A Secure Access Module (or Secure Application Module) is based on SmartCard ICs and is used to enhance the security and cryptography

Cryptography

Cryptography is the practice and study of techniques for secure communication in the presence of third parties...

 performance in devices, commonly in devices needing to perform secure transactions, such as paying terminals.
Physically a SAM can either be a SIM

Subscriber Identity Module

A subscriber identity module or subscriber identification module is an integrated circuit that securely stores the International Mobile Subscriber Identity and the related key used to identify and authenticate subscriber on mobile telephony devices .A SIM is held on a removable SIM card, which...

 card and plugged into a SAM slot in a reader

Card reader

A card reader is a data input device that reads data from a card-shaped storage medium. Historically, paper or cardboard punched cards were used throughout the first several decades of the computer industry to store information and programs for computer system, and were read by punched card readers...

 or a fixed integrated circuit

Integrated circuit

An integrated circuit or monolithic integrated circuit is an electronic circuit manufactured by the patterned diffusion of trace elements into the surface of a thin substrate of semiconductor material...

 in an e.g. HVQFN housing to be directly soldered on the PCB

Printed circuit board

A printed circuit board, or PCB, is used to mechanically support and electrically connect electronic components using conductive pathways, tracks or signal traces etched from copper sheets laminated onto a non-conductive substrate. It is also referred to as printed wiring board or etched wiring...

.

Generally a reader system consists of a microcontroller

Microcontroller

A microcontroller is a small computer on a single integrated circuit containing a processor core, memory, and programmable input/output peripherals. Program memory in the form of NOR flash or OTP ROM is also often included on chip, as well as a typically small amount of RAM...

 and a reader IC to communicate over the RF

Radio frequency

Radio frequency is a rate of oscillation in the range of about 3 kHz to 300 GHz, which corresponds to the frequency of radio waves, and the alternating currents which carry radio signals...

 interface with a contactless smartcard. The microcontroller takes the part of controlling the reader IC, like the protocol handling, command flow and data interpretation. By integrating a SAM into the reader system, the SAM handles all the key management

Key management

Key management is the provisions made in a cryptography system design that are related to generation, exchange, storage, safeguarding, use, vetting, and replacement of keys. It includes cryptographic protocol design, key servers, user procedures, and other relevant protocols.Key management concerns...

 and cryptography in a secure way. The entire system enables an authentication

Authentication

Authentication is the act of confirming the truth of an attribute of a datum or entity...

 and encryption

Encryption

In cryptography, encryption is the process of transforming information using an algorithm to make it unreadable to anyone except those possessing special knowledge, usually referred to as a key. The result of the process is encrypted information...

 of the contactless communication as well as between the SAM and host system

Host system

Host system is any networked computer that provides services to other systems or users. These services may include but are not limited to printer, web or database access.According Kurose-Ross, Host system is another word for end system....

.

A SAM can be used in segments of Access Management, Public Transport etc.