Trying to allay dissatisfaction among credit card issuers with the paucity of uses for Visa smart cards, Visa U.S.A. last week launched a software suite that it said was designed to "streamline programming for a diverse range of smart card applications."
Visa says the small programs, or applets, will make it easier for developers to create new smart card applications. The Visa Framework software is being offered free to Visa issuers, merchant-acquirers, processors, and software developers.
Patrick Gauthier, the senior vice president of smart card applications for e-Visa, a division of the San Francisco-based Visa U.S.A., said Visa Framework will help solve two vexing problems. "We thought we needed to have a tool we could give to developers who are not native smart card developers, to make it easier for them" to create applications.
The software will also make it easier for issuers to integrate smart cards into their legacy systems, he said.
"Issuers have tremendous creativity about things they would like to see" on the cards, but sometimes the need for back-office changes scares off would-be developers and adopters, Mr. Gauthier said. "With the looming proliferation of services on a smart card, we potentially have some interesting challenges for issuers to manage what is on the card."
For example, Visa Framework could help software developers create frequent-shopper loyalty programs or Internet authentication programs. A card issuer that wanted to offer such a program could install it on the card, and the new software would ensure that it works seamlessly with legacy computer systems that predate smart cards, Visa said.
Last summer at a Java developers conference, Visa announced a contest to devise programs and applications for Visa smart cards. The company said it was supplying Visa Framework software to contestants so they can integrate their programs onto the cards. The contest finalists will be announced in February.
"I see every day where, if we could make it simpler on some of the integration with legacy systems, we would have a much better chance of rolling out" smart card programs, Mr. Gauthier said. "How do we make it easier to bridge the gap between smart cards and legacy systems? That is the overriding objective that we pursue day in and day out."
