Explanation A smart card is a physical device that contains an embedded integrated circuit chip that can store and process data. A smart card can be used as a second authentication factor, in addition to a password, to verify the identity of a user who wants to log in to company-owned devices. A smart card requires a smart card reader to access the data on the chip, which adds an extra layer of security. A smart card meets the requirements of the company because it does not involve a smartphone or any other device that is not allowed at the desks