Global chip card market trends will be primarily driven by ongoing advances in blockchain and biometric technology along with increased focus towards smart city development. Smart city initiatives are enabling private and public organizations to design smart connected solutions to efficiently manage operations and optimize available resources.
Growing initiatives towards smart city development have led to increased demand for digital payments in sectors including government, transportation and retail, among others, creating massive demand for chip cards.
Described below are few notable trends propelling global chip card market outlook over 2019-2025.
Alarming number of financial frauds is fueling the demand for safe, secure, convenient and personalized payment solutions. Integration of biometric technology along with a contactless interface and microprocessor into chip cards will eliminate the need for PINs, ensuring secure transactions via fingerprint authentication.
Global chip card industry size will witness unprecedented growth over the coming years as these products provide enhanced security for banks, card issuers, merchants and consumers and act as an additional layer of cybersecurity protection.
Several companies in the chip card market are focused on developing more secure and reliable authentication payment methods and have run successful trials of fingerprint biometric authentication systems in countries including the U.S., UK, Mexico, Japan, France and South Africa, creating enormous opportunities for market players.
For instance, Mastercard has been collaborating with several cities around the world to develop a digital economy. The company recently deployed its own Transit Solution Initiative in London, Sydney and Vancouver. The solution enables residents to make use of their existing EMV and tap-enabled chip cards to pay for travel.
Transport for London (TFL), designed by Mastercard in collaboration with Cubic Transportation Systems, enables travelers to pay commute fares by simply tapping their contactless-enables chip card or mobile device. Initiatives such as this will certainly bolster chip card market forecast.
With smart applications rapidly gaining popularity worldwide, the healthcare industry is embracing the technology to reduce costs related to labor and administration. Chip cards are widely being used to store patient information such as biometric data, photos and PINs along with previous medical records. It makes use of digital signature authorization to facilitate safe storage of patient data and prevent information theft.
Several countries including France, Germany, India, China, Japan, and the U.S. have incorporated the technology to minimize healthcare costs. Increasing adoption of chip card-based e-health networks that enhance the quality of patient care and improvise communication between patients and doctors is anticipated to complement chip card industry size.
France chip card market size is anticipated to exhibit robust growth over the projected timeframe owing to increasing adoption in the banking & financial industry. French digital payment sector is rapidly advancing and its domestic payment network, Groupement Cartes Bancaires, has played a key role in managing the emergence of digital payments technology.
While the country continues to adopt chip cards, the payment industry remains fixated to the use of PINs to prevent thefts and online frauds. Addition of an extra layer of security through biometric systems and digital signature authentication is expected to stimulate the adoption of contactless chip cards in the banking industry, fostering chip card industry growth in the region.