Albany, NY -- (SBWIRE) -- 08/23/2017 -- The scope and advantages of using smart cards in the current banking and finance industry are massive. The primary aim of implementing smart card technologies, especially in developed economies, is the introduction of stronger security measures against the growing counts of data theft. The retail and BFSI industries have shown a high demand for smart cards as a feasible security measure.
The implementation of smart cards can also help introduce multiple cost saving techniques for vendors and the companies that handle the transactions, such as Europay, MasterCard, and Visa. This in turn helps the above companies and similar ones to improve their market penetration and visibility. This flows in conjunction to the rapidly growing number of smartphone users in the world and the presence of a high number of retail apps.
Future opportunities for smart card players will lie in the use of high-end SIMs in cohesion with LTE providers as well as NFC-enabled devices. Players will need to rapidly adopt smart card oriented software and services into their core business strategies to maintain and improve revenue generation.
Through these factors, the global smart cards market is expected to progress at a CAGR of 7.4% from 2016 to 2023 in terms of revenue. This market is expected to reach a value of US$8.5 bn by the end of 2016 and US$14.1 bn by 2023.
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Latin America held the second-lowest share in both revenue and volume in 2014. However, according to the Smart Card Alliance Organization, Latin America currently shows over 70% of market penetration by smart card solutions and services. Most of the LATAM smart card implementations are being done in Brazil, Mexico, and Argentina. These countries therefore show top potential in the use and growth of smart card solutions, making this region highly attractive for global players, especially in contact-based smart cards.
Asia Pacific contains Australia, South Korea, Hong Kong, and Japan are the top locations for global and regional smart card solutions providers. Meanwhile, India and China, although currently in a nascent stage of smart card implementation, are showing high potential for market penetration due to rapid economic growth and a high population density. Most of the current applications of smart cards in APAC are aimed at the sectors of retail, loyalty, and financial. By the end of 2023, it is expected for smart cards services to perforate into low-end applications, government transactions, and transportation transactions.
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Dual-interface and contactless smart cards are expected to take over as the mainstay in all smart card utilities in the near future. Contactless smart cards already hold a high rate of use in major parts of the financial services sector. These smart cards make use of microcontrollers due to the higher level of security and reliability that these components can offer. While multiple countries and finance organizations begin the adoption of smart cards, the superior qualities provided by dual-interface cards and contactless cards are being recognized by major financial bodies, further promoting the implementation of microcontroller-based smart cards.
Key players involved in smart card services and technologies include Gemalto NV, Giesecke & Devrient (G&D) GmbH, Infineon Technologies AG, and NXP Semiconductors.