Presentation by Greg Conley, General Manager Travel and Transportation Industry, IBM Smart Card Solutions at the ACTE IX Chicago Conference, April 29, 1997

DEVELOPING THE SMART TRAVEL CARD

Slide 1:

IBM AND American Express - DEVELOPING THE 'SMART TRAVEL CARD' CONCEPT
o Airlines
   - Internet Reservation/E-Ticket
   - Payment - credit, debit, or charge card
   - Loyalty program/traveler's profile
   - Lounge access/other privileges
   - PPID, a biometric for immigration purposes
o Hotel
   - Kiosk check-in from card-held profile
   - E-purse within the hotel
o Car Rental
   - Advanced reservation, self-service collection and return
o Integration with direct corporate total travel management
offerings

Slide 2:

THE IBM / American Express / American Airlines PILOT
o Test the Smart Card as an enabler of ticketless travel
   - Consumer makes a telephone booking (no ticket issued)
   - Arrives at the airport with hand luggage
          Goes directly to boarding gate, inserts Smart Card into
          gate reader, reads name and FF number, searches departure
          control system for PNR match, if matched allows boarding
          and prints a seat number
- If luggage to check-in-
          Checks-in at desk then goes to gate and uses gate reader
          as above
o Both American Express and AA cards can be used to identify
the traveler at the gate
o A very simple first implementation, but further phases are
envisioned
o Pre-pilot education important
o Still are security challenges

Slide 3:

FOR A CARD ISSUER, THE CONSUMER PROPOSITION IS MUCH STRONGER THAN JUST 'SECURE PAYMENT'...
o Speed through the travel process
   - Fast check-in at hotels, airports, and railway stations
   - No queuing at passport control
o Less hassle
o More convenience
o Preferential treatment
o Reduction in paper & tickets
o Loyalty rewards
o Fewer cards in the wallet, not more!

Slide 4:

STANDARDS ARE ESSENTIAL TO ENCOURAGE INVESTMENT IN THIS NEW ARCHITECTURE
o IATA Resolution 791 and ATA Resolution 20.204
   - Contact Cards, based on 7816 and EMV
o IATA Contactless standard underway
o ISO 14443 is the likely base
o IT suppliers are cooperating in IATA working groups
   - Open standards like this must be encouraged
o Java Card Endorsement
   - Visit www.ctst.com
o Beyond Travel, IBM will continue to promote and encourage
open standards, common API's, single points of acceptance
o Visit www.smartcardsys.com - PC/SC Workgroup (IBM, Sun,
Verifone, Gemplus, Toshiba, Schlumberger, HP, BULL
Microsoft, Siemens)
   - Interoperability of PC, SC, SC readers
   - SC application development

Slide 5:

POTENTIAL AIRLINE SMART CARD APPLICATIONS
INFORMATION/SERVICE ACCESS POINTS
o Self-service kiosks
   - Airport terminals, car rental locations,
   parking lots, ...
   - Agencies, travel mega-stores, ...
o Mobile agents with wireless terminal devices
   - Passenger check-in
   - Baggage check/claim
o Boarding lounges and jetway entrances
o Security checkpoints
o Immigration and customs checkpoints
o Traditional ATO / CTO / agency offices
o Home/office personal computers

MULTI-FUNCTION
o Positive ID, Immigration, Security
o Multi airline supplier ID
o Payment card
o Expense tracking
o FF ID
o Club access
o Security clearance
o Self-service
o Traveler profile

Slide 6:

THE BUSINESS TRAVELER WILL DEMAND A COMBI-CARD IN THE FUTURE
o Contact for...
   - Payment and/or E-Purse
   - SET/E-commerce
   - Portable profile of software
   applications (mace an NC your PC)
   - Secure Identifier for -
          Ticketless Air Travel
          Hotel check-in/out
          Car Rental
o Contactless For...
   - Secure access control
   - Transport purse (bus, metro, etc.)

Slide 7:

DURING 1997 IBM WILL CONTINUE TO BUILD ON THE SMART TRAVEL CARD VISION WITH FURTHER PILOTS
o Airlines, Hotels, Railways, and Car Rental Companies
o American Express and other Corporate / T&E card issuers
o Other End User Companies
o IBM will provide:
   - MFC Cards
   - End-to-End System Design
   - Application Development
   - System Integration
   - Managed Operation Services
o IBM will integrate solutions based on other card
operating systems from different manufacturers, where
appropriate
o Visit IBM SC Solutions - www.chipcard.ibm.com