Rising applications of smart cards in various fields, including security, payment and ticketing, is expected to spur a 33% growth rate in contactless cards over the next three years, according to a report from a research firm based in India.
In its “Smart Card Market Forecast to 2012,” RNCOS notes that the contactless smart card industry will be least affected by the current global economic crisis.
Factors such as EMV compliance, enhanced security features and ease of use with minimal human intervention will continue to fuel growth in contactless adoption, the report says. Increasing usage of Internet or payment terminals such as ATMs or point of sale systems will also boost contactless adoption as it offers secure and fast transactions.
However, the future of smart card market depends to a large extent on its compatibility with existing systems. Smooth integration of smart cards with the existing legacy systems makes it a cost saving and effective security tool, which will boost the application of smart card market in near term.
The report breaks the global smart card industry into three areas of the world: the Americas, Europe Middle East and Africa and Asia Pacific.