Capable of storing vast amounts of personal financial data, smart cards will bring mass custimization to your wallet.
Instead of the black magnetic stripe on the back of most credit cards, smart cards are imbedded with an 8-bit microprocessor1 that communicates with a host computer to exchange data. The host computer charges the microprocessor with the power it needs to work. The idea behind smart cards is that they’ll eventually consolidate everything you carry in your wallet into the best credit card the world has seen – capable of borrowing on credit, banking, keeping track of frequent flier miles and much more.
In Europe, smart cards are already being used to their potential. Every German citizen carries a smart card that contains their health care information2. In America, consumers are already using smart cards with built-in chips to check out library books, pay for movie tickets and buy groceries3.
While smart cards aren’t the norm in the U.S. yet, businesses have invested millions into the microprocessor technology and Microsoft has designed a smart card reader for PC use. Visa credit card and Master card both offer smart cards with microprocessor technology – the smart Visa card and Citi Smart Master card. Visa says4 that soon their cards will consolidate all store credit cards and discount cards into one place. Additionally, you can log into their "Smart Place" web site and access travel, shopping and entertainment discounts that your card tracks.
Perhaps the greatest benefit is the added security. While the data on a magnetic strip can be read, changed or deleted. The microprocessor actually enforces access to the card to keep your personal information safe – a good thing considering these smart credit cards will soon be used to store government identification and electronic cash.
1 http://www.howstuffworks.com/question332.htm
2 Ibid.
3 www.smartcardbasics.com
4 http://usa.visa.com/personal/cards/visa_smart.html
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