How can smart cards enable cross-border and multi-currency electronic payments?

1 Smart cards as digital wallets

One way smart cards can facilitate cross-border and multi-currency payments is by acting as digital wallets. A digital wallet is a software application that stores your payment information, such as card numbers, bank accounts, or digital currencies, and allows you to make transactions online or in person. A smart card can be linked to your digital wallet and act as a physical device to authenticate your identity and authorize your payments. For example, you can use a smart card to pay with your preferred currency at a merchant terminal that accepts contactless payments, without worrying about exchange rates or fees.

2 Smart cards as multi-currency cards

Another way smart cards can enable cross-border and multi-currency payments is by functioning as multi-currency cards. A multi-currency card is a card that can hold multiple currencies in separate accounts and automatically convert them when you make a payment. A smart card can be a multi-currency card that allows you to load and manage different currencies on the same card, and choose which one to use depending on the country or the merchant. For example, you can use a smart card to pay with euros in France, pounds in the UK, or dollars in the US, without having to switch cards or pay conversion fees.

3 Smart cards as biometric cards

A third way smart cards can facilitate cross-border and multi-currency payments is by incorporating biometric features. Biometrics are physical or behavioral characteristics that can be used to identify and verify a person, such as fingerprints, facial recognition, or voice recognition. A smart card can be a biometric card that uses your biometric data to secure your transactions and prevent fraud. For example, you can use a smart card to scan your fingerprint or face at a payment terminal, and confirm your identity and payment without entering a PIN or signing a receipt.

4 Smart cards as smart contracts

A fourth way smart cards can enable cross-border and multi-currency payments is by supporting smart contracts. Smart contracts are self-executing agreements that are written in code and run on a blockchain, a distributed ledger that records and verifies transactions without intermediaries. A smart card can be a smart contract card that allows you to create and execute smart contracts with other parties, and pay or receive payments in digital currencies or tokens. For example, you can use a smart card to rent a car, book a hotel, or buy a product, and automatically pay or get paid according to the terms of the smart contract.

5 Smart cards as innovation drivers

A fifth way smart cards can facilitate cross-border and multi-currency payments is by driving innovation and adoption of new technologies and services. Smart cards are not only convenient and secure, but also versatile and adaptable. They can integrate with various devices, platforms, and networks, and offer new features and functionalities. They can also enable new business models, markets, and opportunities for consumers, merchants, and providers. For example, you can use a smart card to access public transport, loyalty programs, health services, or social benefits, and enjoy more convenience, choice, and value.

Smart cards are not just plastic cards with chips. They are powerful tools that can enable cross-border and multi-currency electronic payments in multiple ways. They can offer you more flexibility, security, efficiency, and innovation when you pay electronically across borders and currencies.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?