Panasonic has developed an SD memory card that will also function as a smart card. While the card isn't expected to go on sale until 2005 (and only in Japan, at least initially) there will be demo models available in December 2004, presumably for hardware and application developers. The benefit of having a smart card embedded in a storage card is the ability to transfer large amounts of data and being able to use the card in multiple devices as it's removable. The smart card portion of the card holds encrypted data (for security and ID purposes) that can be transmitted wirelessly.
From PC World and Digital Silence.