Secure transactions

In 2010, Gemalto continued to win new contracts that bolstered its leadership position in serving global financial institutions.

Our performance (*)



(2009: €411m)

Up 7% year-on-year at constant exchange rates

Gross profit


(2009: €99m)

Gross margin


(up 620 basis points)

Profit from operations


(2009: €12m)

Profit margin from operations


(up 600 basis points)

  • Growth was driven by global migration to EMV and dual-interface contactless products
  • The drag on growth, caused both by the UK triennial trough and the shift to standard mailing, faded in the second half as anticipated
  • Gross margin improved significantly, as a result of a better product mix and high personalization service activity
  • Operating expenses increase was in line with revenue growth, after accounting for the impact of acquisitions
  • Fall through of the second half strong growth was excellent, and consequently profit margin from operations for the full year improved sharply
  • (*) Adjusted financial information for ongoing operations.

Our products, software and services

Gemalto offers a full range of solutions for secure transactions in financial services, transport and other emerging markets. These include:

Payment and loyalty cards

  • Our Clarista, Optelio and Desineo brands, segmented by unique customer needs, represent our complete EMV card payment solutions. They support all profiles – such as JCB, MasterCard and Visa – in both Static Data Authentication (SDA) and the more advanced Dynamic (DDA) systems. Clarista and Optelio also relate to our loyalty solutions.

Contactless solutions

  • Our contactless card and sticker solutions offer faster, more convenient ways to make payments, driving up retail activity and reducing the number of cash-based transactions.
  • We apply innovative designs and form factors to payment solutions,?as well as eco-friendly biodegradable cards opening up co-branding and marketing opportunities.

Secure services and solutions

  • Our Allynis range of secure services includes personalization, packaging and card distribution, plus a full set of e-services such as PIN by SMS and PIN self-definition.
  • Our Dexxis Instant Issuance solution allows banks and retailers to issue cards immediately in the store or in-branch.

Trusted Service Manager (TSM)

  • Our TSM solution supports a variety of convergent payment offerings, including mobile contactless payment programs.


  • Mass transit operators need to maximize commuter throughput as well as reduce fraud and create opportunities for marketing and co-branding. Our solutions address all these issues in one clear proposition.

Pay TV

  • We supply subscriber authentication and rights management cards to large secure-access TV service providers.

Our positioning

  • Gemalto is the world leader in chip payment cards, and the preferred partner of global banks.
  • A progressive worldwide demand for migration to EMV cards and contactless payments is driving our core business.
  • We are leveraging our local knowledge, world leadership and scale to develop attractive markets ready for EMV, such as Brazil, Mexico, Canada, Russia, Poland and Indonesia.
  • In the US, we are also recognized for the expertise and support we bring to major banks, and in 2010 we won the first EMV migration program there.
  • We are combining the technology used in Secure Transactions with those from other segments, to create converged solutions such as online and mobile banking.
  • During ten years’ experience in contactless technology we have delivered more than 100 million contactless cards to customers.
  • Hence we are well positioned in the fast-growing market of dual interface (DI) contact/contactless cards, with one in two issued by Gemalto in 2010.
  • Our contactless cards are used by many major transit authorities, including those in London, Paris, São Paulo, Rio de Janeiro and Santiago, in order to maximize throughput and replace cash.
  • Our retail customers benefit from our extensive experience in delivering smart card based solutions for loyalty, vouchers and private payment applications.

Consumers appreciate the security and convenience of credit and debit cards. EMV(*) chip cards offer the highest level of trust and security, protecting both cardholders and issuers. Gemalto’s experience in technology and encryption means we are strongly positioned to respond to increasing demands from financial institutions worldwide for their deployment. Contactless technology increasingly enables issuers to combine different services, such as payment and transport, on a single card.

Banking cards

Although consumers appreciate the convenience of credit and debit cards, secure access to their credentials remains a major priority(**). New technical and security standards, as well as consumer demand for more choice and convenience, are driving suppliers to look for innovative payment solutions.

At the same time, financial and retail card issuers want better security and innovative platforms to create new revenue streams. Gemalto’s years of experience in card technology and expertise in encryption mean we are strongly positioned to address these issues.

Migrating abroad

Adoption of EMV standards for smart payment cards is growing, and with American Express joining the EMV consortium in 2009, it is stronger than ever. The familiar PIN authentication process makes EMV cards easy to use for customers and keeps transaction times low for retailers – a crucial factor. Thus by the end of 2010 there were more than 1 billion(*) of them in use worldwide, and market growth potential remains high. Javelin Strategy & Research estimates that $16.6 billion in card fraud in the US alone could be immediately affected by EMV implementation.

Alongside our existing EMV contracts, 2010 saw us supporting our clients in their EMV migration programs in Poland, Spain, Brazil and Canada amongst others.

Our global presence makes us a logical partner for banks looking to manage their migration from magnetic stripe (mag-stripe) cards to EMV. In May 2010, Gemalto won the first such program in the US with the United Nations Federal Credit Union (UNFCU). Its motivation for deploying EMV was driven by the need for US cardholders to be able to make payments when travelling abroad. In most mature EMV markets, mag-stripe cards (those typically used in the US) are no longer accepted in machines such as those used for transport ticketing systems and road tolls. In July 2010, Hometrust in Canada also selected Gemalto to support its EMV migration program.

Dynamic security

Gemalto’s latest generation of Dynamic Data Authentication (DDA) cards increases their security yet further. Visa and MasterCard have mandated DDA for all their EMV cards in Europe by January 2011. Similar mandates are expected in the rest of the world soon.

In February 2010, BNP Paribas in France granted us a two-year contract for the supply and personalization of EMV DDA payment cards.

Expert services

Applying our expertise in handling secure data, we personalize cards for each user and then manage their distribution and administration. With the widest range of value-added services in the market and 30 personalization centers around the world, close to our customers and certified by Visa and MasterCard, Gemalto is reputed for the flexibility, reliability, speed and security of its issuance services.

We are also innovating in issuance solutions for emerging markets. In November we announced the deployment of our Dexxis Instant Issuance offering in Indonesia, where consumers – 90% without bank accounts – require micro-banking services. Dexxis offers them instant, on-the-spot issuance of EMV cards. The package also includes servers, software, printers and training to deploy the solution over a secure network.

Our customization services also allow banks and retailers to issue unique designs to enhance their market position. In May, Raiffeisen was the first issuer in Austria to deploy Gemalto’s picture-on-card solution, which prints one of the customers’ favorite photos onto the card. For more advanced projects, our Optelio range of payment cards includes on-board applications which open up a number of possibilities for both issuers and customers.

Contactless payments

Gemalto has been supplying contactless technology for over a decade, delivering more than 100 million contactless cards to customers. Users make a payment by simply holding their card near a reader, even if it’s still in their wallet or purse. That means we can offer new form factors, such as keyfobs, as payment tokens. It also makes it easier for banks and retailers to create co-branded payment cards.

Gemalto had several successes during 2010 with dual interface (DI) contact/contactless cards. For example, in January Setefi (Intesa Sanpaolo Group) in Italy deployed our EMV cards with MasterCard PayPass™ contactless payment. And in December, PKO Bank Polski in Poland adopted our solutions to migrate straight from magnetic stripe cards all the way to EMV contactless for its entire portfolio of debit cards.

Our ability to navigate the converging worlds of banking, mobile communications, transport and retailing is also opening up new opportunities for our Secure Transactions business. In June, Gemalto achieved MasterCard certification for our consulting services, demonstrating our unique ability to support our customers during their EMV migration programs.

By incorporating EMV services into a SIM card, we have already been able to provide five French banks with a contactless payment system called “Payez Mobile”, built into users’ cellphones. In May, Gemalto and Orange announced their partnership in the deployment of our Trusted Service Manager (TSM) for NFC solutions in the “Nice (France) contactless city” commercial project.


Our Celigo smart cards are already being used to access mass transit systems in 30 cities that have more than one million inhabitants each. Passengers appreciate the convenience of our contactless cards while operators value the additional revenue protection. Unauthorized travel is reduced and with our cryptographic expertise, fraud is all but eliminated.

During 2010, we saw increasing interest from financial institutions and mass transit operators to leverage the success of contactless technology by combining payment and transport ticketing on a single card.

  • (*)
  • Source: EMVCo
  • (**)
  • Source: TNS Sofres

6.5 million

Customers of PKO Bank Polski will receive their new contactless EMV Visa cards by the end of 2011.

22 million

EMV contactless cards were delivered by Gemalto
worldwide in 2010.

Contactless debit cards for Poland

In November 2010, Poland’s largest financial institution, PKO Bank Polski S.A, selected Gemalto to migrate its entire portfolio of individual Visa debit cards to EMV contactless.

The bank plans to issue around 6.5 million Visa payWave cards to its customers by the end of 2011. This massive deployment is part of PKO BP’s strategy to offer innovative products to its customers and to boost the development of cashless transactions in Poland.

In addition to the security of EMV, the card provides a new and simple way to make low-value purchases up to 50 Polish Zloty (€12.5, USD17).

Users benefit from the speed and convenience of contactless in thousands of acceptance points, at department stores, fast-food restaurants, cinemas, bookstores and pharmacies.

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