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Presentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at) eth (dot) net Business Communications Co., Norwalk, CT, USA Smart Card Technologies & Markets Worldwide Amit Gud
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Page 1: Presentation based on report Smart Card …people.cs.ksu.edu/~gud/docs/ppt/report_ppt.pdfPresentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at)

Presentation based on report Smart Card Technologies & Markets Worldwide

BY

AMIT GUDgud (at) eth (dot) net

Business Communications Co.,Norwalk, CT, USA

Smart Card Technologies & Markets WorldwideAmit Gud

Page 2: Presentation based on report Smart Card …people.cs.ksu.edu/~gud/docs/ppt/report_ppt.pdfPresentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at)

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.

Smart Card Technologies & Markets WorldwideAmit Gud

Page 3: Presentation based on report Smart Card …people.cs.ksu.edu/~gud/docs/ppt/report_ppt.pdfPresentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at)
Page 4: Presentation based on report Smart Card …people.cs.ksu.edu/~gud/docs/ppt/report_ppt.pdfPresentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at)

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.

Smart Card Technologies & Markets WorldwideAmit Gud

Page 5: Presentation based on report Smart Card …people.cs.ksu.edu/~gud/docs/ppt/report_ppt.pdfPresentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at)

Why Smart Cards?

● Enhanced security● Offline transactions● Multifunctional● Customization● Economical● Portable

Smart Card Technologies & Markets WorldwideAmit Gud

Page 6: Presentation based on report Smart Card …people.cs.ksu.edu/~gud/docs/ppt/report_ppt.pdfPresentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at)

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

Smart Card Technologies & Markets WorldwideAmit Gud

Page 7: Presentation based on report Smart Card …people.cs.ksu.edu/~gud/docs/ppt/report_ppt.pdfPresentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at)

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.

Smart Card Technologies & Markets WorldwideAmit Gud

Page 8: Presentation based on report Smart Card …people.cs.ksu.edu/~gud/docs/ppt/report_ppt.pdfPresentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at)

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

Smart Card Technologies & Markets WorldwideAmit Gud

Page 9: Presentation based on report Smart Card …people.cs.ksu.edu/~gud/docs/ppt/report_ppt.pdfPresentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at)

Smart Networking● Smart card

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

Smart Card Technologies & Markets WorldwideAmit Gud

Page 10: Presentation based on report Smart Card …people.cs.ksu.edu/~gud/docs/ppt/report_ppt.pdfPresentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at)

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.

Smart Card Technologies & Markets WorldwideAmit Gud

Page 11: Presentation based on report Smart Card …people.cs.ksu.edu/~gud/docs/ppt/report_ppt.pdfPresentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at)

Smart National ID cards: Smart National ID cards: WorldwideWorldwide

34 million1994Spain 

30 million2003South Africa

NA2003Netherlands

22 million2001Malaysia

50 million 2001Italy

7 million2003Hong Kong

30 million 2002Germany

1.34 million2002Estonia

850 million2002China

12 million2003Canada

10 million2002Belgium

300,0002000Brunei

Total CardsLaunchCountry

Source: BCC., Inc. Smart Card Technologies & Markets WorldwideAmit Gud

Page 12: Presentation based on report Smart Card …people.cs.ksu.edu/~gud/docs/ppt/report_ppt.pdfPresentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at)

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.

Smart Card Technologies & Markets WorldwideAmit Gud

Page 13: Presentation based on report Smart Card …people.cs.ksu.edu/~gud/docs/ppt/report_ppt.pdfPresentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at)

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-the-counter transactions. This area is growing rapidly in Europe and the U.S.

Smart Card Technologies & Markets WorldwideAmit Gud

Page 14: Presentation based on report Smart Card …people.cs.ksu.edu/~gud/docs/ppt/report_ppt.pdfPresentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at)

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.

Smart Card Technologies & Markets WorldwideAmit Gud

Page 15: Presentation based on report Smart Card …people.cs.ksu.edu/~gud/docs/ppt/report_ppt.pdfPresentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at)

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

Smart Card Technologies & Markets WorldwideAmit Gud

Page 16: Presentation based on report Smart Card …people.cs.ksu.edu/~gud/docs/ppt/report_ppt.pdfPresentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at)

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.

Smart Card Technologies & Markets WorldwideAmit Gud

Page 17: Presentation based on report Smart Card …people.cs.ksu.edu/~gud/docs/ppt/report_ppt.pdfPresentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at)

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.

Smart Card Technologies & Markets WorldwideAmit Gud

Page 18: Presentation based on report Smart Card …people.cs.ksu.edu/~gud/docs/ppt/report_ppt.pdfPresentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at)

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.

Smart Card Technologies & Markets WorldwideAmit Gud

Page 19: Presentation based on report Smart Card …people.cs.ksu.edu/~gud/docs/ppt/report_ppt.pdfPresentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at)

GLOBAL SMART CARD MARKET BY APPLICATION AREA($ Millions)

23.9441.47151.0086.0068.2049.54Total

­4.411.3414.2215.3019.1916.69Other

12.169.4439.2623.1913.438.41Access

39.744.858.424.603.752.34Pay TV

18.622.609.635.175.154.34Health

24.3114.5138.5214.4310.036.33Transportation

6.34.983.672.081.711.18GSM

50.184.4011.096.313.822.09Retail

27.889.3526.1914.9211.128.16Finance

AAGR %(02­07)

20072002200120001999Sector

Source: BCC., Inc. Smart Card Technologies & Markets WorldwideAmit Gud

Page 20: Presentation based on report Smart Card …people.cs.ksu.edu/~gud/docs/ppt/report_ppt.pdfPresentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at)

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.

Smart Card Technologies & Markets WorldwideAmit Gud

Page 21: Presentation based on report Smart Card …people.cs.ksu.edu/~gud/docs/ppt/report_ppt.pdfPresentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at)

Types of Smart Cards

● Contact Cards

● Contactless Cards

● Dual Interface / Combi cards

Smart Card Technologies & Markets WorldwideAmit Gud

Page 22: Presentation based on report Smart Card …people.cs.ksu.edu/~gud/docs/ppt/report_ppt.pdfPresentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at)

Smart Card

Contact Contactless Dual Interface

Memory

Multifunctional

Crypto Card

Proximity

Vicinity

Types of Smart Cards

Smart Card Technologies & Markets WorldwideAmit Gud

Page 23: Presentation based on report Smart Card …people.cs.ksu.edu/~gud/docs/ppt/report_ppt.pdfPresentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at)

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

Smart Card Technologies & Markets WorldwideAmit Gud

Page 24: Presentation based on report Smart Card …people.cs.ksu.edu/~gud/docs/ppt/report_ppt.pdfPresentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at)

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.

Smart Card Technologies & Markets WorldwideAmit Gud

Page 25: Presentation based on report Smart Card …people.cs.ksu.edu/~gud/docs/ppt/report_ppt.pdfPresentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at)

Dual Interface Cards● In more recent developments, there are now cards

with both a contact and a contact less interface (dual-interface or combi-cards). These may incorporate two non-communicating chips - one for each interface - but preferably have a single, dual-interface chip providing the many advantages of a single e-purse, single operating architecture, etc.

Smart Card Technologies & Markets WorldwideAmit Gud

Page 26: Presentation based on report Smart Card …people.cs.ksu.edu/~gud/docs/ppt/report_ppt.pdfPresentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at)

Smart Card Market

23.78050.002784.002278.001869.001506.00Total44.5372.4859.2032.4517.109.39Dual31.3645.65165.64120.0568.4023.19Contact­less22.47031.872559.162125.501783.501473.42Contact

AAGR % 2002­200720072002200120001999Type

23.9441.47151.0086.0068.2049.54Total42.418.863.221.240.640.32Dual30.534.038.984.532.490.76Contact­less22.9388.58138.8080.2365.0748.46Contact

AAGR % 2002­2007

20072002200120001999Type

GLOBAL Smart Card market by Type$ Millions

GLOBAL Smart Card shipments by Type Millions

Source: BCC., Inc.

Source: BCC., Inc.

Smart Card Technologies & Markets WorldwideAmit Gud

Page 27: Presentation based on report Smart Card …people.cs.ksu.edu/~gud/docs/ppt/report_ppt.pdfPresentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at)

Smart Card Market GLOBAL SMART CARD MARKET BY REGION, 

THROUGH 2007($ Millions)

GLOBAL SMART CARD SHIPMENTS BY REGION, THROUGH 2007

(Millions)

23.78050.002784.002278.001869.00Total

25.54330.05105.8161.5213.09Middle East / Africa

32.043453.45860.25658.34506.50Asia / Pacific

24.521650.25551.23448.76366.32South America

35.04700.35155.90102.5167.28North America

11.511915.901110.811006.87915.81Europe

AAGR % 02­072007200220012000Region

Source: BCC., Inc.

Source: BCC., Inc.

23.9441.47151.0086.0068.20Total35.818.115.742.330.50Middle East / Africa32.3189.3946.6624.8518.48Asia / Pacific24.890.5029.9016.9413.36South America35.438.408.453.872.45North America11.8105.0760.2538.0133.41Europe

AAGR % 02­072007200220012000Region

Smart Card Technologies & Markets WorldwideAmit Gud

Page 28: Presentation based on report Smart Card …people.cs.ksu.edu/~gud/docs/ppt/report_ppt.pdfPresentation based on report Smart Card Technologies & Markets Worldwide BY AMIT GUD gud (at)

Copyright © 2003 - 2004, Amit GudAny data / statistics in this file cannot be published without prior consent, either of BCC Inc or of the author.

Smart Card Technologies & Markets WorldwideAmit Gud

Thank You!


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