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The world is getting smart with chip

Three factors driving the marketplace today are security, mobility and convenience, says Pierre Kotze, EMV Specialist NamITech. This is where smartcards come in. They really respond to the 'anytime, anywhere' requirement, as well as providing the best degree of extra security. The stringent specifications developed jointly by Europay, MasterCard and Visa (EMV) is the first step that will allow cardholders to use smartcards throughout the world with the same level of confidence with which they use magnetic stripe cards today.

To date, the focus has been predominantly on single application smartcards for use in the banking industry. However, smartcard trials world-wide have proven that when two or more applications are placed on a single smartcard, the benefits to all parties far exceed those of single application cards. The cost advantage of a multi-application smartcard is that although the fixed costs represent a high proportion of the cost of the card, the variable cost is low. Therefore combining four similarly sized applications on a card is more cost effective than one, and the card cost can be shared between multiple organisations.

Recognising that multi-application smartcards hold potential, NamITech has established a relationship with Welcome, a leading international loyalty payment software company, in southern Africa and will provide Welcome's software to NamITech's banking customers as an added value EMV offering. With the envisioned move to multi-application smartcards, this software is ideally suited to allow banks to offer retailers a very powerful loyalty solution.

In addition, NamITech is the local representative of Aconite, a UK-based company, which offers EMV consultancy and a suite of card management solutions to banks.

"The long-term potential of smartcards lies in the ability to issue cards that carry a wide range of applications from different industries - banks will probably use smartcards to offer products and services with key partners. We do not believe that people will want everything on one card, but multiple applications are a natural evolution," says Kotze.

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