IC cards for payment system applications

Summary form only given. The ability of the IC card to actively participate in a payment transaction provides perspectives for improved security based on an extensive use of cryptography. This feature in combination with the inherent potential for secure physical storage of large amounts of data allows for new ways of payment to be explored. Most experts are of the opinion that the large-scale use of IC cards cannot be justified by security considerations only. The successful introduction of IC card technology in the banking environment depends on the ability to support new applications. Another critical success factor for the acceptance of IC cards is the availability of international standards. Expectations are high that IC cards will eventually become a major player in payment transactions all over Europe by the year 2000.<>