Contactless smart cards in the banking sector: Key market research findings
- Increasing need for minimizing identity duplication to spur market growth
- APACto dominate the market geographically
- Key vendors – Gemalto, Giesecke & Devrient, Safran, and Oberthur Technologies
Technavio’s market research analysts predict the global contactless smart cards market in the banking sector to reach almost $2 billion in revenue by 2020. The growing need to eliminate instances of identity duplication is expected to boost the demand for contactless smart cards globally in the coming years. The cards and payments industry is currently undergoing a digital transformation with the advent of new payment methods like EMV chips, PIN cards, and mobile wallets. Transactions made through contactless smart cards are secure as the data and information available in them can be accessed using a PIN, which is tough to decode. At present, the APAC region accounts for more than 38% of the market space to become the dominant shareholder in the global market. The major revenue-generating countries in the region include China, India, Japan, South Korea, Malaysia, and Australia. The transition of payment cards from magnetic stripe cards to Europay, MasterCard, and Visa (EMV) and the increased acceptance of contactless banking and financial smart cards among end users are factors that will propel growth in the contactless smart cards market in the banking sector during the forecast period.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“With advances in technology, many vendors such as Gemalto have started offering multi-application smart cards. These cards have shared storage and information processing ability and possess the capability to perform numerous applications such as access control, verification, and identification of an individual. For instance, Blue from American Express is a smart card that provides users with additional security while shopping online and booking tickets,” says Amrita Choudhury, Lead Analyst, ICT, Technavio Research.
Due to recent instances of identity theft, the need to prevent fraudulent activities in the banking sector is on the rise. The fast-growing volume of financial transactions, especially with the advent of e-commerce and the introduction of new digital payment solutions are prompting vendors in the banking sector to find practical solutions to curb instances of security threats. Many banks are also opting for smart cards over the conventional magnetic tape-based debit and credit cards owing to their tamper-proof nature. Furthermore, banks are also taking initiatives to encourage the use of contactless smart cards as this makes it easier to track customer activity.
Key vendors in the market include Gemalto, Giesecke & Devrient, Safran, and Oberthur Technologies. The contactless smart card market in the banking sector is highly fragmented due to the presence of several regional and international vendors. The level of competition is expected to intensify with large vendors acquiring smaller vendors to expand their product portfolios and market shares. The level of competition will intensify further with an increase in solution extensions, technological innovations, and M&A activities.
A more detailed analysis is available in the Technavio report, Global Contactless Smart Cards Market in the Banking Sector 2016-2020.
We can customize reports by other regions and specific segments upon request.
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