provider NETS focuses on alternative form factors

According to VRL, Singapore’s electronic payments provider, NETS, is to offer the city-state’s youth market prepaid contactless-enabled key fobs and wristbands as alternative form factors to its NETS FlashPay cards.

The key fobs will be the first of the alternative form factors to be launched next month.  These will be later followed by contactless wristbands. The proposed price for both the prepaid contactless key fobs and wristbands is S$15 – three times more than a NETS FlashPay card.
At present, the wristbands and key fobs cannot be used on trains and buses in Singapore.  However, Rakesh Krishnamuti, vice president for product issuance and usage, consumer services at NETS, said:  “It is our plan in future to enable them to be used [on trains and buses]”.
NETS also plans to launch a mobile payments offering that includes prepaid funtionality, thereby allowing consumers to store value and top-up funds.
The mobile payments offering from NETS would take the form of a microSD card, which can be slotted into mobile phones with microSD slots, such as those sold by Samsung and Research in Motion. NETS has yet to release a date for the commercial launch of its mobile payments offering, but it is expected to be commercially available within the next year.
Commenting on its activity in the mobile payments space, Cynthia Liaw, general manager for consumer services at NETS, said: “We will launch a form factor on the phone that is very similar to the use of the NETS FlashPay card. There is minimal need to educate customers on how to use it.”
Liaw said the fact that the NETS FlashPay non-card form factors for the key fobs, wristbands and mobile phones, will be accepted at 14,000 retail outlets across Singapore, is a key advantage.
Krishnamuti added that research has shown that the Singapore market is quite receptive to a novelty form factor and consumers are willing to pay more for payment form factors that are both unique and useful in terms of form and functionality.

22nd Annual DRF Attracted Top Payment Professionals From Around the World

SAN DIEGOAug. 16, 2011 /PRNewswire/ -- The leading experts in payment processing met at the 22nd annual Direct Response Forum (DRF) at the Sheraton Hotel and Marina in San Diego. Over 420 executives that collectively represent billions of dollars in credit and debit card transactions every year met to discuss the latest issues facing payment professionals.
The DRF featured main stages and dozens of in-depth break out sessions that allowed attendees to focus on their areas of interest including mobile payments, international payment processing, chargebacks, recurring payments, PCI Compliance, fraud prevention, Durbin Bill compliance, and cyber-security.
"The DRF's goal is to develop a community of card not present professionals (CNP) that are committed to helping each other grow and develop into the best payment professionals in the world. We want to be a resource our members can rely on 365 days a year." Chantal Gaspie, Executive Chair, Direct Response Forum.
At this year's forum the membership elected a new merchant board of directors of the DRF composed of the following executives:
Merchant Board
Board Position
Digital River
L.L. Bean, Inc.
Comcast Cable
Transamerica Life & Protection
Executive Chair
Affinion Group
Affinion Group
Western Union
Shop NBC
Rosetta Stone
Vice Chair
Expedia, Inc.

The merchant board is augmented by the Eagle Advisors who are payment industry leaders that have been recognized for their many years of CNP expertise and service supporting the DRF.
Eagle Advisors
First Name
Last Name
Board Position
Eagle Advisor
Polly Bauer and Associates, Inc.
Eagle Advisor
Affinion Group
Eagle Advisor

There is also an Advisor Board that supports the DRF made up of executives from the major payment networks and acquirers.
In addition to the election of new board members, the DRF announced the launching of a Job Board that will allow member companies to announce openings on their payments teams. The DRF Board believes this will be a valuable resource for their members to find the best talent available among CNP professionals.
Top payment professionals from the U.S., EuropeAsia, and Latin America were all in attendance at this year's DRF. For 22 years the Direct Response Forum has been among the leading sources for reliable and actionable knowledge on payment processing.
About Direct Response Forum, Inc.
The Direct Response Forum ( brings together leading direct merchants, acquirers, card companies and service providers for two days of interactive panels, breakout sessions, and roundtable discussions focused on key topics affecting the customer/card not present (CNP) merchant community. The Direct Response Forum is a not-for-profit educational organization that is managed by a Board of Directors that are executives at leading companies including Affinion Group, Comcast Cable, Digital River, Expedia, Inc., L.L. Bean, Inc., Rosetta Stone, ShopNBC, Transamerica Life & Protection, and Western Union.
SOURCE Direct Response Forum, Inc.

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