The UK government is considering adding chip and PIN technology to its controversial new ID cards in a bid to combat identity fraud.
Identity and Passport Service chief executive James Hall told the BBC there would be no technical problems in adding the payments technology to the cards.
Adding chips would mean the cards could be used at ATMs in the future and also help holders to "assert their identities" online to tackle ID fraud.
Hall says the agency is talking to the financial services industry about the addition of chip and PIN to the cards. If a "compelling view of the rationale" for the technology is found, it will be taken "extremely seriously".
Meanwhile, the Home office has awarded CSC a £385 million contract to provide application systems for the cards as well as biometric passports, with IBM given a £265 million deal to build a biometric database.
The home office began issuing biometric ID cards to people from outside the European Economic Area in November. They contain fingerprints, name, date of birth, nationality and the person's right to be in the UK.
They will be offered to 'young people' on a voluntary basis from 2010 and the entire UK population from 2012.
The government says the cards will help combat crime, terrorism and illegal immigration but opposition parties have slammed the scheme as a waste of money and an attack on civil liberties.
ID cards 'could use chip-and-pin' - BBC