Smart Cards

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Smart Card Technology

Even though smart card technology has been around for more than 0 years, the cards are primarily used in transportation and telecommunication fee charging systems. A chip card, or smart card is a plastic card with an embedded computer chip, containing a microcomputer, enabling the card to make independent decisions, hold and update data securely, and approve or decline transactions. It is not unusual nowadays for a person to use more than one smart card in his/her day-to-day living. There are numerous benefits to smart card technology; 1) peace of mind for consumers knowing that their card is much less vulnerable to fraud, ) the potential to reduce the number of cards in their wallets as other applications move to the chip card, ) enhanced privacy as smart cards provide additional protection to avoid disclosure of personal information, and, 4) greater speed and convenience at the point of sale.

In the case of Mondex, simply selling the card as a current means of electronic cash versus a smart card could have made the difference in a broader implementation as a card with a range of uses and markets beyond payments applications. There is no doubt that multi-application smart cards will be widely used in the years ahead, and Mondex needed to be ready for the speed of decision making in such a rapid changing technological environment. Also, the Mondex Canada organization will have to focus its efforts on representing the efforts of its members in the industry-wide smart chip migration initiative that is currently underway.






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