|
|
Home > Computers and Information Technology > IT Administration & Services > Smart Cards
RFID versus Contactless Smart Cards
|
| Published Date:
June 2007
Published By:
Frost & Sullivan
Page Count:
26
Order Code:
R1-5859
|
|
|
|
The Frost & Sullivan research service titled RFID vs Contactless Smart Cards examines the similarities and differences between the two technologies in terms of their applications and key features. It looks at the key and emerging applications in both technologies in Asia Pacific today, and highlights some of the comparable features between the two technologies. It seeks to clear the misconceptions about their functions and capabilities.
Prevailing Confusion over Similarities and Differences between RFID and Contactless Smart Card Technology
The use of contactless devices for transactions has become increasingly popular over the past few years, leading to contactless smart cards and radio frequency identification (RFID) gaining greater market presence. When security and privacy concerns were raised about the use of contactless smart card technology in e-passports, travel documents, and contactless payments, it showed that the market still lacked a clear understanding of what smart card technology is able to do in terms of security and processing. This concern is further aggravated by the fact that there is much confusion in the market over the similarities and differences between RFID and contactless smart card technology. Hence, there is an immediate need to crystallize the market’s understanding of the differences between RFID and contactless smart card so that better informed decisions can be made and suitable applications be employed for each technology. This will also help boost the growth of the two technologies.
Contactless smart cards do not require direct contact with the reader and hence provide convenience, durability, and speed. Additionally, they are typically more secure than RFID cards as they are equipped with the ability to perform encryption and authentication processes with the reader. Contactless cards have become popular in a several key applications such as mass transit, government transactions, banking, and access control. Additionally, trials are also underway to convert the SIM, used in mobile communication networks, into contactless cards so that mobile phones and personal digital assistants (PDAs) can be used for contactless smart card transactions.
Supply Chain Remains Key Application Area for RFID
On the other hand, RFID was created with the intention of tracking goods and items, with the aim of holding less sensitive information on the tags. One key advantage RFID has over bar code is that it negates the need for line-of-sight scanning. Additionally, RFID scanning can be done at much greater distance of more than 90 feet. Supply chain remains a key application area for the technology today. Warehouse management, product inventory tracking, store shelf management, and container tracking are among the activities where RFID is able to help in the management of supply chain and logistics. Wal-Mart’s mandate to its suppliers worldwide to migrate to RFID technology is likely to further lend to the growth of RFID. "Among the more developed applications, supply chain management and areas where bar codes currently preside, hold the most obvious applications," notes Michelle Foong, Industry Analyst of this research service. "It is the fastest growing segment in the Asia Pacific region and is likely to gain more prominence in the future."
Market estimates put the number of contactless smart card unit shipments in the Asia Pacific region at approximately 230 million cards in 2006. Government ID took up the highest proportion of the units shipped, over 45 percent, followed mass transit which contributed more than 40 percent of the shipments. "Of the key application areas for contactless cards, the contactless payments segment is expected to grow the fastest until 2010 in the Asia Pacific region," says Foong. "For RFID, supply chain, access control and mass transit applications are expected to be the major contributors to overall revenues."
|
Similar Products
• Financial Cards in Turkey
Published May 2008 by Euromonitor International
• NFC-Enabled Phones and Contactless Smart Cards 2008-2018
Published May 2008 by IDTechEx Ltd
• Strategic Assessment Of The Asia Pacific Smart Card Markets Outlook
Published Apr 2008 by Frost & Sullivan
• Strategic Assessment of Key Comparisons among the various Biometric Identification Methods in the Asia Pacific Markets
Published Apr 2008 by Frost & Sullivan
• World Auto ID and Security in Financial Services - Investment Analysis
Published Mar 2008 by Frost & Sullivan
• Global Smart Card Market Outlook
Published Feb 2008 by RNCOS
• Online E-Commerce Nonbank Wallet Payment Alternatives: Bankers' Friends or Foes?
Published Dec 2007 by TowerGroup
• World Smart Card Markets
Published Dec 2007 by Frost & Sullivan
• Smart Cards: Global Market Forecast Model
Published Nov 2007 by Datamonitor
• Smart Cards: Global Market Forecast Model (Interactive Model)
Published Nov 2007 by Datamonitor
|
|
|
|
0 items
