Mobile provider Turkcell and Garanti Bank in Turkey this month launched a Near Field Communication trial for mobile payments involving a contactless MasterCard PayPass credit card application stored on the SIM card of a mobile phone. E-Kart, collaborating with Giesecke & Devrient is supplying the NFC-enabled SIM cards. In addition, Venyon, a joint venture between G&D and Nokia, will handle the secure uploading and administration of the payment function over the air.
Munich, Istanbul–Turkcell, the leading mobile communication provider in Turkey, and Garanti Bank, one of the largest financial institutions in the country, have selected E-Kart as their technology partner for a trial beginning in autumn 2007 for mobile payments using Near Field Communication (NFC) technology. E-Kart, a leading provider of smart card solutions in Turkey, is working in collaboration with Giesecke & Devrient (G&D), the second largest smart card manufacturer in the world, to supply NFC-enabled SIM cards. In addition, the solution for the secure uploading and administration of the payment application and the user data is provided by Venyon, a joint venture between G&D and Nokia. Venyon specializes in the secure management of NFC applications over the mobile network, i.e. over the air (OTA).
“The trial is very important for us to check the functionality of the NFC technology and its acceptance by our customers. Given this relatively new technology, it was very important for us to find reliable and technologically competent partners for the pilot project. In E-Kart, G&D and Venyon we have on board three companies with extensive know-how, who can also smoothly implement the technology on a wider scale following a successful trial run”, said Cenk Serdar, Chief VAS Officer of Turkcell.
The pilot project is part of the “Pay-Buy-Mobile” initiative of the GSM Association, which wants to support the SIM card-based worldwide introduction and application of NFC technology. Mobile devices should be interoperable and securely linked to already existing payment and contactless systems.
In the trial, some 100 Turkcell and Garanti employees and customers will be provided with an NFC-enabled mobile phone that they can use to make payments quickly and simply by holding the phone to an NFC reader. NFC is a wireless radio frequency technology through which mobile phones and other mobile devices function as contactless credit cards or tickets, i.e. data is sent to a reader on a contactless and secure basis. However, data on a contactless chip can also be read by an NFC mobile device.
Applications with higher security requirements, such as a credit card function, can ideally be put on the SIM card as a secure storage element. In the Turkcell and Garanti Bank pilot project the contactless MasterCard PayPass credit card application is stored and enabled on the SIM card from G&D. The SIM card is linked to the NFC chip in the mobile device via the single wire protocol.
The PayPass application and the customer data required for the payment function are loaded flexibly on the SIM card via the mobile network, i.e. using the secure OTA service of Venyon, without the user of the service having to visit a Turkcell or Garanti branch. Also potential updates and life-cycle management can be performed at any time using the same user-friendly and secure method.
“We are convinced that NFC technology will provide an important impetus to contactless payments. Compared to a contactless credit card, a mobile phone has the advantage of a display function for checking the payment transaction. G&D has been supplying us with credit cards for a long time and is recognized as a leading technology provider in the NFC market. We are focusing on this expertise” confirms Reha Emekli, Executive Vice President of Garanti Payment Systems. Garanti Bank, one of the most innovative financial institutions in the use of chip technology, has over six million credit card customers in Turkey and back in summer 2006 implemented the MasterCard PayPass system based on contactless cards. Some 3000 retailers already use contactless readers, which can also be used for NFC variants.
“This trial, which is one of the first in the world that uses a SIM card as a secure storage element, will enable us, E-Kart and Venyon, to demonstrate our role as leading NFC technology providers. The users of this service can rely at the same time on the highest security,” comments Dr. Klaus Vedder, Head of the Telecommunications division at G&D.
About Giesecke & Devrient
Giesecke & Devrient (G&D) is a technology leader in the field of smart cards, providing smart card based solutions for telecommunications, electronic payment, health care, ID, transportation, and IT security (PKI). G&D is also a leading producer of banknotes and security documents and is dominant in the field of currency automation. Based in Munich, Germany, the G&D group has subsidiaries and joint ventures around the world. In fiscal 2006, the Group employed close to 8,300 people and generated revenue of almost €1.3 billion. For more information, visit www.gi-de.com.
Turkcell is the leading GSM operator in Turkey with 34.8 million postpaid and prepaid customers as of September 30, 2007 operating in a three player market with a market share of approximately 58% as of June 30, 2007 (Source: The Telecommunications Authority). In addition to high-quality wireless telephone services, Turkcell currently offers General Packet Radio Service (“GPRS”) countrywide and Enhanced Data Rates for GSM Evolution (“EDGE”) in dense areas, which provide for both improved data and voice services. Turkcell provides roaming with 565 operators in 196 countries as of November 7, 2007.
Venyon is driving seamless communication in NFC ecosystems by developing and operating a secure and versatile service platform to be used for the over the air (OTA) provisioning of the consumer applications, such as credit cards and transport tickets, to consumers’ NFC enabled mobile devices. Acting as a Trusted Service Manager (TSM) Venyon offers white-label OTA services for mobile operators, banks, transport companies, retailers and other service providers, who are offering different applications for consumers’ NFC devices. Venyon is headquartered in Helsinki, Finland and has offices also in Munich, Germany, Dallas, USA and Singapore. For more information, please visit our website www.venyon.com.
The seamlessly connected experience incorporating secure and easy anywhere access is increasingly a vital part of all of our lives. Increasingly, individuals benefit from secure and easy anywhere access – an ecosystem in which information, and the content they require is instantly, easily and securely available, no matter where they are and without the fear that it will be distorted, stolen, or exploited. E-Kart supplies its customers with “innovative solutions based on secure and easy anywhere access systems and processes” providing them with the ability to be connected to the digital globe with the confidence that their identities, privacy, and information is protected. With more than 100 million smart cards issued in less than five years, E-Kart has become the leading supplier of electronic payment cards in its region.