The document summarizes the history and development of smart cards from 1968 to 1999. Some key events include the first patent filings for microchip cards in 1968 and 1970, the original patent for an IC card in 1974, and the beginning of commercial smart card development in 1977. The document then defines smart cards and describes their various components and applications, including banking, identification, transportation, and telecommunications. The advantages of smart cards over magnetic stripe cards are also outlined, such as increased security, processing power, and storage capacity.

2. History
 1968
German inventor Jurgen Dethloff along with Helmet Grotrupp filed a patent
for using plastic as a carrier for microchips.
 1970
Dr. Kunitaka Arimura of Japan filed the first and only patent on the smart
card concept
 1974
Roland Moreno of France files the original patent for the IC card, later dubbed
the “smart card.”
 1977
Three commercial manufacturers, Bull CP8, SGS Thomson, and Schlumberger
began developing the IC card product.

3. History
 1979
Motorola developed first single chip Microcontroller for French Banking
 1982
World's first major IC card testing
 1992
Nationwide prepaid card project started in Denmark
 1999
Federal Government began a Federal employee smart card identification

4. What is a Smart Card?
The standard definition of a a smart card, or integrated
circuit card (ICC), is any pocket sized card with embedded
integrated circuits.
Loosely defined, a smart card is any card with a capability
to relate information to a particular application such as:
 Magnetic Stripe Cards
 Optical Cards
 Memory Cards
 Microprocessor Cards

5. Magnetic Stripe Cards
Standard technology for bank cards, driver’s licenses, library cards,
and so on……

6. Optical Cards
Uses a laser to read and
write the card
CANPASS Contains:
 Photo ID
 Fingerprint

7. Memory Cards
Can store:
Financial Info
Personal Info
Specialized Info
Cannot process Info

8. Microprocessor Cards
Has an integrated
circuit chip
Has the ability to:
Store information
Carry out local
processing
Perform Complex
Calculations

9. Microprocessor Cards
Combi / Hybrid Cards
Hybrid Card
Has two chips: contact and contactless interface.
The two chips are not connected.
Combi Card
Has a single chip with a contact and contactless
interface.
Can access the same chip via a contact or contactless
interface, with a very high level of security.

10. Microprocessor Cards
Combi / Hybrid Cards

11. How are Smart Cards Used?
 Commercial Applications
 Banking/payment
 Identification
 Ticketing
 Parking and toll collection
 Universities use smart cards for ID purposes and at the
library, vending machines, copy machines, and other
services on campus.
 Mobile Telecommunications
 SIM cards used on cell phones
 Over 300,000,000 GSM phones with smart cards
 Contains mobile phone security, subscription
information, phone number on the network, billing
information, and frequently called numbers.

12. How are Smart Cards Used?
 Information Technology
 Secure logon and authentication of users to PCs and networks
 Encryption of sensitive data
 Other Applications
 Over 4 million small dish TV satellite receivers in the US use a smart card
as its removable security element and subscription information.
 Pre-paid, reloadable telephone cards
 Health Care, stores the history of a patient
 Fast ticketing in public transport, parking, and road tolling in many
countries

13. Advantages
In comparison to it’s predecessor, the magnetic strip card, smart
cards have many advantages including:
 Life of a smart card is longer
 A single smart card can house multiple applications. Just one card can be
used as your license, passport, credit card, ATM card, ID Card, etc.
 Smart cards cannot be easily replicated and are, as a general rule much
more secure than magnetic stripe cards
 Data on a smart card can be protected against unauthorized viewing. As a
result of this confidential data, PINs and passwords can be stored on a
smart card. This means, merchants do not have to go online every time to
authenticate a transaction.

14. Advantages
• chip is tamper-resistant
- information stored on the card can be PIN code and/or read-write
protected
- capable of performing encryption
- each smart card has its own, unique serial number
• capable of processing, not just storing information
- Smart cards can communicate with computing devices through a smart
card reader
- information and applications on a card can be updated without having to
issue new cards
• A smart card carries more information than can be accommodated on a
magnetic stripe card. It can make a decision, as it has relatively powerful
processing capabilities that allow it to do more than a magnetic stripe card
(e.g., data encryption).

15. Disadvantages NOT tamper proof
Can be lost/stolen
Lack of user mobility – only possible if user has smart card reader
every he goes
Has to use the same reader technology
Can be expensive
Working from PC – software based token will be better
No benefits to using a token on multiple PCs to using a smart card
Still working on bugs

16. Thanks