Smart Cards, Smart Phones and a Cashless Society

China Requires ID for Mobile Phone Numbers

September 1, 2010

New York Times — China’s government began on Wednesday to require cellphone users to furnish identification when buying SIM cards, a move officials cast as an attempt to rein in burgeoning cellphone spam, pornography and fraud schemes.

The requirement, which has been in the works for years, is not unlike rules in many developed nations that force users to present credit card data or other proof of identification to buy cellphone numbers. The government’s Ministry of Industry and Information Technology said that about 40 percent of China’s 800 million cellphone users currently are unidentified. Those users will be ordered to furnish an ID by 2013 or lose their service, the Communist Party’s English-language newspaper, Global Times, reported.

A government center that deals with cellphone complaints reported that an average Chinese phone user receives a dozen spam messages a week, and that three in four users received messages that involved fraud, the state-run English-language newspaper, China Daily, reported on Wednesday.

Some analysts, however, questioned whether the new requirement would substantially reduce illicit messages. Instead, they warned that it could give the government new tools to locate and punish individuals who send cellphone messages that censors deem unacceptable. China’s central government has steadily tightened its censorship of the Internet and wireless communications since 2008, blocking increasing numbers of Internet Web sites, social networks such as Facebook and Twitter and, most recently, shutting down microblogs that it regards as subversive.

The new regulation will be implemented largely by the three government-controlled companies — China Mobile, China Unicom and China Telecom — that provide all cellular service.

“Is China prepared for this?” David Bandurski, an author and media analyst at the University of Hong Kong’s China Media Project, said in a telephone interview. “Does it have the legal framework and the institutions in place to guarantee they can do this and still protect the privacy of consumers?

“People are basically providing their phone numbers and ID numbers” to the mobile carriers, he said. “Those are the two most important pieces of information that most people have.”

In an article posted Wednesday on the China Media Project’s Web site, a legal researcher at the government-sponsored Chinese Academy of Social Sciences, Zhou Hanhua, expressed doubts that requiring users to register their names with the companies would control spam.

Initially, he wrote, the rules likely will first create a black market in legally registered SIM cards that can be used for spam, and then spur hackers to find ways to circumvent the registration requirement.

“Technology innovation will soon trump the government’s control,” he wrote.

Others were less concerned. A professor at Beijing University of Posts and Telecommunications, Zeng Jianqiu, said that real-name registration was essential if services now common in other nations, such as payment by cellphone, are to become established in China.

Privacy “is a problem that needs to be considered seriously,” he said in a telephone interview on Wednesday. “The regulators and mobile operators also need to find ways to protect personal information. But I think some, like China Mobile and Telecom, are already doing this.”

Under the new policy, convenience store and street vendors who have been selling anonymous SIM cards were to suspend sales on Wednesday until they are trained to register their customers. Foreigners will also be required to furnish a passport or other identification when establishing cellphone service.

Smart Card Shipment to Boom as Cities Become More Connected

August 31, 2010

Contactless News - New analysis from Frost & Sullivan shows that current smart card-based transit projects in growing European and world cities will lead to an 11% Compound Annual Growth Rate (CAGR) in smart card shipment from 2009 to 2015.

Europe and megacities are hot spots for future smart card-based transit projects, says the consultancy.

“Technology and social factors now make it essential that transit authorities deploy smart ticketing solutions as a result of ubiquitous connectivity and mobile devices,” notes F&S Analyst Yiru Zhong.

“The future of convergence lies in the union of form, function and connectivity, much like Hong Kong’s experience,” states Zhong. “Europe fulfills these three critical factors.”

Furthermore, the use of smart cards has matured in Europe, setting the scene for more collaborative efforts with stakeholders in other industries, according to F&S. For instance, Europe is at a more advanced stage of NFC trials for m-payment purposes, including the use of NFC technology for mobile ticketing.

The report, “World Smart Cards in the Transportation Market,” urges smart card vendors to “recognize the gaps” left by disruptive new players such as telcos or retailers to better act on an end-to-end vendor solution. They can fulfill the role of a system integrator, having understood the complexity of secure transactions, while operating within the context of the transportation and mobile sector, according to F&S.

“Different payment platforms and methods have allowed different technology players in industries,” explains Zhong. “For instance, there are players, such as telecoms operators, and established payment infrastructure plans, as set up by banks which have their own innovative payment methods.”

According to F&S, trends indicate that the number of people holding a transit smart card will rise. This, together with the increasing sophistication in smart card usage, represents a step towards a connected or “smart city.”

“The smart card industry should exploit opportunities to enable this vision,” advises Zhong. “Initially, there will be a need to establish credibility in managing large scale projects combining security, services and solutions.”

Singapore American School Uses Smart Card for ID, Purchases and Library Privileges

July 28, 2010

Contactless News - Singapore American School, providing American-based curriculum for pre-school through grade 12 to 3,800 expatriate students in Singapore, has selected the CS Gold one-card solution from CBORD to manage card-based purchasing, security operations and more.

Singapore American School uses CS Gold to manage a variety of functions including dining purchases, printing, bookstore purchases, library privileges, and online account management. More than 10,000 ID cards will be issued to parents and students, thereby increasing campus security by requiring proper identification to enter the campus. A card-based access control system is also planned for installation this fall.

Additionally, the card is formatted to meet Singapore CEPAS contactless card standards, which means that students can not only use their campus cards for quick and easy transactions across campus, but the also for payment (off-campus) at a nationwide network of merchants.

CEPAS is a single multi-purpose stored value card used throughout Singapore as payment for services including transit (bus, mass rapid transit, and light rail transit), taxi service, driving (electronic tolls, parking), retail, and more.

Bus Drivers No Longer Accepting Cash on Singapore Buses

August 2, 2010

Contactless News - Singapore-based electronic payments provider Nets and Nera Telecommunications Ltd announced that they have implemented a completely cashless payment service on Singapore’s Plus1 buses.

Under the new system, commuters will have to pay using only contactless NETS FlashPay cards. Bus drivers will no longer accept cash and will not be provided with cash boxes on their daily routes.

The move is expected to decrease waiting time for commuters and improve working conditions for the drivers, who no longer have to deal with cash leakages and handling change.

The all-in-one NETS FlashPay card can be used for the MRT, LRT, public and private buses and ERP gantries, and at over 8,000 retail acceptance points across the island for small-value purchases, according to Nets.

Smart Card Alliance Transportation Council to Hold Meeting on Open Standards Payment

August 30, 2010

Contactless News - The Smart Card Alliance Transportation Council is holding a meeting on open standards payment for public transportation in New York City on September 22 - 23.

Hosted by the Metropolitan Transportation Authority/New York City Transit, the meeting will include updates on active and planned open standards transit payments projects from leading U.S. and international transit agencies.

The alliance has invited representatives from transit agencies from New York/New Jersey, Washington, DC, Philadelphia, Salt Lake City, Chicago, Paris, London and other cities to share their knowledge and experience on the challenges and opportunities to expand beyond closed loop fare payment approaches. They will examine and discuss how they can enable customers to access commuter rail, light rail, subways, and buses using contactless payment cards, stickers, and mobile devices for fare payment.

In addition to round table discussions and presentations, the meeting will be highlighted by a tour of the New York/New Jersey Contactless Fare Payment Trial.

The Payment Trial, which has been operational since June 1, allows commuters to use a contactless MasterCard PayPass or Visa payWave card or device to pay directly for fares with their credit or debit card accounts.