Research Overview
This Frost & Sullivan research service titled World Contactless Smart Cards Market provides an in-depth analysis of the global smart card trends, technologies, and forecasts for the contactless market in the government ID, mass transit, banking, and access control applications. It provides an overview of the world contactless smart card revenues and unit shipment in these applications, along with an analysis of key market drivers, restraints, and trends impacting the contactless smart cards market. Quantitative data is segmented into government ID, mass transit, banking, and access control applications.
Market Sectors
Expert Frost & Sullivan analysts thoroughly examine the following market sector in this research service:
- World contactless smart cards
- Technologies
The following technology is covered in this research:
Market Overview
Contactless Smart Card Uptake on the Rise with Increasing Adoption across a Range of Applications
The technology of contactless smart cards is steadily gaining popularity due to the secure and convenient benefits it is able to provide in a range of government, mass transit, and payment applications. Currently, the Asia Pacific market reflects the highest proportion in unit shipments of these cards. Government applications, particularly e-passports, are driving large rollouts, encouraged by the United States Visa Waiver Program mandate. Furthermore, heightened international awareness about security threats in airports is pushing the need for more secure and sophisticated travel documents such as the International Civil Aviation Organization (ICAO)-compliant chip-based documents.
"In addition, contactless cards provide the convenience of PIN-less payments for low-value and micro payments," say the analysts of this research service. "This feature is fast gaining popularity as it offers consumers the ease of using their cards not only at conventional retail outlets, but also at vending machines." With the increasing number of global retail chains and merchants agreeing to accept contactless payment, end users are realizing the benefits of owning such smart cards, subsequently boosting this market.
Promotion of Consumer Awareness to Allay Fears of Security Concerns
Despite the growing acceptance, the contactless smart cards market is considerably challenged by user anxiety regarding security caused by the confusion between radio frequency identification (RFID) tags and contactless smart cards. This is especially obvious in applications such as mass transit and access control where both technologies are used. "Therefore, it is critical to educate the market and reinforce the fact that contactless smart card technology is sufficiently sophisticated to perform cryptographic, tamper resistant, and data protection functions to secure transactions in payment, health, and identification," say the analysts. "Standardization among different e-purse and contactless payment schemes is also likely to help reduce confusion among card holders."
In addition, the contactless payment technology is providing new business opportunities for mobile operators on the look out for additional sources of income. Liberalization of telecom services and the wide prevalence of handsets encourage mobile and financial operators to work together to integrate contactless payment schemes with the existing mobile phone subscriptions, increasing opportunities for branding, differentiation, and operational efficiencies.
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