Market Trend: Shift from Physical Smart Cards to Software & Services

September 18, 2014 by

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New analysis from Frost & Sullivan revealed that while the physical smart card market will see a steady growth, its long term growth potential is very limited.

In its “2014 Global Smart Card Forecaster” report, Frost & Sullivan reported that from the €5.37 billion revenue in 2013, the global smart card revenue will reach €7.16 billion in 2019.

Compliance to the Europay, MasterCard and Visa (EMV) standard will drive the global smart card market’s steady growth, this according to the report.

By 2015, Frost & Sullivan reported that multiple financial institutions in the U.S. will be EMV-compliant; while financial institutions in Asia-Pacific, Middle East and Africa will follow suit.

While the global smart card market will experience steady growth, the long term growth potential is, however, limited.

As the physical smart card market will offer limited growth potential, the “2014 Global Smart Card Forecaster” report pointed out that it is essential for smart card vendors to shift their core business from physical smart cards to software and services.

Jean-Noel Georges, Information & Communication Technologies Global Program Director of Frost & Sullivan, said in a statement, “In addition to the shift to EMV, financial institutions across the globe will migrate to contactless cards, opening up new opportunities for the smart card industry.”

Georges pointed out that Europe and China will lead in the deployment of contactless technologies.

 

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