New markets, or markets that are evolving for other reasons, will be the ones that make smart cards widespread in North America. Two examples are the network computing and cellular telephone industries that use smart cards to authenticate users in new systems that demand the utmost in security. The French banking industry added chips to existing bank cards because they wanted to authorize transactions off-line, in a secure manner, thus reducing telecommunication costs in a secure manner. In addition to high telecommunications costs, fraud losses played a significant role in the cost of doing business. Telecommunications companies throughout the world are choosing smart cards with pre-loaded value as a way to remove coins from telephone boxes, thereby reducing vandalism and operating costs.
Customers can purchase pre-loaded stored value smart cards that can be used at public telephones.
Even though there are hundreds of smart card pilots in existence around the world, users may not take a card from one country or scheme and use it in another. To do this, the industry must examine the business and technical issues surrounding the need for standardized interfaces between cards, terminals and slots, which is the key to securing dramatic growth for the industry. Standards are required to ensure that cards and card-accepting devices are built to uniform specifications. This ensures that cards manufactured and issued by one industry sector in one part of the world can be accepted by a device in another part of the world. These cards and devices may support many different types of industries so that, for example, payment cards may be accepted in card-accepting devices at gas stations.