What is the difference between CardSpace and Smartcards?

Smartcards and CardSpace can work in concert with one another. CardSpace is a digital representation of a user’s identity as issued by a particular Identity Provider.

When the customer selects an CardSpace to use such as when logging into an online account or performing an online paymet, it results in sending a request to a Security Token Server (STS) at the Identity Provider to generate a security token of a requested type.

Sometimes the user needs to provide a credential, such as a PIN or password, to the Security Token Server. A Smartcard may be used as such a credential.