The document discusses contactless technology and its potential impact on payments and identification. It includes an interview with Remy de Tonnac, CEO of Inside Contactless, who sees near field communication (NFC) technology in mobile phones as very promising. He notes that NFC standards are being finalized and that large-scale deployments of NFC-enabled phones are expected in 2008 and 2009. Tonnac believes NFC will drive major innovation in both financial services and identification, and that Asia is likely to see the fastest adoption of NFC mobile payments due to its flexible market. Overall, NFC is poised to deliver new interactive experiences and fuel growth in contactless financial and identification services around the world.

1. HARDWARE
SOFTWARE
IDENTIFICATION
IT-SECURITY
TRANSPORT
BANKING / FINANCE / RETAIL
HEALTH CARE
MOBILE
E-TRANSACTION
LOYALTY
A S P E C I A L S E S A M E S A W A R D I S S U E
Discover the 2007 Finalists!

3. Cards & Payments • A Special Sesames Award Issue 3
Sophie
Lubet
CARTES &
IDentification
Show Manager
Only one word …
For the 12th consecutive year we have the pleasure of welcoming you to the
world of technological innovation and tomorrow’s reality.
Convergence, portability, mobility, contactless, digital security, advances in
embedded technologies, applications for electronic data exchanges, digital
identification, health, transportation and leisure — all these are projects and
fields where innovation is being deployed at high speed.
The SESAMES Awards are part of this dynamic evolution and are increasingly
successful. It is my pleasure to announce that 211 applications have been filed
this year. The jury has selected only 32 finalists, and it elected the 10 winners.
The wealth of these innovations — the result of investments in research and
development — is in line with the promise of the applications. I personally wish
to thank the 33 members of the jury who, by category, spent time reviewing
these drivers for our industry of tomorrow.
… CONGRATULATIONS !
Sophie Lubet
CARTES & IDentification Show Manager
07SHOW
MANAGER’S
LETTER

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5. Cards & Payments • A Special Sesames Award Issue 5
Andy
Rowe
Publisher,
Card Technolgy
SourceMedia, Inc.
Welcome to the 12th annual Sesames Awards and the second annual Sesames Award issue.
As always, the Sesames nominees and winners serve as a preview of the companies and
technologies that will drive our industry in the coming year. This year’s nominees include
many well known vendors as well as some lesser known companies that have, as they say,
“built a better mouse trap”.
In this special awards issue you will find a listing of this year’s nominees and of the judges,
among which I am honored to be included. This issue also includes an Executive Q&A with
Remy de Tonnac, CEO of Inside Contactless, and an insightful article on the convergence
of high tech and low tech from Francine Dubois of iDcentrix.
Our industry is truly a global one, and nothing illustrates that better than the attendees at
Pavillion Gabriel this evening; an accurate cross-section of the world representing Europe,
Asia and North America, as well as the nominees who are doing business around the world.
These are the people and companies they represent that are driving innovation, making the
world more secure, people more productive and ensuring that payments are recognized and
accepted regardless of location.
Several of these innovative companies, along with Exposium have made the Sesames issue
possible through their generous advertising support. I would like to extend my gratitude to
them for being a part of this issue and in helping to make SourceMedia a part of this great
evening and the tradition of the Sesames.
SourceMedia is proud to be a partner with Exposium and to be a part of the Sesames.
I hope that you enjoy the evening and the exposition.
Sincerely,
Andy Rowe
Publisher, Card Technology Magazine
SourceMedia
07PUBLISHER’S
LETTER

6. 20082008
22Years
Supporting the Smart Ca
rd
Industry••••••••••
•
•
••••••••••••••••••
•
•
•
•••••••••••
SECURETECH
N
OLOGIES AND BIOMETRI
C
S
EXHIBITION
Exhibitions & Congress
YOUR CONTACTS
SAVE THE DATE!
500 exhibitors
21,000 visitors
40,000 sq.m
of exhibit showcase
250 speakers
1,700 congress attendees
TO EXHIBIT:
+33 (0)1 49 68 52 66 - slobodan.petrovic@exposium.fr
TO VISIT THE SHOW:
+33 (0)1 49 68 52 61 - helene.tsoungui@exposium.fr
TO TAKE PART IN THE CONGRESS:
+33 (0)1 49 68 56 67 - arnaud.roy@exposium.fr
>
DIGITAL SECURITY
CONTACTLESS
SMART CARD
AUTHENTICATION
MOBILITY
IDENTIFICATION
BIOMETRICS
November 4, 5, 6, 2008
Paris-Nord Villepinte Exhibition Centre - France
www.cartes.com / www.identification-show.com
THE WORLD LEADING EVENT IN DIGITAL SECURITY, SMART CARD AND IDENTIFICATION
CARTES & IDENTIFICATION 2008
70 avenue du Général de Gaulle
F-92058 Paris la Défense Cedex
cartes-id@exposium.fr
Cartes & IDentification, exhibitions
organized by EXPOSIUM
www.exposium.fr

7. Cards & Payments • A Special Sesames Award Issue 7
Produced by Cards&Payments,
a publication of SourceMedia Inc.
SourceMedia Inc.
One State Street Plaza
New York, NY 10004
Cards&Payments
Group Vice President
Jim Callan
Publisher
Andy Rowe
andrew.rowe@sourcemedia.com
Editor-In-Chief
Jeffrey Green
jeffery.green@sourcemedia.com
International Bureau Chief
Dan Balaban, Paris, France
33 (0)1 42 64 52 76
daniel.balaban@wanadoo.fr
Senior Editor
Nadia Oehlsen
nadia.oehlsen@sourcemedia.com
Associate Editor
Kate Fitzgerald
Kate.fitzgerald@sourcemedia.com
Custom Marketing Solutions Group
Group Director, Custom Marketing Solutions
Virginia Wiese
Custom Marketing Solutions Art Director
Jack Mitton
Contributors
Kelly Shermach, Francine DuBoise
SourceMedia
Chairman & CEO
James M. Malkin
Chief Financial Officer
William Johnston
President, Securities Group
Frank Quigley
President, Banking Group
Jeff Scott
President, Accuity
David Irving
Vice President, Finance
Richard Antoneck
VP, Sales & Customer Service
Steve Andreazza
Senior Vice President, Operations
Celie Baussan
Vice President, Human Resources
Mila Baker
Chief Technology Officer
Ivan Latanision
Executive VP, Marketing & Strategic Planning
Anne O’Brien
Welcome letter from Sophie Lubet . . . . . . . . . . . . . . . . . . . 3
CARTES & IDentification Show Manager
Welcome letter from Andy Rowe, Publisher
Card Technology / Cards & Payments Magazines . . . . . . . . 5
Q&A with Remy de Tonnac, CEO of Inside Contactless . . . . 8
Hightech Lowtech:
Trends in payment & identification markets . . . . . . . . . . . . 12
Technology in the Hands of Consumers Isn’t Happening . . . 14
Sesames 2007: The Jury . . . . . . . . . . . . . . . . . . . . . . . . . 17
Sesames 2007: The Finalists . . . . . . . . . . . . . . . . . . . . . . 18
07CONTENTS

8. 8 Cards & Payments • A Special Sesames Award Issue
Inside Contactless of Provence, France, delivers a
comprehensive range of secure contactless and NFC
solutions for multiple environments. Depending on the
requirements of each of its customers and their end
users, it produces technology that keeps the company
and its clients at the cutting edge of contactless
development and deployment.
Remy de Tonnac was a Partner of VERTEX
Management funds in Europe and sat on the board of
several technology and services companies of the
VERTEX portfolio. Before becoming CEO of Inside
Contactless, he chaired its board of directors. Prior to
that, Remy was with Gemplus as a member of the
executive committee and CEO, based in Singapore
and then in Redwood Shores, Calif.
de Tonnac talked with CARTES before the show
about the state of contactless technology and its
soon-to-be-unforgettable impact on payments and
identification functionality worldwide.
What is the most promising area for chips today?
The most promising application is the
contactless chip that goes into the phone — NFC
[near field communications]. It is huge, and it is
opening the door to a full flurry of a new kind of
application. We have now early 3 billion mobile
phone users in the world. We are seeing every
year 1.2 billion new mobile phones. It is a huge
market. Almost everyone in the developed world
has one, not to mention the developing world.
Point of sale, ATM — on all kinds of devices,
mobile phone NFC will be used to initiate
payments. The application is already used at
shops, in the subway and to download e-tickets. It
soon will be used to exchange digital content in a
secure way between two phones. NFC in mobile
phones is going to be completely ubiquitous given
the significance of the mobile phone.
And contactless payment is a priority. Visa,
MasterCard and large carriers such as Vodafone,
T-Mobile and Orange are already looking at it and
testing it. Everyone is starting to agree on standards
for NFC in mobile phones. There will be mass
deployment in the second half of 2009. There will be
200 million phones with this interface of NFC in the
early part of the year.
What kind of innovation do you see in the financial
services world? In the ID world?
The cell phone is the most innovative thing we have
seen in the past 15 to 20 years. There is innovation
ahead that we can’t even think of, that is very
imaginative. Nokia is doing something in Finland in
parking areas and with NFC phones. It is innovation in
both financial services and ID.
Cars already have RFID [radio-frequency identification]
tags in them like E-ZPass. Upon entering the parking
area, drivers read the tag with their NFC phones and
go into an ATM in the parking lot and pass their NFC
phones by a contactless reader. The tag is used to
identify the location of the car, and it clearly identifies
that the car is parked in this place. Parking fees are
billed to the phone. This offers a lot of convenience
and ease of use.
For straight ID, the contactless card is a better
format than NFC in a mobile phone. For national ID
cards, passports and drivers’ licenses, this format is
more comfortable for utilization than a cell phone. ID
might not the first application on an NFC cell phone,
but it will migrate there because the NFC phone is
flexible, innovative and provides ease of use.
QAWITH REMY DE TONNAC, CEO OF INSIDE CONTACTLESS
BY KELLY SHERMACH

9. Cards & Payments • A Special Sesames Award Issue 9
At what speed with new ideas be adopted?
NFC technology was coined in 2002, but it didn’t
get together as an industry until 2005. The industry
body the NFC Forum was founded in 2005 to define
NFC standards. Today about 140 large organizations
sit on it. Handset manufacturers, terminal technology
developers, software manufacturers — they finalized
a standard one month ago. The standard will
be accepted and formalized hopefully, by the end
of the year.
To take NFC in mobile phones from a promising
area to an innovation available to consumers
requires a new platform. That will take 18 months to
design. In the meantime, there will be some
deployment in France, China, Korea and maybe the
United States. Trials have already taken place in
2006 and 2007. In 2008, NFC in mobile phones will
move in larger scale deployments of thousands of
handsets. Until deployment is in the millions, we
can’t say the application is broadly deployed, but it
will have achieved some critical mass.
We are going to see a tidal wave in NFC payments
moving across the world — Korea, Taiwan, Brazil,
Mexico, Canada and Malaysia. It will take time
because banks by nature are conservative, but it is
moving. When you are in the industry, you want
things to happen more quickly.
Contactless payments seem to have a toehold in
financial services around the world. What do you
see as the hurdles to growth?
There are 40 million contactless cards in the
United States. Most are on the East Coast, and they
account for a relatively small percentage of total
payments — credit or debit — in the United States.
I don’t see any more challenges in adoption in broad
terms. Contactless cards are used for ID, subway
fares and secure access, and contactless payment
is cool in the United States. Visa, MasterCard and
Chase have spend a lot of money to say contactless
is cool and user-friendly. People in large cities who
are using contactless to ride the subway know that it
is safe, quick, easy and convenient.
Security is not a hurdle to growth. This is an
industry in which security is handled in a very serious
way. We have been doing education for the last two
years. Contactless offers the same security as a
contact smart card only at 3 to 4 centimeters
distance. Contactless cards have addressed the
security issues North Americans had with contact
smart cards, which are well-accepted by consumers
in Europe and Asia. American consumers feel safer
about contactless cards than they did with smart
cards. American issuers also have addressed the
lack of the likelihood that someone is going to be
walking around with a contactless reader in his
pocket, capturing consumers’ card information as
they walk by.
Cost is not an obstacle. The cost of upgrading
existing terminals is below $100 each, so it is
nothing to be scared of. For any retail convenience
store with tickets averaging $1 to $25, the simple
value proposition of getting more customers through
the door makes a $100 investment a no-brainer.
What will spur the pace of adoption?
Marketing a new contactless service platform on
cell phones will be about how versatile NFC is. It
allows different business models. Banks and telco
carriers will play a big role. In the United States,
banks will be very strong in encouraging adoption. In
France, Orange is moving very aggressively. In Spain,
banks are taking the lead. In Asia, telcos can
become banks, like Japan’s NTT DoCoMo.
In 12 to 18 months you will see Nokia, Motorola,
Samsung and LG each with NFC handsets. It is going
to happen. It will happen first in Asia. Asia is very
flexible. It doesn’t have as much regulation as in
Europe, and people are so keen on technology. It is
the only place in the world where people change their
cell phones every six to nine months.
QAWITH INSIDE CONTACTLESS
continued on page 11

11. Cards & Payments • A Special Sesames Award Issue 11
The platform for NFC in phones is not about new
services. Instead it gives mobility to existing services
through a phone link to NFC and at times, to a SIM
card. I find it very exciting that it is not written in
marble and is left to the players to see what
contactless will be.
How will NFC perform in the mainstream?
You can multiply the application in nearly any
interaction in life. In the subway, in shops, in the
home and in the office you can have a smart
interaction. At home, you can wave the phone in
front of the doorbell that automatically unlocks
the door.
This is what I find beautiful in the NFC
application. For the first time in the history of the
cell phone, new functionality will not require
setup. Even Bluetooth headpiece setup is a bit
complex. The instructions say, “Press the
earpiece until the light is flashing;” for 50
percent of people in the streets, they might not
get it.
NFC is what a 12- or 18-month-old baby is
doing. With NFC, you point your phone in the
direction of something you want just like a baby
points a finger in the direction of something he
wants. Wave the phone in front of a poster
advertising a Bruce Springsteen or Police
concert, and a menu pops up on the phone:
Download a preview of the concert, buy an e-
ticket, etc. The telco makes money, it stimulates
impulse buying, and it is convenient. It is easy
and immediate. You don’t have to click 20 times
on a menu to get what you want.
What advice do you have for customers
considering adopting a new technology?
If you are a bank or a large retailer and you
want to push contactless technology, you need
to communicate that nothing is simpler than
pointing to what you want. The obstacle that you
still have is that this is still a change in the way
people do things.
I was in Boston 18 months ago, and I went
into a pharmacy with my Chase card. I saw a
contactless terminal and I was excited. I was
going to use it, and the clerk said, “No man, you
have to swipe the card.”
I waved my card in front of the terminal, and
the transaction was over in seconds. And the
clerk said, “Oh man, what did you do?” and was
showing his friends. One man behind the counter
knew about the contactless reader, but the clerk
did not.
Inside Contactless has always been considered
an innovator. What is next for the company?
World success, I say with a total lack of
modesty.
I do hope that what I said here is close to the
truth. One of the founders of Gemplus founded
Inside Contactless. He left Gemplus in 1995,
and I said he was crazy; it was too early for
contactless. In 2002 I became an Inside
Contactless investor, then a member of the
board. I became CEO in 2006.
The technology is right for this time. It has
been trialed in so many places — in geographies
and devices. And with NFC in mobile phones,
now it can serve the right people in the right
places and the right time.
It is a huge market. It is a world market. It is
not going to be easy. Basically if we consider our
partnerships and investments reasonably well,
we’ll have a place in the sun. Others will come,
to be sure. I
QAWITH INSIDE CONTACTLESS

12. 12 Cards & Payments • A Special Sesames Award Issue
HIGHTECH
LOW
TECHBY: FRANCINE DUBOISE
If you asked most anybody on the street whether
they believed their payment and ID card shared
anything in common, the answer would probably be
yes, if both are plastic (some countries still have
paper IDs) and have a magnetic stripe, a barcode, a
chip or a combination of those technologies. In
actuality, as industry insiders know, there are more
commonalities than one would think at first glance.
Take “contactless” for instance. In the last few
years, it’s been the darling of the industry. Very high
tech, lots of pizzazz! And you can find those chips
and antennas in e-passports, ID cards and payment
cards alike. What was the reason behind the
adoption of the technology?
With regards to ID applications, the purpose was
to increase security. The chip, to date, whether
contact or contactless, is much more secure
than any other technology for the purpose of
authentication and data security. After the initial
trials and errors of new implementations, there
are today more than half a billion passports that
need to be upgraded. Pretty impressive!
As for payment cards, contactless was all about
convenience for the consumer (and more spend at
the merchants). The trend started almost four years
ago and you can now pay by taping/waving your card
in Asia, the US and Europe. If we can save time by
not fumbling in our wallets for cash, or figure out how
to swipe a card at a POS — it’s a plus and from the
recent TV ads, it sure looks like they way to go.
And what about the product itself, i.e. the actual
passport, or card in which the chip resides? Adding a
chip to either increase security or convenience is
great for all parties, but what about the “basic” or
“core” security of the card itself? Does the chip bring
enough security that the rest doesn’t really matter
anymore? We all know that security is only as strong
as the entire system and after all, it’s our money and
our identity we’re talking about, and both of those are
priceless…. And we are very much aware of the high
price fraud victims have to pay.
Unlike the high visibility of “contactless “in the
media — it’s new, exciting and even controversial,
— the “basic” security of both payment cards and
ID documents is a key feature to both markets.
However, it isn’t talked about much and or, it is
talked about when it’s found to be lacking… i.e.,
when there is a security breach of some sort. Is it
because it’s taken for granted? Or not perceived as
“high tech”? The lack of media attention is
probably a good thing — no need to flood the news
with information on security features and keep the
bad guys informed, right?
Though security is a common denominator, the
levels of security and means of implementation are
very different because the products, their use and
the risks are fundamentally different.
For instance, while both types of cards have to
comply with similar ISO standards in some areas,
payment card plastics have some physical security
features, however their security is principally based
complex and powerful networks behind the scenes
meant to decline or authorize transactions. ID cards
on the other hand, tend to have very sophisticated
TRENDS IN
PAYMENT &
IDENTIFICATION
MARKETS

13. physical security features because people will
actually look at them and need to ascertain quickly
whether they’re genuine or not. You also need
enough features to make the cards very costly and
challenging to counterfeit.
Will those common trends continue, evolve and
maybe converge, or will both markets eventually
adopt drastically different technologies?
Everything leads to believe that Contactless is
here to stay, in both markets. And it might even
displace dual interface cards in the ID space or
Contactless smart cards in the payment market.
After all, it’s just as secure, more convenient and
readers require less maintenance. Implementation of
HSPD12 in the US ID market and Contactless pilots
in Europe will give a good indication of what the
future holds.
With regards to the “core” security, if we can all
agree that it will remain the underlying foundation of
both types of cards, the evolution will probably lead
to more divergence in implementation.
The payment world is seeing an increase in
card-not-present transactions, and therefore
network security will probably evolve faster than
the physical security of the card itself. The
innovative One Time Password (OTP) cards do
provide enhancements that address both network
and card security. On the other hand, the ID space
will most probably see an increase in physical
security features. As a matter of fact, in the US
Driver’s License space, the trend is to increase
security features yet ensure a common baseline,
making it easier for law enforcement to visually
validate a card’s authenticity. Providers of ID cards
are all introducing more complex card constructions
with banknote-like security features. For instance at
iDcentrix, we’re introducing a virtually counterfeit-
proof plastic ID card made with genuine banknote
paper. It could seem like a return to the basics or
even a step backwards, but don’t we all trust the
authenticity of the banknotes in our wallets? It’s
pretty amazing what you can do today to secure a
paper document and some of those features are
unique to paper.
So if we push the envelope a little, maybe we will
see the ultimate convergence of both markets, i.e. a
multi-application banknote-paper based plastic
contactless ID card with a payment application?
Ask anybody in the street if they would like that
card and chances are the answer will be “why not?”
Ask the same question to the industry insiders and
you’ll probably hear “no way!” I could write an entire
article on the issues of this type of multi-application
card, and I’m sure all of you can probably do that too.
Let’s wait for a few more Sesames awards and revisit
the topic in a few years, shall we? I
Francine Dubois is President & CEO of iDcentrix, a brand new
start-up focused on innovative ID card solutions. She has more than
20 years of marketing, communications, management, and
business development in the card and software industries. Before
joining iDcentrix, Francine was VP of Marketing, Financial Cards &
Services at Oberthur Card Systems, overseeing strategic marketing
in the Americas; managing global partnerships with Visa and
MasterCard and providing direction for the development of
contactless card products. Prior to that, she served as General
Manager at ASD Software Inc., a security software publisher. She
started her career as International Affairs Manager at Idessys, a
CAD-CAD software publisher in France.
Francine served on the Board at Smart Card Alliance, where she
was also the Treasurer of the Executive Committee and Co-Chair of
the Contactless Payment Council. She holds an MA in Translation
and Interpretation from ISIT in France.
“Everything leads to believe
that Contactless is here
to stay, in both markets.
And it might even displace
dual interface cards in the
ID space or Contactless
smart cards in the
payment market.
Cards & Payments • A Special Sesames Award Issue 13

14. 10Ten years ago, loyalty marketing programs faced a technological rebirth. Smart
cards were being adopted in the US, and rewards schemes were prophesied to be
the “killer app.” Coalitions would emerge and prosper, and perks providers would
fight for a bit of consumers’ chips. Individuals, it was foretold, would customize
their smart cards according to their lifestyle habits and brand preferences.
More recent messiahs of rewards and recognition have been seen in radio-
frequency identification and near-field communications technology. After all, Mobil
got a lot of consumers to request its Speedpass fob which need only be waved in
front of the gas pump to release fuel flow and authorize payment.
“Overall, I am disappointed to report that technology experimentation vis-a-vis
loyalty and the consumer is a pretty dead area, at least in the U.S.,” says Pete
Clark, technology director of Wise Research Ltd., Eastern Cape, South Africa.
“It just seemed to me there’d be better take rates on it,” Jim Kuschill, founder of
marketing technology consultancy Perfectly Targeted, Cincinnati, says of new-
fangled best-customer identifiers. “It’s certainly not anything that will put one
program ahead of another. It’s really just raising your cost of doing business.”
Program sponsors are damned if they do try new technology, but are they
damned if they don’t? Perhaps the pacing of loyalty marketing maturity is just
slower than expected.
The fine line between cool and creepy
“RFID has become unacceptable in the minds of consumers, largely thanks to
the ‘ID’ part,” Clark says. Metro Group, the parent of German wholesale clubs and
supermarkets, tried RFID-enabled loyalty cards. It abandoned the
implementation within three months due to consumer protests
and boycotts.
Consumer-sensitive technology developers and program
operators, therefore, have approached implementation in a
more familiar way. Gone from consumer communications are
the costly fobs and the four-letter acronym. Repackaged as a
common credit or debit card, technology got an abbreviated
abbreviation and promised real-time rewards at the point of
sale. Meet NFC.
“NFC is acceptable to consumers because it’s been
LOYALTY TECH
14 Cards & Payments • A Special Sesames Award Issue
THE FUTURE OF LOYALTY MARKETING, TAKE TWO
TECHNOLOGY IN THE
HANDS OF CONSUMERS
ISN’T HAPPENING
BY KELLY SHERMACH

15. Cards & Payments • A Special Sesames Award Issue 15
presented as fun, entertaining, promising
and beneficial, never mind that it’s
basically the same darned thing” as RFID,
Clark continues. “Most people recognize
that contactless payments are NFC, but
few realize that contactless payments are
also technically RFID,” he says. “If they
realized, many would run a mile from
contactless credit cards. A few have, but
not many.”
Still, adoption of contactless is slow,
Kuschill says. Retailers see little value in
swapping their current POS terminals for
contactless hardware, and consumers
continue to use cash at merchants
targeted by card issuers for contactless
— quick-service restaurants, convenience
stores, pharmacies, etc.
“There’s a little better take rate in
Asia,” he says. “They just love their
phones and are using their phones as
identification and payment devices. But
they don’t have anything they need to
replace.” Contactless cards in the United
States are relatively few when compared
with the ubiquitous mag-stripe technology.
So right now RFID is a no-no for
consumer loyalty offerings, but in the
future NFC/RF applications will be better
received. In the meantime, consumers
must be educated as to the safety of the
tags and the physical limitations of their
communication range, Clark says.
Obviously loyalty and payment card
marketers need to determine what they
have to gain and what they have to lose
by implementing technological innovation.
However, the consumer’s pros and cons
should be top of their priority lists.
“Until consumers understand that it’s
really not possible for ‘them’ or Big
Brother to watch your car keys or your
new wooly jumper’s tag from a satellite,”
Clark adds, “it’s going to be a rough road
for any loyalty operator that wants to use
RFID technology in any useful way.”
Looking leading-edge vs. delivering
leading-edge
Program sponsors should be able
to deliver unique value through the
technology they employ.
“The associated technologies that
facilitate loyalty programs — RFID, smart
cards, widgets, biometrics — started in
IT,” says Mark Goldstein, CEO of San
Francisco-based Loyalty Lab. “That they
are technically cool is a novelty that
makes them look leading-edge. That’s a
competitive advantage, not a unique
value proposition.”
Biometrics such as finger or retina
scans are going the way of smart cards in
the United States, he says. “Pay By Touch
is losing a lot of traction lately,” he says.
“Consumers dig the loyalty program but
ask, ‘why are you making me go through
this?’” He says that only one out of every
15 customers at some Pay By Touch-
enabled grocery stores use the finger
scan technology. At the same stores, nine
out of 10 shoppers belong to the loyalty
program.
“The best loyalty programs allow the
consumer to identify himself any which
way they want,” he says. Account
information should be stored on a
server accessed through a live Internet
connection at the POS, whether a
brick-and-mortar location or a Web site.
“Loyalty is made harder by adding other
technologies to it,” Goldstein says.
Programs are getting easier, cheaper and
quicker to deploy independent of
emerging identification tools.
“Do you really need incremental
technology?” he challenges. “Make sure
you can barbeque the burger before you
put all of the special sauce on it.”
Technology that the consumer can’t
see or feel … yet
“Program operators are improving their
technology, but more is behind the
scenes than in front,” Kuschill says.
“You’re starting to see more interesting
value propositions and the elimination of
the ‘always double points at blah blah
blah.’ This requires a more sophisticated
rules engine.
“It’s really about getting the right
message to the right person at the right
time and sometimes over the right
channel,” he continues. “Identification
devices and other kinds of technology, no
matter how clever, can usually be
replicated by the competition. The value is
the ability to use the data, to make
inferences from it.”
For different verticals, there are
different data-usage requirements.
Financial services providers, for example,
think about promotions and rewards
bonuses only once a quarter. However in
retail, a program is refreshed or extra
incentives are offered on a monthly basis.
In grocery, consumers receive different
deals each week.
“It’s only now that I’m actually seeing
some systems out there with general
availability that have rules engines
dynamic enough to run at the speed
of marketing,” Kuschill says. “That
technology is not deployed widely yet. I
thought eight years ago that it would be at
this point. Really, it’s going to be another
five years, six years for the majority of
programs to have enough technology and
the right technology to work in real time.”
Consumers do not see a long-term
benefit to a program with technical bells
and whistles nor will they choose one with
new-fangled technology over one that
meets the norm. “Until some program
pulls away with technology, way out in
front of the pack, I don’t see the
consumer making a conscious choice
away from one that doesn’t,” he says.
“I grew up in the technology space, and
I’d wished for those sorts of things.
But you’re going to see incremental
improvements in segmenting, targeting,
bonusing, etc. They will sneak up over
time,” he says. “It is really the backroom
that needs to get smarter and not
something that the consumer can see.” I
“Loyalty is made harder by adding other
technologies to it,” Goldstein says.
Programs are getting easier, cheaper and
quicker to deploy independent of emerging
identification tools.

16. Making payment
faster and more convenient
MULTI-BRANDING
•Visa
•MasterCard
•Discover
PERFORMANCE
ADVANTAGES
•Read distance
•Card orientation
•Speed
Resulting in...
Best Card Holder Experience
MULTI-APPLICATION
CAPABILITY
•Payment
•MicroLoyalty
•Transit
•Access & ID
FLEXIBLE
DELIVERY
with

17. Cards & Payments • A Special Sesames Award Issue 17
07
HARDWARE
Dan Balaban
Christian Goire
Catherine Johnston
Randy Vanderhoof
SOFTWARE
Gil Bernabeu
Yves Le Roux
Pierre Paradinas
Andrew Rowe
Fredy Yiap
IDENTIFICATION
Wendy Atkins
Mary M. Dixon
Mohammad Ali Doustari
IT SECURITY
André Grissonnanche
Jacques Pantin
Irmella Ruhrmann
TRANSPORTATION
John Hill
Greg Pote
Philippe Vappereau
BANKING/FINANCE/RETAIL
Oliver Hommel
Roberto Isaac Rodriguez Galvez
Kazuhiro Matsumoto
HEALTH CARE
Gilbert Abulafya
Frank Robben
Ramin Tavakolian
MOBILE
Michel Canitrot
Christophe Duverne
Carlos Melendo
E-TRANSACTIONS
Chris Corum
Didier De Lacretelle
Eric Nizard
CUSTOMER LOYALTY
Philippe Cessac
Rick Ferguson
Sanjay Dharwadker
Card Technology Magazine
JavaCard Forum
ACT Canada
Smart Card Alliance
GlobalPlatform
Computer Associates
INRIA
Card Technology Magazine
CardsNow!Asia
Biometrics Technology Today
Defense Manpower Data Center -DMDC
Scientific Green
AGCI
DICTAO
Federal Office for Information Security (BSI)
iBridge Programme Management
Asia Pacific Smart Card Association
RATP
National Association of German Cooperative Banks
FIMPE FIDEICOMISO
JCB
GIP - CPS
Crossroads Bank for Social Security
Central Research of Ambulatory Healthcare
Sim Alliance
NFC Forum
Telefonica Moviles Espana
Regarding ID Magazine
CONCERT International
ESTEEL
LaSer
Colloquy
The Smart Card Society
USA
France
Canada
USA
France
France
France
USA
Malaysia
UK
USA
Iran
France
France
Germany
UK
China
France
Germany
Mexico
Japan
France
Belgium
Germany
France
France
Spain
USA
France
France
France
USA
South Africa
JURY
Jury Participants Organization Country

18. 18 Cards & Payments • A Special Sesames Award Issue
Hardware
BlueSky Positioning/AGPS SIM
Claims to be the world’s first assisted-GPS module for
SIM cards. Working with GSM or 3G phones, forms a
complete network-assisted GPS receiver capable of
locating the handset quickly and accurately.
Inside Contactless/MicroPass L4-2G
Hardware design intended to provide optimum read
distance and requires minimal power consumption
for contactless bank card payment applications. Also
provides multi-payment brand support and features
a new open-software development environment.
NXP Semiconductors/
Ultra-thin SmartMX smart card IC
This smart card IC is 50% thinner than the industry
standard.The extra space can allow passport printers,
and inlay and smart card manufacturers more flexibility
to design solutions like extra protective material.
Software
Gemalto/UPnP Smart Card
Designed to enable connectivity among consumer
electronics and mobile devices. Allows users to
interconnect IP-enabled smart cards in their
domestic or enterprise networks without
cumbersome installation and setup.
Gemalto/SConnect
A technology that enables Web applications and
services to connect to any smart card, regardless
of platform or browser. Eliminates the need for
middleware and works with existing infrastructures.
Web-based service delivery lets applications leverage
smart cards for security and personalization.
VIVOTECH/ViVonfc Suite 2.0
AnapplicationplatformforcellphonescontainingNFC
technology.Allowscardissuers,serviceprovidersand
retailerstoprovidecoupons,giftandloyaltycards,tickets,
payment,andpromotionsintotheircustomers’cellphones.
Identification
DS Consulting/Contactless Card Reader
A card reader with two physical levels of
communication security.
International EFT Systems/Smart Pen Mouse
A pen-shaped mouse with a .NET smart chip that
can serve as a pointing device. Allows the user to sign
Web forms securely by handwriting the PIN with the
mouse. Also verifies how the PIN was written.
Iris Corporate Berhad/IRIS ST4ex
A mobile terminal made for the new generation
of chip-based identity cards. The design features a
rugged exterior and long battery life span.
Sagem Défense Sécurité/MorphoPath
A motion-detection device that can be installed in
existing electro-mechanical security gates at airports,
industrial sites, public-transportation buildings,
banks, and police and military headquarters. Uses
pressure sensors to make sure just one person passes
through a gate at a time.
IT Security
Oberthur Card Systems/Cardblade
Cardblade is a smart USB token cut and punched
into a card body like a SIM-Plug, with a larger
surface to support graphic designs and personalised
text. Cardblade can be plugged directly into a USB
connector to immediately offer all the functionalities
of a smart card. It can also be used as a contactless
device for physical access control.
Sagem Défense Sécurité/Sagem Ypsid e-1
The Ypsid E1 strong authentication device is the
solution to fight identity theft on the web. User-
friendly, the TurnOn™
technology enables it to
transmit without input a one-time password to the
site, from any PC connected to the web. Based on
certified smart card technology, this USB device
authenticates the web site beforehand.
Vasco Data Security/Digipass 840cv
Smart card-based e-security for the blind and
visually impaired. Features include speech-based
user interface, speech-based feedback of entered
data and selected functions, and e-signature and
one-time password.
Transport
ERG Group/ERG Systems5000-UTA
Ski Service Pilot
System used to accept a contactless credit card at fare
boxes on the bus system that serves Salt Lake City,
Utah, ski resorts. Also allows customers to use smart
cards for fare payment and ski resort access.
Kentkart Edge Electronik/KV150 Validator
KV150 is a smartcard reader for transportation, parking,
exhibition, event ticketing. It is an intermodal payment
terminal among different mass transit vehicles like
metro, ferry, tram, bus and LRT . KV150 accepts
various customer media like Mifare (1K, UL, Desfire),
Innovision Jewel, JCOP, MC Paypass, Visa PayWave,
and Contactless Mobile Payment.
Ultrapay/UltraPay MT3000
Mobile card reader used primarily in the taxi and
limousine market that accepts cards and contactless
payment. Also has fingerprint recognition and
doubles as a phone with SMS capabilities.
07FINALISTS

19. Cards & Payments • A Special Sesames Award Issue 19
Banking/Finance/Retail
Atos Worldline/SIPS IPTV
Soon, consumers will use a remote control to view
e-services on TV screens. SIPS, an electronic
payment for IP-TV, will allow them to pay with
credit cards in total security, the maker says.
Oberthur Card Systems/MoneyIC Visio Fly
These contactless cards offer proximity and magnetic
stripe (contact) payments. Designed for non-EMV
markets, such as the United States.
Oberthur Card Systems/SIMphonIC FlyBuy Duo
This Java Card can work on 2G and 3G networks.
Provides strong platform for rolling out 3G applications.
Advanced version provides additional flexibility in post-
issuance card management and application development.
Health Care
aZensys Industries/PIM
A mobile personalization platform that allows
organizations to issue smart cards or smart objects
regardless of place or time. Also provides services that
users can customize.
MXI Security/Stealth MXP
A USB-powered portable security device for users
who need 2-factor or 3-factor authentication
(biometric, password or both) and can satisfy the
need for secure portable storage.
Xiring/PRIUM-3S
A desktop reader designed by and for healthcare
professionals such as doctors and pharmacists. It is the
first three-slot reader that secures transactions with
three signatures and three cards at the same time.
Device reads and processes the healthcare professional’s
card, the patient’s card and insurance card.
Mobile
BlueSky Positioning/AGPS SIM
Claims to be the world’s first assisted-GPS module
for SIM cards. Working with GSM or 3G phones,
forms a complete network assisted GPS receiver
capable of locating the handset quickly and accurately.
Gemalto/MySharedProfile
A tool for strengthening social networking through
dynamic update of phonebook content. Allows for the
exchange of personal information where users themselves
define the grounds for updating personal details.
Oberthur Card Systems/SIMphonIC FlyBuy Duo
This Java Card can work on 2G and 3G networks.
Provides strong platform for rolling out 3G
applications. Advanced version provides additional
flexibility in post-issuance card management and
application development.
Simulity/Smartcard Web Server Script
Allows Web application designers to use Smartcard
security features and personal-settings storage
capabilities in dynamic Web pages with no
knowledge of inner Java Card programming.
e-Transaction
NXP Semiconductors/Secure Display Card Inlay
A contactless smart card IC that combines advanced
security features with fast transaction speed and
greater flexibility. Supports the advanced encryption
standard and common cryptography methods, such
as DES and 3DES. Features advanced cryptographic
engines for data transmissions.
Tagattitude/AudioTag
An application platform that uses a customer’s
mobile phone for secured authentication of the
customer and online communication with the
payment-service provider. Turns any mobile phone
into a secure payment card without modifying
hardware or downloading software.
Unipay’s/MaâtCard
Claims to be the first prepaid bank card that can
be used for multiple functions, such as transferring
funds, purchasing products online and optional
services that could include buying music and movies.
An acoustic chip embedded in the card and a PIN
code allow for double the security.
Loyalty
Gemalto/Dexxis Instant Issuance
An application that allows banks and retailers to
issue personalized cards directly at their branches
or at the point of sale. Features the same level of
security as traditional personalization centers.
Oberthur Card Systems/PayPlume
Based on a USB key contactless, it allows a secure
online transaction. Software is downloaded in the
USB key, which changes through its contactless
interface into a payment terminal.
Tagattitude/AudioTag
An application platform that uses a customer’s
mobile phone for secured authentication of the
customer and online communication with the
payment-service provider. Turns any mobile phone
into a secure payment card without modifying
hardware or downloading software.
07 FINALISTS

20. INTERNATIONAL SALES DIRECTORS
Europe-Asia
Bernard Pingree
bernard.pingree@infopac.fr, 33 (0)1 46 00 66
Jean-Charles Abeille
jcabeille@infopac.fr, 33 (0)1 46 43 00 66
Germany-Austria
Elmar Gauf
gaufundgauf@t-online.de, 49 617 198 16 60
Netherlands
Dianne Biederberg
info@cemedia.nl, +31 20 6246 572
North America-Latin America
Theresa Cryns
+1 312 983 6137