In a bid to better understand its market, the Smart Payment Association has completed its first internal market monitoring study, revealing specific trends of the payment smart cards market.
The report found that more than 340 million payment cards, complying largely with the EMV standard, were shipped in 2006. It also revealed that there was a dramatic increase of the share of dynamic data authentication within EMV cards, which more than doubled, representing more than 27% of all EMV cards shipped in the final quarter of 2006.
Furthermore, open platform cards, which are based on Java Card and Multos, account for almost 10% of the global shipments. Moreover, 12% of the cards shipped have their data storage capability enabled at issuance for value-added applications. In order to standardize data storage, last year, the Smart Payments Association released a joint industry specification addressing cross-vendor interoperability for contactless data storage.
The results of the first global payment cards market monitoring show a clear trend: the move of financial institutions towards higher value-added and more secure cards, said Jerome Ajdenbaum, president of the Smart Payment Association. The dramatic acceleration of the conversion of static data authentication to more secure dynamic data authentication EMV cards and the growing share of cards enabled with data storage capability are the most concrete signs of this trend.