A smart card is any pocket-sized card, which has integrated circuits embedded on it and is referred to as an integrated circuit card or a chip card (Pohlmann 2011). Smartcards range from the basic SIM cards to the swap cards that many people are currently using to make payments. They are safer to carry around compared to cash that is subject to theft. Smartcards are on the increase usage in many institutions and sectors ranging from the healthcare sector to financial sectors. This research paper explores the smart card technology.
Smart cards store data, present authentication, and identification. Large organizations use smartcards for tight security authentication (Guthery 2000). The invention of smart cards is back in 1968 but their use has not been until late in the century. The development of the microprocessors by various electrical engineers such as Helmut Grottrup and Jurgen Dethloff back in 1969 formed the foundation for invention of smart cards. In 1977, Michel Ugon invented the first microprocessor smart card. The first smartcard to be in use was the telephone card for the payment of pay phones in France 1983. After the success of this, integration of the microchips into the Carte Bleue debit cards proceeded in 1992 (Guthery 2002).
Stored value refers to any monetary value as well as funds represented in a digital electronic format and capable of storage on electronic media in such a way that it is transferrable electronically or is retrievable electronically (Pohlmann 2011). Stored value enables one to load his or her smartcard with the dollar amount they wish and use this to pay for transfers as well as other services and products. However, the adoption of stored value cards and their market place acceptance depends on the maturity of the credit or debit electronic infrastructure (Guthery 2000). Consumers can utilize the stored value concept to obtain various products and services such as healthcare services. Therefore, consumers can load money into their stored value cards for healthcare services. They can go for routine checkups to dentists and other checkups using their pre-paid cards. They can as well purchase medicines from pharmaceuticals using the cards. These cards can as well be loaded with money and cater for medical emergencies
Smartcards reduce fraud and streamline administrative procedures in institutions. Streamlining administrative procedures in healthcare organizations is now achievable using the smartcard systems (Guthery 2000). The health insurance organizations issued these cards, which contained insured person’s personal data, which, normally is on the paper insurance forms. The smart patient data stored in the chip is easily readable with an appropriate smart card reading device thus facilitating the secure sharing of patient clinical data amongst multiple healthcare providers.
There has been positive response for the smart card technology. People are actively embracing the technology invented in 1977 by several engineers (Guthery 2000). Initially the smart cards were only in the pay phones in France but later developed and applied in many sectors such as the financial sector and the health sector. The health care sector is the major beneficiary of the smart card technology. In addition, consumers can now use the stored value cards to access health care services. This has allowed consumers to load stored value cards with money and access healthcare services (Guthery 2000)
References
Guthery. S. (2000). Smart card: developer’s kit. Michigan: Michigan University.
Guthery. S. (2002). Smart card: developer’s kit. Michigan: Michigan University.
Pohlmann. N. (2011). ISSE 2010 Securing Electronic Business Processes: Highlights of the Information Security Solutions Europe 2010 Conference. California: California University.