UK Banks hope to play their smartcards right

Banks and building societies in the UK are expected to commit to smartcard technology tomorrow, following the successful conclusion of trials coordinated by the Association of Payment and Clearing Services (APACS).

APACS spokesman, Richard Tyson-Davies, said: "Each bank will make its own decision about timing, but we expect credit and debit smartcards to start rolling out next year. They will all support the EMV standard pioneered by Visa and Mastercard."

The announcement will mark the start of the race for ecommerce partnerships. Mondex announced this week that its smartcard operating system, MultOS, is ready to launch nationwide. "We are looking for alliances," said Gerry Hopkinson, Mondex head of corporate affairs. "Any service that requires ID, payment and online access could use a smartcard," he said.

Rival Visa, however, is still conducting trials. A company spokesman said: "It will be a few years before we launch Visa Open Platform in the UK. We are currently piloting the Java-based multi-app operating system in Singapore, with Standard Chartered Bank." Visa's electronic purse trials in Leeds are many months away from completion.

Tomorrow's news is likely to lead to banks launching their first chip-based debit cards and announcing a range of new partnerships. A source said these will probably include retailers, telcos, public transport agencies and interactive media companies.