Smart Card Technologies & Markets Worldwide

Transcription

1 Presentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at) eth (dot) net Business Communications Co., Norwalk, CT, USA

2 Introduction Imagine the power of a computer, the speed and security of electronic data, and the freedom to carry that information anywhere on earth. Imagine a computer so small it fits inside a plastic card like the credit card you carry in your wallet. Imagine the smart card.

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4 What is Smart Card? A credit card sized plastic card having an integrated circuit chip embedded in it and conforming to ISO 7816 is called as Smart Card.

5 Why Smart Cards? Enhanced security Offline transactions Multifunctional Customization Economical Portable

6 Applications of Smart Card Payment System Smart Networking National ID / Authentication University Identification Financial Applications Retail & Loyalty Communication Applications Transportation Health Multimedia / Pay TV

7 Payment System A payment function is an integral part of most smart card applications because most services accessible by smart cards must be paid one way or the other.

8 Benefits of cashless payment Reduced handling costs Improved ease of use Lowered costs in infrastructural supports such as banking system and phone networks Versatility of combining credit, debit and stored value cards in one convenient platform Lower transaction costs Ability to carry out offline, online and peer-to-peer transactions

9 Smart Networking Smart card technologies provide strong security through encryption as well as access control, based on identification technologies such as biometrics.

10 National ID / Authentication In the wake of 9/11 attack a need has been felt in many countries for tamperproof ID cards and a secure authenticating device. Many countries all over the world are trying out, and implementing, the smart card option as a national identity card.

11 Smart National ID cards: Worldwide Country Brunei Belgium Canada China Estonia Germany Hong Kong Italy Malaysia Netherlands South Africa Spain Launch Total Cards 300, million 12 million 850 million 1.34 million 30 million 7 million 50 million 22 million NA 30 million 34 million Source: BCC., Inc.

12 University Identification Cards The traditional student ID card can be replaced by an all-purpose chip-based student ID card, containing a variety of applications such as electronic purse (for vending and laundry machines), and for use as a library card, and meal card.

13 Financial Applications Smart cards are being used as an electronic purse, or e- purse, to replace coins for small purchases in vending machines and over-thecounter transactions. This area is growing rapidly in Europe and the U.S.

14 Retail & Loyalty Smart cards are used to record the transactions of the customer, which are helpful in implementation of loyalty programs. Consumer reward/redemption is tracked on a smart loyalty card that is marketed to specific consumer profiles and linked to one or more specific retailers serving that profile set.

15 Communication Applications The chip-based cards help secure the initiation of calls and the identification of callers (for billing purposes) on any Global System for Mobile Communications (GSM) phone

16 Transportation Mass transit fare collection systems are using smart tickets, which are easy to load and redeem for a fare. These smart tickets can be disposable -that means use and throw away-or can be given only to regular travelers.

17 Health Card Crucial personal health data is another type of information that can be stored on a smart card. It eliminates the overhead costs of maintaining records, be they paper or electronic.

18 Multimedia / Pay TV Pay-TV is another area for which smart cards are becoming a natural solution. Subscribers can instantly select a show or a movie, online music or live web casts and immediately pay with the smart card.

19 GLOBAL SMART CARD MARKET BY APPLICATION AREA ($ Millions) Sector Finance AAGR % (02 07) 27.8 Retail GSM Transportatio n Health Pay TV Access Other Total Source: BCC., Inc.

20 Parts of Smart Card Generally, it is made up of three elements. The plastic card, a printed circuit or contact disc and an integrated circuit chip are embedded on the card.

21 Types of Smart Cards Contact Cards Contactless Cards Dual Interface / Combi cards

22 Types of Smart Cards Smart Card Contact Contactless Dual Interface Memory Proximity Multifunctional Vicinity Crypto Card

23 Contact Cards The contact cards need to be in physical contact with the card reader in order for information to be exchanged. The integrated circuit on the chip is connected to a contact plate (typically a gold plate) on the surface of the card. Contact cards make up 91.92% of the total smart card market as of 2002

24 Contactless Cards Contact-less smart cards contain an embedded antenna, instead of contact pads attached to the chip, for reading and writing information contained in the chip's memory. Contact-less cards do not have to be inserted into a card acceptor device. Student identification, electronic passport, vending, parking and tolls are common applications for contact-less cards.

25 Dual Interface Cards In more recent developments, there are now cards with both a contact and a contact less interface (dualinterface or combi-cards). These may incorporate two non-communicating chips - one for each interface - but preferably have a single, dualinterface chip providing the many advantages of a single e-purse, single operating architecture, etc.

26 Smart Card Market GLOBAL Smart Card shipments by Type Millions Contact Type AAGR % Contact less Dual Total Source: BCC., Inc. GLOBAL Smart Card market by Type $ Millions Type AAGR % Contact Contact less Dual Total Source: BCC., Inc.

27 Smart Card Market GLOBAL SMART CARD MARKET BY REGION, THROUGH 2007 ($ Millions) Region AAGR % Europe North America South America Asia / Pacific Middle East / Africa Total Source: BCC., Inc. Region Europe North America South America Asia / Pacific Middle East / Africa Total Source: BCC., Inc. GLOBAL SMART CARD SHIPMENTS BY REGION, THROUGH 2007 (Millions) AAGR %

28 Thank You! Copyright , Any data / statistics in this file cannot be published without prior consent, either of BCC Inc or of the author.