Smart card systems differ from conventional computer systems in that different aspects of the system are not under a single trust boundary. The processor, I/O, data, programs, and network may be controlled by different, and hostile, parties. We discuss the security ramifications of these “splits” in trust, showing that they are fundamental to a proper understanding of the security of systems that include smart cards.
From the article:
[..] this new kind of card is on the horizon, and will allow consumers to conduct secure transactions with two-factor authentication with ease. A growing number of companies are developing thin, password-generating card displays that can be incorporated into your trusty cards. Equipped with displays, that can now be mass-produced at rapid speed, these new powerful cards generate single, numeric pass codes that change at the push of a button, transaction to transaction. In the future, people will be able to
view things such as recent bank transactions and credit card balances – on the cards themselves.