Chaz,
<< Have seen the ads recently for American Express's Blue Cards >>
Yes. Huge add budget. AMEX Blue Site is at:
americanexpress.com
<< Is this a "smart card" from the get go, or is it a base to which "smart card" features may be added? >>
Yes! And from the USofA to boot. It can be used as a standard charge vehichle with magnetic stripe at traditional POS as well.
<< From an investment standpoint, which companies make the Blue Card Blue possible>>
CSCO <g>. The first company that comes to mind Is Infineon (which Seimens has set up for an IPO this spring. Its their chip (66 series I believe) and they are # 1 in smart card silicon. I have heard that there is about a 6 to 8 week backlog to get the card and I have also heard this is because the card is very successful and AMEX underforecasted demand and Infineon fabs are at capacity. I don't know if this is fact. Infineon is at:
infineon.com
RSAS probably getting a peice of the pie since Infineon propably paying them a license fee or royalty for the crypto coprocessor on each chip.
Oberthur (De La Rue) is making the card but they are privately held and Gemplus (also private) is providing readers.
I don't know who the CA is or whose certs they are using but this would be interesting. Maybe they are their own CA?
I've added some assorted clippings from the archives below.
- Eric -
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PRNewswire - MOUNTAIN VIEW, Calif., Sept. 8
FROST & SULLIVAN ANALYSIS: AMERICAN EXPRESS' BLUE SMART CARD PRODUCT LAUNCH - WILL IT MAKE VISA AND MASTERCARD/MONDEX BLUE TOO?
In one of the largest marketing campaigns ever undertaken for a card campaign (up to $45 million), American Express announces today its launch of its credit card Blue in the form of a magnetic stripe-smart chip hybrid. Billed as a lifestyle card, Blue marks a major landmark in the development of the smart cards industry in the United States and worldwide. What Blue does for American Express at the end of the day:
-- Continues the emphasis of AmEx on the "upscale techno savvy", one of the most sought-after market target segments among card issuers
-- Expands the AmEx strategy focus upon electronic commerce and Internet banking
-- Leapfrogs AmEx ahead of Visa International and MasterCard in the technology card game in the United States
-- Gives smart cards in the United States a real chance to succeed -- and
sparks the smart cards market for its next phase of re-invigorated growth
The Continual AmEx Commitment to E-Commerce -- and the Cardholders Who Will Make It Happen
The trend in the past years in the credit card world has been to target finely very specific consumer segments: cards changed from being generic plastic to being "lifestyle" cards -- as personal a demographic identifier of a consumer as what type of car he/she drives, or what type of clothes he/she wears. One of the most lucrative and growing card population segments is the increasing number of upscale consumers who have made their money in stocks or being in start-up companies or just riding to the top of the corporate ladder -- explaining therefore the plethora in the last years for platinum, silver, and gold (even with real gold-leafed) credit cards.
What American Express has done with Blue is to take this segment one step further -- now the emphasis is no longer on the "have's" of the world, but the "have's with the techno toys". All one has to do is to look at the jumping installed base of cell phone and PDA/Palm Pilot holders to see the lucrative immensity of this population segment. It will be exactly this population also who will be the critical secondary adopters of widespread on-line shopping and e-commerce on the Web, and it is exactly this wave that American Express will be banking upon to carry the company to the forefront in the next millennium.
American Express has been actively staking out its "e-territory" on the Net, and the launch of the Blue smart card fits in perfectly with other e-oriented product launches such as Membership B@nking and American Express @Work. The company further understands that in the e-world, a company does not win the war by being a martyr, and therefore American Express established alliances with prominent Internet commerce leaders such as Commerce One and Ariba. All in all, the Blue card is yet but another step in the virtual direction for the company.
This is but the beginning, however, for the Blue: in November American Express intends to launch its electronic wallet which will be downloaded freely from the Web and onto a PC platform. In the future, given the hands-on experiences of the company with multiapplication smart card trials with Hilton Hotels and Continental Airlines, the natural evolution of the card will be to follow a multiapplication card Internet model -- which again will fit into the intention of the card to be a "lifestyle card" for both the work and play lives of tomorrow's techno hipsters.
But What of Visa and MasterCard?
"What is so markedly different about the American Express launch," comments Alyxia T. Do, smart cards analyst for Frost & Sullivan, "is that the company is taking the case right to the consumers. The industry has been dallying for eons whether or not there's a business case for smart cards in the US. American Express is going to let the consumers decide. It's a full dive for AmEx while Visa and MasterCard have been only putting their toes to test the US waters."
Analyst Do continues, "Moreover, with a Godzilla-sized marketing campaign to accompany Blue, no annual fees, and an introductory zero-percent interest rate, American Express is making every effort to see that this smart card program gets a fair chance to succeed."
The move by American Express also shows the company to be a decisive market and technology leader in the cards race in North America. Up to this point, Visa and MasterCard have had to contend only with smart card pilots and trials. Visa ran the Olympics Trial in 1996 with Visa Cash and both organizations had their hands in the New York City smart card trial in late 1997. Both pilots were billed as "minimal successes" in the industry and did not provide one way or another a true indication of where smart cards were fitting into these company's vision and concrete plans.
Smart card visions for Visa and MasterCard only became more complicated last autumn when the Justice Department announced its antitrust lawsuit against the two organizations, one of the key points being a charge that Visa and MasterCard have intentionally prevented technological innovation such as smart cards to blossom in the States. In the end, the American Express Blue card may allow the company to leap frog over card powerhouses Visa and MasterCard in the technical race beyond the year 2000.
So Will the US Market Finally See Smart Cards Everywhere?
The American Express launch -- whether it fails or succeeds -- nevertheless marks an important milestone in the US smart cards market which has been growing steadily from less than 3 million smart cards sold in 1996 to now more than 8 million cards sold in 1998. The future US market for smart cards looks exceptionally bright because of the key drivers of financial and network security applications.
The American Express launch is one of two major launches expected with the potential of tens of millions of cards that are likely to flood the American financial cards market. Moreover, smart cards cannot be underestimated in its role in networks -- pushes for protection of everything from content such as music on the Net to protecting Intranets and Extranets from cyberterrorists will fuel the use of security chips and smart cards into business and consumer lives.
"We are finally seeing the beginnings of the 'hockey stick' growth curve for smart cards in the US," comments analyst Do, " After so many years of disillusionment and disappointment, it's about time."
[Copyright 1999, PR Newswire]
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PRNewswire NEW YORK, Sept. 8 1999
AMERICAN EXPRESS LAUNCHES BLUE NEW CREDIT CARD HAS SMART CHIP BRINGING ADDED ONLINE SECURITY IN NOVEMBER AND HAS AN INTRODUCTORY INTEREST RATE OF 0%
American Express (NYSE: AXP) today launched Blue, a new credit card designed to expand the company's revolving credit business and attract new customers by combining financial, shopping and security benefits. The new card has a host of benefits today with added features and services planned for the future. At launch, this "evolving" credit card will offer:
* Introductory interest rate of 0 percent for the first six months and an ongoing fixed rate as low as 9.99 percent for revolving balances as long
as the customer is in good standing
* No annual fee
* A web site at americanexpress.com, where customers can pay
bills online; download information from Quicken(R) or Microsoft(R)
Money; take advantage of online financial tools to calculate net worth,
cash flow and retirement goals; and review a variety of entertainment content including upcoming concerts and information on artists
A menu of relevant shopping services including:
* Fraud Protection Guarantee -- protects Cardmembers from any unauthorized
charges made online with their Card;
* Return Protection -- protects Cardmembers' online and offline purchases
against merchant no-return policies, up to 90 days from the date of purchase;
* Purchase Protection Plan -- protects covered items against accidental
damage and theft for 90 days from the date of purchase, up to $1,000 per
occurrence, in excess of other applicable insurance; and
* Best Value Guarantee -- ensures the lowest price available on covered
items.
"Blue continues the American Express tradition of creating custom-designed products that appeal to specific segments of the consumer marketplace," said Alfred F. Kelly, Jr., president of the Consumer Card Services Group at American Express. 'With 64 million adults surfing online regularly and 10 million people shopping online, it is clear that consumers are quickly adopting and adapting to the Internet," said Mr. Kelly. "But as large an audience as that may be, there are still millions of people who are just beginning to explore the power that technology holds. Blue was designed with both of these consumer groups in mind."
Added Security Evolving in November
Using Smart Chip and American Express Online Wallet
While Blue from American Express has a traditional magnetic stripe that can be read at point-of-sale terminals when shopping in the physical world, there are also features that will add convenience and more security when shopping online. First, for those Cardmembers who want to make online shopping easier, the company will be offering for free, American Express Online Wallet. Cardmembers enter their purchase information (such as name, card account number and shipping address) into the wallet. When the customer is ready to make an online purchase, all he/she has to do is open the wallet and click on the "complete purchase" button to automatically fill in the merchant's purchase form. Blue Cardmembers will be able to register for the American Express Online Wallet at americanexpress.com in November.
Second, for those Cardmembers looking for added online security, Blue from American Express has a "smart" chip. Using a smart card reader, which is available for free* from American Express, and connects to the user's PC, Cardmembers can more securely access their American Express Online Wallet when making purchases online. The chip stores a unique digital certificate that acts much like a key. When the card is inserted into the smart card reader and the Cardmember enters his/her PIN number, the certificate is read and the Cardmember can "unlock" the wallet. This added level of security helps prevent unauthorized access to the wallet.
"Whether you swipe or type, Blue will deliver added convenience and security," said Kelly.
Custom Designed for the 21st Century Consumer
For nearly 150 years, American Express has built its business by delivering consumer products to specific customer segments. Having invented the Travelers Cheque more than a hundred years ago, the company pioneered the travel and entertainment card business in 1958, invented the first Gold Card in 1966 and redefined the luxury service market with the Platinum Card in 1984.
In this latest venture, American Express has turned its attention to technology-minded individuals by marrying high tech and high style. "Blue was designed for consumers who recognize the ways that technology (e-mail, cell phones, the Internet) can help enhance and manage their lives," added Kelly. "With very heavy demands on their time, this group sees the Internet and financial products as a way to add convenience and reduce stress by helping them balance their needs and resources -- whether that means time or money."
Consumer research found that these people described themselves as being entrepreneurial, generally optimistic about the future, and self-reliant. In addition, they said that while work was very important, they remained very involved in activities outside of their jobs -- especially music, cinema, and health and fitness.
American Express is a diversified worldwide travel, financial services and network services company founded in 1850. It is a leader in charge and credit cards, Travelers Cheques, travel, financial planning, investment products, insurance and international banking. For more information about American Express Cards and services, visit the company's World Wide Web site at americanexpress.com.
* Free readers will be available through January 31, 2000 for Cardmembers who are approved for Blue from American Express; thereafter the price will be $25.
SOURCE American Express
[Copyright 1999, PR Newswire]
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Reuters Story - NEW YORK - Thursday September 9 3:42 AM ET
dailynews.yahoo.com
AMERICAN EXPRESS LAUNCHES CARD FOR ONLINE SHOPPERS
Financial services company American Express Co. (NYSE:AXP - news) Wednesday launched a new credit card, called ''Blue,'' with features to make shopping over the Internet more secure.
The Blue card has both a traditional magnetic stripe for shopping in stores, but also has a smart chip that will hold personal information like shipping addresses and account data a cardholder can give online merchants in a secure manner.
Starting in November, Blue card holders will be able to enter relevant personal purchasing information, the sort demanded by Internet stores, into a new program called American Express Online Wallet for free.
When a customer wants to make a purchase over the Internet, he opens his electronic wallet, with the help of a smart card reader, to automatically fill out the merchant's purchase form, the company said. The smart card reader would connect to the cardmember's computer, and would read the unique digital code on the card to allow the card holder to unlock his ''wallet'' of personal purchasing information, American Express said.
The card would have an introductory zero percent interest rate for the first six months and an ongoing fixed rate as low as 9.99 percent for revolving balances if the customer has good credit, the company said.
There is no annual fee for the Blue card.
At the Web site americanexpress.com, customers could pay bills online, download personal financial information and use online financial tools to calculate cash flow and retirement goals, American Express said.
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AMERICAN EXPRESS HAS SMART CREDIT CARD FOR INTERNET
September 10, 1999 -
Credit card companies are becoming the latest market segment to vie for the attention of Web-savvy consumers. By offering Internet users something different than they get with a regular credit card, companies such as American Express and eCharge are attempting to grab hold of this potentially huge market.
American Express announced today the launch of its new credit card, called Blue. The card is actually a magnetic stripe-smart chip hybrid, and is being marketed to technology buffs who American Express expects will be critical secondary adopters of widespread online shopping and e-commerce on the Web. American Express says Blue will make e-shopping easier more secure.
While Visa and MasterCard have tried their luck with smart card pilots and trials in the past, American Express is the first to do a full-launch of a smart card product. "What is so markedly different about the American Express launch is that the company is taking the case right to the consumers, " said Alyxia T. Do, smart cards analyst for Frost & Sullivan. " The industry has been dallying for eons whether or not there's a business case for smart cards in the U.S. American Express is going to let the consumers decide."
Visa, which ran a smart card trial during the 1996 Olympics and participated along with MasterCard in the New York City smart card trial in 1997, has only met with minimal success in the smart card arena. Last year, smart card plans for both Visa and MasterCard became more complicated when the Justice Department announced its antitrust lawsuit against the two organizations. One of the key points in that case was a charge that Visa and MasterCard have intentionally prevented technological innovations such as smart cards to occur in the U.S.
Yet some companies are betting there is money to be made in smart cards and Internet-enabled credit cards. In August, Seattle-based company eCharge announced a completely Internet-based credit and payment system to facilitate purchasing between buyers and eCharge-enabled merchants. While companies such as Visa, MasterCard and American Express often charge Internet merchants a higher percentage fee for Internet transactions, claiming they are insecure, eCharge will instead offer merchants a discount.
According to eCharge, a less-expensive option may mean big trouble for traditional card companies as e-commerce grows.
"The current pricing structure is going to collapse. There is no question about it," said Albert Pang, an electronic-commerce software analyst at International Data Corp. "It will change the rules of the game with credit card payment systems over the Internet."
But some analysts say consumers will be leery of credit systems without a physical presence, and therefore will rely on the established credit card companies instead.
American Express hopes Blue will give consumers the convenience and peace of mind they desire.
The smart cards market has been growing steadily from less than 3 million smart cards sold in 1996 to more than 8 million cards sold in 1998.
American Express is at americanexpress.com. eCharge Corp. is at echarge.com.
<<09-09-99>> |
