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| Subject: Sagem SA--chip-based banking cardsGroupement des Cartes Bancaires.15/1/03 | |
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Author: 10% owner of Gemplus (with 26% of Gemplus Capital TPG) |
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Date Posted: 19:30:52 01/18/03 Sat Sagem Wins Key Smart Card Contract France-based electronics company Sagem SA has firmed up its credentials as a player in the smart card industry with it’s recent contract to develop the operating software for the next generation of chip-based banking cards in France. The contract win, announced Tuesday, follows Sagem’s purchase in December of a 10% stake in Gemplus International SA, one of the industry’s largest card vendors. Sagem competed with Gemplus and other vendors for the coveted contract, awarded by French banking association Groupement des Cartes Bancaires. French banks were the pioneers in chip-based banking cards and a contract to develop the operating software, or mask, for the French "CB" card gives the winning vendor bragging rights in the industry. Provided Sagem fulfills its end of the contract, it means other card vendors wanting to manufacture French banking cards will either have to license the software from Sagem or develop their own mask and pass Cartes Bancaires’ rigorous evaluation process. Development costs can run an estimated 2 million euros (US$ 2.1 million), funded entirely by the vendor. At least one vendor, reportedly Oberthur Card Systems, was planning to develop its own software mask. The contract win means Cartes Bancaires will fund all or most of the development cost for Sagem. The software will run on debit, deferred debit and credit cards issued by CB banks, probably starting in late 2004 or early 2005. The cards will comply with international EMV specifications and support a more secure authentication method than EMV cards now being issued by banks in selected countries around the world. This more sophisticated method, called dynamic data authentication, will require the chips to pack a power-boosting co-processor to produce a unique digital signature with every transaction. This is designed to thwart counterfeiting of the cards. French banks plan to start issuing their first EMV cards this year carrying the less-secure authentication method. All told, banks have about 45 million chip-based banking cards in circulation, which carry the country’s domestic mask and banking application. Sagem, in a statement, said the contract "confirmed its determination to consolidate its position in the banking and finance sector through chip card technology, as well as with a wide range of services and payment terminals." At present, the vendor ships a relatively small number of smart cards and is better known in the industry for its Morpho-brand fingerprint biometrics technology. Sagem won the CB project using prototype software developed on chips supplied by U.S.-based Atmel Corp. Gilles Michel, the top banking card segment executive with Gemplus, which two years ago won the contract to develop the operating software for the current generation of CB cards, says Sagem’s win left other vendors a "bit surprised." But he doesn’t consider Sagem a major competitor outside of France. "They are not a global banking card manufacturer." ( 2003-01-15 ) [ Next Thread | Previous Thread | Next Message | Previous Message ] |
| Subject | Author | Date |
| chip-based banking cardsGroupement des Cartes Bancaires.15/1/03 | Superdog----called dynamic data authentication | 00:01:23 01/19/03 Sun |