A Pre-Authorised National Payment Card has been Launched in Kazakhstan
Kazakhstan National Processing Center and KazPost have jointly released under the KazCard brand a chip payment card based on WAY4 Pre-Authorised. The KazCard project is deployed with products from companies OpenWay and Axalto.
February 12, 2005 - Brussels, Belgium and Almaty, Kazakhstan
Acting on a commission from the President of the Kazakhstan Republic, which calls for organizational measures to create a national payment card, Kazakhstan National Processing Center and KazPost have jointly released under the KazCard brand a chip payment card based on WAY4 Pre-Authorized. The KazCard project is deployed with products from companies OpenWay and Axalto.
Brussels, Belgium and Almaty, Kazakhstan - February 12 2005 - The project's goal is to create a new national card system that will function on all territories of the Republic, including rural regions where commercial bank branches and retail locations lack quality telecommunications systems.
KazCard, as the national card system, must become a modern vehicle for users to receive pensions and discounts and make payments for social services. Furthermore, it is planned that chip cards will contain various ID applications used for authenticating access to financial and information services.
WAY4 Pre-Authorized technology, developed by OpenWay, was selected as the base technology for KazCard because of its offline and online payment capabilities that make it the optimal solution for servicing mass transactions (when the transaction amount is comparable with the cost of servicing the transaction itself), and for making retail locations less dependent on the quality of telecommunications available. As an effective alternative to electronic purses, the KazCard solution is based on open specification EMV2000, which significantly reduces the cost of deployment and integration with existing EMV card infrastructures.
KazCard cards are serviced through KazPost's infrastructure and the acquiring network created under the Kazakhstan National Processing Center. KazCard cards are issued by participating banks. The Kazakhstan National Processing Center provides KazCard with national clearing and interbank settlement services.
Payments through KazCard are made with a pre-authorized account offline, where the issuing bank sets the card limit for pre-authorized offline payments. If the purchase amount exceeds the pre-authorized amount available, the transaction will go automatically online for authorization by the issuing bank. The cardholder may request the pre-authorized balance at the POS terminal and a list of the last transactions made offline.
The pre-authorized card limit may be replenished while the card is being authorized online through a terminal. Funds spent offline are synchronized with the card balance in the processing center. In this way, KazCard gives banks and cardholders complete control over their funds and allow them to avoid accidental overdraft on their debit cards.
OpenWay's WAY4 processing system is the best solution for realizing project KazCard, thanks to its reliability and quality back- and front-office systems, the innovativeness and unique flexibility of its technological system. The WAY4 software solution supports functions for issuing and servicing KazCard cards, as well as clearing and interbank settlement for KazCard transactions for all territories of the Kazakhstan Republic.
OpenWay is a leader in using new technologies. In 2003, OpenWay offered its clients complete support for M/Chip4 and VSDC++, and two years ago it was one of the first providers of processing solutions that supported issuing and servicing for EMV cards.
Axalto is a world leader in the chip card industry, and has been an active participant in the project from the start, serving as a smart-card technology consultant for other members of the project.
As a platform for KazCard, Axalto offered its latest innovation – its Palmera Classic chip card with a Java Card operating system. The Palmera Classic card has greater EEPROM memory, 16 KB, a powerful 16-bit processor and is certified by MasterCard (M/Chip 4), Visa (VIS 1.4) and JCB (J/Smart). The Java Card technology makes it easy to develop additional applications like loyalty and ID systems, etc.
In view of the fact that commercial bank branches do not exist on the regional and rural level, AO National Processing Center and AO KazPost are positioning their new pre-authorized debit card, KazCard, as a way to bring bank and payment services to these areas.
In 2005, AO KazPost and AO National Processing Center plan to jointly install up to 45,000 ATMs and 4,000 POS terminals.
OpenWay Group was founded over 15 years ago. We develop WAY4, an innovative e-payment processing framework for banks, payment processors, telcos and petrol companies.
OpenWay was initially headquartered in Brussels, Belgium with one R&D team there and another in St. Petersburg, Russia. Today we are a global company with 10 offices and 130 customers around the world.
Our portfolio consists of WAY4 Card and Merchant Management, Financial Switching, Personalised Channel Banking, Prepaid Cards, E-Commerce, Mobile Payments, Digital Wallet, DCC, Fuel Cards, and other solutions.
Our customers include tier-1 giants, mid-size companies, and ambitious start-ups:
- Equens, Western Europe (SEPA-acquiring of 0.5 million merchants on WAY4)
- Savings Bank of Russia (issuing and acquiring back-office, and authorization switch for 140 million credit and debit cards on WAY4)
- SIX Group, a leading European payment company processing over 4,000,000 cards and migrated over 30 banks to WAY4 within 15 months
- Comdata, USA (commercial cards on WAY4)
- Network International, the Middle East (a processing center with approximately 60 banks on WAY4)
- Raiffeisenbank Int., Eastern Europe (a processing center for 15 banks and countries on WAY4)
- Bank Audi, MENA region (more than 40 card products on WAY4 including NFC)
- Halyk Bank of Kazakhstan (the first bank to launch Visa P2P Mobile Transfers)
- Lukoil Intercard, Eastern Europe (B2B fuel cards with comprehensive loyalty services on WAY4)
WAY4 live installations consistently demonstrate high performance; for example, 90 million cards issued and authorized on a single platform and 12 million POS/ATM clearing transactions processed daily by a single acquirer.
OpenWay, known for its commitment to long-term relationships, both serves customers locally and provides global support. Today our team unites approximately 500 payment business, digital technology, and security professionals.