LONDON, Aug. 4, 2016 /PRNewswire/ -- The Chinese and U.S.
EMV (Europay-Mastercard-Visa) payment cards markets are experiencing double-digit year-on-year growth, responsible for more than
50% of 2.8 billion EMV cards shipped worldwide. But as the migration phase for these market regions comes to a close, the
industry will soon experience a ripple effect driven by a flattening market in China and a dip
in U.S. shipments due to overstocking. ABI Research finds the proliferating negative discussions among industry players to
be over exaggerated and suggests vendors focus on new card form factors and emerging regions to drive future growth.
Logo - http://photos.prnewswire.com/prnh/20151014/276887LOGO
"Smart card and secure IC vendors like Oberthur Technologies, Gemalto, G&D, Infineon, NXP, and STMicroelectronics now
wonder how big the U.S. dip will be and its overall impact on worldwide shipments," says Phil
Sealy, Senior Analyst at ABI Research. "There remains a real risk that the 2016 dip will extend into 2017 as EMV issuance
stabilities, stock levels deplete, and a natural card replacement cycle based on a three-year expiry rate comes into play."
Vendors are already reporting reductions in U.S. orders, and the CPI Card Group adjusted its 2016 earnings expectations
downward. Though unit volume growth will slow, the continued transition toward contactless payment cards with higher associated
average selling prices (ASPs) will help boost revenues. And India will be a good, emerging
growth market, as it recently sets its own EMV mandate.
But established and saturated regions need to look at new biometric and Dynamic Card Verification Value (dCVV) card
technologies to drive future revenue growth. The new form factors capitalize on consumer safety and will gain momentum as the
focus turns to enhancing physical to CNP (card-not-present) fraud.
Biometric cards featuring integrated sensors that identify their card holders will provide an additional strong authentication
method for physical payments. Display cards with dCVV and/or one-time password (OTP) functionalities will replace the static
three-digit card verification code currently located on the rear of debit and credit cards with a small display screen that
changes the card holder's unique card verification code every few minutes.
"The new card models will open up the next wave of revenue growth opportunity within the payment cards market for secure IC
and smart card vendors alike," concludes Sealy. "Those that already invested in these technologies are well positioned to
maximize this next generation opportunity."
These findings are from ABI Research's Payment & Banking Card Technologies (https://www.abiresearch.com/market-research/product/1022844-payment-banking-card-technologies/) and Payment &
Banking Card Secure IC Technologies (https://www.abiresearch.com/market-research/product/1022839-payment-banking-card-secure-ic-technologie/). The
reports are part of the company's Digital Security sector (https://www.abiresearch.com/market-research/practice/digital-security/), which includes research, data, and
analyst insights.
About ABI Research
ABI Research stands at the forefront of technology market research, providing business leaders with comprehensive research and
consulting services to help them implement informed, transformative technology decisions. Founded more than 25 years ago, the
company's global team of senior and long-tenured analysts delivers deep market data forecasts, analyses, and teardown services.
ABI Research is an industry pioneer, proactively uncovering ground-breaking business cycles and publishing research 18 to 36
months in advance of other organizations. For more information, visit www.abiresearch.com.