Fingerprint Recognition Segment is the largest segment driving the...

Fingerprint Recognition Segment is the largest segment driving the growth of Biometric Card Market

Posted 2023-11-27 11:57:25

Market Overview:
Biometric cards store the biometric data of an individual onto a chip that is implanted on a smart card or SIM card. The biometric data helps in verifying the identity and authenticating financial transactions of an individual. Biometric cards provide higher security compared to traditional debit and credit cards that use PIN numbers which can be lost or stolen.

Market key trends:
One of the key trends in the biometric card market is the growing adoption of contactless payments. Contactless payments allow customers to wave their card or other devices like smartphones near a payment terminal to make transactions. This removes the need to insert or swipe a traditional payment card. Major card brands and retailers are promoting contactless payments for their convenience and speed. Biometric cards can be easily used for contactless payments after verifying the identity of the user via fingerprint or other biometric modalities. This is driving several banks and financial institutions to issue biometric payment cards to their customers.

The Biometric Card Market Demand is witnessing increased adoption driven by rising demand for contactless and secure payment solutions. Biometric smart cards which store digitized biometric identifiers like fingerprints provide convenience of not carrying physical identification documents while also maintaining a high level of security. Advancements in contactless Near Field Communication (NFC) technology integration in biometric smart cards is enabling tap and pay functionality at retail stores and other outlets without the need for chip and pin authorization. The growing popularity of digital wallets and online payments on mobile devices have raised awareness around biometric authentication thereby propelling the biometric card market growth over the coming years.

SWOT Analysis:
Strength: Biometric authentication provides enhanced security over traditional usernames and passwords. Fingerprint, face or iris biometrics are difficult to replicate or share.
Weakness: Biometric devices and systems have high setup and integration costs which can hinder adoption among small merchants. Additional technologies like NFC also raise the costs.
Opportunity: Growing e-commerce and m-commerce sectors offer major opportunities for deploying biometric payment cards. Developing regions with expanding digital payment infrastructure also present growth avenues.
Threats: Privacy concerns around storage of biometric data can limit market growth potential. Technological challenges around spoof detection and false acceptance rates also pose threats.

Key Takeaways:
The global Biometric Card Market is expected to witness high growth, exhibiting CAGR of 77% over the forecast period, due to increasing adoption of digital payment technologies. The market size for 2023 is estimated to be US$ 48.88 Mn.
North America represents the largest as well as fastest growing regional market for biometric cards driven by strong government focus on digital ID systems and presence of key technology players.
Asia Pacific is also expected to offer lucrative opportunities with countries like India and China implementing largescale digital ID programs and mobile payment solutions.
Key players operating in the biometric card market are Shanghai Fudan Microelectronics Group Co. Ltd., Zwipe AS, Samsungâ€TMs System LSI Business, Thales Group, Ethernom Inc., IDEX Biometrics ASA, Visa Inc., Goldpac Fintech, Mastercard Incorporated, Fingerprint Cards AB, ST Microelectronics NV, Seshaasai Business Forms (P) Ltd., and IDEMIA Group.