Contactless Smart Cards, RFID, Payment, Transit and Security

Germany proposes smart card ID

Thursday, July 31, 2008

The German government has proposed and electronic ID card that would use contactless smart card technology, according to a report from Electronics Supply & Manufacturing. The new credential would be similar to the electronic passport, but could also carry an electronic signature that could be used for online authentication.

Berlin-based Bitkom, a trade organization in favor of the plan, said the ID could enable access to online services, such as banking, shopping and electronic citizen services.


But certain members of Berlin Parliament are not in favor of the credential. The Greens criticized that an official document will be coupled with arrangements with private companies.

The card would be similar to the electronic passport and use the same microprocessor chip and the same data structure, the report states. Both could also contain fingerprint biometrics, though it would be voluntary with the ID card, while it’s compulsory with the passport. Rollout of the card could start in 2010.

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The Smart Card Alliance Transportation Council has published a white paper examining how the transit industry can best make use of NFC technology.

“One of the major challenges facing transit agencies today is how to capitalize on the ever-growing popularity of mobile phones with a solid mobile strategy,” said Transportation Council Chairman Craig Roberts. “This white paper builds on the knowledge base developed in earlier white papers to foster a greater understanding of NFC technology, explain its role in the transit industry, and shed light on key issues facing the transit industry in developing a mobile strategy.”

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Reportlinker.com expects the global smart card market to grow 12 percent through 2014, it says in a new forecast report, according to ATM Marketplace.

“Smart Card Market Forecast to 2014” is a global look at the shipment of smart cards. Reportlinker.com estimates that shipments will be around 6.1 billion units in 2011, an 11% increase over 2010.

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Cubic Transportation Systems, distributor of the electronic transit Clipper card, has responded to the recent news of a Ph.D. student in IT Security allegedly breaking the encryption in Clipper and similar transit cards.

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The U.S. government has settled an infringement case with Leighton Technologies by agreeing to license its smart cards.

Leighton Technologies, a subsidiary of General Patent, filed a case against the federal government in the U.S. Court of Federal Claims in January 2010. Leighton alleged that 54 federal agencies used its six smart card patents without authorization. Leighton’s technology was also used in e-passports.

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A new survey from Euro Kartensysteme shows that Germans are starting to embrace the idea of contactless and NFC payments.

Out of 1,040 Germans aged 18-59, 43% responded that they would like to make contactless payments if given the opportunity, of which 58% percent would make their payments with a debit card card, 41% with a credit card and 50% with an NFC phone.

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Visa Europe has announced that six of Germany’s leading banks are launching Visa payWave contactless services in 2012.

BW Bank, comdirect, DKB, Landesbank Berlin, TARGOBANK and Volkswagen Bank have all confirmed their plans to roll out payWave technology by the middle of next year.

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