Methods and systems for operating a Smart Device 102 with a secure communication system. A SPARC Security Device (SSD) 104 is in communication with one or more Smart Devices 102. SSD 104 receives a request for a transaction from a Smart Device 102 executing an application obtained from an Application Controlling Institution (ACI) 101, and is asked to verify the validity of the transaction. A one-time identifier (SSD ID, which replaces the user's account number) is generated by the SPARC Security Device 104. The one-time identifier comprises a unique SSD 104 unit identifier and a one-time transaction number. In a Loyalty Application, an ACIRD 81 stores on behalf of participating entities an accounting of at least one of inducements, rebates, loyalty points, and rewards earned by or attributable to users of the SD's 102, and communicates with the SD's 102 and with the associated ACI(s) 101 and SSD(s) 104.