South African smart card program in motion

According to a recent IT Web report, the smart card identification project by South Africa's Department of Home Affairs will be introduced in the 2012/2013 financial year after a successful pilot program has been completed.

"Last year, we committed to piloting the smart card. In this regard, we are pleased to inform ... that this has been done," Home Affairs Minister Nkosazana Dlamini-Zuma said at an announcement.

The Home Affairs Minister said the smart card program will begin this financial year and will replace the traditional green ID books used by South African citizens, according to the report. Also, the new smart cards will contain embedded microchips to secure state pension funds payouts, and officials are considering using the cards for additional purposes.

"The full spectrum of identity management goes beyond mere issuance of secure documents; it encompasses the safe maintenance and archiving of biometric and demographic records of citizens and persons who have been permitted to reside in SA," said Dlamini-Zuma.

Dlamini-Zuma had to cancel the smart card project in March 2010 after the department ran out of funds originally set aside was used for other expenditures. Despite the hiccup, she said the delay has given the department ample time to construct a proper infrastructure to support the smart cards, the report stated.

"Even if the tender had been awarded and we had gone ahead to develop the smart ID card, we would have run into problems with it as the infrastructure still has to be developed," said Dlamini-Zuma.

While smart cards can be used to facilitate payments, worldwide business analysts are excited about the opportunity of multi-function cards. According to the Credit Unions Times' Jim Schlegel, many smart cards contain a single-function application, the technology is almost "limitless."

"The use of smart cards is limited only by the storage capacity of their chip and the imagination of those deploying them," wrote Schlegel.

Despite the sense of optimism regarding the potential of the smart cards, they have not caught up with the technology that supports them to this point "and the inherent tensions of having several owners of the card itself, the data and the customer relationship have yet to be solved," added Schlegel.

Overall, the adoption of smart cards is on the rise across the globe. According to a recent study by the Aberdeen Group, technological improvements have made smart cards more accessible, including for smaller businesses.