SMARTCARDS: smart technology

What is a smartcard?

• A smartcard has the capabilities of a micro-computer, is small enough to fit into a wallet or a mobile phone, contains its own memory and/or processor, and can only communicate through a defined interface such as a reader.
• There are three types of smartcard: Memory cards, Microprocessor cards and Optical Memory cards.

The importance of smartcards

• According to IDC, 430 million microprocessor smartcards were shipped worldwide in 1999.
• Drivers of the smartcard industry include the anticipation of multi-application cards, the need for secure access and identification, (especially online), the high usage of mobile phones and other wireless applications and demand for a flexible payment method for online transactions.

Smartcard technology and standards

• Smartcard standards include Java cards, MEL and contactless cards.
• Smartcard specifications include Open Platform System, MULTOS, PC/SC, ISO, EMV and SET.

Functionality and features

• A smartcard?s security feature is one of its strongest selling points: a PIN number or password is needed to use the card and it is almost impossible to counterfeit.
• Smartcards can be used to carry electronic signatures and electronic ID and are a key enabler in the electronic authentication field.
• Smartcards are an ideal vehicle for data storage, ranging from the storing of corporate information to the maintenance of personal medical files.
• Importantly, smartcards can be used for electronic transactions using a digital cash payment systems such as Mondex.

Applications

• Key applications of smartcard technology are in the education and mobile telephony arenas.

The Future

• The future of smartcards will be driven by internet purchasing and technological advances in electronic ID, tags and smart objects.