About the Contactless Smart Cards Market in Banking Sector
A smart card is a pocket-sized card with an embedded microcircuit. Smart cards are used by organizations in various sectors such as banking, financial services, and insurance (BFSI); transportation; government; and healthcare for identification and authentication of individuals. They can be used by employees in enterprises to gain authorized access to secured premises to ensure data security. Based on technology, smart cards can be segmented into contact-based and contactless smart cards.
Technavio’s analysts forecast the global contactless smart cards market in banking sector to grow at a CAGR of 33.09% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global contactless smart cards market in banking sector for 2016-2020. To calculate the market size, the report considers the revenue generated from the sales of contactless smart cards used for payments.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Contactless Smart Cards Market in Banking Sector 2016-2020
Technavio recognizes the following companies as the key players in the global contactless smart cards market in banking sector: Gemalto, Giesecke & Devrient, Safran, and Oberthur Technologies.
Other Prominent Vendors in the market are: American Express, ARM, Bell ID, CardLogix, HID Global, Infineon Technologies, MasterCard, NXP Semiconductors, Smart Card IT Solutions, and Visa.
Commenting on the report, an analyst from Technavio’s team said: “One trend that is expected to boost market growth is the introduction of hybrid smart cards. 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. Hybrid smart card authentication requires smart card middleware, a smart card, a smart card reader, and a smart card PIN. As data and information can be consolidated in one smart card, it provides ease of handling. The availability of hybrid cards will lead to the increased adoption of contactless smart cards, which will support the market growth.”
According to the report, a key growth driver is the need to reduce identity duplication. With technological advances, the number of cases of fraud and forgery is increasing. There is a growing need for a solution that will reduce security risks. The cards and payments industry has undergone a digital transformation with the introduction of new payment methods such as EMV chips, PIN cards, and mobile wallets. The data stored on smart cards is difficult to decode. Data and information available in contactless smart cards can be accessed using a PIN. These PINs are extremely difficult to interpret as they are encoded and make the transaction more secure and counterfeiting more difficult.
Further, the report states that one challenge that could hamper market growth is the lack of awareness about contactless smart cards among end-users.
Gemalto, Giesecke & Devrient, Safran, Oberthur Technologies, American Express, ARM, Bell ID, CardLogix, HID Global, Infineon Technologies, MasterCard, NXP Semiconductors, Smart Card IT Solutions, Visa.