Online payments have seen substantial growth globally as a result of the expanding use of e-commerce services and cashless transactions. Online payment volume has expanded, and so have the security dangers associated with it. Smart cards support end-user industries like banking, telecommunication, healthcare, transportation, and governments by enhancing security, reducing fraud, and enabling the usage of value-added services.
With a projected CAGR of 8.6%, the smart card market is expected to reach US$ 20,041.7 Mn. The study calibrates and monitors the smart card sector in order to estimate market revenue. The use of the Internet has expanded as a result of the growing demand for online banking, shopping, and access to e-Government services, which has been made possible by smartphones and laptops.
However, multicurrency payment methods and increasing threat of data thefts/hackers/viruses are some of the major challenges that hamper the growth of the smart cards market. The main issue occurs with embedded chips because all data and passwords are stored in them. Another method of hindering the data on embedded chips is by heating these chips at a high temperature or exposing them to UV light. This helps remove their security lock. In this manner, any person can steal the data of a cardholder, which is a significant concern.
Nowadays, consumers are more focused on using different types of cards, i.e. contact and contactless smart cards. Contact smart cards offer one-touch payment options to consumers, whereas contactless smart cards communicate through NFC or radio-like cell phones. Contactless smart cards are more secure and advanced than contact smart cards. Contactless smart cards consists of small sophisticated computer-type chips located inside the card, which delivers high-level security to protect identity, privacy, and the financial information of consumers.
