The 'Sure Identity' project comes after the UK consultancy won a competition and funding from the government-backed Technology Strategy Board. The trial is being backed by Visa Europe and Codes & Ciphers, which provides consultancy advice on information security.

Visa's Codsure cards, developed using technology from Australia-based Emue technologies, features an eight digit alpha-numeric display, a 12-button keypad and battery embedded in the card, which is designed to last for three years. Last month Cornèr Bank of Zurich said it would become the world's first financial institution to issue the cards.

The new pilot UK programme is designed to test the assumption that Brits can use the technology to access online government services, replacing passwords and login details.

Consult Hyperion says this will help improve government efficiency by reducing the processes involved with managing and supporting such password credentials. The card will allow the government to enable consumers to enrol and access a wider range of services through the secure activation of bank-issued Visa debit cards.

Another major advantage of the proposed Sure Identity card is that government would not have to carry out know your customer checks because the bank-issued Visa debit card would already have been provided to an identified consumer, saving time and money, says the consultancy.

In addition to Visa Debit Cards, the technology could also be used in the future with photo ID driving licenses, National Health cards, benefit payment cards and even some types of pre-paid card for those who currently cannot access financial or government services.

Andrew Tyrer, Technology Strategy Board, says: "The Technology Strategy Board investment into "Trusted Services" targets the increasing risks associated with online transactions whilst providing significant market opportunities to build a strong UK capability base. The tools, techniques and services developed will accelerate the deployment of secure and trustworthy information systems, within the UK and the wider global economy."

David Birch, director, Consult Hyperion, adds: "With the government's clear goal of using private sector identification and authentication services to make it cost-effective, simple and practical for consumers to access government services online, it is important to assess a range of new technologies. There would be an obvious advantage in using a technology that is designed for the mass market, and this is what the proof-of-concept will explore."