IT Security Contactless Smart Cards Banking Sector Market Research Report By Technology (Near Field Communication (NFC), Radio Frequency Identification (RFID), Biometric Sensors, Chip and Pin, Magnetic Stripe), By Application (Payment, Authentication, Data Storage, Loyalty Programs, Access Control), By Card Type (Contactless Debit Cards, Contactless Credit Cards, Prepaid Contactless Cards, Reloadable Contactless Cards, Hybrid Contactless Cards), By Security Protocol (ISO 14443, IEC 63000, ETSI TS 102 613, American Express Chip Specificatio

IT Security Contactless Smart Cards  Banking Sector Market Overview

As per MRFR analysis, the IT Security Contactless Smart Cards  Banking Sector Market Size was estimated at 244.65 (USD Billion) in 2022. The IT Security Contactless Smart Cards  Banking Sector Market Industry is expected to grow from 277.53(USD Billion) in 2023 to 863.43 (USD Billion) by 2032. The IT Security Contactless Smart Cards  Banking Sector Market CAGR (growth rate) is expected to be around 13.44% during the forecast period (2024 - 2032).

Key IT Security Contactless Smart Cards  Banking Sector Market Trends Highlighted

The growth of the Global IT Security’s contactless smart cards banking sector will witness a new surge due to the difficulties associated with fraud and identity theft. The sector is characterized by the rise in the number of users using mobile banking and contactless payment methods. In addition, the sector is driven by the government and industrial initiatives aimed at effective contactless smart card banking system. Trends in the industry are impacted by the application of new technologies such as biometric authentication, embedded phones with short move communication (NFC) and radiofrequency identification (RFID) since they enhance security and convenience. There is an increasing need to approach cybersecurity threats more seriously which in turn require strong authentication which is good news for contactless smart card providers. Besides that, the recommendation and acceptance of contactless smart cards in conjunction with mobile devices is opening up new opportunities for the growth of the market global smart cards. This allows the secure and trusted transactions all of which increase the size of the market.

IT Security Contactless Smart Cards

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

IT Security Contactless Smart Cards  Banking Sector Market Drivers

Increasing Adoption of Contactless Payments

Contactless payment mechanisms are becoming more prevalent, contributing to the growth of the IT Security Contactless Smart Cards  Banking Sector Market Industry. Contactless card payments provide a convenient and secure method to complete payments, and it is gaining acceptance with the people. With the Contactless card payment mechanism, the point of sale  are bound to increase around the globe. Furthermore, as contactless card technology becomes more widely known, people’s confidence in the technology would increase. Contactless card payments are more secure than magnetic stripe cards because they employ a unique token to validate the customer’s identity. The data of the cardholder is, as a result, more difficult for fraudsters to obtain. As a result, both the consumers and businesses are leaning towards contactless card payments and adopting them.

Growing Concerns Over Data Security

The increasing concerns over data security are also driving the growth of the IT Security Contactless Smart Cards  Banking Sector Market Industry. The growing number of data breaches and cyberattacks has made consumers more aware of the importance of protecting their personal and financial data. Contactless smart cards offer a higher level of security than traditional magnetic stripe cards, as they use a chip-based technology that is more difficult to hack. As a result, contactless smart cards are becoming increasingly popular among consumers who are concerned about data security.

Government Regulations

Government regulations are also contributing to the growth of the Market for Global IT security Contactless Smart Cards Banking Sector Markets Industry. Governments in several countries have implemented regulations that require businesses to use contactless payment methods. Contactless payment is more secure and safe, the method offers convenience to the consumers. There is, therefore, an increased adoption of the payment method in businesses, which in turn leads to the growth of the contactless smart card market.

IT Security Contactless Smart Cards  Banking Sector Market Segment Insights

IT Security Contactless Smart Cards  Banking Sector Market Technology Insights   

The technology segment is divided into Near Field Communication, Radio Frequency Identification, Biometric Sensors, Chips, and Pin and Magnetic Stripes. NFC technology allows contactless payments and data exchange over short distances. It is primarily used in banks for mobile payments, access control, and loyalty programs. The revenue of NFC technology is expected to reach USD 150 billion by the end of 2028. RFID technology makes use of radio frequency waves to identify and track objects. It finds applications such as payment devices, inventory and asset tracking. The RFID technology segment is divided into IT Security Contactless Smart Cards  Banking Sector Market segmentation and is expected to show a CAGR of 12.5% over the forecasted period. Biometric sensors use a person’s unique physical or behavioral characteristics of their identity. It is increasingly being used in sectors like banking for heightened security like fingerprint and facial recognition. Contactless smart cards are capable of acting instantly in case of loss of card and perform the transaction from its end, in order to provide secure and user-friendly payments.

Repute from the user’s point of view as a safe, quick and cost-effective payment option is anticipated to drive the demand for the product over the forecast period. The data of biometric sensors is expected to reach USD 50 billion in 2029. Chip and Pin technology refers to a plastic card that is embedded with a microchip and is authenticated using a personal identification number. The chip and pin technology is extensively used in the banking sector and the application is expected to contribute to the same trend in the future. The data of chip and pin technology is anticipated to reach USD 500billion by the end of 2032 and is expected to grow at a CAGR of 10.5% over the forecasted period.

Magnetic stripe technology refers to a plastic card that has a magnetic stripe. It is an age-old technology and is being replaced with newer technologies although it is still used in a few applications. The Magnetic stripe IT Security Contactless Smart Cards  Banking Sector Market Statistics is expected to show a decline over the forecast period. The growth of the contactless smart card market in the banking application is anticipated to be driven by the surge in data safety issues, quicker and hassle-free modes of payment and rising usage of mobile banking.

Contactless smart cards are used in a myriad of end-use sectors, especially retail, restaurants and commercial organizations, for crediting smartphones or wallets with more value. Such alternative modes of payment are surging in acceptance, where many financial and other relevant institutions are in favor of contactless payment cards. These help eradicate payment frauds, improve interchange rates and reduce the time required in transactions. NA and Europe have witnessed the surging popularity of contactless cards and are expected to hold significant shares of the market in the future. The Asia-Pacific region is also anticipated to exhibit ascending growth rates over the forecast period.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

IT Security Contactless Smart Cards  Banking Sector Market Application Insights   

Market By Application The Global IT Security The Contactless Smart Cards  Banking Sector Market is zanalyzed based on Consideration into five Applications: Payment Authentication, Data Storage, Loyalty Programs, and Access Control. The payment segment accounted for the promising market in the forecast period, as there is an increase in the demand for contactless payment solutions and with digitization and technological advancements, there is growth in the preference for digital payment. The authentication segment will also hold a prominent share in the market as there is a need for highly secured and user-friendly authentication methods.

Data Storage will also show significant growth as people are using it for storing confidential data, and these contactless smart cards help in saving financial information and personal identification numbers securely. Loyalty Programs will also boost the market growth, as the smart cards help in the proper management of the stored points and in redeeming the points. The access Control segment is also growing as these contactless smart cards are used for providing security and efficiently controlling access to physical spaces and to resources.

IT Security Contactless Smart Cards  Banking Sector Market Card Type Insights   

The Contactless Debit Cards segment held the largest market share in 2023, accounting for over 27% of the IT Security Contactless Smart Cards  Banking Sector Market revenue. The growth of this segment can be attributed to the increasing adoption of contactless payments in retail and other industries. Contactless Credit Cards are expected to witness the highest growth rate over the forecast period, due to the rising popularity of mobile payments and the increasing number of consumers using smartphones for financial transactions. Prepaid Contactless Cards are gaining popularity as they offer a convenient and secure way to make payments without the need for a bank account. Reloadable Contactless Cards are expected to grow at a steady pace, as they offer the flexibility of being reloaded multiple times. Hybrid Contactless Cards combine the features of both contactless and traditional cards, offering consumers the best of both worlds.

IT Security Contactless Smart Cards  Banking Sector Market Security Protocol Insights   

The IT Security Contactless Smart Cards  Banking Sector Market is segmented by Security Protocol into ISO 14443, IEC 63000, ETSI TS 102 613, American Express Chip Specification, and MasterCard Chip Specifications. Among these, ISO 14443 is expected to hold the largest market share in 2023 and is projected to continue its dominance throughout the forecast period. The increasing adoption of ISO 14443-compliant contactless smart cards in the banking sector is attributed to its high level of security, interoperability, and convenience. Additionally, the growing demand for mobile payments and the rise of e-commerce are further driving the growth of the ISO 14443 segment.

IT Security Contactless Smart Cards  Banking Sector Market Regional Insights   

The IT Security Contactless Smart Cards  Banking Sector Market is segmented into North America, Europe, APAC, South America, and MEA. North America is the largest regional market, accounting for approximately 38% of the global market in 2023. This is due to the early adoption of contactless smart cards in the region, as well as the presence of a large number of major banks and financial institutions. Europe is the second largest regional market, with a market share of approximately 32% in 2023. The market in Europe is expected to grow at a CAGR of 12.5% from 2024 to 2032, driven by the increasing adoption of contactless smart cards in the region.

The APAC region is the third largest regional market, with a market share of approximately 20% in 2023. The market in APAC is expected to grow at a CAGR of 14.2% from 2024 to 2032, driven by the increasing adoption of contactless smart cards in the region. The South America and MEA regions are the smallest regional markets, with market shares of approximately 6% and 4%, respectively, in 2023. These regions are expected to grow at CAGRs of 13.8% and 14.5%, respectively, from 2024 to 2032.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

IT Security Contactless Smart Cards  Banking Sector Market Key Players And Competitive Insights

Several companies within the IT Security Contactless Smart Cards  Banking Sector Market are making and launching products that contain advanced security features. These products will be developed in order to meet the high demand for safer and more secure payment cards with contactless features. The development steps will include multiple strategic partnerships, acquisitions, and collaborations with other companies that already make those security products. The IT Security Contactless Smart Cards  Banking Sector Market will see development with a large CAGR within the following five years. This development will be shaped by the high popularity of the contactless payment system. Moreover, the growth is affected by the customers’ increasing focus on their personal payment data’s security. Governments of various countries will also play a role in this situation by encouraging their citizens to switch to the digitized form of payment.

Gemalto is one of the key IT Security Contactless Smart Cards  Banking Sector Market leaders. The products that the company develops and releases on the market will be created through the well-known strategy – the company invests a great amount of money into research and development. As a result, its product, contactless payment cards, is popular among the large number of banks worldwide. Oberthur Technologies is also a key competitor and a key player in the IT Security Contactless Smart Cards  Banking Sector Market. The company operates in a vast number of countries and satisfies the needs of multiple clients. Its appeal to the customers extends due to the various solutions that the company is able to provide. With that, the quality of Oberthur Technologies’s products has also contributed to the large market share.

Key Companies in the IT Security Contactless Smart Cards  Banking Sector Market Include

• Morpho (Safran)


• Samsung Electronics


• Oberthur Technologies


• Infineon Technologies


• Apple


• Google


• NXP Semiconductors


• Amazon Web Services


• Microsoft


• Cisco Systems


• HID Global


• Gemalto


• Intel Security


• IBM


• Giesecke+Devrient

IT Security Contactless Smart Cards  Banking Sector Market Industry Developments

The IT Security Contactless Smart Cards  Banking Sector Market is anticipated to grow significantly from 2024 to 2032. In 2023, the market was valued at USD 277.53 billion and is projected to reach USD 863.43 billion by 2032, exhibiting a CAGR of 13.44% during the forecast period. This growth is attributed to the increasing adoption of contactless payment technologies, rising concerns over data security and fraud prevention, and government initiatives to promote digital payments. Moreover, the growing popularity of e-commerce and mobile banking is further driving the demand for IT Security Contactless Smart Cards  in the banking sector. Recent news developments include partnerships between major players in the industry to develop innovative solutions, such as the collaboration between Mastercard and Giesecke+Devrient to launch a new contactless smart card with enhanced security features.

IT Security Contactless Smart Cards Banking Sector Market Segmentation Insights

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  IT Security Contactless Smart Cards Banking Sector Market Technology Outlook

  
  
  
  
  • Near Field Communication (NFC)
  
  
  • Radio Frequency Identification (RFID)
  
  
  • Biometric Sensors
  
  
  • Chip and Pin
  
  
  • Magnetic Stripe
  
  
  
  


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  IT Security Contactless Smart Cards Banking Sector Market Application Outlook

  
  
  
  
  • Payment
  
  
  • Authentication
  
  
  • Data Storage
  
  
  • Loyalty Programs
  
  
  • Access Control
  
  
  
  


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  IT Security Contactless Smart Cards Banking Sector Market Card Type Outlook

  
  
  
  
  • Contactless Debit Cards
  
  
  • Contactless Credit Cards
  
  
  • Prepaid Contactless Cards
  
  
  • Reloadable Contactless Cards
  
  
  • Hybrid Contactless Cards
  
  
  
  


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  IT Security Contactless Smart Cards Banking Sector Market Security Protocol Outlook

  
  
  
  
  • ISO 14443
  
  
  • IEC 63000
  
  
  • ETSI TS 102 613
  
  
  • American Express Chip Specification
  
  
  • MasterCard Chip Specifications
  
  
  
  


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  IT Security Contactless Smart Cards Banking Sector Market Regional Outlook

  
  
  
  
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    North America

    
    
  
  
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    Europe

    
    
  
  
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    South America

    
    
  
  
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    Asia Pacific

    
    
  
  
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    Middle East and Africa