SIM Cards and Telecommunication
The largest use application of smart card technology is in Subscriber Identity Modules (SIM) as required by the standard for all Global System for Mobile Communication (GSM) phone systems; each phone utilizes the unique identity as presented in the SIM to manage the rights and privileges on that network and all other networks that are tied by agreement to roam. This use case represents over half of all smart cards consumed each year. The Universal Subscriber Identification Modules (USIM) is also being used to bridge the identity gap as phones transition between a GSM and a UTMS or 3G network operator.
Loyalty and Stored Value
Another use of smart cards is stored value, particularly loyalty programs that track and incentivize repeat customers. Stored value is more convenient and safer than cash. For issuers, float is realized on unspent balances and residuals on balances that are never used. For multi-chain retailers that administer loyalty programs across many different businesses and POS systems, smart cards can centrally locate and track all data. The applications are numerous, from transportation systems, including parking and laundry, to gaming, as well as all retail and many entertainment uses.