Business Models and Technology Advances in Dual Interface and Multi Technology Cards

1. Business Models and Technology Advances in Dual Interface and Multi Technology Cards ICMA – EXPO 2005 Miami, 16th – 19th October Presented by: Thies Janczek

2. Content • Introduction • Business Cases for Dual Interface Cards • Banking Application • ID Application • Technology Advances • DIC Dual Interface Cards • Multi Technology Cards • Driving factors • Summary ICMA Expo, Miami

3. Introduction Increasing complexity • Smart cards are developing to increasing functionality • Increasing Employment of Dual Interface Cards • Dedicated Contactless and Contact Usage • Integration of Electrical Functional Components • Battery, Display, Solar Power Unit, Switch,Sensors (e.g. Biometric) etc. • Project driven  Customizing, Non Standard • Low Volume and High Costs ICMA Expo, Miami

4. Dual Interface Card- Applications • Wireless Interface for Identification • Access • Low security ID • Border control • Contact Interface for Security/Signature • PKI for Transaction • Data Exchange with High Rates/Volume • High Security ID (e.g. Biometric) ICMA Expo, Miami

5. Dual Interface CardsBanking Application • Contactless transactions (e.g. Paypass) in North America in project status • EMV application in planning • Contact for EMV application • Europe, Asia, EMEA, Africa • Existing card reader infrastructure • Open platforms for non-financial add-on‘s • Dual Interface Card projects in Asia ICMA Expo, Miami

6. Dual Interface CardsBanking Application • Mastercard and Visa provide Dual Interface Operating systems • MChip and JCOP • Existing Card Reader Infrastructures • Europe contact reader in business and private environment • North America currently building up Contactless systems • Interoperability ICMA Expo, Miami

7. Dual Interface CardsBanking Application • Multi Application of financial cards will ask for Dual functionality • Non financial Add on’s (e.g. public transport) • Involved costs to be paid by • Scheme provider • Customer • Interoperability in payment between Continents just for a minority of customer ICMA Expo, Miami

8. Dual Interface CardsID Application • Contactless Interface for travel documents is defined by ICAO • Passport with biometric data storage projects in every country • Current set up of border control infrastructures • Need for increased security ICMA Expo, Miami

9. Dual Interface CardsID Application • ID cards • ID cards are employed in many countries with increasing use • Card size is merging to ID-001 • In the EU Schengen area ID cards are valid travel documents • PKI infrastructures for governmental applications (tax, registration etc. via internet) are installed on contact basis. ICMA Expo, Miami

10. Dual Interface CardsID Application • The ID card in the EU will merge to a Dual Interface ID-001 card. • For traveling identification with an ICAO conform contactless interface • Including storage of biometric data • For secure authentification in a PKI infrastructure on a contact interface • Including key generation and verification for multiple applets ICMA Expo, Miami

11. DIC Technology AdvancesBasics • Module – Contacts – Antenna • Electrical Connection by • Anisotropic conductive adhesive (ACA) • Isotropic conductive adhesive (ICA) • Welding Technologies (TC bonding) • Electro Magnetic Coupling ICMA Expo, Miami

12. DIC Technology AdvancesBasics • Main target is on the card sideto get a reliable connection between the module/chip and the antenna ICMA Expo, Miami

13. adhesive matrix connection particals micro connections micro contacts adhesive matrix DIC Technology Advances- ACA* Connection • Further technology development • Optimization of the polymer matrix • Optimization of the conductive filler • In testing at various cardmanufacturer *Anisotropic Conductive Adhesive ICMA Expo, Miami

14. DIC Technology Advances- ICA* Connection • Epoxy silver filled has been replaced by flexible systems on silicone basis • Flexible Bump (Mühlbauer, D) • Polymer Spring (SPS, F) • Good reliability results due to permanent elastical pressure onto the contacts • Systems are in testing and qualification at card manufacturer ICMA Expo, Miami

15. BASIC CARD STRUCTURE Antenna Wire embedded Hot melt tape M8.4 Module Overlay CARD INLAY Mag stripe (option) Thermo Compression bonding window White or printed sheet DIC Technology Advances- Welding Connection ICMA Expo, Miami

16. DIC Technology Advances- Welding Connection • Thermal Compression welding results in a very hard and strong connection. • Different technologies available • Wire “pull out” on the finished card (China) • Prelams with module connected (Smartrac)available as blank white cards, prelaminated inlays (development), and unlaminated inlays (Q4/05) • Cards in testing and qualification at card manufacturer ICMA Expo, Miami

17. DIC Technology Advances- Electro Magnetic Coupling • The contact between the module and a special trimmed ID1 antenna (booster) is a specific electromagnetic coupling. • NO contact between the devices. • Highest reliability, material independent (PVC, PC, PET etc.) • Testing and qualification at card manufacturer and passport producer ICMA Expo, Miami

18. DISPLAY KEYPAD BATTERY RELOADABLEBATTERY ANTENNA SENSORS BIOMETRIC SENSOR SOLAR POWER UNIT DATA STORAGE COMPUTING Technology AdvancesMulti Technology Cards ICMA Expo, Miami

19. Multi Technology Cards- Development • ISO compliant sample cards are in development. • High development activity for certain components • Driving factor are electronic devices (e.g. PDA, Mobile, electronic paper) DISPLAY - BIOMETRIC SENSOR - KEYPAD - SWITCH - DIODES - BATTERY - ANTENNA - SENSORS - AKKUMULATOR - SOLAR POWER UNIT - DATA STORAGE - COMPUTING ICMA Expo, Miami

20. Summary • Increased DIC demand lead to reliable Module/Antenna connections • Industrial High Volume DIC Production in 2006 • High Potential for Lucrative Business Cases • Products with Complex Electronic Circuits have been proposed and are under further development • High R&D Activity lead to New Components and Technologies for Smart Cards ICMA Expo, Miami

21. Business Models and Technology Advances for DIC THANK YOU FOR YOUR ATTENTION More Information: COCASO – Thies Janczek – Moewenstrasse 5a – 24113 Molfsee – Germany Phone: +49-(0)4347-703526 – Email : janczek@cocaso.com www.cocaso.com ICMA Expo, Miami

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