A Smart Card System is a technology that uses plastic cards embedded with a microchip to store and process data. These cards can be used for various applications, such as secure identification, payment transactions, and access control. The microchip allows the card to communicate with card readers, enabling quick and secure exchanges of information. Smart cards can be contact-based, requiring physical insertion into a reader, or contactless, allowing data transfer through radio frequency. They are widely used in industries like banking, healthcare, and transportation, enhancing security and convenience for users. Examples include credit cards, employee ID cards, and public transit passes.