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Before Java card, all smartcards were programmed in assembly, Each brand incompatible with others. And even if smartcards were introduced as security devices, their "security" was actually a joke.

Then there was an effort to create a secure interoperable platform for smartcards, it was Global Platform and it uses Java card for implementing their goals. All post 2000 smartcards are compatible with GP:

https://en.wikipedia.org/wiki/GlobalPlatform

I wonder if it really needs the JVM in the chip. It could just contain the compiled bytecode and the phone could have a JVM that runs the bytecode.

The whole point of the smartcard is that the outside world cannot access its memories other than through services running on the card.

It's a mutant version of Java though...

https://youtu.be/WMII5G98AdM?t=608 (skipped to the part where he mentions that it's Java)

There are tons of tiny JVMs.

How adorable

So that's why they're so damn slow.