Eyede merger a 'smart' move

Lower Hutt technology firm Eyede has merged with Auckland card-maker PTC Enterprises in a move that Eyede managing director Wayne Stemp believes could accelerate the adoption of chip-based smart cards by New Zealand banks.

The new company, Eyede NZ, has a combined staff of 55 and is equally owned by the constituent companies' former shareholders.

PTC was created by the 2004 management buy-out of American Banknote NZ and makes more than 15 million cards each year for clients including ASB Bank, Kiwibank, retailers and loyalty scheme operators.

Eyede develops software to manage the customisation of cards, such as the Snapper card and the Super Gold card.

Mr Stemp says the merger means banks will be able to deal with a single organisation as they look to supply customers with chip cards and phase out the use of magnetic stripes on bank cards that can be "skimmed" by fraudsters and used in ATM scams. New Zealand banks have been slow to switch to chip cards, which have been widely issued in Europe and Asia for several years.

Because chip-cards have their own computer memory, they can act as a "stored value" card to replace cash and support sophisticated retailer-run loyalty programmes and other applications.

Mr Stemp says the recession threatens further delays, but he believes investments by the banks in smart cards are now not far away.

Many tourists will arrive in New Zealand with chip cards during the Rugby World Cup in 2011, so retailers will at least need to be prepared to accept them.

New Zealand Bankers' Association spokesman John Bishop says that the association has not done any work to coordinate banks' attempts to make the transition to chip-cards.

He was unable to say whether the lack of any coordinating body might have been a factor in the lack of progress made by its members to date.