Financial services to lead the smart card market
Growth in the global payment card market, especially Asia-Pacific, continues to drive the shipments of smart cards. Besides, rising cases of fraudulence have highlighted the drawbacks of magnetic stripe cards with regard to transaction security, said the research firm.
In the financial sector, smart cards are extensively used as banking cards, ATM, and payment cards as they have emerged as the most secure alternative.
The research firm found that there will be huge opportunities for the players in near future due to rise in EMV migration, as only 20 percent of the cards already deployed in this segment are chip cards. Another reason, which will contribute to the opportunities in the financial segment, is contactless dual interface that enable convenient and fast payment & mass transit applications.
In addition to financial services, other sectors like telecom, transport and public sector will provide sufficient room for smart card growth. The research also has found that geographical regions like, Asia-Pacific and Africa are showing impressive growth in the adoption of smart card technologies with a wide 3G penetration and will continue to boost the growth of the smart card market.
More specifically, demand for mobile SIM cards has been growing at a double-digit rate on the back of explosive growth in emerging markets such as, China and India. This development has boosted profits of smart card and chip vendors, freeing-up capital for the development of new technology, adds the research firm.
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