Consumers 'Get' Smart Cards, New Study Indicates
<B> Consumers 'Get' Smart Cards, New Study Indicates</B>
By Mary Ann McNulty
<I>San Francisco</I> - Consumer awareness and interest in smart cards appear to be rising, according to a new study in which three-quarters of respondents expressed interest in the concept of a "card with a memory that can store data and value, but requires a reader to input or output data."
In the study, commissioned by the Smart Card Forum, a McLean, Va.-based organization working to accelerate widespread acceptance of this technology, more than 30 percent said they were very or extremely interested in smart cards that can store medical alert information, health insurance identification, ATM and bank related access, drivers licenses and credit cards. Not surprisingly, more than a third expressed interest in storing frequent flyer data on the card as well.
In a baseline study the forum conducted in 1995, 62 percent of the respondents expressed interest in smart cards, said Bill Barr, president of the forum and executive director of information networking at Bellcore in Morristown, N.J. Barr and others were pleasantly surprised by the rise in interest in just three years.
Some respondents were so interested, they said they'd be willing to pay up to $50 to obtain a smart card and up to $25 in annual fees to maintain it. Those who said they'd be willing to pay for a smart card also said they carry an average of 6.3 cards in their wallets, almost double the number carried by other respondents.
"Consumers get that this stuff can help simplify their lives. They also get that it's not a slam dunk," Barr said. "They're asking, 'How do you back up your data?' They definitely see the need for some sort of trusted partner who can keep track of data for them and help them get a replacement card.
The technologically equipped respondents--with PCs, cell phones and other devices--were much more interested in smart cards than others, the study found.
Respondents also expressed a desire to be able to customize their smart cards with applications or data they want on it, whether it be license or health insurance numbers, after obtaining a starter card from an appropriate vendor, Barr said.
The study was conducted this summer by FIND/SVP, a New York-based research firm, which held 14 focus groups and 2,400 telephone interviews. After releasing the top-line results of this comprehensive study at its annual meeting here last week, the Smart Card Forum intends to spend the next couple of months dissecting the data. The forum's 11 working groups include one focusing on transportation and one on travel and entertainment.
The forum, along with the Global Chipcard Alliance and Smart Card Industry Association, also announced plans to hold the first in a series of bi-annual Smart Card Global Summit meetings on Nov. 2.