A smart card, also known as a CPU card or integrated circuit card (IC card), is a type of card with a built-in microchip. It typically looks similar to a credit card, but its internal chip gives it more powerful functionality and security than traditional magnetic stripe cards. The chip of a smart card can be a simple storage chip or a smart chip with a microprocessor, which can perform complex data processing tasks.

Data storage: Smart cards can store a large amount of data, including personal information, financial information, transaction records, etc.

Data processing: Smart cards with microprocessors can perform data encryption, decryption, computation, and data verification.

Security authentication: The chip of the smart card can implement multiple encryption algorithms and authentication mechanisms, providing higher security protection.

Non contact communication: Smart cards can be designed as either contact or contactless, where contactless smart cards use radio frequency identification (RFID) technology for wireless data transmission.

Operating System: Smart cards may contain a small Card Operating System (COS) for managing applications and data on the card.