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`[Pat Farrell & Christopher Allen dug this up, and posted it to the Cypherpunks
`list. The general opinion is that this is "anti-DigiCash" - a move to get
`in on an electronic money scheme now, that provides no anonymity, no privacy
`protection, and is specfically degined for tracking purchases and other
`traffic analysis, in hopes of nipping REAL DigiCash in the bud before it
`spreads from Europe. Article and commentary follows press release below.]
`
`03/22 VISA ESTABLISHES INTERNATIONAL CONSORTIUM FOR ELECTRONIC PURSE
` SPECIFICATIONS
`
` SAN FRANCISCO, March 22 /PRNewswire/ -- Visa today formed an international
`consortium of market leaders in the consumer payments industry to develop
`common specifications for a new way to pay -- an "Electronic Purse," a card
`with a micro chip that can be used instead of cash and coins for everything
`from vending machines to public transportation.
` The Electronic Purse would consist of a micro-chip embedded in a credit
`card, debit card, or stand alone card to store value electronically. The card
`would replace cash and coins for small-ticket purchases (less than U.S. $10),
`such as gasoline stations, pay phones, road/bridge tolls, video games, school
`cafeterias, fast food restaurants, convenience stores, and cash lanes at
`supermarkets. Cardholders can "reload" the micro-chip and control the amount
`of value stored in the card's memory. The Electronic Purse provides
`cardholders with the security and convenience of carrying less cash and coins,
`eliminating the need for exact change. Many participants in this worldwide
`effort are currently pilot testing electronic purse products, additional
`pilots are expected in late 1995.
` Joining forces with Visa to develop international technical specifications
`for the Electronic Purse are: Banksys; Electronic Payment Services, Inc.,
`(EPS); Financial Information Systems Center, (FISC); Groupement des Cartes
`Bancaires, (CB); NationsBank Corporation; Sociedad Espanola de Medios de Pago,
`(SEMP); Sociedade Interbancaria de Servicos, S.A., (SIBS); and Wachovia
`Corporation. To ensure worldwide representation, limited additional payment
`systems that have invested energies in open-market electronic purse projects,
`will be invited to join. In addition, Visa will form a parallel group with
`technology companies to ensure the specifications support low-cost, efficient
`production of necessary equipment.
` "The goal of our combined efforts is to lead the market into the next
`frontier of payment processing -- the automation of cash and coins," said Ed
`Jensen, president and chief executive officer, Visa International. "The highly
`complementary capabilities of the participating companies will allow us to
`
`https://w2.eff.org/Privacy/Digital_money/?f=visa_e-purse.announce.txt
`
`3/12/2014
`
`GROUPON - EXHIBIT 1010
`
`

`

`EFF:
`
`Page 2 of 6
`
`address issues for all aspects of smart card-based electronic purse solutions,
`including the cards themselves, point-of-sale systems, networks and back-end
`interchange and settlement systems."
` This announcement reflects Visa's commitment to providing superior,
`convenient payment services to its member financial institutions who serve
`consumers and merchants around the globe. The consortium was formed in
`response to member requests that Visa take the lead in facilitating the
`addition of an electronic purse to existing credit and debit cards, as well as
`the introduction of a stand alone card. Visa will leverage its global brand
`presence by teaming up with strategic partners to develop common standards.
` "The most critical step in making this concept a global market reality is
`the definition of open standards that can be shared among all participants,"
`said Wesley Tallman, president, Visa Products and Information Services.
`"Recognizing that important domestic electronic purse developments are
`underway, the consortium will leverage the expertise of all participants.
`Group 'knowledge sharing,' especially with our European participants that have
`made significant advancements in the chip card arena, will facilitate the
`development of a specification that is relevant to markets worldwide." The
`technological specifications will govern the standards needed to establish an
`infrastructure that supports electronic purse payments.
` The worldwide market for automating cash transactions remains virtually
`untapped. According to the Bank for International Settlement, consumer cash
`transactions in the U.S. alone exceed 300 billion per year. By contrast,
`bank-facilitated consumer transactions, such as credit and debit cards,
`checks, and wire transfers total only 60 billion per year. As these figures
`indicate, there is a vast market potential for automating cash transactions.
`"EPS has been investing significant resources to develop smart card solutions
`since 1991," stated David Van Lear, chairman and chief executive officer of
`Electronic Payment Services, Inc. "Combining the resources of these industry
`leaders will accelerate market acceptance."
` Just as the standard operating environments have fueled the growth of the
`personal computer industry, the specifications that emerge from this
`collective effort will provide the essential framework to ensure
`compatibility, reduce development time and cost, and open up the market for
`others.
` International payment system participants included in this cooperative
`effort are:
` Banksys -- based in Brussels, Belgium, is a leading European specialist in
`electronic funds transfer (EFT) and payment security. Banksys operates the
`automated teller machine (ATM) and point-of-sale (POS) network on behalf of
`all card issuing banks in Belgium. Besides Belgium, 10 other countries are
`equipped with the Banksys system. Banksys is entrusted with the development of
`the Belgian Electronic Purse project, with pilot testing expected to begin in
`December 1994.
` Electronic Payment Services, Inc.(EPS) -- based in Wilmington, Del., is the
`leading electronic funds transfer company in the United States with an annual
`transaction volume of 1.7 billion. EPS is the holding company for BUYPASS
`Corporation and MONEY ACCESS SERVICE INC., operator of the MAC(R) network.
` Financial Information Systems Center (FISC) -- based in Taipei, Taiwan, is a
`government organization that supports electronic purse initiatives in that
`country. Through its members, FISC has issued 80 thousand integrated circuit
`cards and has installed more than one thousand point-of-sale systems with
`integrated circuit card readers.
` Groupement des Cartes Bancaires (CB) -- based in Paris, is the country's
`payment cards organization that has succeeded in launching the world's largest
`integrated circuit card program, with more than 22 million cards in
`circulation generating 2.2 billion transactions per year.
` NationsBank Corporation -- headquartered in Charlotte, N.C., is the third
`largest banking company in the United States with approximately $158 billion
`in assets, more than 1,900 retail banking centers in nine states and the
`
`https://w2.eff.org/Privacy/Digital_money/?f=visa_e-purse.announce.txt
`
`3/12/2014
`
`

`

`EFF:
`
`Page 3 of 6
`
`District of Columbia, and consumer offices in 33 states. NationsBank is a
`financial services company providing products and services nationally and
`internationally to individuals, businesses, corporations, institutional
`investors and government agencies.
` Sociedad Espanola de Medios de Pago (SEMP) -- based in Madrid, SEMP is a
`sister company of Visa Espana, a group member of Visa banks in Spain. SEMP
`operates Sermepa, the card processing company of Visa Espana.
` Sociedade Interbancaria de Servicos, S.A., (SIBS) -- based in Lisbon,
`Portugal, is the country's leading bank payments company which provides
`electronic clearing services and operates the national Multibanco ATM and
`EFT/POS networks. As an extension to its service offerings, SIBS, is
`introducing the Multibanco Electronic Purse, (MEP).
` Visa International -- headquartered in the United States, is the world's
`leading consumer payments system with more than 333 million cards issued, more
`than 11 million acceptance locations, and the largest global ATM network.
` Wachovia Corporation -- with dual headquarters in Atlanta, and
`Winston-Salem, N.C., is one of the United States' leading debit card issuers
`and provides credit card services to three million cardholders nationwide.
` /NOTE TO EDITORS: In December 1993 Visa International, MasterCard
`International and Europay announced an agreement to form a joint working
`group to develop a common set of technical specifications for the integration
`of microprocessor chips in payment cards -- commonly known as "Integrated
`Circuit," "Chip," and "Smart" cards. The electronic currency specifications
`referenced in this release will enable the electronic purse application to be
`added to the integrated circuit cards./
` /CONTACT: Albert Coscia of Visa, 415-432-2039/
`09:05 EST
`
`PR NEWSWIRE
`
`03/28 VISA TECHNOLOGY GROUP SUPPORTS ELECTRONIC PURSE SPECIFICATIONS
`
` SAN FRANCISCO, March 28 /PRNewswire/ -- Visa today announced the formation
`of a technology group of international manufacturers to support the adaptation
`of specifications for a variety of technologies that will facilitate the
`issuance and acceptance of the "Electronic Purse" -- a payment card that
`stores value electronically and is designed to replace cash and coins for a
`wide range of low-value (under U.S. $10) consumer payments.
` The technology group will work with Visa who recently formed an
`international consortium of payment systems that will develop common
`specifications for Electronic Purse programs. Because plans are underway for
`the card to be used globally in a variety of venues -- including, gas/petrol
`stations, grocery stores, convenience stores, fast food restaurants, school
`cafeterias, and for such routine items as telephone calls from pay phones,
`road/bridge tolls and video games -- a number of technologies required to
`support card acceptance in global markets will be examined by the group.
` The first suppliers to join the international technology group are VeriFone,
`Inc., the leading global provider of point-of-sale transaction systems, and
`Gemplus, SCA, the world's leading manufacturer of smart cards. VeriFone and
`Gemplus have formed a joint venture, called VeriGem, to pursue electronic
`purse opportunities. To ensure worldwide representation, additional
`technology leaders who have invested energies in electronic purse applications
`will be invited to join the group.
` In addition to acceptance technologies, "loading" systems that enable
`cardholders to restore currency value into the micro chip will also be
`analyzed. Automated Teller Machines (ATMs) are expected to play an important
`role in loading value into the electronic purse. Future loading methods, such
`as specialized devices located at merchant locations or in the home, will also
`be explored. Operating both the largest international consumer payment
`network, VisaNet, and the world's largest ATM network puts Visa in a unique
`
`https://w2.eff.org/Privacy/Digital_money/?f=visa_e-purse.announce.txt
`
`3/12/2014
`
`

`

`EFF:
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`Page 4 of 6
`
`position to lead this global effort.
` "As with all emerging technologies, consultation with suppliers responsible
`for physically implementing the technology is critical to ensuring the
`viability of the product design," said Wesley Tallman, president, Visa
`Products and Information Services. "As market leaders in the payment systems
`field, all of those who have joined us in this initiative are truly partners
`in paving this 'express lane' of the electronic payment superhighway."
` Tallman emphasized that the technology group will be charged with ensuring
`that the specifications developed by the consortium support low-cost,
`efficient production of necessary systems and equipment.
` This group approach has been a key tool in support of Visa's product and
`market development efforts. In December 1992, Visa formed a manufacturer's
`group to support development efforts for security specifications of integrated
`circuits on payment cards. Still active today, this group lends critical
`on-going support and expertise to Visa's chip card efforts. Participants in
`this international group include: Bull, CPS (France); Gemplus, (France);
`Giesecke and Devrient (Germany); Schlumberger Industries (France); and Toshiba
`Corporation (Japan). Visa expects and welcomes the participation of these and
`other technology partners in the electronic purse effort.
` Hatim Tyabji, chairman, president and chief executive officer of VeriFone,
`agreed with the need for a supplier's group that would lend systems expertise
`to this effort. "Establishing worldwde specifications is the essential first
`step in the global standardization of the electronic purse, uniting all
`industry participants on a common playing field with a common set of rules.
`The endorsement and support of the electronic purse by Visa, its member banks
`and leading worldwide payment systems send a strong message to the industry --
`the electronic purse is no longer merely a possibility, but a real market
`direction," said Tyabji.
` "With their high storage capacity, programmability and increasing
`affordability, smart cards are now poised to move beyond specialized
`applications and become a truly universal payment medium," said Dr. Marc
`Lassus, president and chief executive officer of Gemplus. "We share the
`consortium's vision of the electronic purse, and are excited about helping to
`bring speed, reliability and efficiency of smart card-based electronic cash to
`markets around the globe."
` Visa International, headquartered in San Francisco, California, is the
`world's leading consumer payments system with more than 333 million cards
`issued, more than 11 million acceptance locations, and the largest global ATM
`network.
` VeriFone, Inc., based in Redwood City, California, is a leading global
`provider of Transaction Automation solutions used to deliver payment
`processing and other transaction services to various retail market segments,
`as well as the healthcare and government benefits market. The company has
`more than 30 facilities located throughout Asia, Europe and the United States.
`To date, VeriFone has shipped more than 3.4 million Transaction Automation
`systems, which have been installed in more than 70 countries. Net revenues in
`1993 were U.S. $258.9 million.
` Gemplus Card International, based in Gemenos, France, is the leading
`worldwide manufacturer of smart cards. Gemplus' cards are used for secure
`transactions in public and cellular telephone, banking, pay TV,
`transportation, healthcare and defense applications. The company has three
`manufacturing facilities: two near Marseilles, France, and one near Stuttgart,
`Germany. Current Gemplus production exceeds 14 million cards per month. The
`company has direct sales offices in 12 countries and a distribution network
`covering an additional 50 countries worldwide. The company's 1993 revenues
`were U.S. $130 million.
` NOTE: Gemplus is a registered trademark of Gemplus Card International.
`VeriFone is a registered trademark of VeriFone, Inc. Visa is a registered
`trademark of Visa International, Inc.
` /NOTE TO EDITORS: On March 22, 1994, Visa announced the formation of an
`
`https://w2.eff.org/Privacy/Digital_money/?f=visa_e-purse.announce.txt
`
`3/12/2014
`
`

`

`EFF:
`
`Page 5 of 6
`
`international consortium to develop worldwide technical specifications for the
`Electronic Purse. The supplier's group discussed in this release is a
`complementary effort, serving Visa in a consultative or advisory capacity.
` /CONTACT: Albert Coscia of Visa, 415-432-2039/
`08:45 EST
`
`------------------------------------------------------------------------
`..Christopher Allen Consensus Development Corporation..
`.. 4104-24th Street #419..
`.. San Francisco, CA 94114-3615..
`.. o415/647-6383 f415/647-6384..
`..Mosaic/World-Wide-Web Front Door: ..
`..ftp://netcom7.netcom.com/pub/consensus/www/ConsensusFrontDoor.html ..
`
`From: tcmay@netcom.com (Timothy C. May)
`Subject: The AntiCash -- was: Electronic Purse Press Release
`Date: 4 Apr 1994 16:04:42 -0400
`
`Thanks to Christopher Allen for passing on that latest "Digital Purse"
`proposal. I won't quote-and-comment here.
`
`Does this system provide _any_ protection againt fine-granularity
`monitoring of payer identity? The talk of "clearinghouses" and the
`involvement of VISA International and the Usual Suspects suggest
`identity-blinding protocols are not in use. I also see no mention of
`DigiCash, or even RSA (but maybe I missed that--and the presence of
`RSA would not necessairly mean identity-blinding protocols were being
`planned).
`
`Likely Scenario: This is *not* digital cash as we think of it. Rather,
`this is a future evolution of the cash ATM card and credit card,
`optimized for faster and cheaper clearing.
`
`Scary Scenario: This could be the vehicle for the long-rumored
`"banning of cash." (Just because conspiracy theorists and Number of
`the Beast Xtian fundamentalists belive it doesn't render it
`implausible.)
`
`There are many "reasons" to ban cash and make it all electronic:
`
`* War on Drugs....need I say more?
`
`* surface the underground economy, by withdrawing paper currency and
`forcing all monetary transaction into forms that can be easily
`monitored, regulated, and taxed.
`
`* reduce theft of welfare checks, disability payments, etc....a
`problem in some locales, and automatic deposit/cash card approaches
`are being evaluated.
`
`* illegal immigrants, welfare cheats, etc. Give everyone a National
`Identity Card (they'll call it something different. to make it more
`palatable, such as "Social Services Portable Inventory Unit" or
`"Health Rights Document").
`
`There was a time when I would've said Americans, at least, would've
`rejected such a thing. Too many memories of "Papieren, bitte. Macht
`
`https://w2.eff.org/Privacy/Digital_money/?f=visa_e-purse.announce.txt
`
`3/12/2014
`
`

`

`EFF:
`
`Page 6 of 6
`
`schnell!" But I now think most Americans (and Europeans) are so used
`to producing documents for every transaction, and so used to using
`VISA cards and ATM cards at gas stations, supermarkets, and even at
`flea markets, that they'll willingly--even eagerly--adopt such a
`system.
`
`Make no mistake, this is not the digital cash that Cypherpunks
`espouse. This gives the credit agencies and the government (the two
`work hand in hand) complete traceability of all purchases, automatic
`reporting of spending patterns, target lists for those who frequent
`about-to-be-outlawed businesses, and invasive surveillance of all
`inter-personal economic transactions.
`
`This is the AntiCash.
`
`Beware the Number of the AntiCash.
`
`--Tim May
`
`--
`..........................................................................
`Timothy C. May | Crypto Anarchy: encryption, digital money,
`tcmay@netcom.com | anonymous networks, digital pseudonyms, zero
`408-688-5409 | knowledge, reputations, information markets,
`W.A.S.T.E.: Aptos, CA | black markets, collapse of governments.
`Higher Power: 2^859433 | Public Key: PGP and MailSafe available.
`"National borders are just speed bumps on the information superhighway."
`
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`https://w2.eff.org/Privacy/Digital_money/?f=visa_e-purse.announce.txt
`
`3/12/2014
`
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