Global Biometric Cards Market – Growth, Trends, Impact of COVID-19 and Forecast (2022)

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Global Biometric Cards Market was valued at USD 15.55 Million in 2021 and is projected to reach USD 2,701. 17 million by 2027, registering a CAGR of 117.76% during the forecast period (2022-2027). Growing demand for biometric authentication systems among various end users including banking, retail, gaming, and security is expected to support the growth of the market studied over the forecast period.

New York, Aug. 04, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the publication of the report “Global Biometric Card Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2027)” – https://www.reportlinker.com/p06195716/?utm_source=GNW

Highlights
Biometric cards combine embedded chip technology with biometric authentication technologies such as fingerprint, eye retina, iris scan, facial pattern, voice recognition, etc., to verify the identity of the card holder for shopping in store. Biometric cards also include smart cards with various security features, such as optical stripe or barcode, holographic security image, and embedded chip.
Biometric cards are forms of identification that analyze and recognize individuals based on their physical and behavioral characteristics. These include fingerprints, eye retina, iris scan, facial patterns, voice recognition and body movements. Biometric cards also include smart cards with various security features, such as optical stripe or barcode, holographic security image, and embedded chip.
A smart card is an identity card that uses biometric scanning to identify an individual. Smart cards are available in several forms, but the most common and popular are those with a processor with internal memory or those that work with a memory chip. The cards are connected by direct physical contact with a scanner or a remote electromagnetic interface. Cards can store large amounts of data, encrypt and digitally sign it, and connect that information to a remote, contactless system like an electromagnetic card reader. By using this technology, biometric cards offer more security than traditional contactless payment methods. When processing the transaction, the card compares the user’s fingerprint on the scanner with the reference data stored in the card’s secure chip before authorizing the payment. No personal data is stored on a bank’s servers or sent to the centralized database. So, in the event of theft, customers won’t have to worry about fraudulent activity on their accounts. It adds an extra layer of protection and ensures that user account details are kept safe. This additional protection by biometric cards has no payment threshold, allowing its consumers to make high or low value transactions.
Biometric identity cards apply to several solutions, especially for companies and individuals requiring greater security. Moreover, companies in highly competitive fields can choose biometric cards as an additional security against illegal duplication and theft. Advanced ID cards serve government sectors, research institutes, and some universities and schools.
The technology required for biometric authentication in cards involves a higher expense than the technology used in payment cards currently in use. Although consumers are willing to pay a small fee for a more secure payment card, the current cost of the biometric card, which is expected to be around $20 per card, is limiting user adoption.
The COVID-19 pandemic has been a catalyst when it comes to contactless payments. Following the pandemic, the technology sector has developed contactless solutions, indirectly resulting in higher levels of transactions processed without a second authentication factor. With no payment limit, biometric payment cards meet the need for all contactless transactions while addressing security concerns.

Main market trends

The payments segment will show significant growth

– Biometric technology is gaining ground in financial services as a secure and convenient alternative to passwords and PIN codes. This technology is increasingly seen as having the potential to make consumers’ lives more manageable and provide them with more meaningful choices to confirm their identity.

– According to Fingerprint Cards AB, approximately 6 billion payment devices are expected to ship every year by 2026. In addition, almost all of these devices are expected to be contactless. Additionally, the company describes the total addressable market (TAM) potential of around 3 billion units per year for biometric sensor modules and software in the payment area.

– Given the potential that the payment sector represents for the growth of the studied market, publishers are increasingly focusing on the launch of new products and collaborating to facilitate the commercialization of biometric cards. For example, in April 2022, IDEX Biometrics ASA announced its collaboration with E-Kart, one of Europe’s leading card manufacturers, to market biometric payment solutions in Eastern Europe.

– Similarly, in April 2022, Fingerprint Cards AB, a global biometrics company, announced that its technology would be used in at least two new commercial launches of biometric payment cards in Morocco. These trends are expected to support the growth of the market studied over the forecast period.

Asia-Pacific will show the highest growth rate

– Biometric payment cards are a way of the future in the region, and there is a robust market for payment cards in the rapidly evolving Asia-Pacific region, even in the face of growing smartphone usage. According to the People’s Bank of China, the total number of bank cards in China will increase to 9,247 million in 2021 from 8,954 million in 2020.

– Similarly, according to the Japan Consumer Credit Association, the number of credit cards issued in Japan stood at 295.31 million in March 2021. This is an increase of approximately 0.8% compared to the previous year.

– Various vendors in the market are currently working on the integration of biometric technology. They will have a truly disruptive offering that will significantly expand the banking customer base in the region and integrate it with various end users. For example, in June 2021, IDEX Biometrics ASA, a leading provider of advanced fingerprint identification and authentication solutions, announced that the China Construction Bank (CCB) had extended some trials of “digital renminbi to include issuance of smart cards secured by IDEX Biometrics fingerprint sensors and biometric software.

– Similarly, in July 2021, Zwipe, a biometric fintech company, announced its collaboration with international card payment processor and card personalization bureau ICPS to bring Zwipe Pay ONE compatible biometric payment cards to banks from Asia and Africa.

Competitive landscape

The global biometric card market is witnessing intense competition among major vendors who are increasingly expanding their business capabilities. As such, huge investments are seen in the market, increasing the competition. The market is marked by several high-profile players who are actively working to increase their customer base and consequently increase their market share. Therefore, the degree of competition is considered high in the market. Some of the major players operating in the market include Zwipe AS, Thales Group, IDEX Biometrics, and STMicroelectronics, among others.

– June 2022 – Zwipe and Fidor Bank announced plans to pilot biometric payment cards in Germany in the second half of 2022. The Zwipe Pay technology platform will power this. The launch of biometric cards is part of Fidor’s strategy to offer its consumers access to digital banking and payment services in the most secure way possible.

– May 2022 – Fingerprint Cards AB and Mswipe, an independent mobile POS acquirer and network provider, announced their collaboration to bring biometric debit and credit cards to India. According to the company, the partnership will include the T-Shape module and Fingerprints software platform.

Additional benefits:

The Market Estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06195716/?utm_source=GNW

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