POWERED SMART CARD MARKET ANALYSIS

Market Challenges And Opportunities

Global Powered Smart Card Market - Drivers

Increased Demand for Secure Transactions

Powered smart cards, such as Europay, Mastercard, and Visa (EMV) cards, offer enhanced security features compared to traditional magnetic stripe cards. As financial transactions become more digital and electronic payment methods gain popularity, there is a growing demand for secure payment solutions, which boosts the adoption of powered smart cards. For instance, in 2021, governments around the world continued to push forward with digitalization initiatives, aiming to improve public services, and streamline administrative processes. As part of these initiatives, powered smart card solutions were adopted in various government programs and services, contributing to the demand for secure and reliable payment transactions.

For example, in certain countries, the government implemented powered smart cards for social welfare programs such as distributing financial aid and benefits to citizens. Powered smart cards facilitated secure and efficient disbursement of funds to eligible recipients, reducing the risk of fraudulent activities and ensuring that payments reached the intended beneficiaries reliably.

Growing Adoption of Contactless Technology

Contactless payment methods have gained momentum due to their convenience and speed. Powered smart cards with contactless capabilities (e.g., Near Field Communication (NFC)) enable users to make swift and hassle-free transactions, driving their popularity among consumers and businesses alike. For instance, Gemalto (now part of Thales Group), a world leader in digital security and identification solutions, has been at the forefront of providing secure contactless smart card solutions for various industries including finance, government, and healthcare.

Infineon Technologies AG is a leading semiconductor manufacturer that produces secure microcontrollers and chips used in powered smart cards, including contactless payment cards.

G+D is a global provider of secure technology solutions including powered smart cards with contactless capabilities for banking, government, and telecommunications applications.

Visa Inc., a prominent global payments technology company, has been actively promoting contactless payment solutions, including powered smart cards, to its network of card issuers and consumers worldwide.

Global Powered Smart Card Market- Restraints

High Implementation Costs

The initial cost of implementing powered smart card infrastructure, including upgrading POS terminals and issuing new cards, can be relatively high for businesses and financial institutions. This cost factor might have deterred some organizations from adopting powered smart card solutions, especially for smaller businesses with limited budgets.

Existing Infrastructure Compatibility

Transitioning to powered smart card technology required compatibility with existing payment infrastructure such as POS terminals and payment networks. For businesses and industries with legacy systems, integrating powered smart card solutions could present challenges and require additional investments in infrastructure upgrades.

Security Concerns

While powered smart cards are designed to be more secure than traditional magnetic stripe cards, no technology is entirely immune to security breaches. High-profile cyber-attacks and data breaches could create skepticism about the safety of using smart cards, potentially affecting their adoption.

• Increased Demand for Secure Transactions
• Growing Adoption of Contactless Technology

Global Powered Smart Card Market - Opportunities

Healthcare Applications

The healthcare sector presents significant opportunities for powered smart cards. Smart cards can be utilized for maintaining electronic health records, patient identification, and secure access to medical data. The adoption of powered smart cards in healthcare can enhance patient data security, streamline medical processes, implementation of Electronic Health Records (EHRs), and Electronic Medical Record (EMR) systems and improve patient care. Powered smart cards can securely store and carry patient health data such as medical history, allergies, prescriptions, and treatment plans. These cards enable healthcare professionals to access accurate and up-to-date patient information quickly, leading to improved diagnosis and more efficient treatment decisions.

Data Security Solutions

As cyber threats continue to evolve, the demand for robust data security solutions is increasing. Powered smart cards can provide secure data storage and encryption, making them suitable for applications that require safeguarding sensitive information. One of the primary drivers for data security solutions in the powered smart card market is the rising implementation of contactless payment systems. Contactless smart cards, enabled by Near Field Communication (NFC) technology, allow for quick and secure transactions. However, the widespread use of such payment methods also raises the risk of unauthorized access and data interception. As a result, there is a growing demand for data security solutions that can safeguard sensitive financial information and personal data transmitted between the card and the payment terminal.