Market Trends of Asia Pacific Smart Card Industry
This section covers the major market trends shaping the APAC Smart Card Market according to our research experts:
BFSI Sector will Hold Significant Share in Smart Card Deployment Across Asia Pacific
- Smart card usage in BFSI has several advantages, including personal data protection and secure transactions. Smart cards are also employed in the BFSI sector as credit or debit cards, payment authentication cards, and access control cards. It can be used as an electronic wallet by putting funds into the smart card, which can then be transferred using cryptographic protocols to a vending machine or an account.
- Furthermore, as technology progresses, the number of fraudulent operations has risen. As a result, the card and payments sector has undergone a digital transition, with new payment methods, including EMV chips, PIN cards, and mobile wallets, being introduced. Smart cards are gaining traction in the BFSI sector, owing to the difficulty decoding the data stored on them.
- For instance, in January 2021, StashFin, a Singapore-based neo banking start-up, teamed with SBM Bank India to develop a contactless prepaid card powered by VISA and equipped with an EMV chip that provides greater safety and security. The alliance aims to close the credit gap in India by giving underbanked individuals simple access to credit using smart cards.
- Biometric contactless smart cards will likely gain popularity in the BFSI industry over the forecast period, with various financial institutions recognizing the trend. Furthermore, because critical financial operations are at the heart of a business, security is always a top priority. IDEMIA, for example, is advancing the evolution of smart cards by utilizing biometric technologies.
- Similarly, in February 2021, ICICI Bank announced the 'Namma Chennai Smart Card' launch in collaboration with Greater Chennai Corporation and Chennai Smart City Limited. This Rupay-powered co-branded contactless prepaid card at GCC centers would enable various digital payments such as tax and utility bills. The prepaid card can also be used to make retail payments in Chennai, India, and in retail outlets and e-commerce websites around the country.
Understand The Key Trends Shaping This Market
Download Sample
China will Dominate Smart Card Growth in Asia Pacific
- China was one of the first countries to phase out checks in favor of contactless payments, which led to the developing of digital cards across Asia. The country has implemented smart cards in various industries, including transportation. Since the Chinese government has encouraged industry consolidation to control the industry and improve competitiveness in the global market, rapid consolidation between medium-sized and big businesses is expected.
- In addition, numerous Chinese banks are working on digital yuan hard wallets, and the People's Bank of China has indicated that clients will be able to hold digital currency in both physical and digital wallets. The People's Bank of China (PBOC) has expanded its central bank digital currency (CBDC) trial to include a contactless "hard wallet" and NFC wearables that allow customers to use their digital yuan to pay for goods and services in stores and on public transportation.
- For instance, China Construction Bank stated in June 2021 that it would be testing a biometric 'hard wallet' smart card that would allow clients to store digital yuan and confirm payments made using the central bank's digital currency using their fingerprint. Advanced fingerprint recognition and authentication are used to secure the card's stored value.
- In addition, IDEX Biometrics ASA stated in November 2021 that China UnionPay had approved the latest biometric smart card from its solution partner Hengbao Corporation Ltd for certification (CUP). The new card, which uses IDEX Biometrics' sensor and biometric software solution, passed all China's Bank Card Test Center's requirements (BCTC). This smart card will all be possible with multi-use applications, secure global payments, and additional capabilities such as access control and personal identification.
Get Analysis on Important Geographic Markets
Download Sample
