Contactless smart card market growth is expected to achieve a CAGR of 33.5% from 2013-2018 in the global contactless smart card market, according to a report released by research firm TechNavio.
Contactless smart cards, which currently make up about 17% of the revenue for the global smart card market, are mainly used for identification, authentication, data storage, and application processing.
TechNavio vice president Faisal Ghaus said that the major drivers for growth in this market are security related. Notably, the need to reduce identity theft and fraud and a push to develop tamper-resistant systems.
"The number of frauds and forgeries is increasing with enhancements in technology. As a result, there is an increased need for a difficult to imitate solution.
"Contactless smart cards help reduce imitation or duplication of identity as the data stored in them can be accessed only by using a code, which is difficult to decipher, as the information is stored in the parent system," Ghaus added.
He further explained that contactless smart cards are tamper-free as information stored in them can only be accessed with a pin code that is difficult to decode, which enhances the safety of card holders’ accounts, and offers improved security.