EMV (Europay, MasterCard and Visa) is a payment technology for smart payment cards such as debit or credit card at POS (Point Of Sale) or ATM (Automated Tellar Machines). Contactless EMV cards are used to make payments without any physical contact with a machine. Contactless EMV cards work on RFID (Radio Frequency Identification) technology. Other than contactless EMV cards other means of contactless payments are NFC (Near Field Communication) phones, jewellery & rings, wristband and smart watches among others. In contactless payment market EMV cards is expected to hold the major share.
Payment through contactless EMV cards are fast, easy and secure for users. Cost of paper ticket or ‘smart’ ticket represents a substantial portion of cost of sale, while cash handling is an issue. After initial infrastructure for contactless payment is outlaid its operation cost is lower than traditional payment methods lowering transport operators cost in the log run. All these factors are leading to rise in demand for contactless EMV cards among card users and transportation authority in various countries. In U.K., leading bus operators have committed to make all buses contactless by 2022 and the U.K. rail industry intends to remove paper ticket by 2025.
Increasing government initiative to adopt contactless EMV cards payment which aims to reduce the overall transportation cost is expected to create growth opportunity for the market during the forecasted period
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Global contactless EMV card can be segmented based on type, end-use industry and geography. The market when segmented by type are RFID contactless EMV cards, RFIC (Radio Frequency Integrated Circuit) Contactless EMV cards, RFCPU Contactless EMV cards. By market when segmented by end-use industry are healthcare, government IDs (e-passport), retail sector, transport sector and other end-use industries.
By geography the market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa and South America. North America is expected to be a prominent contactless EMV cards market in the world. The U.S. is expected to be the dominant market in the region followed by Canada and Mexico. Europe has one of the highest adoption of contactless EMV payments and is one of the major markets in the world. The U.K. is expected to be the leading market for contactless EMV cards payment in Europe. Other major markets for contactless EMV cards in Europe are expected to be Germany, France, Italy and Spain.
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In 2014 contactless payment was first introduced in underground rail services in London, the U.K when an agreement was reached between the U.K. Card Association and Transport of London in 2013. Currently the U.K. as a whole is expected to develop Contactless Transit Framework for different transportation types for the U.K. Thus contactless payment market is anticipated to have a high growth rate during the forecasted period. In Eastern Europe contactless EMV cards payment is also expected to have a high growth rate in Czech Republic, Poland, Hungary and Slovakia.
Asia-Pacific is expected to be a significant contactless EMV cards market in the world. Australia is expected to be a leading player in contactless EMV Cards market in Asia Pacific region. Other major markets for contactless EMV cards in Asia-Pacific region expected to have high adoption of contactless payments are Singapore, Taiwan, Japan, South Korea, China and India. Middle East & Africa is expected to be a significant contactless EMV cards market lead by Saudi Arabia, UAE, Turkey, South Africa and others. South America is another significant contactless EMV cards market which includes Brazil and Argentina.
The major players operating in the market are Gemalto N.V., NXP Semiconductors, Infineon Technologies, Giesecke & Devrient, Oberthur Technologies, ABCorp (American Banknote Corporation), Safran, Beijing Watchdata Co. Ltd, American Express, CardLogix among others.