LONDON--(BUSINESS WIRE)--Technavio’s latest global contactless smart cards market in the banking sector report highlights three key emerging trends predicted to impact market growth through 2020. Technavio defines an emerging trend as something that has potential for significant impact on the market and contributes to its growth or decline.
“One of the major drivers in the market is the need for a tamper-resistant information storage system. Cards embedded with magnetic tapes only store information about end-users' accounts. These cards can be easily tampered with, which can result in loss of information or data. This also increases the chances of identity theft. However, contactless smart cards are tamper resistant as information stored on them can only be accessed with a PIN, which is difficult to decode,” said Amrita Choudhury, one of Technavio’s lead industry analysts for enterprise application.
Technavio’s market research study identifies the following three emerging trends expected to propel the global contactless smart cards market in the banking sector:
- Emergence of multi-application smart cards
- Introduction of hybrid smart cards
- Increased adoption of electronic purses
Emergence of multi-application smart cards
With advances in technology, many vendors such as Gemalto are offering multi-application smart cards. These cards have shared storage and information processing. They have the ability to perform multiple applications such as access control, verification, and identification of an individual. Blue from American Express is a smart card that provides users with additional security while shopping online and booking tickets. In a key development, Santander University has provided multi-application smart cards to its students for many applications such as transit ticketing, parking access, secure access to computers, and electronic purses for vending machines. Santander University has also implemented online authorization to allow students to make quick and secure payments.
Introduction of hybrid smart cards
Hybrid smart cards come 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 on 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 further market growth until 2020.
Increased adoption of electronic purses
An electronic purse is a contactless payment card that can replace the use of currency while making monetary transactions. These cards are issued by banks and are preloaded with monetary funds. Electronic purses can be swiped at merchant POS systems and the value of the transaction is deducted from the card. Monetary funds can be transferred to the payment card using an ATM or via net banking. These cards help make quick monetary transactions. They make payments easier and secure for customers and merchants. Electronic purses integrated with contactless smart cards can help to store and transfer monetary funds. The growing demand for electronic purses will result in a greater demand for contactless smart cards in the future.
Browse related reports:
- Global Contactless Smart Cards Market 2016-2020
- Global Smart Card Market in the Telecom Sector 2015-2019
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