Unlike a credit card, no record is kept of who made the purchase on most of the cards. The vendor doesn't know the identity of the user. Multiple use potential. Smart cards can hold not only cash, but also medical information, database information and other pertinent data. They can be used in health-care facilities, for instance.
Computers equipped with smart card readability can process secure transactions over the Internet.
The merchant that accepts smart card transactions also benefits. The merchant can process more people faster by using a smart card than by receiving cash. This cuts lines in retail establishments, which translates into happier customers. Instead of processing the massive weight of cash and coin, the merchant can simply print the transactions for a day and turn in the number. The amount of money spent on secure transportation of bulk currency and coin can be reduced greatly.