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Getting Smarter About Smart Cards

Why are we slow to adopt the cards that can offer security and transfer data between multiple devices?

Ashlee Vance, IDG News Service

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We?re using more smart cards than ever before. Sales of the computing devices, which can be used to store data and transfer information between devices such as mobile phones, soared in 2000, according to a study issued Monday.

Smart-card makers worldwide shipped 628 million units in 2000, according to a study compiled by Dataquest. This total marked a 45 percent increase over 1999 and reflected a sharp increase in demand from mobile operators for SIM (subscriber identity module) cards.

Users have adopted SIM cards as a relatively easy way to move personal information between different devices. Phones can read the card to determine the user's identity and some stored information, which can make life easier for consumers when upgrading to a new phone or switching between devices.

Companies have championed smart cards as a way for users to store different types of commonly used information in one place. While they have gained some popularity in Europe, they have yet to be widely used in the U.S.

Two companies have been driving the market, attempting to encourage more extensive adoption. Luxembourg-based Gemplus and New York-based Schlumberger accounted for 66.7 percent of all cards shipped in 2000, according to Dataquest. The two companies should increase their market share lead in the coming year, Dataquest says.

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