Smart Chip Technologies  (OTC: SCTN) is a Software Technology Company with a "gateway" Patent and end-to-end Smart Rewards Management System. Smart Chip Technologies licenses its loyalty business process patent to Companies that are building smart chip solutions for North American, Asian, and Australian markets. Additionally, SCTN markets its smart card expertise and loyalty system globally to banks, retailers, OEMs, system integrators, and CRM systems.

On the heels of one of the first and longest running successful U.S. smart card loyalty programs, Smart Chip Technologies is launching its next generation loyalty solution. e-llegiance™ is the multi-platform smart chip loyalty application engineered for EMV, Global Platform, and MULTOS compliance to simplify credit/debit card integration. This state-of-the-art Loyalty Program Management System is compatible with existing magnetic-stripe and bar code cards, and is forward compatible with the next generation of mobile commerce devices including smart cards, point-of-sale terminals, handheld PDAs, laptops, TV set top boxes, smart key fobs, and mobile phones. The loyalty system is also designed for compatible integration with applications such as electronic payments, CRM, transit, gaming, access, and security. SCTN provides complete rewards program management, transaction processing, and accounting services through its Loyalty Central™ software and back office operation.

Industry luminaries are forecasting the North American Smart Card market to reach $3 Trillion by 2008 (Smart Card Alliance, 2001). The convergence of traditional retailing with global e-commerce and m-commerce, combined with the demand for fraud-resistant financial transactions and EMV (Europay/MasterCard and Visa) deadlines, is driving the migration to smart chip-based payments. Nearly 2 billion magnetic stripe payment cards in use today are expected to convert to smart cards by 2006. Smart Card markets are emerging globally and Smart Chip Technologies (SCTN), with its next generation rewards program management system in development and gateway-patents, is in the middle of this wave.

What makes a card or consumer device "smart" is the microchip embedded in it. The microchip, which replaces the magnetic stripe commonly found on the back of other transaction cards, allows the storage and management of large amounts of data for one or more Financial, Telecommunications, Transportation, Security, Access, Healthcare, and Retail applications. SCTN's patent covers any application where customer loyalty data is stored on a portable device (chip/card) by a terminal or another base device. The Company’s “smart chip” integrated platform will enable merchants and banks to instantly process loyalty credits and rewards.

Loyalty Central™ and e-llegiance™ provide maximum flexibility in the real-time management of click-and-mortar incentive programs, establishing business continuity across the physical, mobile, and virtual worlds.