Beginning in Notes 7.0.2 the preferred way to enable Smartcards for Notes login is to secure the ID file using a private key from a personal Internet certificate stored on the Smartcard. Because this method supports the use of a Smartcard on which the Internet certificate and keys are preloaded, it does not require changes to a Smartcard, so allows the use of read-only Smartcards. It also enables users to easily secure multiple copies of their ID files with a Smartcard.
The steps to enable Smartcards for Notes login using this preferred method are described here
in the Lotus Notes 8.5 section of the Notes and Domino 8 infocenter.The preferred method can be used on Notes clients that run 7.0.2 or higher.