Smart Card Development in Smart Card Development in Hong KongHong KongSIMmate 2000 Product LaunchSIMmate 2000 Product Launch

28 November 200028 November 2000

Dr LM ChengDirectorSmart Card Design CenterDept. of Electronic EngineeringCity University of Hong Kong

Smart Card EraSmart Card Era

Credit cards have become part of our daily life as forms of plastic money since the first launch in 1960

Magnetic card - Current Smart card - Future

THE SMART CARD MARKET IN YEAR 2000 (in millions pcs – Source: Philips Communication Systems)

 Application France Europe Others TotalPhone cards 140.8 553.1 640.0 1334GSM cards 4.0 15.0 42.0 61Health cards 10.0 55.0 92.0 157Bank cards 25.0 85.0 75.0 185ID cards - - - -Transport tickets - - - -Pay TV cards 4.5 24.0 81.0 110Access control 1.8 3.0 5.0 10City cards /Misc 24.0 55.1 64.3 143Total 210.1 790.2 299.3 2000

WorldWide SmartCards Market WorldWide SmartCards Market ForecastForecast

(Millions of Dollars and Millions of Units)(Millions of Dollars and Millions of Units) Data From Frost & SullivanData From Frost & Sullivan

Global Smart Card Market Forecast 1997-2003(Amount in million) Source: Gemplus

Market Segment 1997 2003 Average growth/year

Phonecards 684 3.270 30% GSM 69 760 49%

Banking 49 690 55% Loyalty 22 320 56%

Healthcare 16 210 54% Pay-TV 12 150 52%

Ticketing 8 240 77% Gaming 2 70 78%

Access Control 10 260 72% Identity 2 50 71%

I T 1 120 142%

Others 24 170 38% Total 900 6.310 38%

Types of Smart CardTypes of Smart Card

Memory CardMPU IC cardCrypto- processor cardContactless card

New Technologies RequiredNew 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 Electronic Smart Card in Electronic CommerceCommerce

Electronic Data Interchange (EDI)TradelinkElectronic PurchasingHome BankingInternet Shopping

  Smart Card in Mobile Phone Smart Card in Mobile Phone

Applications 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, hotelsEntertainment, 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 and other ancillary technologies, such as Bluetooth and Wireless Wallets, are also important

Smart Card in Hong KongSmart Card in Hong Kong Mondex Visa Cash Campus card Octopus - smart traveling card Jockey Club -prepay 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 Manufacturers in Smart Card Manufacturers in Hong KongHong Kong

ACS – Brand name & OEM Smart Card Reader plus COS design

Robert Li Electronic Ltd (previously known as RJP Electronic Ltd.) – OEM smart card reader

SMT Ltd. – OEM smart card reader and Mondex POS machine

Coulomb Ltd. – Biometric Devices/systems

Smart Card Research Smart Card Research Projects in Hong KongProjects in Hong Kong

HKUST obtained HK$3M from ISF* 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 obtained HK$8.5M from ITF* of HKSAR Government with an industry sponsorship of HK$3.5M to develop chip modules and COS for various special application customisations.

* Sponsored by ACS

ConclusionConclusion Smart Card is an evolutionary product Trend of use is irreversible Need 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 invest the necessary resources