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A smart card, chip card, or integrated circuit card (ICC) is a physical electronic authorization device, used to control access to a resource. It is typically a plastic credit card sized card with an embedded integrated circuit.^[1] Many smart cards include a pattern of metal contacts to electrically connect to the internal chip. Others are contactless, and some are both. Smart cards can provide personal identification, authentication, data storage, and application processing.^[2] Applications include identification, financial, mobile phones (SIM), public transit, computer security, schools, and healthcare. Smart cards may provide strong security authentication for single sign-on (SSO) within organizations. Several nations have deployed smart cards throughout their populations.

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1History
2Design
3Applications

History[edit]

Invention[edit]

One of the first smart card prototypes, created by its inventor Roland Moreno around 1975. The chip has not yet been miniaturized. On this prototype, one can see how each leg of the microchip (center) is connected to the exterior world by a copper connector.

First smart card manufactured by Giesecke & Devrient in 1979, already with the finally standardized dimension (ID-1) and a contact area with eight pads (initially on the upper left corner)

In 1968 and 1969 Helmut Gröttrup and Jürgen Dethloff jointly filed patents for the automated chip card. Roland Moreno patented the memory card concept^[3] in 1974.^[4] An important patent for smart cards with a microprocessor and memory as used today was filed by Jürgen Dethloff in 1976 and granted as USP 4105156 in 1978.^[5]

In 1977, Michel Ugon from Honeywell Bull invented the first microprocessor smart card with two chips: one microprocessor and one memory, and in 1978, 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 1,200 patents related to smart cards. In 2001, 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 2006, Axalto and Gemplus, at the time the world's top two smart-card manufacturers, merged and became Gemalto. In 2008, 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 1983.^{[citation needed]}

Carte bleue[edit]

After the Télécarte, microchips were integrated into all French Carte Bleuedebit cards in 1992. 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 mid-1990s. They have been common in Germany (Geldkarte), Austria (Quick Wertkarte), Belgium (Proton), France (Moneo^[6]), the Netherlands (Chipknip Chipper (decommissioned in 2001)), Switzerland ('Cash'), Norway ('Mondex'), Spain ('Monedero 4B'), Sweden ('Cash', decommissioned in 2004), Finland ('Avant'), UK ('Mondex'), Denmark ('Danmønt') and Portugal ('Porta-moedas Multibanco').Private electronic purse systems have also been deployed such as the Marines corps (USMC) at Parris Island allowing small amount payments at the cafeteria.

Since the 1990s, smart cards have been the subscriber identity modules (SIMs) used in GSM mobile-phone equipment. Mobile phones are widely used across the world, so smart cards have become very common.

EMV[edit]

Europay MasterCard Visa (EMV)-compliant cards and equipment are widespread with the deployment led by European countries. The United States started later deploying the EMV technology in 2014, with the deployment still in progress in 2018. Typically, a country's national payment association, in coordination with MasterCard International, Visa International, American Express and Japan Credit Bureau (JCB), jointly plan and implement EMV systems.

Historically, in 1993 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 1994. In 1998 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 1998 version. EMVco upgraded the specifications in 2000 and 2004.^[7]

EMV compliant cards were first accepted into Malaysia in 2005 ^[8] and later into United States in 2014. 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 2013 was one of the largest indicators that American credit card information is not safe. Target made the decision on April 30, 2014 that it would try to implement the smart chip technology in order to protect itself from future credit card identity theft.

Before 2014, 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 2015 when the liability shifts occurred in October by the credit card companies.

Development of contactless systems[edit]

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