In issue 98:11:03 we told you of the failed New York Smart Card Trial and the fact that banks were beginning to worry that non-banks would enter the Smart Card market.
Well, their fears were not unfounded. Just one week after the New York Smart Card Trial was deemed a failure, Microsoft announced it is creating an operating system for Smart Cards and the system will be on store shelves early next year. "Microsoft has long recognized the need to support Smart Cards," said analyst Greg Blatnik, vice president of Zona Research.
A Windows standard will make it easier for companies already using Windows products to use the Smart Cards with their existing systems. But, as we reported in 98:11:03, the one goal the New York Smart Card Trial did accomplish was integrating Visa Cash and Mondex e-cash into one card reader. If Microsoft enters the arena and is successful, there will be another Smart Card standard to deal with.
"In the U.S., we've had conflicts over standards, which has made people unwilling to buy expensive Smart Card readers," Blatnik says. "If Microsoft gains momentum, will there be two standards?"
Will Smart Cards become another area where banks fail to convince consumers to pay for added services and private entrepreneurs succeed?
