RSA Data Security Inc. said its data encryption and digital signature technology will be incorporated in SmartCity, an electronic purse system developed by Product Technologies Inc.

The cashless payment system relies on "loading stations" to move value from a customer's bank account to a smart card chip. The card can then be used for direct point of sale transfers, without requiring the on-line authorizations of magnetic-stripe credit cards.

RSA's asymmetric key technology will be used in managing the DES - Data Encryption Standard - keys used within Product Technologies' relational data base management system.

The smart card system comes in a local, or closed, configuration for such applications as scrip or college campuses; and in an open version for multiple banks and other participants. Each transaction requires a personal identification number. RSA provides for digital signatures and authentication on every card.

"With RSA technology it is extremely difficult for anyone, including the developers of the system, to know what the keys are," said Luke Weinstein, executive vice president of Product Technologies, which is based in Middletown, Conn., and has a branch operation in Moscow.

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