LONDON--(BUSINESS WIRE)-- The installed base of smart card applications which combines government ID and payments solutions is forecast to increase from 569 million in 2013 to 2 billion in 2019, penetrating 26.9% of the total worldwide population. It is the extension of functionality, convenience, access to e-government services, ability to improve upon social, and welfare distribution alongside wider financial inclusion projects which is driving convergence into the mainstream.
Of the 569 million converged credentials currently in circulation 95% reside in China and Malaysia which are deploying a social security/welfare and payments card and MyKad card respectively. The remainder is currently made up predominantly by pilots shipping into Nigeria, Russia, and Brazil.
It has been the wider adoption of internationally recognized payment standards, such as EMV that has paved the way for more flexible converged applications. EMV penetration is well past the technology tipping point in terms of both cards in circulation and infrastructure. The established nature of EMV has presented governments with a platform which has very little limitations. These benefits will likely result in greater uptake and usage over previously attempted closed loop solutions and help break down interoperability barriers which continue to hamper the government ID market.
Senior analyst Phil Sealy comments; “All the major smart card vendors, Gemalto, Oberthur Technologies, Morpho, and G&D are gearing up to serve converged markets. These vendors are well positioned, with e-government solutions already in place, a host of specifications and standards from which each can leverage, and online solutions, providing multiple platforms to enable access to converged solutions through multiple channels. Competing in a converged market will likely be a more crowded playing field, requiring multiple partnerships and/or consortiums to bring products to market. Those smart card vendors active at the top end of secure credential manufacturers want to be a part of this market trend, strategically positioning themselves now to become future of choice.”
These findings are part of ABI Research’s “Government ID and Payment Convergence: Multi-application Analysis” and found in the Government & Healthcare ID Technologies (https://www.abiresearch.com/market-research/service/government-healthcare-id-technologies/) and Payment and Banking Cards & Contactless Technologies (https://www.abiresearch.com/market-research/service/payment-and-banking-card-contactless-technologies/) Market Research.
ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.
Christine Gallen, +44-203-326-0142
Source: ABI Research