UNITED STATES FAR BEHIND ASIA IN SMART CARD USAGE.

One conclusion is crystal clear to Smart Card and Security expert, Dr. John Butterworth -- the Asia-Pacific region is far outpacing the United States in smart card usage. Furthermore, as the U.S. lags behind in smart card deployments, a number of Asian countries and corporations will lead the market with new smart card and security innovations that solve a myriad of domestic ID, security, commerce and transportation challenges.

According to Dr. John Butterworth, Chief Scientist at Security Sciences International (SSI), as the U.S. faces increasing security concerns, the technology is available today to eliminate many of these security issues. However, Asian government agencies, corporations and end-users have shown a greater willingness to adopt smart card technologies than their counterparts in the U.S. Countries such as The Philippines, with its advanced smart card-based drivers license system, and Taiwan, where advanced smart cards are being used at Starbucks locations, show that the technology is ready for prime time. Dr. Butterworth will be demonstrating further examples of innovative smart card solutions in Asia during the Smart Cards 2002 conference, June 5-8 in Beijing.

"The United States will trail Asia in smart cards for at least 10 years, unless dramatic action is taken," said Dr. Butterworth. "As recent implementations have demonstrated, multi-application smart cards provide an unparalleled degree of flexibility and security. However, the U.S. market is plagued with customer and vendor misconceptions about the cost-benefits and unbreakable security technologies inherent in smart card designs."

The number of industries in Asia now taking advantage of smart card technologies continues to increase. One example of how smart cards are solving identification concerns in Asia can be found in the Philippines. Working with the Strategic Alliance Development Corporation, Dr. Butterworth led the implementation of a new smart card-based drivers' license system.

All new smart card-based drivers' licenses in the Philippines now include the driver's name and address, as well as digital copies of a fingerprint, photo image, previous driving offenses, and total points on their record. This information is securely stored in an unbreakable electronic format on each card. Since 2000, more than 22 million new smart card drivers' licenses have been issued in the Philippines, which has already driven down license fraud, and has streamlined the process of managing data of all driving records and offenses.

In Taiwan, Dr. Butterworth helped launch a smart card loyalty e-purse system for Starbucks, where the customer receives a 20-percent discount on purchases through a stored-value card at Starbucks locations. The system also allows the user to track loyalty points and make purchases through the Internet, increasing loyalty among Starbucks patrons and providing the company with more opportunities to interact with its customers.

Singapore, China, and South Korea have all implemented smart card transportation systems that can be used on trains, buses, or subways. The user simply touches the card to a reader, and the fare is automatically deducted from the card. These smart card systems have increased transportation revenue by 40-percent, reduced the number of inspectors required, and curtailed fare fraud.

Dr. Butterworth will offer further insight into smart card adoption at Smart Cards China 2002, June 5-8 in Beijing. He will be speaking on Biometric Technology and how it can benefit smart card implementations.