Introduction to Smartcards

1
Introduction to Smartcards
2
What is a Smartcard ?

• Agenda
• The Basics - what a smartcard does
• Evolution and development
• What Smartcards will do in the future

3
The Basics
4
Lesson 1. Dont be confused by terminology!!
Chip Card
RF Cards
Microprocessor Cards
Integrated Circuit Card
Multi-Application Card
CPU / MPU
Combi Cards
Memory Cards
Stored Value Cards
5
Simplest levels

• A smart card is a plastic card that has a chip
  embedded in it.
• How powerful the chip is determines the smart
  cards capability and hence function.
• Smart cards can be regarded as the ultimate
  portable computer!
• A smart card can carry (and process) more
  information than a magnetic stripe card and
  therefore has more utility.

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Smart Card Development

• Smart Cards are used where there is a security
  requirement. The more capable the chip, the more
  powerful the security.
• The first smart cards were simple memory only
  cards - main use as prepaid phone cards in
  Europe.
• Advanced chip cards are now used for very high
  security applications such as electronic money
  and healthcare.

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Major Components

• Plastic Card
• Module
• CPU (the brain)
• Memory
• Interface Pads

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Development Stages

• Memory cards - disposable, low cost.
• Single application and not dynamically
  upgradeable - investment tied into a particular
  card as issued.
• Multi Application or Function cards paying back
  the cost of several applications on one card.
• Dynamically upgradeable applications

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Multi-Application Cards

• Enable the cost of issuing smart cards to be
  spread across partners.
• Allows co-branding
• Can now activate new applications onto existing
  smart cards
• All card issuers still looking for the dominant
  applications - the one that will make users carry
  the card

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One card - many functions
Electronic Value tokens
Transport tickets
Bank Services
Club Membership
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Smartcard Types

• Contact cards the card has to be inserted in
  a reader and a physical contact made.
• Contactless cards the cards can be waved in
  the immediate vicinity of a reader.

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Smartcard types continued

• Memory only cards cheapest but not as secure as
  ...
• Processor cards with memory and a computer
  processor more expensive but much more secure
  with potentional for greater usage.

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Attributes of Smartcard Types
Increasing Cost, Security Capability
ITSO ISAM
Cost
Contact Processor e.g. CHIP and PIN payment cards.
Contactless memory
Increasing Security
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What Smartcards will do in the future
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Coming our way soon

• ITSO (Integrated Transport Smartcard
  Organisation)
• Accrington
• Field Upgradeable cards
• Biometrics
• GSM (Global Smart Media)

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ITSO

• Transport smartcards tend to be proprietary
  systems.
• ITSO enables such systems to interoperate
  securely and is probably the dominant
  application.
• Allows fully audited payments to be allocated to
  each player.
• Gives buyers of smartcard solutions retail
  independence.
• ITSO Secure Access Module (ISAM) at heart of
  environment.

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ITSO continued

• Deployments underway
• Expansion of ITSO ticket distribution channels
  vitally important, ieTelephone kiosks, home
  computers, retail outlets etc.

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Accrington
Remote Sales
And Remote Delivery !
"Reproduced by kind permission of PRIVATE EYE
magazine, gt www.private-eye.co.uk"
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The future field upgrade capability

• Follow a lifestyle change
• Add / delete applications as needed
• Without re-issuing smartcards

Free School Meals
Young persons travel card
NVQ attainment record
Employers computer system access
Health records
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Biometrics

• Security is upgradeable.
• Simplest level is a Personal ID number (PIN)
• Also have fingerprints, iris scans, face scans
  etc.
• Security to meet the requirements.

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So what does it mean so far?

• Multi-application dynamically upgradeable
  computer on a piece of plastic!
• Capable of carrying and processing a variety of
  information to suit an individuals lifestyle or
  requirements.
• Technology probably ahead of its time - uses for
  smartcards are catching up.
• A means of harnessing the full power of the
  Internet without losing control.
• A highly secure instrument enabling new
  businesses and products.

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Smartcard Market Growth
Smartcard Deployment
Source Various
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Smartcards

• 0ur Vision
• The glue that binds the citizen to Merseysides
  Integrated Passenger Transport Network

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Tickets for Public Transport
?Range Ticket free
(EasyJet et al!)
Paper produced (Wayfarer,
Almex, Setright!, Present Day
and Sportis)
Magnetic (Aptis)
Smartcard (the DfT
Contract) The future Tag technology
(long distance vicinity 60-70cm!)
Telecomms (trials in
Finland the OYP plus dial
mobile ticket
service)

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• ? Why do you need tickets?
• - proof of payment
• - proof of entitlement
• - the form of contract
• - as a means to account for revenue
• - to understand the demand for our service
• ? Ticketing is the means and not the end
• - delivers policy
• - concessionary travel
• - social inclusion
• - affordability
• - integration
• - supports broader objectives - such as
  the Local Transport Plan

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Smartcard The National Policy Platform
Government recognises the potential for embracing
new and emerging technologies. ?Smartcards that
create convenient and versatile ticketing
systems. ?Back-office systems capable of
handling vast numbers of transactions and
ensuring ticket revenue is correctly
allocated. ?Smartcards as a vehicle for choice
and flexibility providing the opportunity for
the customer to roam competing public
transport operators and seamlessly travel.
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The Role for Smartcards

• We control the technology, it does not control
  us
• (i) Concessionary Travel
• new forms of reimbursement
• improve efficiency of application and renewal
  process
• the ability to target new areas of concessions
• (ii) Pre-paid Ticketing
• new form of reimbursement
• extend the product portfolio
• customer added value
• (iii) Multi-application
• e.government
• experience of the bid with multi partners
• (iv) As a Partner, not the lead.

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Merseytravels Strategy

• SET (Smart Enabled Ticketing) Project
• ? Concessionary Travel Pass
• ?Smart chip enabling traditional passes
• ? Will be ITSO compliant
• ? Allows access through Merseyrail station gates,
  or as a flash pass
• ? Reconciles Culture and Technology
• Re-engineered issuance process for the 250k users
• Preferred bidder selected
• First smart enabled concessionary passes within
  six months
• First step establishes a major presence with
  issue and back office ready
• for future roll-out
• No compromise on flash pass security features
  no need for expensive
• readers everywhere on day 1
• Aim for long-term partnership with successful
  tenderer with link
• to further phases

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Ecebs and Accrington Technologies Ltd

• ? Privileged supplier to ITSO
• ? Shared vision
• ? Exploit new opportunities
• ? Formation of Accrington Technologies Ltd
• Public Private Partnership
• ? Development of the Internet Security Array
  System
• ? Offer wider scope for using web-based
• retailing for public transport ticketing
• ? Scope for delivering e-government agenda

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Global Smart Media LiveSmart

• ? Liverpool based company
• ? Development of multi-function tourism card
• launched in Winter 2005 and trials currently
  taking
• place
• ? Merseytravel equity partner
• ? Why we chose GSM
• - cultural fit
• - strong vision
• - credentials
• - partners can play to their strengths

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Conclusions

• ? Smartcards - a technology that has come of age
  
• is a technology with a function, and
• not a technology looking for a
  function
• ? We control the technology, it does not control
  us
• Value of Standards gives a common platform,
  stimulating
• improvement and originality
• Technology in context - What fits for your
  business is what
• counts