Adroit Market Research - Industry Insights

A smart card also called an integrated circuit card or physical card which acts like a security token. These cards are basically available in the same sizes as a credit card or driver’s license; however, it can be made with plastic or metal. These cards connect to a card reader with a short-ranging wireless connectivity standard which may include RFID (Radio-Frequency Identification) or NFC (Near-Field Communication), or a direct physical contact.

However, the chip associated on a smart card could be either an embedded memory chip or a microcontroller. Smart cards with associated microcontroller chips can be perform multiple on-card processing operations. It also can control

A smart card also called an integrated circuit card or physical card which acts like a security token. These cards are basically available in the same sizes as a credit card or driver’s license; however, it can be made with plastic or metal. These cards connect to a card reader with a short-ranging wireless connectivity standard which may include RFID (Radio-Frequency Identification) or NFC (Near-Field Communication), or a direct physical contact.

However, the chip associated on a smart card could be either an embedded memory chip or a microcontroller. Smart cards with associated microcontroller chips can be perform multiple on-card processing operations. It also can control or protect data in the chip memory. However, smart cards are used in the number of different applications such as for credit cards or other online payment cards.

In recent days, the delivery of smart cards has been highly driven by the number of different payment card industries. These cards can be also used for contactless payment systems, as they support short-range wireless connectivity. However, they can also be used as tokens for authentication purpose.

Let us have a look at how smart card works:

Memory chips or smart card microprocessors exchange information with card readers over a serial interface. However, this cards itself power-driven with exterior sources such as the smart card readers. Smart cards can communicate with card readers through short ranging wireless connectivity standards like NFC or RFID, or direct physical contact. After that, card reader transfers data from the smart card to its desired location, usually an authentication or payment system which is linked to the smart card reader through a network connection.

Applications of Smart Cards

Smart cards are usually used in applications which must deliver quickly, defend personal information and secure transactions such as credit cards or other payment options. Smart cards can e also used in visas and electronic passports.

Smart cards are highly intended to be used with a card PIN, for ex. when they are used as ATM or debit cards. However, the number of organizations also uses smart cards for high security and information protection.

Types of Smart Cards

Smart cards could be classified with different criteria comprising by how these cards write and read data, and by the king of the chip embedded in the smart card.

Following are some types of smart cards:

• Contact smart cards

Contact smart cards are the most frequently used type of smart cards. These kinds of smart cards are implanted with the smart card reader. However, it has a direct linked to the conductive shield of the smart card. Data, commands and card status are transferred with the help of physical contact points.

• Contactless smart cards

These cards requisite only close proximity to a card reader to read the data. However, no direct contact is required for the card to perform operations. The smart card reader and the contactless cards are both implanted in the antennae. It interacts with the help of radio frequencies through the contactless connection. However, a contactless smart card operates by placing near the reader to read the data.

• Dual-interface cards

These cards are specially equipped with both contact and contactless interfaces. However, this kind of cards allows highly secure access to the chip of smart cards with either contact or contactless smart card interfaces.

• Hybrid smart cards

These cards include more than one smart card technology integrated with it. For example, such cards may have one implanted chip which can be accessed through an RFID-enables chip and the contact reader for immediacy connection. However, the two different chips can be used for diverse applications.

• Memory smart cards

These types of cards contain memory chips only. These cards can only read, write, and store data to the chip. However, the stored data can be altered, but these types of cards are non-programmable. Hence, the data could not alter or process programmatically. These types of cards can be called as read-only cards. Hence they are specially used to store data such as a password, PIN or any public key. However, these cards can also be read-write. Memory smart cards could be configured to be disposable or rechargeable so that they contain data which will only be used once and for a limited duration.

• Microprocessor cards

These cards have an in-built microprocessor which is embedded into the chip. However, the microprocessor smart cards can also integrate different documents in which every file is specifically linked with a particular function. Though, data and memory in the files are controlled with a smart card OS.

Some significant advantages of smart cards

Smart cards offer a wide range of security as compare to traditional magnetic stripe cards. These cards may include microprocessors which are able to process data directly. However, memory-only cards are safer as they can store account data and other personal data than conventional magnetic cards.

Similarly, the information stored in the smart card is highly secure, as it cannot be edited, deleted, or erased. Hence, these smart cards are convenient for storing important data which cannot be easily regenerated.

However, the smart card system is usually secure and safe than magnetic fields and electronic interference. Similarly, data and different applications on a smart card may be edited with the help of some secure channels. Multiservice card systems enable users to use more than one service by just one smart card.