Prospects for the Chip Card Market in Canada, 2007

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
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