The Smart Card Report

The definitive guide to the smart card industry.

• Will help you to keep track of the major issues affecting the market
• Will enable you to identify new business opportunities
• Includes profiles of key players, assesses market trends and drivers, comprehensive technology review

Completely revised and updated, the 8th edition of The Smart Card Report examines the smart card market and major end-use sectors, identifying their needs for smart cards, assessing growth prospects and highlighting market opportunities.

The study looks at the structure of the industry, profiles key players, assesses market trends and drivers, discusses industry issues and investigates usage by geographical region and application area. A comprehensive technology review is also included.

We have drawn on the expertise from our existing portfolio, Card Technology Today newsletter and ID Smart: Cards for Governement & Healthcare conference to bring you vital information, analysis and forecasts that cannot be found anywhere else.

• Language: English
• Publisher: Elsevier Science
• Release date: Dec 2, 2012
• ISBN: 9780080519005

Book preview

The Smart Card Report

Eighth edition

Wendy Atkins

ELSEVIER

Table of Contents

Cover image

Title page

Copyright page

List of Tables

List of Figures

1: Introduction

1.1 Summary of Contents

1.2 Methodology

2: Market Trends and Output 2003–2006

2.1 Market Shipments

2.2 Geographical Markets

2.3 Market Segments

2.4 Technology Trends

2.5 Industry Structure

2.6 Future Directions

3: Standards, Specifications and Industry Groups

3.1 International Organization for Standarditzation (ISO)

3.2 Comité Européen de Normalisation (CEN)

3.3 Industry Groups and Specifications

3.4 Financial Services

3.5 Telecoms Sector

3.6 Travel

3.7 e-Europe Smart Card (eESC)

3.8 eEpoch

3.9 Open Smart Card Infrastructure for Europe (OSCIE)

3.10 Government Smart Card Interoperability Specification (GSC-IS)

3.11 Liberty Alliance

3.12 The Future for Standards, Specifications and Industry Bodies

4: Security, Privacy and Risk Management

4.1 Risk Management

4.2 Online versus Offline

4.3 Security Functions During Card Use

4.4 Smart Card Attacks

4.5 Cryptography and Application Overall Security

4.6 Evaluating security

4.7 Smart Card Industry Initiatives

4.8 Biometrics

4.9 Smart Cards and Public Key Infrastructure (PKI)

4.10 Promoting Privacy of Information through the Smart Card

4.11 The Future

5: Market Segments

5.1 Financial Services, Retail and Loyalty Segment

5.2 E-purse

5.3 E-commerce

5.4 Contactless Technology for Retail and Banking Transactions

5.5 Loyalty

5.6 Telecoms Segment

5.7 Pay TV Segment

5.8 Transport Segment

5.9 Government Segment

5.10 Healthcare

5.11 Information Technology (IT) Security

5.12 Other Uses of Smart Cards

5.13 Provision of Utilities Services

5.14 Overview of Market Segments

6: Company Profiles

6.1 Chip Manufacturers

6.2 Smart Card Producers

6.3 Terminal Manufacturers

6.4 Software and Systems Manufacturers

6.5 Smart Card Associations

7: Address Book

7.1 Alphabetical Listing of Organizations

7.2 Breakdown of Organizations by Type

Appendix 1: Smart Card Technology

Core Functions

Types of Smart Card

Smart Card Technology: Memory Components

Smart Card Technology: The Chip

Smart Card Flexibility

The Smart Card Production Process

Smart card terminals and readers

Types of Terminal and Reader Currently Marketed

New Possibilities for Terminals

Communications Between Card and Terminal

Terminal Certification

Smart Card Terminal Prices

Terminal Management

Appendix 2: Glossary of Terms

Appendix 3: Definitions of Market Segments

Financial Services/Retail Loyalty

Telecoms

Pay TV

Transport

Government/Healthcare

IT Security

Others

Acknowledgements

Copyright

Copyright © 2004 Wendy Atkins published by Elsevier Ltd.

All rights reserved.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means: electronic, electrostatic, magnetic tape, mechanical, photocopying, recording or otherwise, without permission in writing from the publishers.

First edition published 1986

Second edition published 1989

Third edition published 1994

Fourth edition published 1997

Fifth edition published 1999

Sixth edition published April 2000

Seventh edition published May 2001

Eighth edition published January 2004

British Library Cataloguing in Publication Data

Atkins, Wendy–

The smart card report – 8th ed.

1.Smart card industry 2.Market surveys

I. Title II. Adams, Jane

332.7’6

ISBN 1856174174

Whilst every care is taken to ensure that the data published in this report are accurate, the Publisher cannot accept responsibility for any omissions or inaccuracies appearing or for any consequences arising therefrom.

No responsibility is assumed by the Publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions or ideas contained in the material herein.

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Transferred to digital printing 2005

List of Tables

Table 2.1 Worldwide shipments by sector 2002 3

Table 2.2 Estimated worldwide shipments of cards by year (million) 4

Table 2.3 Estimated share of memory card market by sector 2003–2006 (%) based on total volume shipped 6

Table 2.4 Estimated share of microprocessor card market by sector 2003–2006 (%) based on total volume shipped 6

Table 2.5 Estimated share of memory card market by region 2003–2006 (%) based on total volume shipped 7

Table 2.6 Estimated share of microprocessor card market by region 2003–2006 (%) based on total volume shipped 7

Table 3.1 FINREAD members 60

Table 4.1 ITSEC/Common Criteria equivalents 86

Table 5.1 Identity theft losses on UK-issued cards (£ million) 102

Table 5.2 EMV migration worldwide by JCB and its issuing partners 109

Table 5.3 A selection of e-purse schemes 110

Table 5.4 Examples of activities undertaken by the main card companies in the e-commerce arena 117

Table 5.5 A selection of smart loyalty schemes 124

Table 5.6 A selection of products for the mobile communications market 141

Table 5.7 A selection of mass transit schemes using smart cards 155

Table 5.8 A selection of government schemes using smart cards 171

Table 5.9 A selection of local government and education schemes 178

Table 5.10 A selection of corporations using smart cards for enterprise security 194

Table 5.11 A selection of smart card implementations in the leisure and tourism industry 197

Table A1-1 Three separate zones included in programmable memory 272

List of Figures

Figure 2.1 Estimated total global smart card shipment figures (millions) from 2002–2006 4

Figure 2.2 Estimated total global shipments of memory cards (millions) from 2002–2006 5

Figure 2.3 Estimated total global shipments of microprocessor cards (millions) from 2002–2006 5

Figure 2.4 Estimated shipments (millions) of memory cards to the EMEA region 2002–2006 8

Figure 2.5 Estimated shipments (millions) of microprocessor cards to the EMEA region 2002–2006 8

Figure 2.6 Estimated shipments (millions) of memory cards to Americas region 2002–2006 12

Figure 2.7 Estimated shipments (millions) of microprocessor cards to Americas region 2002–2006 13

Figure 2.8 Estimated shipments (millions) of microprocessor cards to Asia Pacific region 2002–2006 16

Figure 2.9 Estimated shipments (millions) of memory cards to Asia Pacific region 2002–2006 16

Figure 2.10 Estimated shipments (millions) of microprocessor cards to the financial service/retail/loyalty sector 2002–2006 20

Figure 2.11 Estimated shipments (millions) of memory cards to the financial service/retail/loyalty sector 2002–2006 21

Figure 2.12 Estimated shipments (millions) of microprocessor cards to the telecoms sector 2002–2006 26

Figure 2.13 Estimated shipments (millions) of memory cards to the telecoms sector 2002–2006 28

Figure 2.14 Estimated shipments (millions) of microprocessor cards to the Pay TV sector 2002–2006 28

Figure 2.15 Estimated shipments (millions) of microprocessor cards to the transport sector 2002–2006 31

Figure 2.16 Estimated shipments (millions) of memory cards to the transport sector 2002–2006 31

Figure 2.17 Estimated shipments (millions) of microprocessor cards to the government/healthcare sector 2002–2006 34

Figure 2.18 Estimated shipments (millions) of microprocessor cards to the IT security sector 2002–2006 37

Figure 4.1 Estimated time to crack symmetric algorithms 80

Figure 4.2 Example biometric enrollment process 91

Figure 4.3 Example verification process 92

Figure 5.1 Market shift to high value SIM cards 132

Figure 5.2 Distribution of 62 US Federal projects by project phase 184

Figure A1-1 The process of authorizing an online transaction 285

1

Introduction

This eighth edition of The Smart Card Report is published at a pivotal time for the smart cards industry.

Changes in the value chain among chip and card suppliers are introducing new challenges, with more companies moving to Position themselves as total solution providers. Meanwhile, the terminal manufacturer market is witnessing changes with further market consolidation taking place.

New market drivers in the wake of the events of September 11 2001 are helping to drive the case for volume shipments of cards and terminals in emerging sectors such as governmental and corporate identification, Commitment for chip technology through the Europay MasterCard Visa (EMV) specification is helping drive the impetus for smart cards throughout the financial sector, and although the number of deployments within this sector have been slower than many initially forecast, there is no doubt that the sector will steadily increase its market share of shipments during the coming years. Mass transit contracts continue to be announced on a regular basis too, a trend that the development of contactless technology can only help. As the mobile telecoms industry gets over the financial problems of the beginning of the 21st century, shipments of higher-powered Subscriber Identity Module (SIM) technology are starting to take off – albeit at a slower rate than volume shipments of SIM cards during the boom of the 1990s.

The development of multi-application technology IS offering opportunities for new business models based on cost sharing, and provides real potential for the deployment of smart card technology linking the public and private sectors.

All these issues and trends are explored in this, the latest edition of The Smart Card Report. The report also provides: a basic introduction to smart card technology; a glossary of industry terms; information on security, privacy and risk management, profiles of leading players; an industry directory; and, details of industry groups and specifications. In addition, you will find a representative sample of smart card industry applications including easy-to-reference tables. However, with an estimated 1900 million cards in the market in 2003, it is unrealistic to list every project worldwide. Inevitably, these tables will not be exhaustive and if we have missed a project that you feel is fundamental in its importance to the industry then please let us know.

1.1 Summary of Contents

• Chapter 2 looks at industry trends and potential output from 2003–2006.

• Chapter 3 covers standards, industry specifications and industry groups.

• Chapter 4 examines smart card security, privacy and risk management,

• Chapter 5 describes a representative sample of smart card applications and looks at key application issues.

• Chapter 6 provides profiles of a selection of companies working in the smart cards industry.

• Chapter 7 includes an address book of companies and organizations of interest to the smart cards industry.

• Appendix 1 offers a brief overview of smart card technology.

• Appendix 2 covers a glossary of key industry terms.

• Appendix 3 provides definitions of market segments.

1.2 Methodology

Research methodology for this report included extensive use of primary data, collected in person, from the Internet, by email and by telephone during 2003. Collection of secondary data included reviews of government and industry statistics, annual reports, press releases and trade journals – including Elsevier’s Card Technology Today newsletter.

2

Market Trends and Output 2003-2006

The smart card market is poised for good levels of future growth as several market segments are beginning to report a growing enthusiasm for the technology.

2.1 Market Shipments

We have taken market shipment figures for 2002 from the industry group Eurosmart as the benchmark for our projections on the future market. Eurosmart is widely respected throughout the industry as an association with links to the main smart card technology companies. The organization is also recognized as a strong player with all accurate view on the state of the industry.

Table 2.1

Worldwide shipments by sector 2002

Source: Eurosmart, Reproduced by permission of Eurosmart

Using Eurosmart’s estimations as the foundation for our research, we have estimated total industry output for 2003, 2004, 2005 and 2006. These estimates are based on quantitative and qualitative research conducted with key industry players during 2003. This research covered areas such as potential market penetration within market segments, as well as regional markets. Definitions of each market segment can be found in Appendix 3.

Table 2.2

Estimated worldwide shipments of cards by year (million)

* Actual shipment figures from Eurosmart

Figure 2.1 Estimated total global smart card shipment figures (millions) from 2002–2006

Our research shows that total smart card shipments will grow steadily between 2003 and 2006, increasing by 19% within this time period. Between 2002 and 2006, total shipments are expected to grow by 29%.

Our research indicates that although total smart card shipments will increase, the number of memory cards shipped between 2003 and 2006 will begin to fall. This is largely due to the growth in the market for microprocessor cards coupled with the decline in the public payphone market.

Our research highlights that the number of microprocessor cards shipped globally will continue to grow. In 2003, we estimate that 852 million microprocessor cards will be shipped worldwide. This will rise to 1335 million cards in 2006, representing growth of 57%.

Figure 2.2 Estimated total global shipments of memory cards (millions) from 2002–2006

Figure 2.3 Estimated total global shipments of microprocessor cards (millions) from 2002–2006

Based on these shipment figures, we estimate that this will be translated into revenues of:

• €2540 million in 2003

• €2881 million in 2004

• €3363 million in 2005

• €3723 million in 2006

However, it should be remembered that the translation of shipment figures into financial value must be treated with extreme caution, as numerous factors enter into the cost of a smart card. Such factors include (but may not be limited to):

• The number of cards deployed in each contract;

• The type of card deployed;

• Memory size of the card;

• Features on the card;

• Currency fluctuations;

• Personalization considerations; and,

• The security features included on the card.

As a result, cards sold in some market segments may range in value from as little as €1.50 to as much as €6. Our revenue figures are therefore designed to provide all indication of where the industry is going, but we urge readers to remember that specific contracts have individual requirements that will greatly impact on the price of the smart card deployed.

Our research shows that the market will continue to be dominated by the telecoms segment, while the financial and identification (ID) sectors will also become more and more important. The value chain will continue to be shaken up by mergers and acquisitions. Ongoing price pressures will be experienced, but a steady migration towards higher-value cards should help the onward growth of smart card revenue. As the push towards higher memory continues, Java-based operating systems will come to the fore.

Table 2.3

Estimated share of memory card market by sector 2003–2006 (%) based on total volume shipped

The telecoms market will take a falling share of memory card shipments as demand for public phone cards falls.

Table 2.4

Estimated share of microprocessor card market by sector 2003–2006 (%) based on total volume shipped

Although the telecoms market will continue to take a large share of the microprocessor market, the growth in the government/healthcare sector will provide significant opportunities.

2.2 Geographical Markets

Events in the global environment continue to impact on the market. The war in Iraq in 2003 and the ongoing ‘war against terror’ are helping keep the issues of security and identity on the agenda in many regional markets. Consequently, there is a growing demand for smart cards from customers in countries such as the USA and UK to answer these concerns. The Severe Acute Respiratory Syndrome (SARS) epidemic in Asia slowed the progress of some contracts during 2003, and this is expected to have some impact on final year results from companies that are heavily involved in this growth market. Exchange rate movements have also challenged some companies, with the weakness of the US dollar compared with the euro affecting revenues in all segments, particularly those suffering pricing pressures.

Table 2.5

Estimated share of memory card market by region 2003–2006 (%) based on total volume shipped

* EMEA = Europe, Middle East and Africa

Table 2.6

Estimated share of microprocessor card market by region 2003–2006 (%) based on total volume shipped

2.2.1 Europe, Middle East and Africa (EMEA)

Without a doubt, the Europe, Middle East and Africa (EMEA) region represents the biggest market for both memory and microprocessor cards. While this is expected to continue during the short term, it is interesting to note how much of the total market share the region will lose. This does not come as a surprise, because increasing numbers of smart card solutions are now being developed in other parts of the world. We anticipate that 587 million microprocessor cards will be sold in 2006. This represents a growth of approximately 24% from 2003. Meanwhile, shipments of memory cards will begin to fall as demand for microprocessor cards grows.

Figure 2.4 Estimated shipments (millions) of memory cards to the EMEA region 2002–2006

Figure 2.5 Estimated shipments (millions) of microprocessor cards to the EMEA region 2002–2006

Market drivers in EMEA

Fraud control is a key driver for the use of smart card technology throughout the region. As a result, there is a high level of interest in products that have achieved EAL4+ and EAL5+ certification within the common criteria (Further information on the Common Criteria call be found in Chapter 4, see 4.6.2). In addition to this, the technology provides some compelling arguments for cards to be used across a range of businesses. In particular, the ability to offer value-added services to end-users, as well as the possibility of obtaining information on cardholder habits, is helping to drive the use of the technology to achieve some companies’ promotional and marketing objectives. As a result, the region is now seeing the establishment of a number of niche markets. For example, Turkey is seen as an interesting example of how successful smart card-based loyalty schemes can be deployed. Here, several million smart cards are in circulation as part of two co-branding initiatives (see Chapter 5 for more information).

Beyond the niche markets, smart card technology is being well received in the finance/retail, government/healthcare and telecoms sectors. Demand in the European telecoms market is steered through conglomerates that have subsidiaries in a number of countries. In Eastern Europe, a growing Gross Domestic Product (GDP) coupled with lower penetration rates and a high number of young people are helping the Global System for Mobile Communications (GSM) market to grow.

As this is a culturally and economically diverse business area, it is helpful to further subdivide the region for analysis. This is done in the following sections.

2.2.1.1 Western Europe

The problem of fraud will help drive the deployment of smart card technologies in many European markets – notably tile retail/financial services sectors. Within Western Europe, migration to the Europay MasterCard Visa (EMV) specification is well under way in a number of countries, notably the UK, France and Italy. Other countries, such as the Netherlands, do not experience the high levels of fraud found in the UK, so are demonstrating a ‘wait and see’ approach.

EMV

While the EMV specification (see Chapter 3) is a major development, with huge potential for the industry, some smart card technology providers are now finding that there is a slow-down in the deployment of EMV technology throughout parts of the region. With a liability shift date fixed for 2005, it is slightly worrying that some companies are reporting this slow-down. However, this situation may be similar to that of the year 2000 (Y2K) problem: many companies are waiting until the last possible minute to update their card acceptance infrastructure.

Banks report that the card scheme information is good, but the individuals with the appropriate skills are not always available to be part of their specific projects. Because the migration to EMV is ramping up right across the EMEA region, there is a shortage of experienced people who have the depth and breadth of knowledge required to successfully carry this process out.

Migration to EMV in the region is led by minimalist requirements. Consequently, most implementations are cost-driven, low-end schemes. These will, however, provide a platform for future additional applications such as loyalty. The experience of the UK and France is providing opportunities for banks around the world to learn about the potential issues associated with roll out.

Mobile telecoms

The Western European market is close to saturation point for mobile telecoms operators. This means that operators in the region are interested in building and increasing average revenue per user (ARPU). Subscriber Identity Module (SIM) cards will continue to play an important role in this market, with greater demand for higher memory SIM cards expected for the future. As 3G (third-generation) technology takes off, the market for (U)SIM cards will also grow.

Government/healthcare

The government/healthcare market in the region is showing signs of development. In particular, many contracts in this sector will lead to wide-scale deployment of smart card technology. However, one problem with this sector is that many contracts have been slow to materialize. The UK government has blown hot and cold about a national ID scheme for several years. During 2003, government insiders said that an ID card – or entitlement card – was ‘very probable’. Just months later, such plans seemed to have been scotched as being ‘too expensive’. Finally, in November 2003, plans for such a card were included in the Queen’s speech (this is the central part of the state opening of parliament, when the monarch sets out the legislation that she would like to see passed). A draft Bill is expected to be published in 2004.

In other parts of Europe, government cards are moving along well. Countries such as Belgium, Finland, Sweden and Italy are all involved in piloting smart card technology for government applications. However, these markets are still slow, with the use of a smart card for Public Key Infrastructure (PKI) in an open environment in large deployments still considered disappointing.

The health and ID markets in the region are being assisted by national government initiatives to promote healthcare. For example, the French Sesame Vitale project and the German healthcare card programme, both covered in Chapter 5, are showing how large programmes can use smart card technology. This market will become increasingly important as interoperability between member states of the European Union (EU) is driven by the eEurope 2005 programme. This is essential if pan-European rollout is to be successful.

New opportunities

New markets are beginning to open within the EU, thanks to a number of directives and legislation. Mandates for smart cards to be used in tachograph systems could aid the deployment of cards throughout the member states. Additionally, a potential vote by member states of the EU during the final quarter of 2003 could provide the impetus for the introduction of an electronic motor vehicle registration document-based on smart card technology. With directives concerning privacy of personal data and electronic signatures, there could also be further openings.

2.2.1.2 Central Europe, Middle East and Africa (CEMEA)

The Central Europe, Middle East and Africa (CEMEA) region includes a diversity of countries ranging from Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia, whose accessions to the EU in 2004 have been agreed, through to countries with low GDPs. These facts have a significant impact on the market for smart cards in the region. Future EU states may be bound by directives passed within the commission governing the use of EU-wide cards, while in parts of Africa, reliable electricity supplies are a major factor in the development of smart card-based applications.

Deployments of smart cards in the Middle East and Africa are very much driven by individual country demands. In the Middle East, there is a significant and growing interest in governmental applications such as national ID schemes. Examples of such schemes that have been announced or are up for tender include: Oman, the United Arab Emirates, Saudi Arabia, Qatar, Bahrain and Jordan.

Economic and political stability issues in Africa mean that most smart card-related activity in Sub-Saharan Africa is limited to South Africa, Nigeria and a narrow level of interest in Kenya. Historically, Zimbabwe looked as if it might provide a few opportunities, however, the country’s current political and economic situation means that this market will not change significantly in the immediate future.

There is also a growing interest in smart cards in North Africa – notably for financial services in Tunisia.

Issues in the market

The Middle Eastern and African markets are very price sensitive. Many parts of this region also suffer from climate-related problems. As a result, many systems designed for operation in this region require the infrastructure to stand up to a tough environment. In such markets, contactless technology may have the edge, as it contains no moving parts. A closed-box approach also provides a big advantage in terms of robustness as the contacts are not exposed to the elements.

The retail and financial services sector is having some impact in the region. Turkey, which up until recently had a large mostly ‘uncarded’ population, is rapidly deploying cards that include a number of applications to add value to the main card application. The country, like other parts of the CEMEA area, is at a good stage in the card deployment cycle, so can therefore take advantage of the latest technology.

A tender announced by the Saudi Arabian monetary authority could also open new doors. Throughout the Gulf region, there is a greater ability to control deployment through a central banking perspective, which means that it is less driven by MasterCard and Visa.

GSM

The GSM market will continue to grow throughout the region. However, demand for SIM cards will remain at the level of cheaper, lower functionality cards.

2.2.2 The Americas

Typically seen as slow adopters of smart card technology, the Americas region will see a growth in its share of smart card shipments in the period under review. Memory card shipments will rise initially, but will fall in 2006 as more microprocessor cards enter the market (Figure 2.6). Shipments of microprocessor cards are expected to increase by around 300% from 2003 and 2006 (Figure 2.7).

Figure 2.6 Estimated shipments (millions) of memory cards to Americas region 2002–2006

Figure 2.7 Estimated shipments (millions) of microprocessor cards to Americas region 2002–2006

The Americas region can be usefully subdivided into two areas for an examination of its potential, North America and Latin America.

2.2.2.1 North Americs

North America is seeing a broad growth of smart card technology across a number of market segments. Although individual contracts within these markets do not look significant, collectively they represent a strong expansion of technology in the region. The market is being driven by developments in ID programmes – particularly corporate badging and government ID programmes, such as the Department of Defense (DOD) Common Access Card (CAC) programme in the USA. With identity remaining a strong focus throughout the USA, biometric technology is now coming to the fore. A boom in biometric research and development (R&D) by the US government should enable the cost of the technology to fall while accuracy improves.

Banking/retail sector

There is also growing evidence of attempts to kick-start the use of smart cards in the banking/retail sector. Although there have been some interesting developments in terms of the American Express Blue Card, this market has still failed to grow significantly. Interest is now emerging in the opportunities afforded by contactless credit cards driven by requirements for speed and convenience in the fast food, mass transit and transport sectors. Both MasterCard and American Express are working on contactless pilots for payments in outlets such as fast food restaurants, petrol stations and small stores. In addition, around 17 US cities, including Washington DC, Chicago and New York, have now adopted the technology for season ticket holders in the mass transit market.

These developments highlight the difference between North America and the rest of the world. While the retail, telecoms and financial industries represent a significant percentage of shipments in other regional markets, efforts in some of these sectors have not substantially taken off in North America. Instead, the segments generating most interest cover physical and logical security in government and commercial enterprises.

Security

The post-September 11 2001 climate has led to a raft of initiatives and funding aimed at improving security throughout the region. The US State Department is developing a passport containing biometric technology to authenticate the identities of US citizens who travel abroad. This potentially means that 7 million new passports will be issued each year requiring a contactless chip. This initiative is being driven by a new law requiring countries participating in the US Visa Waiver Program to issue machine-readable passports that incorporate biometric identifiers with a chip and comply with international standards.

During the second half of 2003, the US Congress allocated US$50 million to the Transportation Security Administration (TSA) to develop a uniform ID card for 15 million workers in the country’s airports, seaports, rail yards and the trucking industry. The TSA has not said which technology it will recommend for use on the Transportation Worker Identification Credential (TWIC), although there are strong indications a smart card will be adopted.

Other legislation born out of September 11 2001 that may impact on the industry includes the US Patriot Act. This requires financial institutes and other groups to have positive identification of new bank account applicants. As a result, banks are looking at ways of developing technology for