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.
4. Health care : In a smart card, health related information of a person can be stored. Therefore, the person is not required to carry such information in physical form.
5. Banking : Smart cards are used in electronic
banking for direct debiting or crediting up to the stored amount.