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Atalla 's silicon surface passivation process and Jean Hoerni 's planar process The idea of incorporating an integrated circuit chip onto a plastic card was first introduced by two German engineers in the late s, Helmut Gröttrup and Jürgen Dethloff.
Its primary use was intended to provide individual copy-protected keys for releasing the tapping process at unmanned gas stations.
In September , Helmut Gröttrup, together with Dethloff as an investor, filed further patents for this identification switch, first in Austria  and in as subsequent applications in the United States   , Great Britain , West Germany and other countries.
Independently, Kunitaka Arimura of the Arimura Technology Institute in Japan developed a similar idea of incorporating an integrated circuit onto a plastic card, and filed a smart card patent in March In Roland Moreno patented a secured memory card later dubbed the "smart card".
In , Michel Ugon from Honeywell Bull invented the first microprocessor smart card with two chips : one microprocessor and one memory , and in , he patented the self-programmable one-chip microcomputer SPOM that defines the necessary architecture to program the chip.
Three years later, Motorola used this patent in its "CP8". At that time, Bull had 1, patents related to smart cards.
In , Bull sold its CP8 division together with its patents to Schlumberger , who subsequently combined its own internal smart card department and CP8 to create Axalto.
In , Axalto and Gemplus, at the time the world's top two smart-card manufacturers, merged and became Gemalto. In , Dexa Systems spun off from Schlumberger and acquired Enterprise Security Services business, which included the smart-card solutions division responsible for deploying the first large-scale smart-card management systems based on public key infrastructure PKI.
The first mass use of the cards was as a telephone card for payment in French payphones , starting in Customers inserted the card into the merchant's point-of-sale POS terminal, then typed the personal identification number PIN , before the transaction was accepted.
Only very limited transactions such as paying small highway tolls are processed without a PIN. Smart-card-based " electronic purse " systems store funds on the card, so that readers do not need network connectivity.
They entered European service in the mids. Private electronic purse systems have also been deployed such as the Marines corps USMC at Parris Island allowing small amount payments at the cafeteria.
Mobile phones are widely used across the world, so smart cards have become very common. The United States started later deploying the EMV technology in , with the deployment still in progress in Historically, in several international payment companies agreed to develop smart-card specifications for debit and credit cards.
The original brands were MasterCard, Visa, and Europay. The first version of the EMV system was released in In the specifications became stable.
EMVCo maintains these specifications. EMVco's purpose is to assure the various financial institutions and retailers that the specifications retain backward compatibility with the version.
EMVco upgraded the specifications in and EMV compliant cards were first accepted into Malaysia in  and later into United States in MasterCard was the first company that was allowed to use the technology in the United States.
The United States has felt pushed to use the technology because of the increase in identity theft. The credit card information stolen from Target in late was one of the largest indicators that American credit card information is not safe.
Target made the decision on April 30, that it would try to implement the smart chip technology in order to protect itself from future credit card identity theft.
Before , the consensus in America was that there were enough security measures to avoid credit card theft and that the smart chip was not necessary.
The cost of the smart chip technology was significant, which was why most of the corporations did not want to pay for it in the United States. The debate came when online credit theft was insecure enough for the United States to invest in the technology.
The adaptation of EMV's increased significantly in when the liability shifts occurred in October by the credit card companies.
Contactless smart cards do not require physical contact between a card and reader. They are becoming more popular for payment and ticketing.
Typical uses include mass transit and motorway tolls. Visa and MasterCard implemented a version deployed in — in the U. This has reduced media cost so it can be used for low cost tickets and short term transport passes up to 1 year typically.
They are distributed through vending machines, ticket offices and agents. Smart cards are also being introduced for identification and entitlement by regional, national, and international organizations.
Contactless smart cards are part of ICAO biometric passports to enhance security for international travel. Since April , a Japanese company has manufactured reusable financial smart cards made from paper.
As mentioned above, data on a smart card may be stored in a file system. In smart card file systems, the root directory is called the "master file" "MF" , subdirectories are called "dedicated files" "DF" , and ordinary files are called "elementary files" "EF".
Most smartcards have one of three logical layouts:. In cards with microprocessors, the microprocessor sits inline between the reader and the other components.
The operating system on the microprocessor mediates the reader's access to those components. Contact smart cards have a contact area of approximately 1 square centimetre 0.
These pads provide electrical connectivity when inserted into a reader ,  which is used as a communications medium between the smart card and a host e.
Cards do not contain batteries ; power is supplied by the card reader. This allows smaller and cheaper financial card terminals.
These cards require only proximity to an antenna to communicate. Like smart cards with contacts, contactless cards do not have an internal power source.
Instead, they use a loop antenna coil to capture some of the incident radio-frequency interrogation signal, rectify it, and use it to power the card's electronics.
Dual-interface cards implement contactless and contact interfaces on a single card with some shared storage and processing.
This allows the smart card to be used as a security token for authentication and data encryption such as Bitlocker. Different smartcards implement one or more reader-side protocols.
Smartcard operating systems may provide application programming interfaces APIs so that developers can write programs "applications" to run on the smartcard.
Some such APIs, such as Java Card , allow programs to be uploaded to the card without replacing the card's entire operating system. Smart cards serve as credit or ATM cards , fuel cards , mobile phone SIMs , authorization cards for pay television, household utility pre-payment cards, high-security identification and access badges , and public transport and public phone payment cards.
Smart cards may also be used as electronic wallets. The smart card chip can be "loaded" with funds to pay parking meters, vending machines or merchants.
Cryptographic protocols protect the exchange of money between the smart card and the machine. No connection to a bank is needed.
The holder of the card may use it even if not the owner. Examples are Proton , Geldkarte , Chipknip and Moneo. The German Geldkarte is also used to validate customer age at vending machines for cigarettes.
Roll-outs started in in the U. Asia and Europe followed in Non-EMV cards work like magnetic stripe cards. This is common in the U.
The cards do not hold or maintain the account balance. All payment passes without a PIN, usually in off-line mode. The security of such a transaction is no greater than with a magnetic stripe card transaction.
EMV cards can have either contact or contactless interfaces. They work as if they were a normal EMV card with a contact interface.
Via the contactless interface they work somewhat differently, in that the card commands enabled improved features such as lower power and shorter transaction times.
The subscriber identity modules used in mobile-phone systems are reduced-size smart cards, using otherwise identical technologies.
Smart-cards can authenticate identity. Sometimes they employ a public key infrastructure PKI. The card stores an encrypted digital certificate issued from the PKI provider along with other relevant information.
Examples include the U. If they include biometric identification data, cards can provide superior two- or three-factor authentication.
Smart cards are not always privacy-enhancing, because the subject may carry incriminating information on the card. Contactless smart cards that can be read from within a wallet or even a garment simplify authentication; however, criminals may access data from these cards.
Cryptographic smart cards are often used for single sign-on. Today's cryptographic smart cards generate key pairs on board, to avoid the risk from having more than one copy of the key since by design there usually isn't a way to extract private keys from a smart card.
Such smart cards are mainly used for digital signatures and secure identification. The most common way to access cryptographic smart card functions on a computer is to use a vendor-provided PKCS 11 library.
Turkey implemented the first smart card driver's license system in Turkey had a high level of road accidents and decided to develop and use digital tachograph devices on heavy vehicles, instead of the existing mechanical ones, to reduce speed violations.
Since , the professional driver's licenses in Turkey have been issued as smart cards. A professional driver is required to insert his driver's license into a digital tachograph before starting to drive.
The tachograph unit records speed violations for each driver and gives a printed report. The driving hours for each driver are also being monitored and reported.
In this study, chapter seven describes Turkey's experience. Argentina's Mendoza province began using smart card driver's licenses in Mendoza also had a high level of road accidents, driving offenses, and a poor record of recovering fines.
They also store personal information, license type and number, and a photograph. Emergency medical information such as blood type, allergies, and biometrics fingerprints can be stored on the chip if the card holder wishes.
In Gujarat was the first Indian state to introduce a smart card license system. In , the Estonian government started to issue smart cards named ID Kaart as primary identification for citizens to replace the usual passport in domestic and EU use.
As of about 1 million smart cards have been issued total population is about 1. By the start of , the entire population of Belgium was issued eID cards that are used for identification.
These cards contain two certificates: one for authentication and one for signature. This signature is legally enforceable.
More and more services in Belgium use eID for authorization. Spain started issuing national ID cards DNI in the form of smart cards in and gradually replaced all the older ones with smart cards.
The idea was that many or most bureaucratic acts could be done online but it was a failure because the Administration did not adapt and still mostly requires paper documents and personal presence.
On August 14, , the ID cards in Pakistan were replaced. The Smart Card is a third generation chip-based identity document that is produced according to international standards and requirements.
The card has over 36 physical security features and has the latest [ clarification needed ] encryption codes. Smart cards may identify emergency responders and their skills.
Cards like these allow first responders to bypass organizational paperwork and focus more time on the emergency resolution.
In , The Smart Card Alliance expressed the needs: "to enhance security, increase government efficiency, reduce identity fraud, and protect personal privacy by establishing a mandatory, Government-wide standard for secure and reliable forms of identification".
WidePoint Corporation , a smart card provider to FEMA , produces cards that contain additional personal information, such as medical records and skill sets.
Smart cards are also used to identify user accounts on arcade machines. Smart cards, used as transit passes , and integrated ticketing are used by many public transit operators.
Card users may also make small purchases using the cards. Some operators offer points for usage, exchanged at retailers or for other benefits. However, these present a privacy risk because they allow the mass transit operator and the government to track an individual's movement.
In Finland, for example, the Data Protection Ombudsman prohibited the transport operator Helsinki Metropolitan Area Council YTV from collecting such information, despite YTV's argument that the card owner has the right to a list of trips paid with the card.
Earlier, such information was used in the investigation of the Myyrmanni bombing. The UK's Department for Transport mandated smart cards to administer travel entitlements for elderly and disabled residents.
These schemes let residents use the cards for more than just bus passes. They can also be used for taxi and other concessionary transport. One example is the "Smartcare go" scheme provided by Ecebs.
Other schemes in the UK include period travel passes, carnets of tickets or day passes and stored value which can be used to pay for journeys.
Other concessions for school pupils, students and job seekers are also supported. Many smart transport schemes include the use of low cost smart tickets for simple journeys, day passes and visitor passes.
Examples include Glasgow SPT subway. Confidex smart media. In Sweden, as of , smart cards have started to be phased out and replaced by smart phone apps.
The phone apps have less cost, at least for the transit operators who don't need any electronic equipment the riders provide that.
The riders are able buy tickets anywhere and don't need to load money onto smart cards. The smart cards are still in use for foreseeable future as of Net and offline and as a memory support to save game progress.
Thanks this agreement, the three companies are now using a unified card reader in their arcade cabinets, so that players are able to use their card, no matter if a Banapassport, a e-Amusement Pass or an Aime, with hardware and ID services of all three manufacturers.
A common logo for Amusement IC cards has been created, and this is now displayed on compatible cards from all three companies.
In January , Taito announced  that his Nesica card was also joining the Amusement IC agreement with the other three companies.
Smart cards can be used as a security token. Mozilla's Firefox web browser can use smart cards to store certificates for use in secure web browsing.
Some disk encryption systems , such as VeraCrypt and Microsoft's BitLocker , can use smart cards to securely hold encryption keys, and also to add another layer of encryption to critical parts of the secured disk.
GnuPG , the well known encryption suite, also supports storing keys in a smart card. Smart cards are also used for single sign-on to log on to computers.
Smart cards are being provided to students at some schools and colleges. To be recognized as a Center of Excellence for Card Products. Golden Chip is one of the first fulfillment service bureaus to offer card fulfillment services in Saudi Arabia, offering services to major Telecom Companies, Banks and Airlines.
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