January 13, 99--
Update: This is amazing, and we are grateful to M____
G____ for giving us this inside look at the thing.
From: M G
Subject: Smart cards
Date: Thu, 14 Jan 1999 15:23:38 +0800
Bless you in the name of Jesus.
As well as designing chips now, I used to work for a very large smart card company in Australia. I was there when they were at the beginning of their foray into Asia, and I wrote a substantial part of their quality control plan for one of their large projects.
I was very concerned at the time about both the engineering feasibility of the whole plan (it was very expensive and difficult compared with the comparable paper ticket system), and the technology was taking some highly unexpected turns.
We had a very talented RF engineer working over there. He wasn't popular. He was remarkably well informed on mathematics and exceptional talented in the area of radio design, and told me about the "noncontact cards" that might come in the future.
I don't know if you know about this. There are exactly two kinds of cards which might be ever made. One type has the gold plated pad on the left of the card (or somewhere on the face of the card), where it meets connector pins on the bank machine. The card is powered by the bank machine, but retains data in non-volatile memory cells which are based on floating gate transistors. Very much standard, and quite easily achievable.
What was hard for some time was the following issues;
1. Chip size - too big and putting it into the card would be difficult mechanically
2. Cost. always.
4. The fact that contacts were always necessary made the card a bit unwieldy.
Well, the fourth item was solved when some engineers used a coil of wire inside the card to both pick up power from a field (just like in a transformer) and extract data pulses from the same field. As you could imagine this was quite a trick, because using the same coil for extracting data and sending data as well isn't easy.
When the problems were finally solved, to create the "noncontact" smartcard, it was just at that point in time when chip power requirements were virtually telescoping in size. It's now possible to power very complex circuits with the magnetic field from ordinary appliances (if you know how to use transistors really well). So the coil in the smartcards has become smaller...
The intelligence in these chips is quite high. They can use RSA encryption (which is based on the problem of factoring prime numbers) or other algorithms which are not necessarily known about by many people. The cards can carry, as you say, a lot of biometrics information. This probably includes iris pictures to allow ID to take place with installations that can look at eyes and do a quick pattern analysis.
The best thing you can say about these things is that they are convenient. Well, you don't even have to put them into a machine anymore! You can go onto a bus and have the cash deducted form the card while it is still in your purse... And there will be a corresponding process taking place when you leave the bus. Just to make the transaction right.
It is important to note the following.
There is a published figure for the range which can be achieved by cards making valid transactions from these transducers (the bank or bus machines, or whatever). That range is increasing moderately each year. At the moment it is about (gasp) 2.8 meters (about 9 feet).
That's an awful long distance. But the shocking thing is the difference between this figure (which has a sort of "industry standard" flavor about it) and other numbers. Now, while the other figures (which can be as long as 10 meters, or 32 feet) are classed as experimental, that doesn't mean you could build such a system which would work reliably 24 hours a day. You could do it, but you would have to be a smart engineer, and those type of engineers are getting rare nowadays, when everyone is "homogenized" by the constant uniforming influence of PCs and Microsoft.
Now, lets imagine what a range of 10 meters really amounts to. That's certainly far enough to reach across any distance from a strategically chosen point in a shopping mall to the points of entry. Or, for instance, on the entry to a bus station, or train station. You name it!
As regards the list 1..4 above... The only thing that isn't listed is
5. Consumer acceptance.
Even the trade magazines admit to there being a bit of a paradox here. Back in the 60's there would have been some sort of grass roots protest movement. I doubt whether the same generation who protested against the Vietnam war would have accepted smartcards without a whimper. But an odd characteristic of the 90's is that people, while believing that they are more individual, and more "free" than the oldsters, are actually, when the chips are down (if you can pardon the pun) far more governed by the desperate urge to conform and not to make too much of a fuss. And therefore there is very little vocal or written opposition to the cards.
The bizarre thing is that even the industry trade magazines think this is slightly odd!
Fire off any questions as they come up,
Yours in Christ
Comment: Steve Van Nattan: We have to see the potential, not so much from Big Brother herding us around and spying on us, but, what is the criminal potential in this card activity at a distance? Many observers who watch prophecy with this picture believe the smartcard is only transitional. I suspect that the criminal potential in the smartcard will become very real, and at some point an identity method will be invented which is more personal and possibly controlled by the mental processes of the user. The "pin number" will then be an "OK" thought from the user's mind.
This could be done by way of a mark or implant, and the data would be released, retrieved, and processed remotely after the user "approved" the transaction. The world public would rejoice in this since it would relieve them of responsibility for their finances and from carrying anything. Theoretically, and in the Great Tribulation-- probably, the user could go to town stark naked, and they could buy anything and pay for any purchase they wanted, and then they could fly to Hong Kong stark naked and visit a gambling casino. If they won, their winnings would be waiting for them at the next point of sale.
The marvel of this is that the high tech world is not making contingency plans for collapse. I believe that the beast mark system will one day crash during the Great Tribulation, and people will become instant beggars. Billions of people will be stranded and starvation will be immediate. The stark naked fool from Beverly Hills who went to Hong Kong will at once become a naked beggar on the streets of Hong Kong and never see Beverly Hills again.
The Feds certainly could use this remote tracking potential to keep track of people though. Also, let us notice that the card will become more and more essential to survival. Without it, a person may not be able to function since society sees no evil in it, and those who decline it will be treated as freaks. This present acceptance of the smartcard shows the temperament is NOW here to receive a mark in the hand of forehead. I also feel that people are so materialistic that they will do just about anything to get an easy way to the toys of modern life.
A bio-medical card would be the logical method of introducing the smartcard, and this is discussed after I ask you to read about a smart chip IN USE in the UK. Think about how it could be used to interface with the nervous system and the brain wave fields.
January 14, 1999
Web posted at: 3:21 p.m. EST (2021 GMT)
by Sam Witt
(IDG) -- Is the human body a fit place for a microchip? The debate is no longer hypothetical. The same computing power that once required an entire building to harness now can be inserted in your left arm.
Better yet, somebody else's left arm.
Professor Kevin Warwick, director of cybernetics at the University of Reading in the U.K., is that somebody else. On Monday, Aug. 24, 1998, Warwick became the first human to host a microchip. During a 20-minute medical procedure described as "a routine silicon-chip implant" by Dr. George Boulos, who led the operation, doctors inserted into Warwick's arm a glass capsule not much bigger than a pearl. The capsule holds several microprocessors.
The British Broadcasting Corp. was on hand to document the historic event - and to trouble the professor's already frayed nerves. "In theory, I was able to see what was going on," Warwick says in a phone interview several days after the operation (which he described as slightly more pleasant than a trip to the dentist), "but I was looking in the opposite direction most of the time."
Although Warwick winces at the comparison, Boulos likens him to a latter-day Edward Jenner, who injected himself with cowpox in 1776 to further his research into a smallpox vaccine.
"The doctor pinched the skin and lifted it up and sort of burrowed a hole . . . underneath the skin and on top of the muscle," Warwick says. "It's well inside my body, in my left arm, just above my elbow. [It's] held in place by three stitches - partly so that the wound is held together, but also so that the capsule doesn't float around anywhere."
Though he declines to reveal the chip's manufacturer, Warwick did disclose that it's a "commercial" product. "For obvious reasons, both positive and negative, they didn't want us shouting about what the name of the exact product was," he says.
The approximately 23mm-by-3mm device stayed in Warwick's arm for only nine days - partly to avoid medical complications, partly because it was fairly limited in power. "Half of it is an electric coil," Warwick says, "and half is a number of silicon chips." The chips used only eight of an available 64 bits of information to communicate with the University of Reading's intelligent building.
Warwick has spent more than 20 years researching and developing intelligent buildings. "In our building in the Cybernetics department, we've got quite a number of doorways rigged up so that they pass a radio signal between the door frame," he says. "When I go through the doorways, the radio signal energizes the coil. It produces an electric current, which the chips use to send out an identifying signal, which the computer recognizes as being me."
And so, for a little better than a week, doors that normally require smart cards swung open for the professor. A system of electronic nodes tracked his movements throughout the building. Lights blinked on when he entered a room.
"Hello, Professor Warwick," his PC announced when Warwick crossed the threshold of his office, before casually mentioning how many E-mail messages he had received. It also was reported that Warwick used the device to run a bath and chill his wine.
How did he like it? "In my building I feel much more powerful, in a mental way," Warwick says. "Not at one with the computer, but much, much closer. We're not separate. It's not as though we're good friends or anything. But certainly when I'm out of the building, I feel as though part of me is missing."
Asked if he named his chip, Warwick laughs. "I don't see it as a separate thing," he says. "It's like an arm or a leg."
Warwick's family was a little slower than his body to accept the chip. "My wife finds it really strange," he says. "She didn't want to go near my arm for a couple of days. It was as though I had some funny disease." His 16-year-old daughter reportedly called him "crazy."
And the day after the operation, Warwick played a game of squash with his son, but not before issuing a stern warning: "Whatever you do, don't hit my arm. The implant could just shatter, and you'll have ruined your father's arm for life."
Though the experiment sounds like an episode of Dr. Who, its real-world implications are "right around the corner," says Warwick, who foresees enormous medical applications. Through a system of embedded chips interfacing with an artificial motor system, Warwick imagines paraplegics walking. And that's just for starters.
"Simply take measurements off muscles and tendons and feed them into the transponder," Warwick says. "That means, ultimately, that you wouldn't need a computer mouse anymore. You wouldn't need a keyboard."
Charles Ostman, a senior fellow at the Institute for Global Futures and science editor at Mondo 2000, agrees. "Neuroprosthetics are . . . inevitable," he says. "Biochip implants may become part of a rote medical procedure. After that, interface with outside systems is a logical next step."
Warwick's eagerness is palpable, engaging, contagious. "This is where you can speculate," he says. "This is where we take a technical thing and say, 'Right-o, got the signal, got the implant; all I've got to do is run a wire from the implant to my nervous system.' . . . I'm so excited about it, I want to get on with the next step straight away. Let's see if we can control computers directly from our nervous system."
Witt is a freelance writer in San Francisco.
America was rightfully alarmed in late September when Representatives Bob Barr (R-GA) and Ron Paul (TX) revealed the fact that somehow, unbeknown to anyone, and for some as yet unexplained reason, the National ID Card that Hillary Clinton, Marc Tucker and Ira Magaziner had adroitly concealed in the failed Health Security Act of 1994 had somehow "accidentally" been passed, in a somewhat illegal and unconstitutional fashion, and was now "the law of the land."
Pictured (see link below) is the actual "Healthcare Passport" card currently being used in three American cities. Displayed is the front and back of that card. This photo was scanned from the brochure used by the National Institute of Health to introduce the new card in a seminar in Denver earlier this year. The word "passport" on the card had to have been a tongue-in-cheek addition, since it is the precursor of the internal passport that will ultimately control your ability to move freely throughout this great land. The card is biometric. Stored on this card is the complete medical history of the card's owner. Also stored on the card is every conceivable piece of information about that person. Imbedded in the card is a tracking devise.
The plan to create and implement a National ID Card, while first made "public" in a private White House meeting on Nov. 11, 1993 and discussed in a disavowed protocol that detailed the dialogue of that meeting, is not uniquely a Clintonoid idea even though the National ID Card first appears innocuously concealed in the Health Security Act as a "healthcare benefits card" that the First Lady insisted had to be carried by every American--even if they refused to be covered by the plan--under penalty of law.
The same card, in the form of a national driver's license, had just been mandated by the European Union for all of the new European States. A brief battle waged in Europe over the national driver's license. Most Europeans had experienced national identity cards in the past and realized quickly the new universal European driver's license was an internal passport that would give their new government the tool they needed to control their lives. The media immediately labeled those who resisted the EU driver's license as "globalphobes" who were against progress, and wanted to return Europe to the days of the cold war. They were the extremists.
In the United States, the Clinton's knew a National ID Card spelled problems, regardless what name was put on it. However, as a healthcare card that provided each American with thousands of dollars of free medical care, they correctly surmised that the ramblings of the right wing zealots could be easily dismissed by the mainstream liberal media. The media did its job well.
The Health Security Act was the best thing since sliced bread and peanut butter. According to the media, the Health Security Act would provide healthcare for the millions upon millions of uninsured Americans. The media even obliged by ignoring the obviously flawed cost assessments as well.
Hillary demanded that Congress pass the Health Security Act without and changes--reminiscent of FDR's passing the "emergency legislation" that kicked off the New Deal without allowing members of Congress to even see the legislation they were voting on--and unconstitutionally granting Roosevelt almost dictatorial power over the United States. Congress wasn't buying. They read the Health Security Act. Then, they rejected it. It was, they declared, the most expensive social experiment in the world.
Buried in the National Archives, in the working papers of the Hillary Clinton healthcare plan, was a game plan in the event the Health Security Act went down in flaming defeat. The game plan? Implement another healthcare act that provided healthcare for children. No one would dare deny healthcare to children. To introduce the plan, they called on Teddy Kennedy. Kennedy failed. Kennedy, they realized, was trusted by most Americans even less than the Clintons.
Next they turned to Orrin Hatch, who teamed up with Kennedy and rammed the legislation through Congress. Healthcare for kids. Of course, everyone was in favor of it. Voting against it was a good way to lose an election. And, once the law was codified, the bureaucracy possessed the authority to simply expand it to include anyone and everyone.
What was not in the legislation was funding to create a biometric health care card. The authority to do it was there, but not the money. For the money, the Clinton administration turned to the Robert Wood Johnson Foundation. The foundation, created by the founder of Johnson & Johnson, obliged and funded the experimental program which was kicked off in three western cities (noted above).
What was introduced to members of the National Institute of Health in Denver as a card that will record the inoculation records of children, includes everything from DNA typing to that individual's medical, psychiatric and financial history. It was because the biometric card would also contain the psychiatric history of the cardholder that an employee of the National Institute of Health approached me and offered me the data that is contained in this report.
In my initial meeting with the NIH employee, I was also told that this person had commented to a NIH executive that it was not good for the card to contain so much personal information that was not needed to monitor the rates of inoculation of the children covered by the program, since it would provide the government information that could easily be misused.
At that point the NIH executive laughed and said: "What do you think we have do with the data we get from Medicare and Medicaid? We've been using it for years to apprehend and deport illegal aliens and to capture those wanted by the law."
In the case of the Health Passport, which is the precursor of the National Driver's License that will go into affect nationwide on October 1, 2000, however, the is one added feature--it contains a tracking chip.
At a recent National Institute of Health seminar, an NIH executive proudly displayed an electronic map created by the NIH computer technicians that pinpointed every Health Passport card holder in Denver, Colorado. It was a "living map" that would track each Health Passport card holder if and when they moved. Whether or not such a map had been created for the other two "pilot" cities is not known.
NOTE: Before I left Washington this afternoon, I spoke for about a half hour with Stan Johnson of the Prophecy Club, and emailed Stan a copy of the Heath Passport Card. Stan has additional information on this subject, particularly with respect to a new computer mainframe that the government recently installed in Denver that ties in with the information I have been receiving from my own source in the National Institute of Health. Apparently this is the planned topic for the Prophecy Club's radio talk show next Monday (and because it is, I will not reveal any of the revelations that Stan shared with me on the phone this afternoon. I would strongly urge you to visit Stan's website for additional information.
If you are planning a trip overseas, Thomas Cook, is offering a new way to take your travel money abroad - the Thomas Cook Visa Travel Money card. Visa Travel Money (VTM), which is available from Thursday at 33 Thomas Cook foreign exchange offices in 14 cities across India, is a pre- paid ATM card that the traveller can buy before leaving the country. The customer can choose the amount in U.S. dollars to be put on the VTM card, depending on the foreign exchange entitlement. Money can be withdrawn in local currency from more than 440,000 visa ATMs (cash dispensers) in 117 countries worldwide. Access to cash is available 24 hours a day, 365 days a year, and is an extremely safe, quick and convenient method of withdrawing cash.
Date: Tue, 30 Dec 1997 08:15:41 -0500 (EST)
From: Stanley Broniszewski <firstname.lastname@example.org>
Subject: something interesting
Greetings in the name of the ETERNAL I AM! Good to see that my insane e-mail works. I'm posting this note because I'm not sure if you've seen an article in a recent "YAHOO INTERNET LIFE" magazine about what the latest craze is for Japanese teens soon to make a 'hit' here - bar code tattoos. I didn't see it yet in your journal. If you didn't catch it - let me know - perhaps I can fax it if I can still get my hands on the article. Until our next exchange of mail - walk with the King today & be a blessing! -
Wireless Network Links Kids to the 'Net
Then Handles 2D Bar Code
To help its children take full advantage of the information age and prepare them to be a vital part of the workplace, a Long Island, New York, school district installed Symbol Technologies Inc.'s Spectrum24 wireless computer network. For the first time, students grades K-I 2 and teachers of the Smithtown Central School District have access to the vast pool of information on the district's network and the World Wide Web.
The new network will become a vital link for the Smithtown Central School District (Holtsville, N.Y.). which serves 7,846 students in 11 schools scattered over 30 square miles. The district includes eight elementary schools, a middle school and one high school that encompasses two buildings.
Greater FlexibIlity, Mobility and Expansion First and foremost, the wireless connectivity allows the schools' 1,250 desktop and laptop PCs to be added and moved easily between classrooms, an important factor in the school's decision. In addition, the district plans to use Symbol's handheld pen-based computers to help track student attendance and improve school safety.
By choosing a wireless network, the school district bypassed many of the "hidden" costs associated with installing and maintaining a wired computer network. Physical condition and age of buildings, for instance can contribute dramatically to such costs. And such conditions may not be apparent from the outset.
"The Spectrum24 wireless network gives us a flexibility and mobility that we just wouldn't have with a wired network, notes Jay Landau, computer coordinator of Smithtown District. "Now we can provide our children PC and Internet access from anywhere in or around the school, at any time. Today, Smithtown's children have district-wide connectivity."
Currently Spectrum24 is installed in six buildings. Three elementary schools and the middle school have complete wireless coverage; the high school and the annex have 80 percent coverage with completion expected perhaps early next year.
Adding Scanner Technology
In addition to linking desktop and laptop PCs throughout the district, the Spectum24 wireless network will allow students, teachers and administrators to use Symbol's handheld pen computers and handheld scanners that read Symbol's two-dimensional bar codes.
The applications are myriad.
For instance, software for Symbol's pen-based computers with the integrated scanners is being developed to allow teachers to register attendance at the start of class, saving time and effort compared with the manual method. Public safety will be improved because a student's whereabouts will be established quickly using a 2D ID card.
But better school security isn't the only benefit of this technology. Students are using Symbol's PDF417 two-dimensional bar-code symbology in the science labs to write programs. In fact, one of their applications, which manages the use of hazardous chemicals, recently won blue ribbon awards at a local computer-share fair. The 2D bar code is compressed on a 1.3-square-inch area that holds up to a kilobyte of data enough to fit the Gettysburg Address.
Spectrum24 is a high-performance wireless local area network that will incorporate the IEEE's new 802.11 standard. (Symbol will offer software upgrades.) Spectum24 operates at a data rate of 1 Megabit per second in the worldwide 2A Gigahertz band using frequency-hopping spread spectrum modulation.
Symbol Technologies Inc. is the world leader in bar code-driven data transaction systems with over four million scanners and hand-held computers installed. It designs, manufactures and markets bar code scanning equipment, application-specific hand-held computers and radio frequency data communications products. For more information, visit Symbol's website (www.symbol.com).
TWO computer experts are to publish evidence today which they claim shows weaknesses in smart card security.
The claims underline the vulnerability of banks to the threat of electronic fraud. They also call into question an initiative announced last week by the Government to provide access via a smart card to information held by departments, such as details concerning tax, pensions, and driver's licences.
The vulnerability of smart cards will be disclosed at an electronic commerce workshop in Oakland, California, today by Markus Kuhn, of Purdue University, Indiana, who has been working with Dr Ross Anderson of Cambridge University.
Yesterday Dr Anderson said that their work had destroyed the credibility of the smart card's tamper-resistant claim. He said: "We have shown that these systems can be broken, often by using trivial attacks that undergraduates could carry out. With access to a semiconductor lab, you could break anything."
He said that the Government initiative to pool all information in databases "would put an awful lot of eggs in one basket, one that we have just kicked over". And if smart cards were used for purchases at a "Mafia shop" it would be possible to extract the PIN number and other details for fraud.
Their paper was written in the summer but publication was held back to give one chip manufacturer time to implement counter-measures.
One of the devices Mr Kuhn successfully cracked was a security processor made by a large chipmaker in America. It is already used in the financial industry and more than a million are in point-of-sale terminals and automatic teller machines. The processor was described by an unnamed European intelligence agency as being the most secure available.
But Mr Kuhn has devised a method of attacking it which enables the contents of the card to be read out within minutes. In one approach, a smart card can be plugged into a computer and then fed "noisy power". Spikes in the power supply or clock can disrupt encryption (the process of scrambling text), so that it is possible to see what the chip is doing and extract the key.
A second method relies on opening the chip and using microscopic probes to interrogate it. Dr Anderson said: "Once we had some results more and more people wanted to speak to us and trade information. They included people from military intelligence agencies, chipmakers and pay-television hackers. Even some top scientists at smart card companies would tell us about smart card vulnerabilities - in their competitors' cards."
Smart cards, which contain a microchip, are used as identity tokens in a number of systems. In Britain, there are five million in digital mobile phones, 600,000 used for the prepayment of gas, and another five million provide access to satellite television.
The research was motivated by the recent success television hackers have had in breaking various television encryption systems, said Dr Anderson, who in earlier work helped to undermine the claim of banks that automatic teller machines were resistant to fraud or error.
Editor: Balaam's Ass Speaks-- The only secure identifying system will be the mark of the beast, or at least that will be the line soon. So much hacking and mass robbery will take place that the public will BEG for the mark.
May 15, 1997-
Our friend Michael sent this one. It sounds like the one world card is very close indeed:
Business Week: May 19, 1997
Information Processing: ELECTRONIC COMMERCE
Empty out the contents of your wallet, and you're likely to find a jumble of plastic and paper--credit cards, a driver's license, a health-care ID, perhaps a few frequent-flier cards. You'd also find a fistful of dollar bills and loose change. What if you could combine all of those things into one neat credit-card-size package? Instead of fumbling for coins when you make a phone call or hop onto the subway--just insert the card into a special slot. Doctor's appointment? The card contains your medical history and insurance information.
That's the promise of smart cards--slips of plastic that resemble a credit card, but with one big difference: Embedded in them is a computer chip that can store 500 times the data of a magnetic stripe card. For now, most smart cards handle a single task, such as storing electronic ``money,'' which can be downloaded from your bank account.
BIG LEAP. In the years ahead, though, a single card might handle many of the tasks mentioned above. Either way, the marriage of silicon and plastic could be the biggest leap in consumer convenience since automatic teller machines.
For millions of people around the globe, they already are. In Europe, where phone rates are high, smart cards have long been a popular alternative to credit cards, which require an expensive phone call to a central database to authorize each transaction. The chips in smart cards make it possible to authorize a purchase on the spot. But in the U.S., where telephone costs are low and magnetic-stripe credit cards are the plastic of choice, there has been little interest in smart cards. Analysts estimate only 2% of all smart cards are used in the Americas, while Europe claims 90%.
That's about to change. After years of predictions, smart cards may finally be poised for takeoff in the U.S. Banks and other card issuers say the capabilities of magnetic stripe cards are tapped out. They see smart cards as a way to offer brand-new services. A single smart card, for instance, can be used to buy an airline ticket, store it digitally and track frequent-flier miles.
And there's a bigger force at work: the Internet. As electronic commerce gains steam, smart cards provide a crucial link between the Web and the physical world. The same digital money used to buy things on the Net--including purchases under $5 for which credit cards are prohibitively expensive--can be downloaded from your online bank account onto a card. That card could then be used to buy milk at the corner grocery store. Smart cards and E-cash could make up half of the $7.3 billion in online sales expected by 2000, figures market researcher Jupiter Communications Inc.
Such possibilities are fueling heady forecasts. Research firm Dataquest Inc. predicts that by 2001, smart-card shipments in the Americas will grow to 6.8 million, or 20% of the estimated 3.4 billion units worldwide. ``The Internet combined with the development of electronic cash will finally start the smart-card revolution in the U.S.,'' says Keith S. Kendrick, senior vice-president, smart payments, with AT&T Universal Card.
There's already a flurry of activity. Credit and debit-card companies from AT&T to VISA are migrating from magnetic stripe-based cards to ones with microchips. Hewlett-Packard Co. on Apr. 23 said it would spend $1.18 billion to acquire VeriFone Inc., which makes smart-card readers, as part of a broad push into electronic commerce. Sun Microsystems Inc. is promoting its Java software as an operating system for smart cards. And in April, GE Capital took a stake in Gemplus Card International, a French smart-card maker (box). ``Everyone's getting positioned,'' says Mike Nash, the chief executive of DigiCash, a Dutch supplier of E-cash software that has just moved its headquarters to Silicon Valley.
This optimism will be put to the test as several smart-card experiments are rolled out in the U.S. this year In October, Citibank and Chase Manhattan Corp. will issue 50,000 cards on Manhattan's Upper West Side, where 500 merchants will accept the cards for payment. The pilot was pushed back a year when Chase switched from proprietary technology to E-cash software from Mondex International, in which the bank took a stake last year. AT&T, another Mondex investor, is testing a card at its Jacksonville (Fla.) Universal Card headquarters, where employees use them in the cafeteria. This summer, it will test Mondex on the Net. Says Janet Hartung Crane, CEO of Mondex USA: ``This year and the next are lab years.''
HUGE HURDLES. If past experience is any indication, these latest pilots will have to work overtime to lure both consumers and merchants. The most ambitious U.S. smart-card trial to date was hosted by VISA, which allowed visitors to last summer's Olympics to use the cards at 1,500 participating Atlanta merchants. Technically, it went off without a hitch. But not enough merchants participated or were properly trained to drum up excitement--and purchases. Similarly, in San Francisco, Wells Fargo & Co. has been testing a smart card over the past year using the Mondex system among 500 employees. They can use the card in the company's cafeteria as well as at a handful of nearby stores, delis, and coffee shops. ``We love Mondex sales. There's no cash, no paperwork involved,'' says Chelsea O'Hara, store manager at Papyrus, a card shop two blocks from the bank's offices. The only problem: ``It hasn't brought in much business,'' she says.
Just like ATMs, which took a decade to catch on with consumers, smart cards may take years before they reach widespread use. For one, they require a massive retrofitting of the magnetic stripe and ATM infrastructure that has been built up over the years. There's also the matter of standards, which will be needed to ensure that smart cards from different suppliers will work in the same card readers. VISA, MasterCard International, and Europe's Europay are working on a common format.
The pieces are starting to fall into place. Many PCs, keyboards, and Web TVs, for example, will be shipped with smart-card readers in 1998. Microsoft Corp., along with HP and other hardware makers, is pushing a smart-card specification for PCs and will include electronic wallet software in a version of its Internet Explorer browser due this summer. And in the Manhattan trial later this year, Citibank and VeriFone plan to test personal ATMs for downloading money into a smart card from home.
But for the best take on the future of smart cards, ask the next generation of consumers. Drew Pullman, a junior at John F. Ross high school in Guelph, Ont., which began a communitywide pilot in February, fits the bill. He uses his card to buy lunch, CDs, clothing, and gas. He loves the convenience. ``It's just like cash, except better,'' he says.
Now that's a ringing endorsement.
By Amy Cortese in New York, with bureau reports
Copyright 1997 The McGraw-Hill Companies, Inc. All rights reserved. Any use is subject to (1) terms and conditions of this service and (2) rules stated under ``Read This First'' in the ``About Business Week'' area.
The Mexican government also presented their new computerized vehicle/company registration program. This program will link a motor carrier, its drivers, and vehicle registration. Mexico is requiring all motor carriers to submit to this registration. The new license plates will be bar coded with the carrier information (name, address, type of transportation service) and type of vehicle. The paper registration carried in the vehicle will have a matching bar code. Point of Contact: Regional Technical Programs Manager, (909) 653-2299