eTechnology – Smart CardeTechnology – Smart Card

Dr LM ChengCity University of Hong Kong

HKIUG Conference 200021-22 June 2000

Smart Card Era

credit cards have become part of our daily life as forms of plastic money since its first launch in 1960

what is a magnetic card ?what is a smart card?

Magnetic Card

composed of a layer of magnetic material for storing information

easy to carrycan be use for authenticationwhat is its principles?

Information on Magnetic Card

the stripe is 8.5cm X 1.2cmdata is constructed

based on ISO 7811/2

maximum 3 stripescan store around

1K bits

Smart Card

Integrated Circuit - chip

originated from France

invented in 70 and matured in 90

Magnetic Card replacement

Types of Smart Card

Memory CardMPU IC cardCrypto-

processor cardContactless card

Memory CardMemory Card

Primitive typecomposed of

EEPROM/PROMsimple functionas prepay card

Crypto-processor IC CardsCrypto-processor IC Cards

composed of crypto-processor & PROM

a powerful MPUcan recognize

illegal signal and security features

MPU IC Smart CardMPU IC Smart Card

Composed of MCU/MPC

software drivenhave flexibility and

primitive intelligence

some security features

Contactless Smart CardContactless Smart Card

similar to contact smart card

with RF transceiver to increase robustness and security

Advantages of Smart Card

Large storage capacitymore security featuresmultiple functionsflexibility in use - intelligent, lower power

consumption, effective packagingas access card, electronic purse, debit/credit

cards, ID card etc. - particular off-line applications

Hardware Technologies

new memory technologies - EEPROM and flash-EPROM

new silicon technologies – 0.6 m to 0.18 m for more storage and security, lower power consumption

new packaging technologies - against breakage, rubbing and bending

Smart Card Software

Intelligent Chip Operating System -COSEncryption techniques – RSA, DES & ECCMultiple Application OS

Mondex, EMV, GSM, Loyalty, JAVA, Linux Platform War

JAVA (universal) & MULTOSNew requirements

hot list, trust key management, PKI, dual interface, downloading feature

THE SMART CARD MARKET IN THE YEAR 2000 (in millions – Source: Philips Communication Systems)

 Application France Europe Others TotalPhone cards 140.8 553.1 640.0 1334GSM cards 4.0 15.0 42.0 61Health cards 10.0 55.0 92.0 157Bank cards 25.0 85.0 75.0 185ID cards - - - -Transport tickets - - - -Pay TV cards 4.5 24.0 81.0 110Access control 1.8 3.0 5.0 10City cards /Misc 24.0 55.1 64.3 143Total 210.1 790.2 999.3 2000

Some Difficulties Worldwide

Bank card project cancellation - TaiwanCard tampering slow down bank sector

development - RSA and New ZealandMasterCard - year 2000 delay of massive

launchingVisa - adoption of magnetic card in RSA

debit card project Major concern - COST EFFECTIVENESS

Smart Card in Electronic Commerce

Electronic Data Interchange (EDI)TradelinkElectronic PurchasingHome BankingInternet Shopping

New Technologies Required

Data Storage Management - information protection

authentication process - biometric: fingerprint, facial features, iris identification,

dynamic signature recognition, speech recognition

encryption methods - Elliptic Curve Cryptography, chaotic techniques

 Smart Card in Mobile Phone Applications

Wireless Application Protocol (WAP) emerges for a mobile Internet access

Research work launched in Japan indicates a good market if available.

Mobile operators will provide add on WAP gateways and WAP services to enable wireless internet services:

Banks, financial institutions, restaurants, retailers, Utilities, transit operators, hotels, entertainment and media, selling goods and information

Limitation, the SIM card inside the WAP phone cannot provide complicated the PKI authentication process thus security is an issue.

A possible solution is to introduce an additional smart card interface (either contact or contactless) to enable the authentication process. (MasterCard – dual card phone)

New technologies requirements: The development of m-PKI (mobile PKI) in the

multiple-application OS is more essential and practical

The development of high security low power card modules

A better interface to new wireless internet platform, other ancillary technologies, such as Bluetooth and Wireless Wallets are also important

Smart Card in Hong KongMondexVisa CashCampus cardOctopus - smart traveling card Jockey Club -pre-pay cardNew airport - access control cardTelephone card & SIM CardParking Meter - prepay card projectResidential access cardPossible new ID card, Road Toll Pay Card

Smart Card Researches in Hong Kong HKUST obtained HK$2.5M sponsored by Industry

Support Fund of HKSAR Government in implementing of biometric techniques for Smart Card/eCommerce application

Chinese University of Hong Kong was granted an Entrepreneur programme (HK$250K) in implementing Fingerprint recognition in smart cards

CityU (we) have submitted a proposal to ITF for HK$8.5M with an industry sponsorship of HK$3.5M to develop chip modules and COS for various special application customisations.

What about our neighbors?

Taiwan Universities and ITRI in Taiwan have heavily involved in ID and bank card project. Totally spending was over NT$1 billion

Singapore government has invested in a Smart Card mounting technologies company and the investment is over US$10 million

China has heavily invested in various Sichuan University, Beijing University of Post & Telecom, Tsinghua University etc.

South Korea is emerging in parallel with its chip manufacturing (Samsung is one of the key module supplier)

In comparison Hong Kong, the government/industry support is limited

Conclusion

Smart Card is an evolutionary productTrends of use is irreversibleneeds more technology breakthrough to make

them really smartMajor difficulties - logistic and cost justification

but not technologyTo play a role in this new emerging market , the

government/industries/research institutes have to plan wisely and invested the necessary resources