Global Biometric Card Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Global Biometric Card Market was valued at USD 8. 75 million in 2020, and it is expected to reach USD 1,691. 81 million by 2026, registering a CAGR of 155. 45% from 2021 to 2026. Key Highlights

New York, Jan. 06, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Global Biometric Card Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06195716/?utm_source=GNW
Biometric cards are a form of identification that analyses and recognizes individuals based on their physical and behavioral traits. These include fingerprints, eye retina, iris scanning, facial patterns, voice recognition, and body movement. Biometric cards also comprise smart cards with various security features, such as an optical strip or barcode, a holographic security image, and an embedded chip.
Biometric ID cards apply to several different solutions, especially for companies and individuals that require greater security. Moreover, companies in highly competitive fields may choose biometric cards as an added security against illegal duplication and theft. Advanced ID Cards serve government sectors, research institutions, and some universities and schools.
The market is witnessing many partnerships and collaborations with various companies in the biometric card ecosystem engaging in partnerships to develop and launch these cards in the market. For instance, in September 2021, Zwipe, a biometric payment card component provider, announced a partnership agreement with Realtime. The partnership aims at providing enhanced experience and security to the users of Realtime’s Decentralized Finance (DEFI) Ecosystem-based on the former company’s Pay ONE platform. Following the agreement, Realtime will issue biometric payment cards based on Zwipe Pay ONE to customers in Japan, India, Mexico, Brazil, and Europe beginning 2022.
The financial service industry was evolving at a significant pace even prior to the COVID-19 pandemic. This growth was driven by changing customer expectations, new entrants’ growing competition, technological advancements, and evolving regulations.
However, the pandemic outbreak significantly impacted customer behavior, thereby significantly increasing the adoption of digital and contactless payments. For instance, in May 2020, VISA announced that over 13 million Visa cardholders in Latin American and Caribbean markets transacted for the first time during the initial three months of 2020 as in the last 15 months.

Key Market Trends

Payments segment to show significant growth

Biometric technology is gaining ground in the financial services sector as a secure and convenient alternative to passwords and PINs. This technology is increasingly being considered to have the potential of making the consumers’ lives more manageable and providing them more significant choices to confirm their identity.
With a fingerprint sensor on the card body itself, paying with an EMV card is more effortless than ever before. Transactions, both in contact mode and in contactless mode, can be done with a simple touch, without the need to enter a PIN code on the Point-of-Sales (POS) Terminal. Another major benefit of using biometric payment is that it removes the cap or limit on contactless payment transactions. The users are authenticated securely with their fingerprints and can enjoy the convenience of contactless for any amount.
Besides, no upgrade is required on the POS terminals for the functioning of these cards, as the biometrics check is directly performed on the EMV biometric card and nowhere else?.
The ??fingerprint data captured by the biometric sensor is securely stored in the secure chip of the card. Also, this data is not stored on the bank’s servers nor sent over the air to a personalization bureau. Therefore, the very rigorous and privacy-friendly enrollment process is critical for the success of fingerprint payments.
Additionally, these cards can also be used with PIN code as a fallback solution in cases when the cardholder’s fingerprint can not be used, such as ATM cash withdrawals.
According to Fingerprint Cards AB, around 6 billion payment devices are expected to be shipped every year by 2026. Also, almost all these devices are anticipated to be contactless. Moreover, the company depicts the potential Total Addressable Market (TAM) to be around 3 billion units per year for biometric sensor modules and software in the payment domain.

Asia Pacific to exhibit the highest growth rate

Biometric payment cards are a way to the future in the region, and there is a robust market for payment cards in the fast-paced Asia-Pacific region, even in the face of rising smartphone use. Various market vendors are currently working to integrate biometric technology and will have a truly disruptive offering that will allow to significantly expand the banking customer base in the region and integrate it with various end-users.
On the other hand, the increasing demand for biometric authentication systems across various end-users, including retail, gaming, banking, and financial sector, and hospitals, is significantly influencing the growth of the market across the country. For instance, in collaboration with IDEX Biometrics, the China Construction Bank (CCB) has agreed to use biometric cards in its digital renminbi experiments. The NFC-enabled biometric smart card will enable users to use digital currency without the need for a smartphone. These biometric cards will function as digital hard wallets for participants in the Chinese digital currency trial, known as DCEP. Fingerprint sensors and biometric software will safeguard these smart cards.
Similarly, in July 2021, Fingerprint Cards and MoriX, a Japanese-based electronics company, collaborated to develop and launch biometric payment cards in Japan. According to the company, the card will have the Fingerprints T-Shape module, which has ultra-low power consumption and is designed to be integrated into payment cards by using standard automated manufacturing methods. Furthermore, the company stated an increasing desire for card transactions among Japanese consumers, who seek touchless, secure, and frictionless payment methods.
The region made significant partnerships with various market vendors. For instance, in October 2020, IDEX Biometrics collaborated with Shanghai Fudan Microelectronics Group Co. Ltd to integrate IDEX’s biometric solution with Fudan Microelectronics’ latest generation Secure Element, which is aimed at multiple market segments. Fudan Microelectronics creates secure elements and solutions that assist payment, medical insurance, transportation, ID, and emerging digital currency standards and has dispatched over 10 billion ASICS.

Competitive Landscape

The market is seeing an intense rivalry among prominent vendors, who are increasingly expanding their business capabilities. The companies are engaging in partnerships with the technology providers to develop and launch advanced products in the market. As such, huge investments are being witnessed in the market, which is increasing the competition.

October 2021 - Thales Group announced a partnership with Jordan Kuwait Bank (JKB) to introduce a biometric payment card in the Middle East. The new card will be provided to the Mastercard World Elite customers of the bank. Besides, it will be the first commercially available biometric card for payments in the region.
December 2020 - IDEMIA signed an agreement to improve contactless payment security with Rocker, a blue-chip Swedish FinTech and bank challenger. The F.CODE payment card uses a user-friendly biometric authentication procedure, which makes transactions faster, sanitary, and secure by eliminating the need for cardholders to enter a PIN or sign, reducing touch points in public places.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06195716/?utm_source=GNW

About Reportlinker
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.

__________________________

CONTACT: Clare: clare@reportlinker.com US: (339)-368-6001 Intl: +1 339-368-6001