And there are other technologies available to do the same things. Airlines, of course, keep track of tens of millions of frequent fliers using cards that identify fliers with simple magnetic stripes.
Ultimately it is not at all clear that American customers actually want any of these things. When Auriemma Consulting asked people about a list of potential applications for smart cards, none got much more than a tepid response. There were some pockets of interest; young renters thought electronic cash would allow them to save quarters for the laundry, for example, a service some laundries already provide.
"Our theory is we need to be focused on small wins," Auriemma said. "There will not be a universal answer."
The Target Corp. will put chips on several million of its new Target Visa credit cards and will install smart card readers at all of its cash registers. It hopes that customers will download coupons from its Web site for use at its stores.
But Gerald Storch, the company's vice chairman, said the origin of the Target smart card was an effort to make the card look different from those of its competitors. "What is most important to us is to keep our brand hip and hot and innovative," he said.
Shailesh Mehta, chief executive of Providian Financial, which has already issued more than a million Visa smart cards, agrees that it is not clear whether any of these applications will take off. But he said it did not matter, because the chips pay for themselves as a way to attract new credit card customers.
"We can't tell if there will be enough momentum to make this a success or whether it will be another fad," he said. "The downside is manageable for us, and the upside is interesting."
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