eTechnology – Smart Card
Dr LM Cheng
City University of Hong Kong
HKIUG Conference 2000
21-22 June 2000
Smart Card Era
 credit cards have become part of our
daily life as forms of plastic money
since its first launch in 1960
 what is a magnetic card ?
 what is a smart card?
Magnetic Card
 composed of a layer of magnetic
material for storing information
 easy to carry
 can be use for authentication
 what is its principles?
Information on Magnetic Card
 the stripe is
8.5cm X 1.2cm
 data is constructed
based on ISO
7811/2
 maximum 3 stripes
 can store around
1K bits
Smart Card
 Integrated Circuit chip
 originated from
France
 invented in 70 and
matured in 90
 Magnetic Card
replacement
Types of Smart Card
 Memory Card
 MPU IC card
 Cryptoprocessor card
 Contactless card
Memory Card
 Primitive type
 composed of
EEPROM/PROM
 simple function
 as prepay card
Crypto-processor IC Cards
 composed of
crypto-processor
& PROM
 a powerful MPU
 can recognize
illegal signal and
security features
MPU IC Smart Card
 Composed of
MCU/MPC
 software driven
 have flexibility and
primitive
intelligence
 some security
features
Contactless Smart Card
 similar to contact
smart card
 with RF
transceiver to
increase
robustness and
security
Advantages of Smart Card




Large storage capacity
more security features
multiple functions
flexibility in use - intelligent, lower power
consumption, effective packaging
 as access card, electronic purse, debit/credit
cards, ID card etc. - particular off-line
applications
Hardware Technologies
 new memory technologies - EEPROM and
flash-EPROM
 new silicon technologies – 0.6 mm to 0.18
mm for more storage and security, lower
power consumption
 new packaging technologies - against
breakage, rubbing and bending
Smart Card Software
 Intelligent Chip Operating System -COS
 Encryption techniques – RSA, DES & ECC
 Multiple Application OS


Mondex, EMV, GSM, Loyalty, JAVA, Linux
Platform War

JAVA (universal) & MULTOS
 New requirements

hot list, trust key management, PKI, dual interface,
downloading feature
THE SMART CARD MARKET IN THE YEAR 2000
(in millions – Source: Philips Communication Systems)
Application
Phone cards
GSM cards
Health cards
Bank cards
ID cards
Transport tickets
Pay TV cards
Access control
City cards /Misc
Total
France Europe Others Total
140.8 553.1 640.0 1334
4.0 15.0 42.0
61
10.0 55.0 92.0
157
25.0 85.0 75.0 185
4.5
24.0 81.0
110
1.8
3.0
5.0
10
24.0
55.1 64.3
143
210.1 790.2 999.3 2000
Some Difficulties Worldwide
 Bank card project cancellation - Taiwan
 Card tampering slow down bank sector
development - RSA and New Zealand
 MasterCard - year 2000 delay of massive
launching
 Visa - adoption of magnetic card in RSA
debit card project
 Major concern - COST EFFECTIVENESS
Smart Card in Electronic
Commerce





Electronic Data Interchange (EDI)
Tradelink
Electronic Purchasing
Home Banking
Internet Shopping
New Technologies Required
 Data Storage Management - information
protection
 authentication process 
biometric: fingerprint, facial features, iris identification,
dynamic signature recognition, speech recognition
 encryption methods 
Elliptic Curve Cryptography, chaotic techniques
Smart Card in Mobile Phone
Applications
 Wireless Application Protocol (WAP) emerges for
a mobile Internet access
 Research work launched in Japan indicates a good
market if available.
 Mobile operators will provide add on WAP
gateways and WAP services to enable wireless
internet services:



Banks, financial institutions, restaurants, retailers,
Utilities, transit operators, hotels,
entertainment and media, selling goods and information
 Limitation, the SIM card inside the WAP
phone cannot provide complicated the PKI
authentication process thus security is an
issue.
 A possible solution is to introduce an
additional smart card interface (either
contact or contactless) to enable the
authentication process. (MasterCard – dual
card phone)
 New technologies requirements:



The development of m-PKI (mobile PKI) in the
multiple-application OS is more essential and
practical
The development of high security low power
card modules
A better interface to new wireless internet
platform, other ancillary technologies, such as
Bluetooth and Wireless Wallets are also
important
Smart Card in Hong Kong










Mondex
Visa Cash
Campus card
Octopus - smart traveling card
Jockey Club -pre-pay card
New airport - access control card
Telephone card & SIM Card
Parking Meter - prepay card project
Residential access card
Possible new ID card, Road Toll Pay Card
Smart Card Researches in
Hong Kong
 HKUST obtained HK$2.5M sponsored by Industry
Support Fund of HKSAR Government in
implementing of biometric techniques for Smart
Card/eCommerce application
 Chinese University of Hong Kong was granted an
Entrepreneur programme (HK$250K) in
implementing Fingerprint recognition in smart cards
 CityU (we) have submitted a proposal to ITF for
HK$8.5M with an industry sponsorship of HK$3.5M
to develop chip modules and COS for various special
application customisations.
What about our neighbors?
 Taiwan Universities and ITRI in Taiwan have heavily
involved in ID and bank card project. Totally spending was
over NT$1 billion
 Singapore government has invested in a Smart Card
mounting technologies company and the investment is over
US$10 million
 China has heavily invested in various Sichuan University,
Beijing University of Post & Telecom, Tsinghua University
etc.
 South Korea is emerging in parallel with its chip
manufacturing (Samsung is one of the key module supplier)
 In comparison Hong Kong, the government/industry support
is limited
Conclusion
 Smart Card is an evolutionary product
 Trends of use is irreversible
 needs more technology breakthrough to make
them really smart
 Major difficulties - logistic and cost justification
but not technology
 To play a role in this new emerging market , the
government/industries/research institutes have to
plan wisely and invested the necessary resources