Price reductions could spark demand for cards that display one-time passcodes.

Companies such as Innovative Card Technologies Inc. hope the increasing use of online banking, combined with growing awareness of fraud, persuades more consumers to use the cards, which generate a new passcode every minute or so.

InCard has shipped at least 500,000 such cards, but the market remains relatively small, largely "because of the price barrier," said Richard Nathan, its president and chief executive.

The cards typically cost between $10 and $20, but Dennis Brestovansky, the president and CEO of Aveso Inc., which makes modules for the cards, said that a $5 pricetag would spur demand; Aveso hopes to "be close" to that target by late 2010.