Question

Define Smart Card and its utility.

Answer 1

A smart card is a small sized card which has a programmable microprocessor chip and is used for making payments and storing relevant information. The utility of smart card is as follow:

1. Mobile communication : Smart cards are being used in mobile communications extensively throughout the world. Thus, people can communicate from one place to another easily.

2. Pay phones : Smart cards may be used for pay phones. Instead of inserting coins in telephone instruments, smart cards may be used.

3. Retailing : Smart cards are used for purchasing products just like debit or credit cards.