Eight strong and growing, Global group draws assortment of smart card believers

An alliance formed by carriers to help set standards for the emerging smart card industry has its first non-telecom member. American Express Co. became a principal member of the Global Chipcard Alliance in mid-May.

In 1995, the worldwide travel and financial services leader formed a Smart Card Center of Excellence, a section that pools its smart card technology experts to work on Amex's upcoming chip card product, said company Vice President Glenn Weiner.

The center helped Amex qualify as a principal member of the alliance. Companies can also choose to become non-voting participating GCA members.

Formed in October 1996, the GCA is an international group dedicated to ensuring that smart card customers can access their personal applications solutions around the world within the next five years.

U S West, GTE, Bell Canada, PTT Telecom Netherlands/Unisource, Deutsche Telekom and Telekom Malaysia were the original members. Last year, Oracle also joined.

For Amex, joining the alliance was a natural step in its own plan to offer multi-application, interoperable smart cards. "People see telecommunications companies and financial institutions as the pillars of the smart card industry,' Weiner said.

Smart cards, also known as chip cards, began appearing on the market about a year ago. The cards look like ordinary credit cards but contain a chip that stores desired information and lets the user complete a variety of applications, including Internet access, automatic banking and phone calls.

Eventually, the chip could be loaded with enough information so that smart cards could replace the need to carry cash, driver's licenses and Social Security cards, industry watchers say.

So many companies are developing smart cards that several carriers became concerned that mass deployment could be delayed by a lack of standards, which is partly why the GCA was formed.

Amex's membership has encouraged other non-carriers to begin the process of becoming members, said David Anastasi, a vice president with U S West and president of the GCA. More than 42 other "smart card players" have responded to GCA presentations enthusiastically, he said.