Global Banking and Financial Smart Cards Market 2016-2020

Outlook of the global banking and financial smart cards market

Technavio’s market research analyst estimates the global banking and financial smart cards market to grow at a CAGR of almost 10% by 2020. The BFSI sector deals with critical data and information, therefore, it requires a highly secure authentication and verification technology that is least affected by security threats and bank forgery. The rising need for a high level of data and identity security in the banking and payment industry will aid in the growth of this market during the forecast period.

The strong need to reduce identity duplication will be the key driver for the growth of this market. Due to advances in technology, the number of fraudulent activities and forgeries are increasing. As a result, the cards and payments industry has undergone a digital transformation with the introduction of new payment methods such as EMV chips, personal identification number (PIN) cards, and mobile wallets. Since the data available in smart cards is difficult to decode, they will have a higher adoption rate in the BFSI sector.

Technological segmentation of the banking and financial smart cards market

• Contactless banking and financial smart cards
• Contact-based banking and financial smart cards

At present, the contact-based banking and financial smart cards segment dominates this market as it accounts for a market share of more than 79%. The verification technique involved in such cards is based on the traditional method that requires inserting the card into a card reader and requires physical contact for the transmission of commands, data, and card status through contact points.

Geographical segmentation of the banking and financial smart cards market

• APAC
• Europe
• Latin America
• North America
• MEA

The APAC region will be the largest market for banking and financial smart cards during the forecast period and will account for a market share of more than 44% by the end of 2020. In this region, recent developments in technology, such as e-commerce activities, are encouraging banks to issue smart cards in place of the traditional magnetic tape-based credit and debit cards. This trend of replacing the traditional magnetic tape-based credit and debit cards with smart cards will aid in the growth of this market in APAC during the forecast period.

Competitive landscape and key vendors

The global banking and financial smart cards market is fragmented with the presence of many small regional vendors and large multinational vendors. During the forecast period, established banking and financial smart cards vendors are likely to acquire smaller vendors to expand their product portfolio and boost their market shares.

Leading vendors in the market are -

• Gemalto
• Giesecke & Devrient
• Morpho
• Oberthur Technologies

Other prominent vendors are American Express, ARM, Bell ID, CardLogix, DataCard, HID Global, Infineon Technologies, MasterCard, Smart Card IT Solutions, and Visa.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global banking and financial smart cards market?
• What are the key market trends impacting the growth of the global banking and financial smart cards market?
• What are the challenges to market growth?
• Who are the key vendors in the global banking and financial smart cards market?
• What are the market opportunities and threats faced by the vendors in the global banking and financial smart cards market?
• Trending factors influencing the market shares of APAC, Europe, Latin America, North America, and MEA.
• What are the key outcomes of the five forces analysis of the banking and financial smart cards market?

Technavio also offers customization on reports based on specific client requirement.

Related reports

• Smart Card Market in Europe 2015-2019
• Global Contactless Smart Card Market 2015-2019
• Smart Card Market in Latin America 2015-2019