Prospects for the Chip Card Market in Canada 2007

Table of Contents

EXECUTIVE SUMMARY

INTRODUCTION

• Objectives of the Study
• Frame of Reference
• Research Methodology
• A Note on Forecasts
• Currency
• Structure of the Report
• Acknowledgements

THE WORLD CHIP CARD MARKET

• The Global Plastic Card Market
  • Plastic Card Market Forecast
• Prospects for the Global Chip Card Market
  • Application Segments
  • Telecommunications
  • Financial services
  • Other Application Segments
  • Regional Demand for Chip Cards
  • Forecast Demand for Chip Cards
  • The Canadian Chip Card Market in a Global Context

TECHNOLOGY TRENDS

• Introduction
• Developments in Chip Card Technology
  • Magstripe Technology
  • Memory Technology
  • Microprocessor Cards
  • High Capacity SIM Cards
  • Active Cards and Supersmart Cards
  • Contactless Cards
  • Near Field Communications (NFC)
  • RFID
  • Card Materials
• Developments in Terminals and Card Readers
  • Point of Sale Terminals
  • Automated Banking Machines (ABMs)
  • Converged Appliances
• Biometrics
• Standards

PROSPECTS FOR CHIP CARDS IN OPEN PAYMENT SYSTEMS

• Introduction
• Payments in Canada
  • Cash Payments
  • Debit Card Payments
  • Credit Card Payments
  • Cheques
  • Online Payments
  • Canadian Payments in Perspective
• The History of Chip Cards in Open Payment Systems in Canada
  • Stored-value Cards
  • The Mondex Guelph Pilot
  • The Exact Pilot in Kingston
  • The VisaCash Barrie Pilot
  • The Mondex Coup
  • Mid-Course Correction
  • The Mondex Sherbrooke Pilot
  • Dexit
  • IMVCCP
  • CCMP
• EMV Migration
  • EMV Overview
  • CCD and CPA
  • Processes in a Typical EMV Transaction
  • SDA, DDA and CDA
  • Cardholder Verification
• The Case for EMV Migration in Canada
  • Fraud as a Key Driver
  • Credit Card Fraud
  • Debit Card Fraud
  • Securing and Modernizing the Payments System
  • Keeping up with International Developments
  • Multi-application Cards and Future Functionality
• EMV Migration Challenges
  • Issuers
  • Acquirers
  • Merchants
  • Merchants Views on EMV Migration
  • Terminal Infrastructure
  • POS
  • ABMs
  • Fuel Pumps
  • The Impact on Consumers
• Implementing EMV in Canada
  • Timelines for EMV Migration
  • The Kitchener-Waterloo Trial
  • Assessing the Investment Required
  • Migration Window
  • Wireless payments
• Market Forecast

PROSPECTS FOR CHIP CARDS IN OTHER APPLICATION SECTORS

• Introduction
• Mobile Communications
  • Market Overview
  • Market Prospects
• Satellite Television
  • Market Overview
  • Market Prospects
• Loyalty, Gift Cards and Closed Payments
  • Introduction
  • Gift Cards
  • Loyalty
  • Closed Payments
  • Market Prospects
• Transit
  • Market Overview
  • Market Prospects
• Campus Applications
  • Market Overview
  • Market Prospects
• Government
  • Health
  • Driverün Driver' s Licenses
  • Government ID
  • Market Prospects
• Other Applications
• Market Forecast

THE SUPPLY STRUCTURE IN CANADA

• Introduction
• The Payment Systems Value Chain

List of Figures

• Global Plastic Card Shipments
• Global Plastic Card Revenues
• Forecast Global Plastic Card Shipments
• Regional Card production Forecast
• Global Plastic Card Shipment Forecast (by Card Type)
• Global Plastic Card Revenue Forecast (by Card Type)
• Global Chip Card Shipments
• Global Chip Card Shipments by Technology
• Global Chip Card Shipments by Application
• Chip Cards by Application Segment (2006)
• Historical Demand for Chip Cards by Application Segment (excluding Telecommunications)
• Growth in Demand for Chip Cards by Application Segment
• Chip Cards in Telecommunications Applications by Technology
• Regional Demand for Chip Cards
• Global Chip Card Shipment Forecast
• Forecast Number of Chip Cards in Circulation in Canada
• Forecast Annual Shipments of Chip Cards in Canada
• Mobile Phone Handset Configurations for Near Field Communications
• Canadian Retail Sales by Sector (2005)
• Average Annual Growth in Retail Sales by Sector (2001 - 2005)
• Canadian Banknotes and Coin in Circulation
• Number of ABMs in Canada by Type
• Volume and Value of Cash Withdrawals at ABMs in Canada
• Cash-based Retail Payment Transaction Volumes in Canada
• Annual Volume and Value of Interac Direct payment Transactions
• Debit Card Payment Transactions by Sector
• Share of Number of Transactions at Retail Outlets (1996 - 2005)
• Share of Transaction Values at Retail Outlets (1996 - 2005)
• Number of Visa and MasterCard Credit Cards Issued in Canada
• Net Retail Dollar Volume and Transaction Volumes (Visa & MasterCard)
• Relative Shares of Visa and MasterCard in Canada
• Number of Merchant Outlets Accepting Visa and MasterCard
• Volume and Value of Cheques Cleared through the ACSS in Canada
• Share of Personal Consumption Expenditure (PCE) by Payment Type in Canada
• Payment Transaction on PCE by Payment Instrument
• Consumer Preferences for Payment Method
• EMV Transaction Flow
• Credit Card Fraud in Canada
• Credit Card as a Percentage of Retail and Cash Advance Dollar Volumes
• Breakdown of Credit Card Fraud by Type (2005)
• Credit and Debit Card Fraud in Canada
• Forecast Number of Credit Cards in Circulation in Canada
• Forecast of Credit Cards Issued Annually in Canada by Type
• Forecast Number of Debit Cards in Circulation in Canada
• Forecast of Debit Cards Issued Annually in Canada by Type
• Forecast of EMV Cards Issued Annually in Canada
• Forecast of Installed Base of POS Terminal in Canada
• ABM EMV Migration Forecast in Canada
• The Mobile Phone Market in Canada
• Forecast Number of Mobile Phone Subscribers in Canada
• Forecast Number of SIM Cards in Circulation in Canada
• Television Subscribers in Canada by Type and Service
• Forecast Number of Bell ExpressVu Subscribers in Canada
• Forecast Number of Non-EMV Chip Cards in Circulation in Canada
• Forecast Annual Shipments of Non-EMV Chip Cards in Canada
• Interlinked Value Chains: Payments

List of Tables

• Number of Interviews by Sector
• Global Chip Card market Forecast, by Segment
• Forecast Number of Chip Cards in Circulation in Canada, by Application
• Forecast Annual Shipments of Chip Cards in Canada by Application
• Different Types of Biometrics
• Approaches to Multi-Biometrics
• Some Important Standards in Chip Cards and Related Areas
• Debit Card payments by Retail and Business Sector
• Primary Issuers of Visa and MasterCard in Canada
• Key Features of the Mondex Guelph Pilot
• Key Features of the Exact Kingston Pilot
• Key Features of the VisaCash Barrie Pilot
• Key Features of the Mondex Sherbrooke Pilot
• EMV 4.1 Structure (EMV 2000)
• EMV Compliance Assessment in Europe (mid-2006)
• Summary of Merchants' Perspectives on EMV Migration
• Key Features of Payment Organization EMV Migration Policies in Canada
• Interac' s EMV Migration Targets
• Visa' s Liability Shift
• Attributes that make Kitchener-Waterloo an Attractive Trial Location
• Number of Retail and Service Establishments by Sector
• Canadian EMV Investment Requirements
• Canadian Mobile Phone Operators
• Percentage of Large Retail Stores Offering Gift Cards, by Trade Group
• Selection of Smart Card Gift Certificate Initiatives in Canada
• Selection of Chip Card Loyalty Initiatives in Canada
• Transit Smart Card Projects in Canada
• Characteristics of the GTA Fare Card Scheme
• Forecast Number of Non-EMV Chip Cards in Circulation by Application
• Forecast Annual Shipments of Non-EMV Chip Cards in Canada by Application