Hitachi Ltd. said on Friday that it would set up a joint venture this month with MasterCard International Inc., Australias Keycorp Ltd. and a U.S. venture capital firm to promote advanced smart cards.

Japans largest electronics conglomerate will invest $2.41 million to take an 18 percent stake in the venture, to be established in San Francisco.

MasterCard will take a 20 percent stake, while Keycorp, a provider of smart card operating systems, is set to hold 18 percent and Oak Hill Venture Partners will take the remaining 44 percent.

Smart cards have built-in microprocessors and memory for identification or financial transactions. They offer greater functionality and are generally more secure than conventional cards that use magnetic strips.

I will be following this story with interest…more details to come soon.

Story courtesy of reuters.com