February 8, 2002—Smart card usage in the United States and Canada increased 37% in 2000 from 1999, according to a report from the Smart Card Alliance, a not-for-profit organization dedicated to accelerating the acceptance of smart card technology.
Smart cards contain a microprocessor chip with the capacity to interact with and operate among networks. More than merely storing value, the smart card verifies, authenticates, and protects the cardholders identity and information, over online and other networks. Its ability to communicate with other systems gives the smart card the critical capacity of a computer chip in the users pocket. Smart cards are used in all sectors; examples include ID cards, payment cards for transit and parking, SIM cards for use with mobile phones, and credit cards by major financial institutions and retail companies to ensure security of transactions and allow for loyalty programs.
The new study, conducted by KPMGs Information Risk Management practice, surveyed all major smart card manufacturers supplying the United States and Canada, for the years of 1999 and 2000.
The total number of smart cards manufactured for use within the United States and Canada for 1999 was 20,775,000. In 2000, the research showed that this at number grew to 28,430,000—a 37% growth.
The fastest growing market segment between 1999 and 2000 was the financial market sector with a growth rate of 244%, reflecting the response of card associations, banks and American Express to consumer demand for expanded card services. For more information, contact The Smart Card Alliance.
