KYC 0.00% 57.5¢ keycorp limited

kyc-significant jcb card deal

  1. fra
    82 Posts.
    Yesterday Keycorp announced that JCB had appointed it as the preferred provider of smart cards for its J/Smart initiative.

    Market reaction was fairly mute...but...some background facts show that this deal is quite significant for KYC,and probably near term as well,and particularly in relation to the US market.Also worth noting KYC is already a preferred provider of Multos smart cards for the world #2-Mastercard.

    JCB has recently announced its commitment to worldwide smart card deployment on a large scale.No doubt the Keycorp link up as preferred provider of smart cards is one of the esssential building blocks for that initiative.

    JCB is the fourth largest card issuer in the world(for example,it is accepted at over 700,000 merchants in the USA).It has already issued three million J/Smart cards(largely due to credit card skimming fraud in Japan) in Japan ,Taiwan and the UK and it has recently announced initiatives to convert its 42 million card base to smart cards by 2007.

    It has announced significant deals with smart card infrastructure providers in the US smart card market designed to propel that adoption in the North and South American markets(focussing on USA,Brazil and Costa Rica).Those initiatives and deals include the appointment of a payments processor to process its smart card transactions(Vital Processing),the announcement of the integration of its J/smart platform with Hypercom(probably now the world's largest terminal manufacturer)with Hypercom agreeing to promote JCB around the world,the hiring of key executives with smart card experience in the USA and the announcement of a smart card pilot in Hawaii commencing early in 2003 with the First Hawaiian Bank,Vital and Hypercom(?will Keycorp be the card supplier).

    So it is happening stuff-good news for KYC holders IMO.

    Source material appears below:

    News :: October 2002

    JCB Advances US Smart Card Migration

    Japan's largest credit card company JCB has said it plans to push forward Smart Card acceptance at POS in the US to cater for its Japanese card holders who live or travel in the country.

    In an interview with American Banker, executive vice president of JCB USA Thomas M. Wright, said: "We want to make sure when chip is becoming more acceptable and readily available that JCB is right there and our cards will be accepted without any technical issues."

    To support the strategy JCB has said it intends to establish "infrastructure partners throughout the Americas" to advance the migration toward Smart Cards. The company has already secured a deal with terminal manufacturer Hypercom Corp. to produce terminals capable of supporting its J/Smart chip.

    JCB has predicted that all 42m of its cards will be chip enabled by 2007. It currently enjoys relationships with 700,000 merchants in the US.



    Vital Processing Services and JCB International Team Up to Introduce JCB Smart Card Capability in United States
    Atlanta, November 6, 2002

    Today at BAI's Retail Delivery Conference & Expo 2002, Vital Processing Services® (Vital®), a recognized leader in technology-based commerce enabling services, announced it has teamed up with JCB International Credit Card Co., Ltd., JCB's U.S. subsidiary, to help promote smart card usage in the United States.

    Vital also announced that on October 29, 2002, it completed its first live end-to-end smart card transaction with JCB. As a result of this successful achievement, in early 2003, Vital and JCB will partner with Honolulu-based First Hawaiian Bank, a subsidiary of BancWest Corporation to launch a JCB smart card pilot project in Hawaii.

    JCB is the fourth largest credit card brand in the world with over 42 million card members. JCB Cards are accepted at nearly 10 million merchants in 189 countries/territories including more than one million in North and South America. JCB has a strong presence in the Asia & Pacific region and is committed to further increasing its presence in the United States. Vital has long served as a processor of JCB credit card transactions and is now expanding its services to include processing of JCB smart card transactions.

    "Our expanded relationship with JCB shows Vital's commitment to be a leader in processing all payment forms and all payment brands, " said Vital President and CEO, Jonathan Palmer. "The smart card market has been slow to develop in the U.S., but it is making its leap across the Pacific. We are pleased to be able to support JCB as they pave the way for smart card acceptance in the U.S."

    The launch of the JCB smart card pilot in Hawaii will use smart card terminals manufactured by Hypercom Corporation (NYSE: HYC), the global leader in smart, fast and easy-to-use card payment technology.

    Atsushi Niimura, President of JCB International Credit Card Co., Ltd and also President of Tokyo based JCB International Co., Ltd. said, "We are very much excited about this opportunity to work with Vital, First Hawaiian Bank and Hypercom. Although the U.S. market is rather slow in its smart card migration, we are proud that we can show our readiness for the chip deployment, and we welcome any opportunity to further increase JCB's presence in the market."

    About JCB



    LOS ANGELES, Oct 28, 2002 /PRNewswire via COMTEX/ -- JCB, the fourth largest global payment brand, has set its sites on broadening smart credit card acceptance in the U.S. To spearhead this initiative, JCB USA has hired Julie Krueger, former executive director of the Smart Card Alliance and respected industry expert, as vice president smart cards.

    "Using our J/Smart EMV application, JCB has already issued more than three million smart cards and we plan to convert our entire customer base to smart cards by 2007," Mr. Masahiro Omoto of JCB International recently told industry executives at the annual conference of the Smart Card Alliance. "Because of credit card skimming fraud in Japan, it was clear we had to move forward with smart cards and to do it quickly. Now we are focused on working with merchants and acquirers worldwide to help us fight this fraud issue. Our goal is to increase security for merchants and cardholders everywhere the JCB card is accepted."

    JCB's expansion into the U.S. follows JCB's successful rollout of J/Smart EMV cards in Japan, Taiwan and the U.K.

    In her new role, Ms. Krueger will be responsible for securing a North American infrastructure to accept J/Smart-based smart card transactions. Julie joins Tac Watanabe in developing and maintaining key relationships with payment terminal manufacturers, front-end processors and acquirers.

    "Julie Krueger is a great addition to our team," said Tom Wright, executive vice president, JCB USA. "With her extensive contacts among POS manufacturers, processors and acquirers, Julie will play a critical role in establishing the necessary partnerships required for JCB smart card acceptance in North America. She also brings the leadership and experience we need to manage several pilot projects that are currently in the works."

    JCB's first priority is establishing infrastructure partners throughout the Americas. One of the steps already taken is the recently announced JCB certification of Hypercom's EMV kernel for ICE card payment terminals for use worldwide with JCB's J/Smart credit cards.

    In addition JCB announced a worldwide joint marketing arrangement with Hypercom to promote the acceptance of J/Smart cards and the sale of J/Smart- enabled payment terminals worldwide. The two companies have many mutual customers and complementary relationships with acquirers and processors around the world. Of particular importance to the America's are customers in Brazil, Costa Rica and the United States.

    "Half of the payment terminals Hypercom distributes in the U.S. can support the EMV certified kernel with the J/Smart application. We want to find additional ways to get acquirers and merchants to support EMV and the corresponding infrastructure within in the U.S. payment industry," said Ms. Krueger.

    JCB Issues Hybrid Smart Cards in Taiwan
    Nov 6, 2002

    Taipei Bank is among the first Taiwanese banks to issue smart cards. The bank, one of 30 issuers in Taiwan of JCB, the Japanese credit card company, is issuing the EMV-based smart cards to about 3,000 employees of First International Computers, one of the world's leading companies in the design and production of motherboards, PC systems, and servers.
    The National Credit Card Center (NCCC) in Taiwan is providing support for the smart cards issuing program.

    The FIC Employee Smart Cards are hybrid cards with both contact and contactless chips in a single card. The smart cards provide five functions: credit payment, office building access control, office parking access control, payment at the company cafeteria and employee identification.

    The contact chip contains the JCB EMV credit payment application, J/Smart, and provides protection against fraud. The contactless chip, Mifare, contains an access control function that will ensure both high security and speedy access to office buildings and parking. It also allows quick payment at the company cafeteria. The smart cards have a photograph of the cardholder and are also used as employee identification cards.

    In the past five years in Taiwan, the number of JCB cardmembers has grown to 1.2 million and the number of merchants has doubled to 140,000.

    In Taiwan, credit card companies are aggressively introducing smart cards to prevent losses from fraud and to provide multiple services. Starting with the Taipei Bank/FIC smart cards issuance, JCB has been negotiating with various sectors to form alliances by using chip technology, including hybrid cards. JCB has already established plans for smart cards with the post-payment of transit fares, such as bus, subway and train.

    JCB and Vital Partner for Smart Cards in U.S.
    CB International, a leading global payment brand and the largest card issuer and acquirer in Japan, says it has big plans to grow its smart card business in North America. A new partnership with Vital Processing Services and the recent announcement of a smart card pilot program may have put JCB a few steps closer to achieving its goal.

    Tokyo-based JCB International Credit Card Co., Ltd., a subsidiary of JCB International, and Vital Processing Services announced they have joined forces to promote the use of smart cards in the United States.

    Vital conducted its first live, end-to-end smart card transaction with JCB on Oct. 29, 2002, which captured the attention of Honolulu-based First Hawaiian Bank, a subsidiary of BancWest Corp.

    In early 2003, Vital and JCB will partner with First Hawaiian by introducing a smart card pilot program in Hawaii, employing Hypercom Corp.’s ICE 5500 smart card terminals.

    JCB certified Hypercom’s EMV kernel for ICE card payment terminals to use with JCB’s J/Smart credit cards. Hypercom and JCB also have teamed to promote JCB’s smart cards and the sale of smart card-enabled payment terminals worldwide. The companies have several mutual customers and complementary relationships with acquirers and processors around the world.

    "We are very much excited about this opportunity to work with Vital, First Hawaiian Bank and Hypercom,” said Atsushi Niimura, President of JCB International Credit Card Co., Ltd and also President of JCB International Co., Ltd. in a company press release. “Although the U.S. market is rather slow in its smart card migration, we are proud that we can show our readiness for the chip deployment, and we welcome any opportunity to further increase JCB's presence in the market."

    JCB said its number one priority is to establish key partnerships in North America in order to design an infrastructure for accepting JCB smart card transactions. The company hired smart card guru Julie Krueger, former Executive Director of the Smart Card Alliance, as Vice President Smart Cards for JCB to oversee this task.

    JCB has rolled out smart cards in Japan, Taiwan and the U.K. and said it hopes to convert its entire customer base to smart cards by 2007.

 
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