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A smart card (SC), chip card, or integrated circuit card (ICC or IC card) is a physical electronic authentication device, used to control access to a resource. It is typically a plastic credit card-sized card with an embedded integrated circuit (IC) chip.[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, public transit, computer security, schools, and healthcare. Smart cards may provide strong security authentication for single sign-on (SSO) within organizations. Numerous nations have deployed smart cards throughout their populations.

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The universal integrated circuit card (UICC) for mobile phones, installed as pluggable SIM card or embedded eSIM, is also a type of smart card. As of 2015[update], 10.5 billion smart card IC chips are manufactured annually, including 5.44 billion SIM card IC chips.[3]

The basis for the smart card is the silicon integrated circuit (IC) chip.[4] It was invented by Robert Noyce at Fairchild Semiconductor in 1959. The invention of the silicon integrated circuit led to the idea of incorporating it onto a plastic card in the late 1960s.[4]

Independently, Kunitaka Arimura of the Arimura Technology Institute in Japan developed a similar idea of incorporating an integrated circuit onto a plastic card, and filed a smart card patent in March 1970.[4][12] The following year, Paul Castrucci of IBM filed an American patent titled "Information Card" in May 1971.[12]

In 1974 Roland Moreno patented a secured memory card later dubbed the "smart card".[13][14] In 1976, Jrgen Dethloff introduced the known element (called "the secret") to identify gate user as of USP 4105156.[15]

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).

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.

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.

EMV compliant cards were first accepted into Malaysia in 2005[19] 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 30 April 2014 that it would try to implement the smart chip technology 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 finally ended when Target sent out a notice[20] stating unauthorized access to magnetic strips[21] costing Target over 300 million dollars along with the increasing cost of online credit theft was 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.[clarify][citation needed]

Use of "Contactless" smart cards in transport has also grown through the use of low cost chips NXP Mifare Ultralight and paper/card/PET rather than PVC. This has reduced media cost so it can be used for low cost tickets and short term transport passes (up to 1 year typically). The cost is typically 10% that of a PVC smart card with larger memory. They are distributed through vending machines, ticket offices and agents. Use of paper/PET is less harmful to the environment than traditional PVC cards.

Complex Cards are smart cards that conform to the ISO/IEC 7810 standard and include components in addition to those found in traditional single chip smart cards. Complex Cards were invented by Cyril Lalo and Philippe Guillaud in 1999 when they designed a chip smart card with additional components, building upon the initial concept consisting of using audio frequencies to transmit data patented by Alain Bernard.[22] The first Complex Card prototype was developed collaboratively by Cyril Lalo and Philippe Guillaud, who were working at AudioSmartCard[23] at the time, and Henri Boccia and Philippe Patrice, who were working at Gemplus. It was ISO 7810-compliant and included a battery, a piezoelectric buzzer, a button, and delivered audio functions, all within a 0.84mm thickness card.

The Complex Card pilot, developed by AudioSmartCard, was launched in 2002 by Crdit Lyonnais, a French financial institution. This pilot featured acoustic tones as a means of authentication. Although Complex Cards were developed since the inception of the smart card industry, they only reached maturity after 2010.

Complex Cards support all communication protocols present on regular smart cards: contact, thanks to a contact pad as defined ISO/IEC 7816 standard, contactless following the ISO/IEC 14443 standard, and magstripe.

Second generation Complex Cards feature a battery-free design. These cards harvest the necessary power from external sources; for example when the card interacts in a contact or contactless fashion with a payment system or an NFC-enabled smartphone. The use of a bistable display in the card design ensures that the screen remains legible even when the Complex Card is unconnected to the power source.

Complex Card manufacturing methods are inherited from the smart card industry and from the electronics mounting industry. As Complex Cards incorporate several components while having to remain within 0.8 mm thickness and be flexible, and to comply with the ISO/IEC 7810, ISO/IEC 7811 and ISO/IEC 7816 standards, renders their manufacture more complex than standard smart cards.

One of the most popular manufacturing processes in the smart card industry is lamination. This process involves laminating an inlay between two card faces. The inlay contains the needed electronic components with an antenna printed on an inert support.

Second generation, battery-free Complex Cards can be manufactured by existing hot lamination process. This automated process, inherited from traditional smart card manufacturing, enables the production of Complex Cards in large quantities while keeping costs under control, a necessity for the evolution from a niche to a mass market.

As Complex Cards bring more functionalities than standard smart cards and, due to their complexity, their personalization can take longer or require more inputs. Having Complex Cards that can be personalized by the same machines and the same processes as regular smart cards allows them to be integrated more easily in existing manufacturing chains and applications.

Since the inception of smart cards, innovators have been trying to add extra features. As technologies have matured and have been industrialized, several smart card industry players have been involved in Complex Cards.

The Complex Card concept began in 1999 when Cyril Lalo and Philippe Guillaud, its inventors, first designed a smart card with additional components. The first prototype was developed collaboratively by Cyril Lalo, who was the CEO of AudioSmartCard at the time, and Henri Boccia and Philippe Patrice, from Gemplus. The prototype included a button and audio functions on a 0.84mm thick ISO 7810-compliant card .

AudioSmartCard was founded in 1993 and specialized in the development and marketing of acoustic tokens incorporating security features. These acoustic tokens exchanged data in the form of sounds transmitted over a phone line. In 1999, AudioSmartCard transitioned to a new leadership under Cyril Lalo and Philippe Guillaud, who also became major shareholders. They made AudioSmartCard evolve towards the smart card world. In 2003 Prosodie,[34] a subsidiary of Capgemini, joined the shareholders of AudioSmartCard.

The Ellipse patented technologies enable smart card manufacturers to use their existing dual interface payment card manufacturing process and supply chain to build battery-free, second generation Complex Cards with display capabilities. Thanks to this ease of integration, smart card vendors are able to address banking, transit and prepaid cards markets. 17dc91bb1f