The Israeli military is about to install, a high-tech identification
system at a Gaza checkpoint in an effort to speed up passage of
Palestinian workers into Israel. By cutting down the waiting time, it
is expected to decrease what could be potentially dangerous friction
with Israeli soldiers.
The Basel System, developed by Israeli company On Track Innovations
(Nasdaq:OTIV), uses two biometric sensors to read the facial
dimensions and hand geometry of Palestinian workers crossing through
the Erez checkpoint, "It would be the first of its kind in the
world," according to Ohad Bashan, director of global marketing at the
company.
The Erez checkpoint, at the northern end of the Gaza Strip, is the
main crossing point into Israel. Workers have complained bitterly
about the long wait during the checking procedure.
Currently, about 10,000 Palestinian laborers pass daily through the
narrow passageways of the Erez checkpoint, showing soldiers their
laminated identification cards before they travel to construction or
agricultural jobs in Israel. If a card is believed to be forged, its
owner can be held for hours while it is checked.
The new OTI system is designed to increase security while speeding up
the check at the same time. The new system will be tamper proof,
Bashan said.
The Basel System "will significantly improve the security, the speed
and the relationship between Palestinian workers and the soldiers,"
Bashan said. "The Palestinians crossing over will not need to be
interrogated."
Workers will carry contactless smart cards. Their heads and their
hands will be scanned to make sure that all information matches
before they are let through the checkpoint.
Such a dual biometric system has never been used with the contactless
cards before, according to a company spokesman. It is significantly
quicker than other systems that check handprints and retinas to
identify users. The device takes between four and nine seconds to
check each worker.
Israel's Defense Ministry contracted an Israeli office of the
U.S.-based company Electronic Data Systems to install a system that
would ensure that Palestinians who pose a security risk, would not
cross through the checkpoint, Bashan said.
The American EDS company in turn subcontracted with the Israeli-based
OTI, which specializes in smart card and contactless technology, that
it has tested out in Israeli communities.
The Defense Ministry had requested that the system include two
biometric checks to guarantee reliability.
U.S. anti-terror funding was used in the development of the Basel
System, Bashan said, although he could not say how much money had
been invested.
Furthermore the company announced a major achievement. MasterCard
International has selected its contactless secure microcontroller
solution for use in its MasterCard PayPass deployments in the U.S.
MasterCard PayPass is a new "contactless" payment program that
provides consumers with The Simpler Way to Pay(TM). OTI's affiliation
with the project should generate several million dollars' revenue.
Consumers simply tap or wave their MasterCard PayPass card on a
specially equipped merchant terminal, eliminating the need to swipe a
card through a reader.
The new solution is useful for quick payment environments where speed
is essential, such as quick service restaurants, gas stations, drug
stores, supermarkets and movie theatres.
MasterCard PayPass functions using a secure contactless
microprocessor chip and an antenna. Atmel has been selected to supply
the secure contactless microcontroller and has partnered with OTI to
provide the contactless solution expertise including the operating
system, application support and inlay technology.
"OTI has worked with MasterCard on its PayPass program since its
inception. MasterCard has successfully integrated our inlay
technology with leading U.S. card vendors and these have integrated
our reader solutions with multiple point of sale providers to support
MasterCard PayPass, said Ohad Bashan, president and CEO of OTI
America.
OTI, based in Rosh Pina, is traded on the Nasdaq SmallCap and on the
Frankfurt stock exchange. Earlier this month it admitted to widening
losses, at both the operating and net level, and a 6% dip in revenues
to $4.1 million for the third quarter of 2003. The company blamed the
slip on customers delaying key projects. Its operating loss widened
74% compared with the parallel quarter to $1.5 million, and its net
loss mounted to $1.8 million, compared with $1.6 million in the same
quarter of 2002.
OTI has 200 employees and maintains offices in Cupertino, California.