Catalysts for Convergence The 10 th Annual Conference Smart Card Alliance
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1 Catalysts for Convergence The 10 th Annual Conference Smart Card Alliance Paul Beverly, SchlumbergerSema Randy Vanderhoof, Smart Card Alliance October 7, 2002
2 Paul Beverly Chairman, Smart Card Alliance 2
3 Our Event Sponsors Overall Sponsor 3
4 Introduction Market Update Catalysts and Drivers U.S. Market Trends & Outlook Alliance Members Agenda 4
5 U.S./Canada Shipments Up 110% Jan. to June 2001 vs. 2002, in millions of cards Source: Smart Card Alliance and KPMG Jan. to June Jan. to June 2002 Microprocessor Cards Memory Cards 5
6 U.S./Canada Smart Cards 122 Million Shipped Since (June) Population over million Households 116 million Source: Smart Card Alliance and KPMG 6
7 Smart Card Adoption by Sector >10 Million Wireless/Telephony Pay TV, Financial, Retail > 1 Million Government,Educ./Corp. Campus Other (Unclassified) > 100 K Transit Based on cumulative card shipments in 2000 and 2001 Source: Smart Card Alliance and KPMG 7
8 Catalysts for Convergence Common needs are the catalyst for convergence on smart card technology as a solution for Security Authentication Identification 8
9 U.S. Trends & Outlook -- Telecommunications 36% of shipments in 2001 Industry contraction affecting demand Outlook stable demand Despite the downturn in demand, this sector will remain a mainstay of the U.S. market 9
10 U.S. Trends & Outlook Government 5% of shipments in second half of 2001 Heightened demand for security Outlook strong growth Programs now in deployment and others on the horizon will make the public sector an engine for smart card market growth 10
11 U.S. Trends & Outlook Transit <1% of 2001 shipments 13 AFC systems committed today Outlook strong growth two+ years out Transit AFC implementations will put contactless and dual interface smart cards in the hands of millions of riders, a rich partnering opportunity 11
12 U.S. Trends & Outlook What Lies Ahead? Contactless payments for QSRs Retailer driven payment and loyalty Access control Outlook strong growth more than two years out Conversion of RFID base in payment and access control represents future demand for contactless and dual interface cards 12
13 Principal Members
14 Randy Vanderhoof Executive Director Smart Card Alliance 14
15 Monday, October 7th Agenda Opening Keynote Dr. Richard Fletcher, Visiting Scientist, MIT Media Labs, MIT Analyst s View on Financial Application Infrastructure Convergence Ted Iacobuzio, Financial Industry Analyst, Tower Group Panel: Infrastructure for Financial Application Convergence 15
16 Monday, October 7th Agenda (con t) Panel: Infrastructure for Security Application Convergence Smart Card Alliance Report Panel: Financial Applications Deployments Lessons Learned Panel: Security Applications Deployments Lessons Learned Networking Reception/ Alliance Board Meeting 16
17 Tuesday, October 8 th Agenda Opening Keynote : The Application of Government Policy and Technology to Address Security in Today s Society Speaker: Lee Holcomb, Director of Infostructure, Office of Homeland Security and CIO of NASA Panel: Policy as a Catalyst to Change Panel: Standards as a Catalyst to Change Social Events Gala Outdoor Dinner and Reception 17
18 Wednesday, October 9 th Agenda Special Edition: Smart Cards Through the Ages: A Look Back at the Last 10 Years Panel: Beyond Security and Payments : What Lies Ahead? Panel: Contactless Technology: Where Is It Heading? Alliance Task Force Meetings (open to members only Educational Institute Courses 18
19 Contact information... Paul Beverly Vice President Smart Cards and etransactions SchlumbergerSema Randy Vanderhoof Executive Director Smart Card Alliance 19
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