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Did you know that this year marks the 50th anniversary of the smart card? Invented in 1974 by French innovator Roland Moreno, the smart card has evolved from a simple data storage device to the cornerstone of secure digital transactions and identification.

Smart cards have significantly improved security in financial transactions and personal identification. They provide a secure and convenient way to access services and information, making them essential in modern society. From making payments to accessing secure facilities, smart cards have streamlined numerous processes, enhancing both security and user experience.

 

The Evolution of the Smart Card

Early experiments and challenges: Smart card research began as theoretical concepts, but practical technology only emerged around 1976. In 1977, Motorola Semiconductor and Bull produced the world’s first smart card microchip. However, France’s initial smart card test in 1980 faced challenges due to limited technical infrastructure and consumer reluctance.

Global Adoption and EMV Standard: The EMV standard, introduced in 1994, revolutionised smart card usage. It allowed all merchants to process smart cards at any point of sale (POS), regardless of the card issuer or brand. Smart cards gained popularity due to their blend of confidentiality, practicality, and cost-effectiveness.

To the future: Smart cards have continued to evolve with cutting-edge features in recent years:

• Public Key Infrastructure (PKI) was introduced to ensure secure transactions in e-commerce applications.
• Fingerprint recognition technology replaced traditional PINs on personal cards, enhancing security.
• The future holds exciting possibilities as smart cards integrate biometrics, combining PINs with unique physical characteristics for even stronger security

Needless to say, smart cards have shown extraordinary capability to adapt to various market changes, from supporting new use cases to aligning with digital transformation and new technologies -  like the move to more secure elements, inserted into hundreds of millions of smart phones and connected objects across the planet. They have also withstood the introduction of new form factors - from the traditional ISO size still used in banking and ID markets, to smaller sizes or solderable formats used in telecom or IoT markets.

 

Thales and the Evolution of Smart Cards

This small silicon chip has successfully established itself over the past 50 years. Now indispensable, it is part of our daily lives through bank cards, identity documents, passports, driver’s licenses, health cards, and SIM cards. 

Over these five decades, this digital safe has become essential worldwide for its extreme security in payment and identification purposes, and at Thales we’re proud to have played a part in the development and deployment of smart card technology across a range of sectors and deployments.

 

Banking and Payments: Thales is a pioneer in developing secure modern banking solutions. Our eco-friendly banking cards, crafted from materials like polylactic acid and recycled PVC, exemplify a commitment to sustainability while maintaining robust security for financial transactions.
 
These cards play a crucial role in enabling secure contactless payments, protecting sensitive data, and ensuring smooth transactions at ATMs, point-of-sale terminals, and online platforms.
 
Telecommunications: SIM cards, a fundamental component of the telecommunications industry, facilitate billions of conversations and secure data exchanges daily.  
 
Thales’ smart SIM card portfolio ensure secure and reliable communication, underpinning global connectivity. In their many form factors, also including the eSIM and the iSIM, they are essential not only for mobile phones, but for IoT devices, and other connected services. 

 
Government and Identification: Thales’ smart cards find extensive use in various government applications: 

• National eID Cards: These cards provide secure identification for citizens, streamlining access to public services, voting, and official documentation.
• Health Cards: Thales’ smart cards enhance healthcare systems by securely storing medical records, ensuring accurate patient identification, and enabling efficient healthcare delivery.
• Electronic Passports: Thales contributes to secure international travel by providing e-passports with embedded chips containing biometric data and digital signatures.

 Corporate Security: Thales offers certificate-based PKI (Public Key Infrastructure) smart cards for corporate environments: 

• Network Access: Employees use these smart cards to securely access company networks, protecting sensitive data from unauthorised access.
• Password Management: Smart cards enhance password security, reducing reliance on traditional passwords and minimizing the risk of breaches.
• Corporate ID Badges: Thales’ smart cards serve as employee ID badges, combining physical access control and secure authentication.

 The 50th anniversary of the smart card is not just a celebration of a technological invention but a recognition of its profound impact on modern life. From secure financial transactions to reliable communication and identification, smart cards have become a vital part of our daily routines. 

As technology continues to advance, smart cards are expected to integrate with emerging technologies like biometrics, blockchain, post-quantum technologies and artificial intelligence. And given the ever-increasing demand for dedicated, certifiable, and tamper-resistant hardware, smartcards will no doubt expand to further use cases, as mandated by the upcoming eIDAS2 regulation for the EUID wallet.

These integrations with emerging technologies will further enhance their security and functionality, ensuring that smart cards remain a vital component of digital interactions.