About Banking and Financial Smart Cards
A smart card is a pocket-sized card with either an embedded integrated circuit called a microcontroller chip, which has an internal memory, or a secured memory chip. Smart cards are used mainly for security purposes for authentication, identification, data storage, and application processing. With an embedded microcontroller chip, smart cards store large amounts of data; carry out their own on-card functions such as decryption, data storage and management, digital signature calculations, and encryption; and interact quickly with a smart card reader.
In the banking, financial services, and insurance (BFSI) sector, smart cards are used as credit or debit cards, authentication cards for payments, fuel cards, access control cards, and high-security identification cards. They can be used as electronic wallets by loading the smart card with funds that can be transferred to a vending machine or an account using cryptographic protocols. The portability, ease of use, security, and convenience offered by banking and financial smart cards have led to the increased adoption of smart cards in the BFSI sector.
Technavio’s analysts forecast the global banking and financial smart cards market to grow at a CAGR of 9.74% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global banking and financial smart cards market for 2016-2020. To calculate the market size, the report considers the revenue generated from the sales of banking and financial smart cards. Smart cards are used in banks of all sizes and government banks for identification, authentication, data storage, and application processing.)
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Banking and Financial Smart Cards Market 2016-2020
Technavio recognizes the following companies as the key players in the Global Banking and Financial Smart Cards Market: Gemalto, Giesecke & Devrient, Morpho, and Oberthur Technologies.
Other Prominent Vendors in the market are: American Express, ARM, Bell ID, CardLogix, DataCard, HID Global, Infineon Technologies, MasterCard, Smart Card IT Solutions and Visa.
Commenting on the report, an analyst from Technavio’s team said: “The emergence of hybrid cards is likely to encourage the adoption of smart cards by the banking and financial sectors. Hybrid smart cards are those with a dual-interface, a combination of contactless and contact interfaces, on a single card. Such cards have shared storage and processing of information, thus eliminating the need to carry multiple cards.”
According to the report, strong need to reduce identity duplication is one of the major growth drivers of the market. With a rise in the rate of fraudulent activities that are occurring, a solution that will reduce security risks is required. The data available in smart cards is difficult to decode, and therefore smart cards have a higher adoption in the BFSI sector worldwide.
Further, the report states that the price of smart cards is remarkably high in regions where there are fewer vendors. At the same time, price wars in the market are increasing in regions where the market is fragmented. These price wars are resulting in a reduction in the cost of smart cards, which is adversely affecting small core players, as well as the revenue of the global banking and payment smart cards market.
Gemalto, Giesecke & Devrient, Morpho, Oberthur Technologies, American Express, ARM, Bell ID, CardLogix, DataCard, HID Global, Infineon Technologies, MasterCard, Smart Card IT Solutions, Visa.