Pentagon to turn ID badges into e-wallets

The Pentagon is planning to transform its electronic identification card into a full-fledged e-wallet that can be used on public transit, at ATMs and to pay for purchases.

Nextgov reported the Defense Manpower Data Center is working on a new type of electronic ID badge that could eventually spread to the entire government. An official with the industry group Smart Card Alliance said the Pentagon's effort is the largest smart card project in the world.

Currently Defense employees use the Common Access Card, which was first issued in 2000. It includes embedded computer chips that allow users access to military systems and networks once plugged into a computer. The cards also have a second security feature that provides access to buildings such as the Pentagon when waved over a reader.

That same pass-waive technology is used by transit systems worldwide including the Washington Metropolitan Area Transit Authority, which uses smart cards to collect fares from riders. New York's Metropolitan Transit Agency also uses the same technology standard.

Now Defense hopes to add transit payment abilities to its ID cards, which are issued to more than 3 million military personnel and contractors. The cards would allow Defense to more easily disburse monthly transportation benefits to employees. In the Washington more than 170,000 federal employees have their monthly benefits loaded onto WMATA smart trip cards.

The Pentagon also wants to add debit card functionalities to the ID badge by using the international standard for credit and debit cards. That would allow employees to use one ID badge to conduct most transactions and reduce the risk of identity theft or fraud.

An official said the Pentagon must jump through numerous hoops before the ID badge is ready for the new features, but predicted it would be ready by mid-2013.