We all have one in our pocket!
The chip card is a French invention. The patent was filed in 1974 by Roland Moreno, a self-taught electronic engineer, handyman in all kinds of weird gadgets. The concept rapidly spread to all systems requiring a strong encryption: bank cards, identity cards, SIM cards for mobile phones, TV decoders, etc. When the patent protection expired in 1994, he then developed the contactless card for payment systems.
In 2000, as the banks are panic stricken when a French IT specialist demonstrates that false bank cards which work everywhere can easily be made (Yescards), Moreno claims that the chip card security is safe. He offers 150 000€ to the first person who will succeed in breaking the algorithm. To this day, no one has been able.
The chip card market is growing fast and Gemalto Company, the French leading player of the market who makes them, claims to have 45% of the market shares. The 4 main sectors of use, all linked with exchanges safety, are: mobile telecommunications, banks, secure documents (passports and access cards) and cards for communications of machine with machine.
The United-States began the transition towards the chip card to secure payments and limit fraud only at the end of 2015 and the American market represents approximately 500 million chip cards a year!