Giesecke & Devrient

Headquarters: 
Germany

German smart card supplier Giesecke & Devrient has been interested in contactless-mobile technology for years.

The vendor, the third largest smart card company worldwide, introduced a contactless SIM card five years ago with an RF antenna attached to it.

The “Dual-Interface (U)SIM” flopped, although similar products may make a comeback to fill the gap in NFC phone availability.

In any case, G&D soon was turning its attention to secure management of applications on NFC phones. It handled some of the first NFC trials involving the over-the-air downloads of contactless credit applications, including a trial organized by payment scheme MasterCard Worldwide with convenience store chain 7-Eleven in Dallas, Texas.

That was just after G&D and large handset maker Nokia announced, in mid-2006, an intention to form a joint venture to launch a trusted service management company. The company, later named Venyon, would offer over-the-air downloads and management of applications for both mobile operators and service providers, such as banks.

It seemed like good timing, despite the fact the concept of a trusted service manager, or TSM, for NFC applications hadn’t yet been established. But G&D, with a strong presence in the banking market, combined with the world No. 1 phone maker, Nokia, an early backer of NFC, believed that by 2008 they would be doing a roaring business as a TSM.

Now, nearly three years after the venture began operations, the rollouts still haven’t happened yet and revenue is scarce.

Nokia officially exited the venture in December 2009, allowing G&D to buy out its 43% stake in Venyon. 

G&D said it still fully believes in the future of NFC, but said Venyon can also help it deliver all types of secure mobile phone services–from “SIM and secure microSD cards, through software to the secure administration” of applications.

G&D also plans to integrate Venyon’s expertise with that of Sweden-based SmartTrust, which it acquired in spring 2009. SmartTrust is a provider of over-the-air management of SIM applications for mobile operators. Venyon and SmartTrust will work together on a trial in Norway, downloading and managing a MasterCard PayPass application, issued by Norway’s largest bank, DnB NOR. The DnB NOR application will be downloaded to a G&D SIM, which will support the single-wire protocol connection to the NFC chip in the phone.

But besides SIMs for NFC phones, G&D is also working on an SD card with its own contactless interface for trials with BlackBerry handsets, NFC Times has learned.

And the vendor in November 2009 announced it was producing a contactless passive sticker certified by MasterCard to carry a PayPass application. In January 2011, G&D did away with the Venyon and SmartTrust names.

Key figures: 
Financial Results 2010 2009 2008 2007
Revenue 705 589 609 577
Cards and Services division, in millions of euros
Key NFC Personnel: 
Kai Grassie, group senior vice president and head, New Business division
Klaus Vedder, group senior vice president and head, Telecommunications division
Lauri Pesonen, G&D TSM
Major NFC and Contactless competitors: 

Gemalto, Oberthur Technologies, Sagem Orga

Last Updated: 
May 2010
Author: 
Balaban

HEADLINE NEWS

Brussels Latest European Capital to Launch Open-Loop Fare Payments

NFC TIMES Exclusive Insight – Major Brussels transit operator STIB-MIVB plans to begin accepting contactless EMV credit and debit cards and NFC wallets on Wednesday, the latest European capital to launch open-loop payments following the success of the technology as demonstrated in London.

In-Depth: Boston Transit Agency Seeks to Put Massive Fare-Collection Project Back on Track

NFC TIMES Exclusive Insight – The massive new fare-collection system planned by Boston’s Massachusetts Bay Transportation Authority, or MBTA, which will include open-loop contactless payments and an expanded closed-loop program, has had trouble getting off the ground. Late last week, the transit agency finalized its “reset” of the project, agreeing to increase the contract by nearly 30% to just over $935 million and to add two more years to the rollout schedule–all in hopes of getting the project back on track.

With E-Commerce Skyrocketing, Tokenized Transactions Expected to Soar, as Well

NFC TIMES Exclusive Insight – As more consumers buy online, and to a lesser extent use mobile wallets for in-store purchases, because of the coronavirus pandemic, tokenized card transactions are expected to increase dramatically.  

Software-as-Service Platforms for Transit Agencies Begin to Support Open-Loop Payments

NFC TIMES Exclusive Insight – In what is believed to be a first, a transit agency in Europe plans to accept contactless credit and debit cards using a third-party software-as-a-service platform this summer, UK-based platform provider Masabi told NFC Times, although the company declined to name the agency. The project is expected to begin as a pilot.

Apple Launches Overdue Octopus Payments Service in Hong Kong, as It Continues to Seek More Transit Applications for Wallet

NFC TIMES Exclusive Insight – Apple today finally launched its Octopus transit payments service in Hong Kong on Apple Pay, nearly a year after the service was originally announced and more than two years after rival Samsung introduced a similar service in the market.

Mastercard: Contactless Payments in Europe Approach 80% of Card Transactions; Pandemic Causes More Consumers to Shun Cash

NFC TIMES Exclusive Insight – While contactless payments in Europe were already commonplace and continue to grow, the Covid-19 pandemic has created even more interest in the technology among consumers, according to a report released Thursday by Mastercard. The report includes a survey showing that consumers in eight major European markets say they use NFC-enabled smartphones and wearables for a combined 32% of all contactless transactions, a spokeswoman confirmed to NFC Times.

UPDATED: Ohio-Based Transit Agency Group Planning to Enable Mobile Ticketing Through Uber App

Jun 3 2020

NFC TIMES Exclusive – A consortium of 13 small and mid-tier transit agencies in Ohio and Northern Kentucky plans to enable customers to buy public transit tickets directly in the Uber app as early as this summer, following two other U.S. transit agencies, in Denver and Las Vegas, which have already integrated with Uber.

Samsung Details Planned Mobile-Money Service as It Seeks to Keep Pace with Rival Apple Pay

NFC TIMES Exclusive Insight – Samsung offered more details today about its Samsung Money debit card and “mobile-first” money management service for its Samsung Pay app, which it plans to launch in the U.S. this summer with personal finance fintech SoFi. Samsung had disclosed plans for the new service earlier this month.

Networks: Contactless Transactions Soar as Pandemic Takes Toll on Cash

NFC TIMES Exclusive Insight – In announcing their respective quarterly results this week, both Visa and Mastercard, as expected, discussed the major disruption that Covid-19 is wreaking on the payments business. But they also noted that there is one unexpected victim of the pandemic: cash.

Prompted by Pandemic Fears, Last of Australia’s Big Four Banks Ends Apple Pay Holdout

May 12 2020

NFC TIMES Exclusive Insight – Citing the increased demand for cashless payments because of the Covid-19 pandemic, Westpac today became the last of Australia’s big four banks to adopt Apple Pay, ending a four-year holdout that had lasted months, even years longer than its major rivals.

Insight: MaaS Backers Believe New Mobility Platforms Could Help Transit Providers Win Back Their Customers’ Trust

NFC TIMES Exclusive Insight – With Covid-19 lockdowns causing mass transit ridership in many cities to virtually fall off a cliff–with such cities as London, New York and San Francisco reporting drops of more than 90%–transport providers worry that some riders may not come back, even after the pandemic ends.

In-Depth: Government Regulation of Mobility-as-a-Service Seen as Necessary to Encourage Widespread Adoption

Apr 16 2020

NFC TIMES Exclusive Insight – Government legislation will likely be needed for widespread adoption of Mobility-as-a-Service, or MaaS, to occur, according to UK-based Juniper Research, which believes that the regulations will be necessary to force MaaS providers, including transit service providers, to work together, as well as to persuade users to get out of their cars to cut carbon emissions.