The smart card market is expected to reach
USD 21.57 billion by 2023 from
USD 14.22 billion
in 2018, at a CAGR of 8.7% between 2018 and 2023. Use of smart cards in
the BFSI sector has also been rising, supported by the transition of
magnetic cards to EuroPay, MasterCard, and Visa (EMV) standard (chip and
PIN) cards. EMV standards mandate the use of smart cards such as
credit/debit/ATM and prepaid cards in financial transactions. The major
factors driving the growth of the smart card market include increasing
use of online payment methods enabling consumers to make secure and
reliable payments. In line with this, the use of contactless smart cards
has gained remarkable consideration as electronic payment methods are
rapidly replacing cash and carry operations. However, factors such as
initial costs associated with the deployment of contactless EPOS
terminals and increasing adoption of mobile wallets are restraining the
growth of the market.
The market for contactless smart
card is expected to grow at a high rate during the forecast period.The
BFSI sector is expected to witness a high adoption of contactless smart
cards in the coming years.
Further, the
transition of smart cards in the US to EMV standard is driving the
growth of the market for contactless smart cards. The market for
contactless smart cards has been subsegmented into microprocessors and
memory-based smart cards.
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