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Stephen Wilson

Stephen Wilson in Lockstep

Stephen Wilson - Lockstep Group

34Posts 134,612Views 174Comments
A post relating to this item from Finextra:

United Nations Federal Credit Union taps Gemalto for globally compliant card

13 May 2010  |  5144 views  |  0
Gemalto, the world leader in digital security, today announced it has been selected by the United Nations Federal Credit Union (UNFCU) to deliver the first U.S. issued, globally compliant microprocess...

Lateral business cases for EMV in the US

16 May 2010  |  3374 views  |  1

The announcement that a US credit union will be the first to issue EMV cards proves there is more than one way to make the business case for chip. The United Nations Credit Union says it wants its customers to be able to use their cards when travelling. 

Too often we're told that chip is uneconomical in the US because of the huge cost to upgrade all retail merchant sites.  But that assumes there is just one purpose for chip: to combat skimming and the use of cloned cards in POS terminals.  As the UNFCU shows, chip card issuance in the US can be decoupled from the merchant enablement issue; benefits can be realised without touching a single US bricks and mortar merchant. 

And the chip platform, being multiprogrammable, has other numerous other potential uses to be exploited by innovative institutions.  The cryptographic engine built into EMV cards can be put to use to digitally sign online transactions to prevent Card Not Present fraud.  Pure play cyber merchants could push for chip cards as the preferred means for safeguarding customer identity and account details.  This kind of POS terminal-at-home application using connected readers is actually more feasible in the US which leads the way in smartcard reader innovation, thanks to the penetration of FIPS 201 ID cards.



Comments: (1)

Nick Collin
Nick Collin - Collin Consulting Ltd - London | 21 May, 2010, 09:55

You make a good point Stephen.  Remote Chip Authentication via EMV chip payment cards in simple personal readers is now widely deployed for secure e-banking in Europe, and we are just beginning to see the same approach being used to extend 3D Secure authentication of e-commerce transactions, with deployment by major banks in the Nordics, Benelux and the UK.

I get the feeling that one way or another the US is finally going to adopt EMV chip, sooner rather than later, and when it happens it will happen quickly.

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job title Managing Director
location Sydney
member since 2008
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I specialise in digital identity, privacy, smart technologies and fraud prevention. I run the Lockstep Group, which researches and develops innovative solutions to Card Not Present fraud and identity...

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