Smart Card Development in Hong Kong SIMmate 2000 Product Launch 28 November 2000 Dr LM Cheng Director Smart Card Design Center Dept. of Electronic Engineering City University of Hong Kong

Smart 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 Total Phone cards GSM cards Health cards Bank cards ID cards ---- Transport tickets ---- Pay TV cards Access control City cards /Misc Total

WorldWide SmartCards Market Forecast (Millions of Dollars and Millions of Units) Data From Frost & Sullivan

Global Smart Card Market Forecast (Amount in million) Source: Gemplus Market Segment Average growth/year Phonecards % GSM % Banking % Loyalty % Healthcare % Pay-TV % Ticketing824077% Gaming27078% Access Control % Identity25071% I T % Others % Total %

Types of Smart Card Memory Card MPU IC card Crypto- processor card Contactless card

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 Electronic Commerce Electronic Data Interchange (EDI) Tradelink Electronic Purchasing Home Banking Internet Shopping

Smart Card in Mobile Phone Applications 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, 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 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 Hong 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 Projects 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

Conclusion 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