1. The SI Perspective Martin.Reilly@hitachi-eu.com Senior Consultant September 2003 01628 585754 www.hitachi-eu/egov

2.  e-Purse  Business Case  Types of Scheme  Standards  SI Perspective  Future  Questions… Agenda

3. e-Purse Argentina, Australia, Austria, Bahrain, Belarus, Belgium, Brazil, Bulgaria, Canada, Chile, China, Colombia, Costa Rica, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Finland, France, Germany, Ghana, Greece, Guatemala, Honduras, Hong Kong, Iceland, India, Ireland, Israel, Italy, Ivory Coast, Japan, Kazachstan, Kenya, Kyrgyzstan, Latvia, Lithuania, Luxembourg, Malaysia, Mali, Malta, Mexico, New Zealand, Nigeria, Norway, Philippines, Poland, Portugal, Puerto Rico, Romania, Russia, Singapore, Slovakia, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, Tunisia, Turkey, Ukraine, United Kingdom, United States, Uruguay, Venezuela, the Netherlands A-Cash, American Express, Avant, Balcard, CAFÉ, CASH (Switzerland), Cartao Inteligente, Cash (Sweden), CashCard (Singapore), Chipknip, Chipper, Clip (Europay), Danmønt, ECard, ESCA, Easy Card, Edy, Electronic Cash Bradesco, Electronic Cents Purse, Euro 6000, Exact, Futura 3000, GeldKarte, Hi-Purse, K-Cash, KLINK, MEP (Multibanco), MEPS Cash, MINIpay, MasterCard Cash, MicroCash, MiniCASH, Modeus, Mondex, Monedero 4B, Moneo, Monicash, Mybi - Digital Pusan Card, Octopus, Proton, Quick, Quicklink (now ECard), SMArt Rupee System (SMARS), Suica, SuperCash, TIBC, Thai Smart Card, Ultimus, ValuCard, Visa Cash, Visa Roskart, beenz, iButton

4. e-Purse  Electronic Purse  Electronic Cash  Prepaid Value  Stored Value  Magnetic Stripe Cards  Smart Cards  Other Physical Tokens  Entirely Virtual

5.  e-Purse  Business Case  Types of Scheme  Standards  SI Perspective  Future  Questions… Agenda

6. Business Case Where will revenue come from? How will we leverage it? How much will it cost?

7. Business Case  Cost of Handling Cash  Interest on Float  Unredeemed Value  No Cash Infrastructure  Faster than Cash  Ease of Use  Security  Electronic Services

8.  ATMs  Point of Sale  Card Readers  Revalue Machines  Transaction Hub  Txn Clearance  Cost  Charges  Lease or Own Business Case

9.  e-Purse  Business Case  Types of Scheme  Standards  SI Perspective  Future  Questions… Agenda

10. Scheme Types - Closed Closed  Value Circulates  Single Organisation  Partner Organisations  Issuing Value  Redeeming Value  Vouchers not Currency  Private Infrastructure

11. Scheme Types - Closed Closed - Example  Positive Futures  Leisure Centres  Youth Workers  Issued for Behaviour  Redeem for Sports  1 point  1p  Closed Points Cycle  All Transactions Logged

12. Scheme Types - Open Open  Electronic Cash  Cash Alternative  Issued by a Bank  Merchants Accept  Consumers Use  Issuer Honours Value  Central Bank Rules  FSA in UK

13. Scheme Types - Open Open - Example  Ghana  Two Banks  Poor Quality Paper Money  No network of ATMs  Limited Landlines  Security in Bush  Utility Payments  Few Bank Accounts

14. Scheme Types - Accounted Fully Accounted  Pre-Authorised Debit  Shadow Account on Chip  Central Hub  Transaction Charges  Not Anonymous  Proprietary Solutions  EMV  Attractive to Banks

15. Scheme Types - Offline Offline  Reduce Telecom Costs  Scales Better  Robust and Reliable  Lower Cost  Secure Chip Required

16. Scheme Types - Online Online  All Transactions Centrally Cleared  Potential Single Point of Failure  Security in Servers and Terminals  Cheaper Cards  Centralised Settlement

17. Scheme Types - Transport Transport  Generally Closed  Speedy Transactions  Usually Prepay  Contactless  Low Cost Cards Used  Interoperability Required  Commercially Successful Schemes  Transaction Fees Fund Infrastructure

18. Scheme Types - Transport Transport - Example  SUICA  Japan Rail East  5 Million+ Cardholders  20 M Daily Transactions  500 Stations  Multi-Operator  Season Tickets  Stored Value  Vending & Retail

19.  e-Purse  Business Case  Types of Scheme  Standards  SI Perspective  Future  Questions… Agenda

20. ITSO  UK Transport  Legacy Schemes  Getting Started Standards - ITSO

21. Standards - CEPS Common European Purse Specifications  Secure Electronic Transactions  Standard being Adopted  Evolution from EMV  Face to Face  International  Multi-Currency

22. Standards - EMV  EMV  2005 Roll Out  International Standard  UK Wide Infrastructure  MasterCard and Visa  Preauthorised Debit  ATM, POST & Cards  PIN at POS

23.  e-Purse  Business Case  Types of Scheme  Standards  SI Perspective  Future  Questions… Agenda

24. SI Perspective Smart Cards act as a catalyst for Technical Integration and Stakeholder Cooperation

25. SI Perspective  Cardholder Take up  Social Exclusion  Organisational  Security Worries  Technology  Standards  Plans to Scale  Sustainability  21 st Century Government  and others…

26.  Consulting Stakeholders  Community Involvement  Legal  Marketing  Financing  Implementing  Operating  Managing SI Perspective

27.  e-Purse  Business Case  Types of Scheme  Standards  SI Perspective  Future  Questions… Agenda

28. Future Contactless Transport Cards are Popular with the Public unlike Bank e-Purse Schemes

29. Future Preauthorised Debit  e-Cash Alternative  Proprietary Solutions  India  Russia  EMV  MasterCard  Visa  EMV Widely Deployed

30. Future  Many Closed Schemes  Low Cost  Local  School Meals  Loyalty  Social Inclusion Projects  Staff Canteens

31. µ-Chip met the challenge to make a chip small enough for bank notes.  Low Cost  High Volume  High Security  Fast  Simple Future

32. Questions  e-Purse  Business Case  Types of Scheme  Standards  Future  SI Perspective  Questions…

33. The SI Perspective Martin.Reilly@hitachi-eu.com 01628 585754 Senior Consultant September 2003 www.hitachi-eu/egov

34. Smart Card Intro;  Smart Card  Card Issuing  Applications Agenda

35. Smart Card  Standard Sizes  SIM  Credit Card  Chips  Memory  Processor  Interfaces  Contact  Contactless

36. Smart Card ISO 7816 ISO 14443

37. Card Issuing  Apply for Card  Plastic  Printing  Chip Manufacture  Embedding  Encoding  Personalisation  Carrier  Delivery  Life Cycle

38. Applications  SIM  EMV Credit/Debit  Loyalty  e-Purse  Physical Access  Logical Access  e-ID  PKI

39. Single Application Issuers  Retailer  Bank  Telecom Operator  Public Transport Operator  Employer  Government  Club

40. Multi-Function  Magnetic Stripe  Chip Serial Number  “Show and Go”  Barcodes  Photo ID  Membership Logo  Terms of Use

41. Multi-Function Example

42. Multi-Application  Applications Share Chip  Shared Customer Base  Community of Interest  Greater Utility  Shared Costs  Proprietary Solutions  Open Platform  Ownership?  Control?

43. Multi-Application Example  6 New England States  US Federal Government  Applications 10+  Multi-Issuer  Open Chip Platform  State Welfare Programmes  Health Insurance  Retail Outlets