The integrated chip credit card is an important milestone in the history of development of credit cards. When the first card of the kind was unveiled in 2001, it swept world off her feet like a whirlwind and continual subsequent technological improvements have allowed it to deliver better security and convenience to users. To date, more than 633 million chip cards have been issued worldwide. In Taiwan, chip cards account for 55% of the market, meaning they have apparently won the heart of consumers there. Furthermore, 99.8% of the terminals in Taiwan are EMV chip credit card compatible now.

　　The chip card has evolved on the security front from Static Data Authentication (SDA) enabled by the historical M/Chip 2 to Dynamic Data Authentication (DDA) and Combined DDA/Application Cryptogram (CDA) riding on the M/Chip 4. And Biometric technology is incorporated in the latest M/Chip Advance to work with fingerprint authentication system to further assure transaction security. The new generation M/Chip Advance also has pre-payment function included into its standard specifications for even better security, efficiency and convenience.

　　Regarding the authenticity of the card itself, the chip card comes with many means to ensure its uniqueness and prohibit replication, such as the Key Management Logic of Rivest Shamir Adleman Encryption Standard (RSA), Secure Hash Algorithm (SHA), management by Key Management professionals and dynamic authentication code, etc. Regarding transaction information security management, three levels of data matching and encryption (3-DES) are used to minimize the possibility of replication.

　　These stringent security features are not only found in contact type chip cards, but also apply in contactless transaction (e.g. PayPass™). Even for transactions that take only seconds, the security requirements and standards are just as demanding.

　　Since January 2010, MasterCard has required all contactless (PayPass™) transactions to undergo CVC3 authentication. The method relates the random number of terminal equipment and transaction record on a card to make sure a transaction cannot be replicated, hence helps boost the confidence of cardholders in contactless transactions.

　　Security is the main selling point of chip card. Apart from the well-known signature authentication method, Offline PIN and Online PIN also serve to confirm cardholder identity. However, security is not the only merit of the chip card. Supporting intelligent applications is its other important feature. Its many everyday applications, including for transportation and many other daily needs, provide people with spending experiences safe and fast.

　　Many innovative products supported by the chip card have been introduced to the market, such as MasterCard Cash launched in 2006 and warmly welcomed by markets worldwide. The initiative has enhanced the chip card turning it from a purely credit payment tool into a devise capable of various service applications. MasterCard Cash meets various standards including ISO 7816, ISO 14443, EMV and PayPass™ and supports both contact and contactless (RFID contact) payment transactions. What is uniquely precious about it is it also boasts e-wallet capabilities for users to make purchases at convenience stores, fast food restaurants, gas stations and supermarkets that accept MasterCard Cash. The multi-function card is also a credit card and can be used at stores accepting PayPass™ and MasterCard Cash to make small contact or contactless e-cash payments. Benefiting from its unique dual-interface configuration, the product is the only card that works on ATM machines for transaction enquiry and adding value.

　　The chip card has opened the door to the future for innovative payment methods and innovations have sprouted bringing ever better security and convenience to users. One of those innovations is the "Google Wallet" jointly launched this summer by MasterCard Worldwide, Google, Citibank, First Data Corp. and SPRINT. "Google Wallet" is an application that can turn a handset into a wallet, allowing consumers to just hit the button on their handsets to pay for purchases hence save time. The application became talk of the industry after its debut for taking mobile commerce into a new era.

　　"Google Wallet" has removed entirely the security concern over mobile payment among consumers. Incorporating the best of chip card innovations achieved over the past decade, it boasts security far above the traditional credit card and conventional bank card payment means. Furthermore, it requires an exclusive application code to make a transaction possible and input of payment card information into the chip card on initial use. The chip card and Google's Android are independent and access is limited to authorized applications.

　　As mentioned, the ability of the chip card to support intelligent applications is as important as its security assurance. The "Google Wallet" has demonstrated the advantages of the "intelligent" chip card. As the commercial ecosystem becomes more open and complete, "Google Wallet", which is empowered by the chip card, will see its functions applied to perfection. By then, consumers will be able to use their credit cards, bonus coupons, gift cards and award points and many more services via their handsets.