8 Applications of Smart Cards in the Finance Field
There is no doubt that technology is always changing and evolving – from self-driving cars to smart cards.
But, with all of the new items, it can sometimes be hard to keep up with what does what and what is good for what.
Do you ever remember as a child seeing a tool and wondering what in the world it could do? It looks like it is good for something, but you just have no idea what all the bells and whistles are for…
That is kind of how it feels as an adult looking at a new piece of technology – it just looks like a foreign object.
What are smart cards?
By definition, a smart card is a plastic card – similar in appearance to a debit card – with a built-in microprocessor. Typically, a smart card is used for financial transactions and personal identification.
The embedded chip in the smart card is what can hold information and allow processes such as giving employees access to files on a work server.
Basically, it is a portable computational device that also has data storage abilities.
But, like those foreign tools, you likely need more smartcard information to understand what they are good for.
So, here are a few uses for smart cards in the finance field:
They can be used as a credit or debit card.
Because of their microchip, smart cards are much safer than your average debit or credit card. They are much harder to access and the magnetic strip can’t just simply be copied.
They can be used as a prepaid value card.
Prepaid cards are great to use for a one-time online purchase or even to give as a gift, and smart cards are a safe and efficient avenue for either need!
They can be used for access control.
When it comes to finances, you ideally want to keep everything locked up – especially your information.
So, you need to keep it behind an electronic lock and key, so to speak. And, a smart card is an answer to that. Using a smart card, you can control who has direct access to certain financial documents.
They can be used as an electronic purse.
Keeping your finances safe should be one of your top priorities…
However, in a world where hackers are prevalent, that can present quite a challenge.
But, a smart card can be used as an electronic purse so you can store a small amount of money on it for when you need to make an occasional purchase but don’t want to risk your main debit card information.
They can be used as electronic coupons.
Who doesn’t love coupons, right? But, paper coupons can be hard to keep up with.
However, providing consumers coupons electronically encourages them to use them – therefore, typically purchasing more.
They can be used for loyalty programs.
When it comes to the finances of a business, one of the best things to implement is a loyalty program.
A loyalty program helps a company in two ways:
They can use it to track consumers’ preferences which can help them in their logistics. And, it also encourages people to keep coming back because they are getting a good deal or even rewards. So, it is beneficial in the financial sector for both parties.
They can store information.
Of course, when tracking financial information the loss of a document can be a major deal. However, you can easily and readily store your documents on a smart card for easy and confidential access.
It can be used to authenticate someone’s identity.
Just like a driver’s license or another form of documentation, you could use a smart card to determine someone’s access to something before letting them go any further.
For example, this could be used before releasing funds to ensure the right person is getting a hold of them.
There are several different uses for smart cards – from identity protection to loyalty programs. And, for just about every financial need, a smart card can help solve the problem.
