Americans are ready, willing and anxious to start using smart cards,
according to a recent survey conducted for the Smart Card Forum. Three-quarters
of those polled showed interest in the smart card concept. A significant
number of respondents said they would want to use the cards for functions
including bank access and ATM services, to carry a record of driver
and health insurance information, and as credit cards. They would be
willing to pay up to $50 for the card itself and a $25 annual fee.
In general, the survey showed that potential smart card users are younger,
have higher incomes and own a PC, the classic profile of the early technology
adopter. "Previous Forum market research has shown consumer interest
in our industry," said Forum president and CEO Donna Farmer. "These
initial poll results reveal that smart cards have a potential core early-adopter
constituency of about a third of the population. That's a significant
potential market."
Applications for smart cards
Smart card technology has a variety of applications. Industry efforts
currently are aimed at understanding which of those would be most appealing
to North American consumers.
The research, consisting of focus groups and separate telephone surveys,
defined the smart card as a "card-sized unit with a memory that
can hold just about any kind of information but requires some sort of
reader to input or output data." Participants were asked an extensive
set of questions on their knowledge about smart cards and their willingness
to incorporate the devices in their daily lives.
Of the 76 percent polled who claimed to be "extremely," "very"
or "somewhat" interested in the smart card concept, about
one-third were extremely or very interested. Of those, the majority
said they would "definitely want" smart cards to carry med-alert
information, health insurance ID, ATM and related bank access, drivers
licenses and credit cards. Other potential uses included prescriptions,
money for small purchases, medical records, other ID, discount shopping,
money for larger purchases, frequent flyer information and other membership
cards. Focus group participants indicated that the ideal smart card
could do many things as well as a current card does, but should not
be a card that can do one thing better than anything else.
"We're pleased that those surveyed recognized the diverse uses
of smart cards," said Farmer. "The key to unlocking the business
potential of our industry is providing business users and consumers
with a broad choice of applications on a smart card."
Generally, those most interested in smart cards were more likely to
have PCs, cell phones or other high-tech devices and to look forward
to new technology, tended to be in their 30s, had higher incomes and
already carried an average of more than six cards in their pockets.
Potential smart card users were focused most heavily on convenience
and security. They envisioned a single-use card that would be used in
addition to the cards in their wallets. They were most interested in
a card that would put multiple uses on a single device - the fewer things
in one's wallet, the fewer things to remember to carry.
When they understood that smart cards can be made significantly more
secure than a normal magnetic stripe card, survey participants indicated
that smart cards might provide additional reassurance by "electronically
storing receipts in some way." The security of information stored
on cards might be ensured through electronic fingerprinting. Respondents
favored a card with the look and feel of a credit card, probably with
a photo of the bearer on it.
"This research tells us that as an industry we must extend our
efforts beyond early adopters and connect with the majority of consumers
who need to be educated about the many benefits of smart card technology,"
said Farmer. "There is a great opportunity here. Our ability to
bridge that gap will determine the future success of our industry."
Research availability
This research is now available for purchase at a cost of $6,000 by
contacting the Smart Card Forum at http://www.smartcardforum.org or
at 202-530-5306.