The world is slowly migrating from close contact technology to the super convenient contactless smart technology. And the Philippines stands to lose in the ever-increasing connectivity game should it continues to use old mode technology, says a leading local card producer.
I had a chance to interview Franz Reyes, a leading advocate of smart card technology in the Philippines. She works for Allcard Philippines, the country’s leader in innovative technologies.
Reyes says that countries around the world are adopting to the contactless smart card solutions to enhance services and transactions. Contactless card technology, which has been in existence for over two decades now, is being used by banks and relied upon by governments in enhancing their services. According to Reyes, most transactions around the world use secured smart card solutions technology, created for convenience and faster transactions. The technology has its own IT system, which, says Reyes, the Philippines has but is under-utilising.
“ The danger” says Reyes, who has been pioneering smart card technology for a decade now, “..is the possibility of our system not being recognized by other countries which use contactless card technology. Asia is modernizing. With the possibility of ASEAN developing as a Regional economy, how can we Filipinos transact in, say Taiwan, Japan, Singapore or even Thailand if we don’t know have or we don’t know how to use contactless smart card technology?”
Contactless smart card technology, says Reyes, empowers the user to avail of the tremendous benefits of a fully interactive world. With just a swipe of the smart card, users instantaneously connect themselves to a system which allows them to do transactions. Users can modify or add information stored in a smart card’s 32 kb memory. Using a reader, the card can be read by a system and given user-privileges.
Credit card companies and banks first began using contactless smart card technology a decade ago. The potentials of the technology are enormous that governments are beginning to use it to enhance and improve public services.
The Kuwaiti government, for example, has issued 3 million electronic multi-application ID cards to its citizens as part of its efforts to comply with the Gulf Cooperation Council (GCC) regulation designed to allow citizens of all Gulf countries to travel between member states. The card serves as the official ID of a Kuwaiti citizen. The smart card is embedded with a 32kb memory chip secured and encrypted with the card users’ information. A plan to make the card a microprocessor is underway.
China is on the verge of completing its US$ 3.5 billion national ID smart card program. The program aims to provide 900 million smart cards to be used by Chinese citizens in their government transactions. Recently, China Expert Technology has received a US$57 million order for e-government systems in Fuzhou City in the Fujian province. China wants a contactless card security system.
Ninety six percent of Taiwanese are enjoying the benefits of a healthcare program using smart card technology. Since its implementation in 2005, Taiwan’s National Health Care Program has saved close to US$ 2.8 billion in health-related expenditures alone. Twenty two million Taiwanese enjoy free medical services with just a swipe of their contactless smart cards, connecting them to 17,000 medical facilities throughout the island state.
In Korea, construction is underway for the building of New Songdo City, a fully contactless card facility. Korea is spending US$ 25 billion to equip the city with a universal contactless smart card system. The system will enable Koreans to use smart cards to pay their bills, access medical records and even, open doors.
Asia, says Reyes, is fast modernizing and the Philippines has no choice but to catch up with super-high tech, convenience technology.
“If we don’t catch up with the rest of Asia, we might be totally left behind to our disadvantage. We need to start accepting smart card technology as a way to improve our quality of life, “adds Reyes.
And for those who think that technologies are alienating and un-social, consider this—under a contactless world, people will actually become more social–better and faster than before. Bloggers and online people know this as a fact—if you’re part of a system, you get information quicker than others. You get to interact closer and faster than those not integrated in the system. This is what I call “convenience technology”. We need this now.
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Of course Smart Card Applications will promote computer security in public management, enhance financial transaction in a push of a button ( we have that like the ATM), expedite Healthcare (Medical) services and reimbursement, and improve system management and provide solution to long lines during election registration for example.
The Philippines should have a national ID at least to start with.. A unified congressional effort should be the primary objective and must be an initiative by any executive-president. This national ID has been proposed long time ago and yet the “cost and benefit” has not been thoroughly debated.
I actually haven’t heard any candidate with a platform to include technological advancement. Actually none of them has a platform…
Yes we need it now which means the current administration must discuss, implement, formulate, gather data, legislate and enact.
I agree Leytenian,
Let’s put aside so called “nationalist” feelings about having a National ID system and set aside fears that government will be using its powers to encroach or invade our privacy. Every one of us has a record in government already. Government, to be effective and efficient, should be given the power to centtralize data in a singular data base to allow it to serve the People more effectively.
The notion of an electronic world is a tad unnerving. One fears abuses, too much information zipping about and being used wrongly. Or not even wrongly, just weirdly. Like Google tracking your internet patterns and using the data to fine-tune the ads that pop up into your face.
I suppose it is like hanging onto a vine off a cliff above a river. At some point you have to let go and see what’s there, because neither the cliff nor the river are going away . . .
Joe
yep, joe,
you’re also correct. yet, when must we start doing the changing? when do we start modernizing? every country in the world is fast moving from old tech to new tech. we all know that.
Let’s go for that contactless smart card technology as a means to get rid of red tape in not few government transactions.
Problem is, this government may not be willing enough to shift into this paradigm given a culture of ‘transactional politics’.
Viewed cynically, in a contactless scheme, the government may even be the hacker itself, come to think of it.
well primer, i cannot imagine government hacking itself simply because of the culture of “transactional politics”. please explain further.
Smart cards?
Don’t we have laking national bookstore cards, SM Advantage , Ayala A card, Shopwise card and even a supermarket chain such as Eunilane has its own privilege cards. I think we are not really lagging behind. In a way this is more a failure of aggregation.
But nonetheless, nice post in bringing front center this underutilized technology.
thanks gian,
i really believe that it is high time for us to put to good use, newer technologies for faster and more responsive government services. people see government in a bad light because it fails in its primary duty. if everything is linked, if everything is electronic, maybe we can avoid red tape as what Primer said and have a better government. we deserve better social services.
We live with smart cards, credit cards, etc…in the U.S. It gives
us ease in transactions. But there are also some negative sides of
the technology. Some criminals can steal your card. Steal your identity. And run you to enormous debts, using your identity. If
you can outsmart these criminals. It is a good technology. Our Police
and Justice System are not yet educated to deal with this technology.
Look at the Hayden Kho-Katrina Halili case. The video and the video replicating technology are used to sell the Toro-toro episode of their lovemaking. The one policing the video board cannot do anything about it.
yep, hayden, that is a legit concern. but hey, we enjoyed the leakage, yes? :-)
I think government has the wherewithal to secure the technology given its enormous resources. a National ID for example, if we start it, say, at SSS, we will see how it really works and if it works at all. I say, start it with a small government agency first and let’s see what happens.
Hyden,
before the Hayden kho toro toro issue, you used a different handle.
Smart card technology has been there for sometime.
A couple of associates were actually negotiating with line agencies for implementing smart card applications in tandem with biometrics applications.
To make a long story short – the conclusion was – It’s not that the Philippines is not ready for smart cards – it’s just that “the powers that be” want the lion’s share of the kickbacks if and when the technology is deployed. The technology will not be launched until the issue of “what’s in it for me” at all layers of government is covered.
Expect cost-overruns… and more “surge-the-gates”. It’s just another day in these islands.
bongV,
i think we can mitigate these fears by simply asking our government to make everything above board. i mean, this government should really make things work this time. and i think the elites of this society knows that if they screw this thing up big time, they will get punished big time also.
Are there available frequencies to support this contactless technology in the Philippines?
supremo,
i think so yes. however, let me check on this. I will set an interview with the NTC to see if we do, indeed, have these frequencies.
Pat,
BIR is geared toward data-based transactions as a matter of contemporary thrust precisely to do away with ‘windows of opportunity’ for corruption.
However, in a purely automated scheme, it could be difficult enough to check whether the transaction is true and correct as in the case of tax payments done via computerized assessments rather than those done manually.
Technology:
Non implementation of ZTE NBN is still fresh,RIFD non acceptance is still fresh.GSIS/IBM database issues are still fresh.
From corruption to mismanagement to fear of the unknown just to name a few problems.
Having said that, those problems should not stop our exploring new technologies.