Age of password generating plastic cards

[img_assist|nid=8560|title=|desc=|link=none|align=left|width=66|height=100]One-time password (OTP)-generating cards are being developed and offered as possible replacements for tokens and passwords delivered by SMS.

One of the major Australian banks are going to conduct pilot test of one-time password (OTP)-generating card belonging to Melbourne-based security company EMUE within the following 6 months.

The mechanism of the card is as follows. A microprocessor is integrated into the card which is equipped with a 12-button keypad, a small display where the password appears, and a battery--the same size as a standard credit card. Using the keypad on the card a customer enters a PIN code and then a password is generated. If the PIN entered is right an OTP is generated as a secondary authentication at entering the banking system.

Similar card called SecurID was developed and released by EMC's security division RSA. OTPs are generated by the card when a user pushes a button in a corner of the card. No PIN is required when generating the password.

"This is just a stepping stone for us and the next thing is to put out that [card] device with an EMV chip on it," said Geoff Noble, RSA's banking and finance specialist. EMV is the Europlay, Mastercard, Visa standard for chip and PIN cards, which is gradually being introduced in Australia.

This month EMUE's cards are planned to be trialed by Visa Europe in several countries across Europe. The cards were called "Visa PIN Card".

"The banks are being given exclusivity by territory which Visa Europe will announce in due course. At this stage they're looking at four territories in Europe," said Brendan McKeegan, CEO of Emue Technologies.

"The key difference between RSA's card and ours is that ours doesn't have just one button and RSA's is a 'companion card' while ours is integrated into a payment card," he pointed out.

As per reports ANZ and National Australia Bank are not going to test either the RSA or the EMUE card yet.