Session participants included senior executives from Gemalto, Oberthur, Sagem Orga, G&D, Infineon, NXP, Hypercom, Ingenico, Visa Inc. and MasterCard
Market macro trends
Credit is down, and will stay down
- Debit and prepaid is still growing
- Electronic payments will grow even though overall economic growth slows
- Price pressure is converting volume growth to reduced top-line (near-term)
- Reduced innovation dollars available
- Customers are downgrading the card capabilities (e.g., 64kb to 32kb)
- South Africa & Latin America showing growth
Government e-ID initiatives:
- An important distributor of cards
- Competition among government to be a 'model govt', thereby helping create frameworks around privacy, data protn, post-issuance downloads
- Govt is helping smart card industry as they engender high-level of trust among citizens/consumers. They are also helping educate consumers to bring about behavioral change
- In some cases, they are also loading other apps (for their own services) after the cards have been issued
- Early adopters are countries which have about 20-50 million citizens, which include Estonia, Singapore, Taiwan, Columbia, countries in the Middle-East...
- Brings about efficiency in the delivery of services by the government, as well as, increase in convenience and productivity for the citizens.
- Examples including US government issuing Visa prepaid cards in 38 states to distribute subsidies, Pakistan and Dominican Republic using prepaid cards to get subsidies to their citizens
- Adds another demographics group as smart card users: the Unbanked
- Nearly 30% of Kenya and Uganda are smart card users
- Meeting needs of the unbanked is adding nearly 1% to the GDPs of the above countries
Growth areas in the smart card industry:
- Government initiatives
- Move to EMV
- Unbanked initiatives in Africa, LatAm...
- Authentication
- Contactless deployments
- Migration away from mag-stripe cards (4 billion market opportunity)
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