Smart cards are simply micro-chips on a plastic card.This micro-chips are capable of storing and processing information. Smart cards can either be contact or contactless and can  perform either single-application or multi-application. Multi-application cards can be used for more than one purpose.The use of smart cards provides convenience and efficiency.

Smart Cards can either be contact or contactless.

Contact Smart Cards

They have contact zone and it must be inserted in to a reader for it to communicate

Contactless Smart Cards

They communicate with the reader through RFID ntechnology. The card must be close to the reader but its not a must for it to be in contact with the reader