Enhanced Smart Card Security

GTE and Schlumberger Electronic Transactions today announced a strategic alliance for the development and marketing of security solutions for use with smart cards. The resulting products will combine the security features enabled by public key cryptography – digital certificates, digital signatures and data encryption – with the convenience and portability of smart cards.

Smart cards look like credit cards, but contain an embedded computer chip that provides processing power and memory for storing information. They can be used for such applications as network security, mobile telephone communications, electronic banking, retail shopping and much more. When used in conjunction with a password or personal identification number (PIN), smart cards are suitable where access control and data security are critical issues, such as in online banking. Digital certificates provide smart cards with a verifiable form of identification.

“Because of their portability and processing power, the new generation of smart cards allows secure, user-friendly applications to be conducted from almost anywhere. Smart cards will be used for such diverse activities as purchasing a cup of coffee or identifying oneself to a corporate network for remote access from any location,” said Tom Carty, vice president of Marketing and Business Development, GTE CyberTrust Solutions Incorporated. “Together, GTE and Schlumberger seek to deliver this kind of versatility along with the peace of mind that goes with secure transactions.”

“Reliable identification and establishing trust are the keys to the growth of online business activities and electronic commerce,” said Louis Bisasky, general manager of Schlumberger Smart Cards and Systems, North America. “Digital certificates provide identification suitable for this environment, and smart cards, which are small, personal and portable, are the ideal place to store them.”

The two companies plan to integrate GTE’s CyberTrust(TM) digital certificates and Safekeyper(R) Certificate Management System with cryptographic smart cards from Schlumberger. Schlumberger’s Cryptoflex(TM) smart card, announced late last year, will be used in the initial product offering. It is a specialized smart card that supports cryptographic functions, such as digital signatures, as well as secure private key and digital certificate storage, which can be used to secure electronic mail and other communications.

GTE CyberTrust digital certificates provide electronic transactions with a verifiable form of identification and data integrity. Distributed by a trusted third party known as a Certification Authority (CA), digital certificates contain identifying information that cannot be forged or altered and a private encryption key unique to the certificate. Any information exchanged in a transaction is protected by encryption and a digital signature.

The GTE Safekeyper Certificate Management System (CMS) is a fully integrated family of products that provides high-assurance security to create, issue, renew, validate and revoke digital certificates. Developed by BBN, a wholly owned subsidiary of GTE, Safekeyper CMS is designed around a flexible, distributed highly secure architecture and provides all the elements required to manage an effective public key infrastructure.

Using a smart card is similar to using a bank ATM card. The card is inserted into a special reader that interfaces with the embedded chip, and the user enters a password or PIN. As long as the card is in the reader, the user can log into his or her corporate network, access files, open private documents, send encrypted messages, and update the information contained in the smart card.

About GTE

With revenues of more than $21 billion in 1996, GTE is one of the largest publicly held telecommunications companies in the world. In the United States, GTE offers local and wireless service in 29 states and long-distance service in all 50 states. GTE was the first among its peers to offer “one-stop shopping” for local, long-distance and Internet access services. Outside the United States, where GTE has operated for more than 40 years, the company serves approximately 7 million customers. GTE is also a leader in government and defense communications systems and equipment, directories and telecommunications-based information services, and aircraft-passenger telecommunications. Additional information about GTE can be found on the Internet at [http://www.gte.com.][1]

About Schlumberger Electronic Transactions

The Schlumberger Electronic Transactions group of Schlumberger, Ltd. (NYSE:SLB) is the world’s largest supplier of cards, terminals, development tools and management systems across the entire range of magnetic and smart card applications. The company offers its customers The Smart Village(R), a flexible portfolio of smart card-based solutions for businesses and communities of all sizes, including the telecom, banking, retail, mass transit and parking, and healthcare sectors.

Schlumberger is a pioneer and leader in smart card technology, recently introducing Cyberflex(TM), the first ever smart card to use the Java(TM) card API from JavaSoft, and Cryptoflex(TM), the first smart card to support strong public key cryptography.

The North American operations of Schlumberger Electronic Transactions are headquartered in Moorestown, New Jersey. The company has its US-based research and development, marketing, and manufacturing operations in Austin, Texas, San Jose, Calif., Owings Mills, Md., and Chesapeake, Va. Additional information about Schlumberger Electronic Transactions can be found on the Internet at [http://www.slb.com/et.][2]

[1]: http://www.gte.com
[2]: http://www.slb.com/et

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Gemplus Campus Smart Card

Gemplus Corporation (Gemplus) today announced the availability of the first ever GSM- based multi-application smart card for the university market. The card carries both electronic purse and GSM (Global System for Mobile Communications) functionality on the same chip.

Students using the card will be able to make such “small change” purchases as paying for photocopies or buying sodas from a vending machine using the electronic purse application. They will also be able to use the card to make calls from a GSM phone or at a payphone, and to securely access the university network to get a copy of their grades.

The card was developed with CyberMark, a smart card systems integrator targeting the university market. CyberMark’s multi- function campus smart card offering will now expand to enable schools to link up with area GSM telephony networks.

“This new card, for the first time, makes it possible for GSM network operators to tap into the potentially lucrative university market with its heavy phone useage,” said Philippe Martineau, director of Gemplus’ telecommunications business division for the Americas. “In the near future, we will see this closed system concept extended to corporate campuses, resorts, and stadiums.”

Gemplus will have a “live” demonstration of the new multi- application card at their booth (No. 18189) at PCS’97 in Dallas, Texas on September 10-12.

Gemplus Corporation is the North American subsidiary of Gemplus Group, the world’s leading producer of magnetic stripe and smart cards. Gemplus Group supplies SIM cards to more than 120 GSM operators worldwide, and is the largest supplier of SIM cards to the U.S. PCS market.

The company manufactures and sells memory cards, microprocessor cards (both contact and contactless), magnetic stripe cards, as well as electronic tags. It also designs and markets software, terminals and systems; and provides personalization, consultancy and training services to offer its customers comprehensive solutions.

In 1996, Gemplus Group’s total sales were $440 million. By the end of 1997, the company will have a production capacity of 900 million plastic and smart cards.

Gemplus sells its products worldwide for such applications as public and cellular telephony, financial transactions, loyalty, transportation, education, healthcare, gaming, identity, access control, pay TV, security for computer networks and electronic commerce. Information about Gemplus’ products and services can be found on the World Wide Web at: [http://www.gemplus.com.][1]

CyberMark provides smart card solutions, integration, card issuance, and application development services for higher education, corporate campuses, government entities, stadiums, and resorts. Information about CyberMark can be found on the World Wide Web at: http://www.cybermark.com, or by calling Chris Corum at 850-561-1055.

All trademarks are the property of their respective owners.

[1]: http://www.gemplus.com

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Integrion’s First Birthday

Integrion celebrates its first anniversary today. Yesterday the E-commerce network noted key developments including the introduction of the ‘Gold Message Standard’, an open messaging protocol designed to facilitate the electronic exchange of data between financial institutions and their customers. On August 25, Integrion purchased Visa Interactive, expanding its customer base by more than 60 financial institutions.. Integrion points to two other first year milestones: the launch of the Gold Alliance Center and Development of the Interaction Financial Services platform.

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New Generation of Convenience Users?

A new study shows that 61% of students responsible for paying their credit card bills pay the whole amount each month. The ‘1997 Phoenix Student Fiscal Fitness Survey’ of 1,200 students nationwide also revealed that 24% of students have a credit card for personal use with 77% being the sole bill payers. Only 15% say their parents pick up the tab.. Interestingly, while three in five said having enough money is important to their happiness, 74% said not owing money was very important.

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SmartPay Wireless Signs New Carrier

United States Cellular(R) Corp. (USCC), the eighth largest cellular provider in the United States in terms of population equivalents, has become the latest carrier to adopt the SmartPay Wireless(TM) prepay product.

In addition to SmartPay, United States Cellular has switched its denied roaming service to American Roaming Network. Both SmartPay and American Roaming Network are products offered by Dallas-based National Telemanagement Corp. (NTC).

United States Cellular has begun deployment of its prepay service known as TalkTracker, in its South Texas markets and expects to roll out TalkTracker in several additional markets over the next six months. TalkTracker allows United States Cellular to meet the needs of new customer segments such as those who are unwilling to sign long-term contracts, concerned about controlling their wireless spending, or without perfect credit records.

With NTC’s SmartPay system, United States Cellular TalkTracker subscribers will have seamless, automatic roaming in all of the company’s coverage areas, as well as in the areas served by the American Roaming Network roaming partners.

When roaming in these American Roaming Network areas, the dialing pattern for the SmartPay subscriber is the same as it is for a traditional cellular subscriber; there are no additional digits to dial and charges are deducted real-time from the subscriber’s prepaid account.

The call is disconnected when the account balance reaches zero, even if the subscriber is roaming at the time. The NTC equipment is installed at each USCC switch, eliminating the need and expense associated with backhauling each call.

“United States Cellular selected NTC as its prepay vendor for three reasons,” said Patrick Herron, director of product and business development for United States Cellular. “NTC provides a superior technical solution. They enable true prepaid roaming and their solution allows United States Cellular to provide its own customer service, which is critical to our mission to be the first choice service provider in the wireless industry.”

“TalkTracker will provide a great lift for all our distribution channels,” said Sean Alexis, product development manager for United States Cellular. “Our service is easy for customers to understand. It works on any phone and it’s priced fairly. Customers have responded well to TalkTracker in South Texas and we anticipate excellent results in the rest of our markets.”

To initiate TalkTracker service, a consumer either brings in or purchases a cellular phone and establishes an account at a United States Cellular store or participating authorized agent. Immediately, the customer may place and receive calls like a traditional cellular customer. There are no PIN codes to enter, no debit cards to buy, and the subscriber does not forfeit unused funds after a predetermined period.

Replenishing the account is simple and can be done at any TalkTracker sales location or participating SmartPay replenishment location including check cashing and convenience stores. Customers may also add money to their accounts automatically using a credit card as they make calls through NTC’s voice response unit.

TalkTracker customers are reminded of a low account balance once it reaches a set level, or they can check their balance at any time by dialing #369 from their cellular phone.

“Convenience is the key,” said Roger Boivin, executive vice president for National Telemanagement. “Our experience has shown that allowing prepaid subscribers to automatically roam and having locations to replenish their account while roaming can significantly increase carrier revenue and lower churn.”

The SmartPay system allows carriers to establish a variety of calling plans for home use and roaming, and to offer peak/off-peak pricing, free minutes and free calling on holidays. The system also can be partitioned for resellers.

“We are extremely pleased to welcome United States Cellular to the growing family of SmartPay Wireless providers and to American Roaming Network,” said Boivin. “This agreement greatly broadens the availability of SmartPay and significantly increases the coverage area for automatic prepaid roaming.”

United States Cellular, based in Chicago, manages and invests in wireless systems throughout the country. The company provides service to more than 1,328,000 customers in 141 markets and owns interest in 50 additional markets. United States Cellular’s common stocks are traded on the American Stock Exchange under the symbol USM.

National Telemanagement Corp., based in Dallas, established since 1985, provides a variety of telecommunications services to the wireline and wireless communications industries. NTC also provides unregistered cellular roaming services nationwide via its American Roaming Network. SmartPay is its prepaid product offering.

SmartPay Wireless is a trademark of National Telemanagement Corp.

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128-Bit Banking Crypto Goes Global

Microsoft has unleashed its worldwide online secure banking solution which employs 128-bit encryption technology. The U.S. government previously limited exportable financial data software to 64-bit encryption. Earlier this year MS obtained a U.S. Dept. of Commerce license to issue 128-bit digital certificates and to deploy its ‘Server Gated Crypto’ online banking solution internationally. More than twenty major international banks have indicated they will use the MS ‘SGC’ solution, including Wells Fargo, Bankers Trust Australia and Inverlat of Mexico. ‘SGC’ is an extension of the ‘SSL’ security protocol and enables a bank’s server to switch on 128-bit encryption if the proper digital certificate is available.

![][1] Microsoft also started shipping its ‘Internet Finance Server’ toolkit, formerly code-named ‘Marble’ Tuesday. More than 70 financial institutions have agreed to implement the toolkit including CoreStates, Paine Webber and Wells Fargo. The toolkit will be integrated with existing legacy systems and will enable customers to execute transactions over the Internet using ‘Open Financial Exchange’-based clients.

[1]: /graphic/microsoft/microsoft.gif

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Mobile Mondex Payments

M.A.I.D plc have signed a commercial contract with Unisource NV to provide business news to mobile devices. The Project initially will enable users of the Nokia 9000 Communicator mobile phone to download NewsSearch Pro, a news-alerting product developed exclusively for the Unisource partnership, on a pay-per-view basis. NewsSearch Pro utilises the Smart Access payment technology system designed by Unisource. The Smart Access Pilot is being showcased this week by Nokia at Telecom Interactive ’97 in Geneva, Switzerland.

Each of the Nokia 9000 users will receive a NatWest bank account available through a Mondex card. In the trial, users can access their bank accounts, deposit, withdraw cash and check the balance their accounts. They also are able to pay for the M.A.I.D?s NewsSearch Pro service and buy new software applications for their Nokia 9000 Communicators over the web, using the Mondex card.

The user inserts the Mondex card into the smart card reader, plugs the reader into the Nokia 9000 Communicator and downloads the credit over the air. The money can then be used for live, online payments over the Internet whilst mobile.

Dan Wagner, Chief Executive of M.A.I.D plc, said; “The Unisource Smart Access technology provides a way to generate revenue from mobile data devices, complementing and extending our subscription services. Having provided a free quote service to mobile phone users for nearly a year, we are enthusiastic about the opportunities for generating revenue through the advent of new technology and the fast growing mobile marketplace”

Julian Wilson, Director Smart Access of Unisource, said; “M.A.I.D have used our software to enable a pay-per-view business service for mobile users. I applaud M.A.I.D’s ability to optimise their business intelligence service for this new expanding customer base. We look forward to extending this to additional Internet access devices supported by new smart card purse schemes.”

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OrderStream Software Upgraded

CONNECT, Inc. (NASDAQ:CNKT), a leading provider of business-to-business electronic commerce application software, today announced the immediate availability of OrderStream 2.0, the newest update to its award-winning, high-end, packaged Internet commerce application.

CONNECT also announced the immediate availability of the OneServer 2.5 electronic commerce application development platform which will be bundled with OrderStream 2.0 and also sold as a separate product. These two new releases round out one of the most comprehensive electronic commerce product offerings in the market today.

CONNECT OrderStream 2.0 makes it easier to link to EDI and other back-end systems such as SAP R/3 with the addition of the CONNECT Information Exchange Gateway (IEG), which is based on TSI International Ltd.’s data-transformation and mapping tool, Mercator. Other new enhancements include payment capabilities supporting most credit and procurement cards, full support for ActiveX and an easy-to-use catalog administration tool that simplifies the creation and enhancement of Web-based catalogs. With the fully integrated OneServer 2.5 development environment, rich sell-side functionality, easy integration to back-end systems, and the CONNECT Application Workbench for developing, monitoring and maintaining applications, OrderStream 2.0 is the only truly complete and turnkey electronic commerce solution on the market.

According to Ken Ross, executive vice president of development and chief technical officer, CONNECT, Inc: “Over the last five years, large corporations have come to expect leading application vendors to offer faster deployment time, back-end integration, compliance with the latest standards and technologies and a full set of tools to support their products. With OrderStream 2.0, CONNECT is now the first electronic commerce application vendor to adopt this approach and we expect it to add significant value to our market-leading technology. As the market matures, other vendors in our class will be expected to offer this type of end-to-end solution.”

Highlights of Major Enhancements in OrderStream 2.0:

Information Exchange Gateway (IEG) for Back-End Integration

Available as an option, CONNECT’s IEG minimizes the time needed to integrate with back-end systems, enabling the OrderStream application to go live quickly and providing a faster return on investment. For companies looking to link to EDI, ERP and other legacy applications for purchase orders and order status, IEG provides a gateway that includes TSI Software’s Mercator pre-integrated into OrderStream.

“The rapidly growing business-to-business electronic commerce market demands expeditious order fulfillment,” said Connie Galley, president and CEO, TSI International Software Ltd. “By featuring the seamless back-office integration of TSI Software’s Mercator, CONNECT OrderStream continues to be a powerful option for enterprise-class electronic commerce.”

CONNECT Catalog Administration Tool

CONNECT’s Catalog Administration Tool provides non-technical users with an easy-to-use, intuitive way to create and manage catalogs within the OrderStream 2.0 application. While users can create customer-specific catalogs that automate contract-based purchases, administrators can also use the tool to enhance simple product data with additional Web-based multimedia richness such as pictures and longer text. Written entirely in Java and based on the recently announced CONNECT Application Workbench, the Catalog Administration Tool runs on both Windows 95 and Windows NT.

Credit Card Server Integration for Enhanced Payment Options

OrderStream 2.0 also adds value to the end-user by offering the ability for customers to pay for their orders with most credit cards and procurement cards. Both simple authorization only and full authorization and settlement are supported. In addition, authorization can be configured for any amount and incoming orders can be examined for completeness.

E-Mail Notification for Order Status and Approval

In today’s business climate, buyers don’t always have time to call and check on their order. With OrderStream 2.0, buyers can be notified by any standard SMPT-based e-mail system regarding the status of their order and approval routing.

Highlights of Major Enhancements in OneServer 2.5

Included in OrderStream 2.0 is CONNECT’s OneServer 2.5 development platform. OneServer 2.5 offers a foundation for developing high-end electronic commerce applications and is also available as a separate product. OneServer 2.5 includes two new key features, the OneServer X-Bahn and the OneServer Open Object API.

Similar to the OneServer J-Bahn for Java, the OneServer X-Bahn, is an ActiveX control offering full support for building ActiveX applications. The control can be used in both visual and non-visual scripting environments (such as Visual Basic for Applications). Designed to facilitate easier customization and integration, the OneServer Open Object API is a high performance, open interface to define and extend objects within the OneServer environment. It can be used for real-time integration to existing enterprise systems and to customize OrderStream 2.0, without having to use cumbersome Common Gateway Interface (CGI) scripting.

CONNECT Application Workbench for Managing the Application Lifecycle

Announced last month, the CONNECT Application Workbench, an end-to-end solution for managing the application throughout its lifecycle is available as an option in OrderStream 2.0. The CONNECT Application Workbench provides extensions to three third-party tools: CONNECT Object Designer, based on Rational Rose for drag-and-drop creation of OneServer objects; CONNECT Application Component for Java (ACE), based on Marimba’s Bongo for rapid creation of Java-based, back-office administrative tools; and CONNECT Reporting Tools for advanced gathering of business intelligence with reports from COGNOS’ Impromptu desktop reporting and PowerPlay OLAP tools. Fifteen standard buyer and seller reports are provided in OrderStream 2.0.

CONNECT’s Application Workbench also includes two CONNECT- designed tools: CONNECT Site Manager for distributed management of application loading and staging and faster modification to all CONNECT applications; and CONNECT Operations Monitoring Console for comprehensive monitoring of all critical application and server functions such as performance, load balancing and bottlenecks.

Pricing and Availability

CONNECT’s OrderStream 2.0 is available immediately and is priced on a per processor basis beginning at $100,000, which includes a license for OneServer 2.5. The CONNECT IEG starts at $25,000. A version of the IEG supporting SAP R/3 is also available, although pricing has not yet been determined. CONNECT’s Application Workbench is priced at $5,000 per CONNECT application for an unlimited number of seats. The third party applications themselves will be available directly from Rational, Marimba and Cognos respectively or through their authorized resellers. CONNECT OneServer 2.5 is also sold separately and begins at $90,000 per processor.

About CONNECT OrderStream

CONNECT OrderStream, built on CONNECT’s OneServer architecture, is an end-to-end, business-to-business electronic commerce application designed to solve complex business challenges and support key functions necessary for large-scale interactive commerce, including: adaptive response, user registration, personalized catalog and content management, dynamic merchandising, order capture and management, security, payment processing, enterprise integration and systems administration.

About CONNECT OneServer

CONNECT OneServer provides a foundation to develop high-end, business-to-business electronic commerce applications. OneServer incorporates the Oracle 7.3 database, the Netscape Enterprise Server, the Fulcrum text search engine and a five-layer security model using RSA protocols and VeriSign digital certificates. It fully supports both Web browsers and custom client applications, such as Java and ActiveX. The OneServer architecture reduces the amount of custom code and CGI scripting necessary for dynamic site content, resulting in rapid time-to-market for enterprise-class electronic commerce applications.

About CONNECT, Inc.

CONNECT designs, develops, markets and supports enterprise application software for electronic commerce. Its software applications, OneServer, OrderStream and PurchaseStream, allow global companies to automate order capture, build customer intimacy and streamline distribution and supply chain processes.

CONNECT’s end-to-end software solutions are designed to reduce the time and overall cost for businesses to implement and maintain secure and industry-standard sales, marketing and order capture capabilities on the World Wide Web to support large numbers of customers, products and transactions. These solutions reduce costs, increase market share, improve customer satisfaction and enhance demand chain visibility. For more information, telephone 800/262-2638 or access the CONNECT World Wide Web site at [http://www.connectinc.com .][1]

[1]: http://www.connectinc.com

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Integrated Debit, Credit & Mondex

International Verifact Inc. and Royal Bank of Canada announced today that they will install Canada’s first complete electronic payment solution for debit, credit and Mondex smart cards in Guelph, Ontario.

Guelph was the first city in North America to be chosen for a community-wide launch of the Mondex system. The launch has been under way since February 1997, and nearly 600 merchant outlets are participating.

The payment solution to be installed in Guelph is an innovative approach to handling Mondex and traditional card payments while preserving the hardware and software base that Royal Bank merchants have invested in. A new IVI PIN (personal identification number) Pad will be attached to Royal Bank terminals to accept the Mondex smart card as well as to allow PIN entry for debit transactions.

“Consumers will either insert their Mondex card into the hand-held `PIN Pad’ to complete a smart card transaction or enter their PIN to complete a debit transaction,” said Frank Moore, Vice President, Merchant and Point of Sale Service, Royal Bank. “We believe this will increase user acceptance of the new solution because consumers do not have to adapt to an unfamiliar process.”

IVI is using a newly-developed PIN Pad that interfaces with Royal Bank’s existing hardware. The PIN Pad was developed jointly by IVI and their strategic partner, Ingenico S.A. of Paris, France.

“When you bundle the unique designs and small card capabilities of Ingenico with IVI’s PIN security and Canadian point-of-sale software expertise, as well as with Royal Bank’s support and knowledge of Mondex payment technology, you come up with a winning combination for advanced card technologies and traditional POS solutions,” said L. Barry Thomson, IVI’s President and Chief Executive Officer.

Royal Bank is a member of Royal Bank Financial Group, one of North America’s largest financial institutions and Canada’s leading provider of traditional banking services, investment banking, investment management, and securities custody.

IVI is engaged in the design, development and sale of electronic payment solutions for retailers, financial institutions, governments and other businesses. IVI’s hardware and software products include point-of-sale debit/credit/EFT/EBT terminals, check readers, smart card readers, POS printers, and secure PIN entry devices. Additional company information is available on the IVI website at [www.ivinet.com.][1]

[1]: http://www.ivinet.com

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