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Contatct IC Card Contatctless IC Card dual interface IC card RFID Card System Integration
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In 1968 German electrical engineer Helmut Gr?ttrup and his colleague Jürgen Dethloff invented the automated chip card, receiving a patent only in 1982, while working for German company Giesecke & Devrient. The first mass use of the cards was as a Télécarte for payment in French pay phones, starting in 1983.
French inventor Roland Moreno[2] patented the memory card concept[3] in 1974. In 1977, Michel Ugon from Honeywell Bull invented the first microprocessor smart card. In 1978, Bull patented the SPOM (Self Programmable One-chip Microcomputer) 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 no. 2 and no. 1 smart card manufacturers, merged and became Gemalto.
 

   
 A smart card, combining credit card and debit
card properties. The 3 by 5 mm security chip
embedded in the card is shown enlarged in the
inset. The contact pads on the card enables
electronic access to the chip.

The second use integrated microchips into all French Carte Bleue debit cards in 1992. Customers inserted the card into the merchant's POS terminal, then typed the 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 and entered service throughout Europe in the mid-1990s, most notably in Germany (Geldkarte), Austria (Quick), Belgium (Proton), France (Mono[4]), the Netherlands (Chipknip and Chipper), Switzerland ("Cash"), Norway ("Mondex"), Sweden ("Cash", decommissioned in 2004), Finland ("Avant"), UK ("Mondex"), Denmark ("Danm?nt") and Portugal ("Porta-moedas Multibanco").
The major boom in smart card use came in the 1990s, with the introduction of smart-card-based SIMs used in GSM mobile phone equipment in Europe. With the ubiquity of mobile phones in Europe, smart cards have become very common.
The international payment brands MasterCard, Visa, and Europay agreed in 1993 to work together to develop the specifications for smart cards as either a debit or a credit card. The first version of the EMV system was released in 1994. In 1998 a stable release of the specifications became available. EMVco, the company responsible for the long-term maintenance of the system, upgraded the specification in 2000 and in 2004.[5] EMVco's purpose is to assure the various financial institutions and retailers that the specifications retain backward compatibility with the 1998 version.
With the exception of countries such as the United States EMV-compliant cards and equipment are widespread. Typically, a country's national payment association, in coordination with MasterCard International, Visa International, American Express and JCB, jointly plan and implement EMV systems.
Contactless smart cards that do not require physical contact between card and reader are becoming increasingly popular for payment and ticketing applications such as mass transit and highway tolls. Visa and MasterCard have agreed to an easy-to-implement version that was deployed in 2004–2006 in the USA. Most contactless fare collection implementations are custom and incompatible, though the MIFARE Standard card from Philips has a considerable market share in the US and Europe.
Smart cards are also being introduced in personal identification and entitlement schemes at regional, national, and international levels. Citizen cards, drivers’ licenses, and patient card schemes are appearing. In Malaysia, the compulsory national ID scheme MyKad includes eight different applications and has 18 million users. Contactless smart cards are part of ICAO biometric passports to enhance security for international travel.



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