The research firm estimates that globally one billion payment cards with contactless capabilities will be shipped in 2016.
Phil Sealy, research analyst for autoID and smart cards, said: â€œThere is quite a buzz around contactless payment capabilities. There is a higher level of convenience for cardholders, with quicker transaction speeds and a reduction in time spent queuing. Giving banks the ability to add another payment application to their portfolios, the emergence of contactless technology is augmenting the overall trend from cash-based to cashless societies.
â€œThe entire banking population worldwide is increasing. As countries become developed, the demand for banking services increases. For the banks, the primary reason for EMV migration is that EMV provides a higher level of security over mag-stripe cards. â€œAs such, card-based fraud is more prevalent in countries with the weakest security protocols.â€
The research firm anticipates that smart card shipments will overtake mag-stripe card shipments by 2015.
Although smart card growth is expected to accelerate rapidly, mag-stripe cards are not disappearing any time soon.
â€œMag-stripe cards still have a strong hold in the payment card market, and will still account for 50 percent of all cards in circulation in 2016,â€ says Sealy.
China is expected to become a prospective market for smart card for conversion of payment cards to smart card. The country currently has 2.3 billion payment cards in circulation.
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