Due to secure nature of transaction with smart card, the demand for it is rising all around especially among banks in India. Smart card has multifunction applications. It can be used as debit card, credit card, for railway reservation, identity purpose etc. Major challenge for banks in the new environment is to develop a good rapport with almost all sectors of the economy, to market the cards.
Rising competition is forcing the banks to find innovative ways to reduce the cost of transactions and maintain profitability. While cutting edge technology is the best answer to the problem, the security of the transaction is the major concern. Many analysts are predicting that smart cards could be the major building block for secure transactions. A defined interface, which is the only way to interact with smart card, makes it more secure. Its own memory and processor help to encapsulate important information. "Smart cards are seen as the magic tool. Lack of authentication currently restricts secure transactions that can be carried out between governments and citizens, or between different level of administrations. The smart card is the key because it helps to secure exchanges involving private information," says Baudouin de-Sonis, chief executive of European e-government association, e-Forum.
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