The growing adoption of digital payments and digital identification solutions is anticipated to open up the new avenue for Biometric Card Market

The growing adoption of digital payments and digital identification solutions is anticipated to open up the new avenue for Biometric Card Market

Market Overview:
Biometric cards offer high-level security by utilizing fingerprint, face, iris or voice recognition biometrics to authenticate users during payment transactions. They can prevent identity theft and fraudulent activities. Banking institutions are increasingly adopting biometric cards as they offer convenient payment experience to customers along with advanced security compared to traditional payment cards. The key uses of biometric cards include payment authentication at point-of-sale terminals, online transactions, access control and ATM withdrawals.

Market Dynamics:
The growing demand for contactless and secure payment solutions is a major driver for the biometric card market. Consumers are looking for payment options that offer speed, convenience and high security. Biometric authentication mechanisms in payment cards fulfill these requirements which is spurring their adoption. Furthermore, growing instances of financial frauds involving payment cards have encouraged governments and banks to integrate advanced security features like biometrics in payment instruments. For example, the ongoing COVID-19 pandemic has accelerated the shift towards contactless payments and given a push to biometric card adoption. Another driver is the increasing digitization of governments for issuance of digital ID cards with biometrics. This is expected to provide opportunities for biometric card providers.
Segment Analysis
The biometric card market can be segmented into contact cards and contactless cards. Contactless cards dominate the market as they provide convenience to users by enabling tapping or waving over a reader for identification instead of inserting the card into the reader. This avoids direct contact and makes transactions faster.

PEST Analysis
Political: Governments across regions are promoting the adoption of biometric identification systems for e-governance initiatives to curb identity theft risks. This is driving the demand for biometric cards.
Economic: The rising spending on digital identity verification solutions by public and private organizations to prevent fraud ispositively impacting the biometric card market growth.
Social: Increasing digitization and growing concerns regarding security of financial transactions are compelling users to adopt advanced biometric identification cards for safety.
Technological: Integration of advanced fingerprint sensors,capacitive touchscreens and chipsets in biometric cards to provide robust authentication is boosting the market.

Key Takeaways
The global Biometric Card Market Demand is expected to witness high growth, exhibiting CAGR of 77% over the forecast period, due to increasing incidents of financial fraud and identity thefts. The market size is projected to reach US$ 867.43 Bn by 2030 from US$ 48.88 Mn in 2023.

The Asia Pacific region is expected to dominate the biometric card market during the forecast period. This is attributed to large population, increasing digitization and rising cybercrime in countries like India and China that is triggering heavy deployments of biometric identification systems.

Key players operating in the biometric card market are Shanghai Fudan Microelectronics Group Co. Ltd., Zwipe AS, Samsung’s 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. Top players are focused on developing sophisticated biometric sensors and secure authentication algorithms to stay ahead in the competitive market.

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https://www.marketwebjournal.com/biometric-card-market-is-estimated-to-witness-high-growth/