RFID tags create virtual identities for the objects to which they are attached, and smart cards equipped with RFID tags do the same thing for persons. They can both be identified using radio signals. RFID smart cards can be read without physical contact, which makes them different from previous types of cards read by magnetic stripe readers or via Direct electrical contact with the chip in the card. In logistics systems, it is desirable to have a reading range of several metres between antennas and objects for easy identification of cases and pallets that are pushed through antenna gates. By contrast, proximity technology is used with smart cards to restrict the reading range to less than 10 cm. This is also called ‘near-field communication’ (NFC), and it is based on the ISO 14 443 and ISO 18 092 standards.
People are accustomed to using magnetic stripe cards such as credit cards and smart cards such as electronic purse cards. As is well known, it takes a certain amount of time to read data from these cards in order to initiate the desired transaction. With smart cards, this can be seen during payment transactions at points of sale (POS) and at exits from multistorey car parks. Consequently, this technology is not suitable for use in public transport systems. It would severely hamper free entry and exit from public transport vehicles, and the mechanical stress of repeated reading would quickly lead to worn-out cards.