using one system -- a complete information management system that is specifically designed with the customers' needs in mind, and just as importantly, a system friendly to the bottom line -- I.T.Co. remains on the forefront of technology, delivering a quality product on time, and on budget
I.T. company has developed their own conception of smart-card systems CmartCity. Besides SmartCity technology department proceeds developing and promotion of new systems of controlling and managing banking accounts through Internet. This project is based on the client-server software on personal finance managing DEKART, a new solution in electronic commerce area.
SmartCity is a “card” product of I.T. The company together with its suppliers created several large-scaled projects based on this system.
I would like to stress three projects of this company in Russia.
One. Cashless payment system “Meta Card” based on SmartCity technology for Metkombank, Cherepovetz. System projected “power” is 50.000 cards, with 300 trade terminals. This number covers 75% of town’s stores and trade points and services. The card holder can use his card not even in Cherepovetz but in Metkombank affiliates in Vologda too.
Two. Cashless payment system for gas filling station “LICard” also SmartCity product. This system was created for oil company Lukoil and Imperial Bank in Volgograd, Perm, Vologda, Cheliabinsk and Baku for 100.000 cards. Further developing of the project provides organization of cashless payment for Lukoil gas station on entire territory on Russia with 300.000 cards issued by 2003.
Three. Cashless payment system for Purneftegas in Gubkinsky in Tumen region. This project provides 31.000 cards. More then 100 terminals were installed to deal with smart-cards in food, bakery stores, airline booking offices. All in all in 50 trading and servicing places in Gubkinsky.
Lets take a proper look at “LICard” project. In my opinion, it is the most promising one.
Lukoil corporation has big and constantly growing number of filling stations in all regions of Russia and many countries of the former USSR. The company plans not only further grown of number of gas stations but also widening the specter of provided services including cashless payments by plastic cards.
While creating corporate electronic payment system on company’s filling stations and terminals the following aims were pointed out:
Increase of financial arrivals to Lukoil;
Creating of information database for making managing decisions;
Exploring new sales markets.
Lukoil fuel cards are used in several regions (Volgograd, Chelyabinsk, Perm and others) for years. In every separate region cards functionate well. But the problem of unite system was not solved yet. The card holder cannot use his card in another region but only where he has bought his card. That’s why the question of unification of the system of electronic payments appeared where cards could be acceptable at every filling station.
The main criterion while choosing the technology for organizing cashless payments was the low level of telecommunication systems in Russia, which makes on-line transaction almost impossible. Thus, it was decided to use smart-cards to operate the special processing center instead of on-line transactions (off-line). The second argument for smart-cards was high security level of recorded on smart-card information. Besides, smart-cards are available for many kinds of application which was also important for this project.
It was decided to use smart-cards produced by GemPlus company in SmartCity technology for creating corporate electronic payment system for Lukoil filling station. Every person or company can become a card owner.
Before going somewhere a car driver put his money on his smart-card or money can be transferred by an organization. And now our driver travels with a plastic card instead or a huge wallet full of money for his trip. When filling at Lukoil gas station corresponding sum of money is written off from his smart-card. If using smart-card driver gets 3-7% discount.
By the end of 1997 LICard system has been in action in greater part of Russia. Noticeable growth of personal LICard owners was hit upon for the recent year.
LICard has three levels the scale of ranks as to its organization:
Low level. Regional agencies and service offices, and filling stations Lukoil;
Middle level. Regional processing centers and regional representative offices of LICard;
High level. Application center and interregional processing center LICard.
Transfers between regional centers are carried out through the interregional processing center. This action allows any filling station to receive money even if no money was put on the card.
This project can real working example of applying smart-cards for corporate needs. But I would like to notice that not all features were used in this project. Using some additional wallets project owner could have more effective and profitable system.
The place of smart-cards in modern Russia
In this chapter I mean smart-cards under “plastic cards” term. Because magnetic line cards and memory cards have little chance for success in Russia.
Our plastic cards market is rather a collage picture. Before 90’s plastic cards was so badly known that they even were not shown in Soviet films that showed disadvantages of Western style of living. Meanwhile,