Axel Deiniger, Group Senior Vice President and Head of the Secure Devices division at Giesecke & Devrient
Axel Deininger, Group Senior Vice President and Head of the Secure Devices division at Giesecke & Devrient, explains what his company is offering potential customers at CARTES this week – and why the industry is facing a renewed need for standardisation
Q Are you revealing any new products or services at CARTES this week?
A As an international technology leader, we will be presenting a comprehensive and innovative portfolio of mobile security solutions at CARTES. G&D’s display presents the company as an end-to-end provider for all areas of digital life. The solutions that we are showcasing at CARTES are particularly aimed at banks and financial institutions that need to guarantee maximum security for their customers during payment and identification processes. This not only includes secure payments using conventional and contactless credit cards, but also payments by smartphone using the virtual equivalent. CARTES will also introduce other service providers – especially mobile operators – to a wide range of G&D solutions that will enable them to boost the security and efficiency of their device and SIM card management, as well as their customer account administration.
Q In your opinion, what are the two biggest challenges facing the secure connections industry today?
A The need for security is rising sharply – especially with smartphone-based applications, which present entirely new attack scenarios. At the same time, many customers find secure solutions complicated and inconvenient to use. One of the core challenges facing our industry is therefore to ensure a maximum of security while keeping applications as simple and intuitive as possible for customers. Additionally, we are seeing a renewed need for standardisation in our industry. When it comes to initialising and personalising a credit card on a mobile phone, for instance, there is no uniform standard at present. And TSM solutions are too frequently provider-specific. Industry-wide standardisation of the global TSM infrastructure would have a significant impact here.
Q Brazil is Guest of Honour Country at CARTES – but what other parts of the world is your business particularly interested in?
AThe Brazilian card market is the fourth largest in the world in terms of payment cards in circulation. Other markets where we have a strong presence and see significant growth potential include the US and China. We have card production and personalisation facilities on the ground in both countries, ensuring we can produce, personalise and ship the required payment cards quickly and efficiently. The change over to chip-based cards is currently ongoing in China – with major consequences in terms of the production capacity called for in this huge country. Smartphone-based payment, for instance via NFC, is another key market for us.
Q IT vendors, mobile network operators, credit card institutions, and banks have joined forces to develop new models that turn smartphones into mobile credit card payment terminals. Which approach do you think will win out in the future?
A Of all the technologies available on the market, NFC is certainly one of the most widespread. It has benefited from the burgeoning popularity of contactless credit cards such as Visa payWave and MasterCard PayPass. These cards, after all, can be read by the same terminals. And, as the number of tap-and-go cards rises worldwide, so does the number of checkout terminals that can accept NFC payments from smartphones. We are also witnessing the emergence of other alternative access technologies such as QR codes. Regardless of the method used, G&D specialises in providing the products and solutions needed to secure mobile payments.
Q How is it possible to ensure the same level of security when paying by mobile as by credit card?
A The new, smartphone-based payment world is absolutely comparable to the traditional card world in terms of security. Today, you pay for purchases using the secure data memory on your credit card - tomorrow, you’ll use the SIM card in your mobile phone. Like a credit card chip, the module also needs to be securely personalised, which G&D ensures on the bank’s behalf. The main difference between the two approaches lies in how the credit card is delivered. Instead of arriving in the mail as a plastic card, it is sent over a highly secure cellular network connection, installed on the SIM card in the mobile phone, and managed on the phone using a digital wallet.
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Q Are you revealing any new products or services at CARTES this week?
A As an international technology leader, we will be presenting a comprehensive and innovative portfolio of mobile security solutions at CARTES. G&D’s display presents the company as an end-to-end provider for all areas of digital life. The solutions that we are showcasing at CARTES are particularly aimed at banks and financial institutions that need to guarantee maximum security for their customers during payment and identification processes. This not only includes secure payments using conventional and contactless credit cards, but also payments by smartphone using the virtual equivalent. CARTES will also introduce other service providers – especially mobile operators – to a wide range of G&D solutions that will enable them to boost the security and efficiency of their device and SIM card management, as well as their customer account administration.
Q In your opinion, what are the two biggest challenges facing the secure connections industry today?
A The need for security is rising sharply – especially with smartphone-based applications, which present entirely new attack scenarios. At the same time, many customers find secure solutions complicated and inconvenient to use. One of the core challenges facing our industry is therefore to ensure a maximum of security while keeping applications as simple and intuitive as possible for customers. Additionally, we are seeing a renewed need for standardisation in our industry. When it comes to initialising and personalising a credit card on a mobile phone, for instance, there is no uniform standard at present. And TSM solutions are too frequently provider-specific. Industry-wide standardisation of the global TSM infrastructure would have a significant impact here.
Q Brazil is Guest of Honour Country at CARTES – but what other parts of the world is your business particularly interested in?
AThe Brazilian card market is the fourth largest in the world in terms of payment cards in circulation. Other markets where we have a strong presence and see significant growth potential include the US and China. We have card production and personalisation facilities on the ground in both countries, ensuring we can produce, personalise and ship the required payment cards quickly and efficiently. The change over to chip-based cards is currently ongoing in China – with major consequences in terms of the production capacity called for in this huge country. Smartphone-based payment, for instance via NFC, is another key market for us.
Q IT vendors, mobile network operators, credit card institutions, and banks have joined forces to develop new models that turn smartphones into mobile credit card payment terminals. Which approach do you think will win out in the future?
A Of all the technologies available on the market, NFC is certainly one of the most widespread. It has benefited from the burgeoning popularity of contactless credit cards such as Visa payWave and MasterCard PayPass. These cards, after all, can be read by the same terminals. And, as the number of tap-and-go cards rises worldwide, so does the number of checkout terminals that can accept NFC payments from smartphones. We are also witnessing the emergence of other alternative access technologies such as QR codes. Regardless of the method used, G&D specialises in providing the products and solutions needed to secure mobile payments.
Q How is it possible to ensure the same level of security when paying by mobile as by credit card?
A The new, smartphone-based payment world is absolutely comparable to the traditional card world in terms of security. Today, you pay for purchases using the secure data memory on your credit card - tomorrow, you’ll use the SIM card in your mobile phone. Like a credit card chip, the module also needs to be securely personalised, which G&D ensures on the bank’s behalf. The main difference between the two approaches lies in how the credit card is delivered. Instead of arriving in the mail as a plastic card, it is sent over a highly secure cellular network connection, installed on the SIM card in the mobile phone, and managed on the phone using a digital wallet.
Q Finally, which three words best describe the ethos of Giesecke & Devrient?
A Two words are sufficient: creating confidence.
