Chip card vendors need to embrace new technologies to beat the EMV market slump, according to a new report from ABI Research.
While the global transition to contactless payment cards will continue to bring in revenues, ABI Research reports that “[v]endors are already reporting reductions in US orders” as market becomes more saturated, and that, as Senior Analyst Phil Sealy puts it, “vendors like Oberthur Technologies, Gemalto, G&D, Infineon, NXP, and STMicroelectronics now wonder how big the U.S. dip will be”.
But new technologies offer new opportunities. Dynamic Card Verification Value, or dCVV, replaces the old three-digit verification numbers with changing values on a small screen embedded in the payment card, while biometric technology requires cardholders to scan their fingerprints via embedded sensors. Sealy says that these new card technologies “will open up the next wave of revenue growth opportunity within the payment cards market for secure IC and smart card vendors alike,” adding that companies “that already invested in these technologies are well positioned to maximize this next generation opportunity.”
The prediction echoes a recent forecast from Acuity Market Intelligence’s Maxine Most, who suggested that biometric authentication will be standard for payments by 2025, and should come as good news to companies like Mastercard, which has already been exploring biometric payment cards since 2014.
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August 5, 2016 – by Alex Perala
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