B2B Payments

Dual-Use Payment/ID Cards On The Rise

Worldwide, the use of convergent smart card programs is one the rise, according to new research from ABI.  Convergent smart cards allow businesses or governments to combine a series of different use-types under a single card or device.  An increasingly popular application of this technology is the combined government ID-paycard model.

According to API’s research,  the use of such cards is forecasted to increase from 569 million last year to 2 billion by 2019, penetrating over a quarter of the total worldwide population.  Leading users of duel ID/paycard technology today are China and Malaysia, which collectively hold 95 percent of converged credentials currently in circulation.   The remaining 5 percent are tied up in pilot programs in Russia, Brazil and Nigeria.

“All the major smart card vendors, Gemalto, Oberthur Technologies, Morpho, and G&D are gearing up to serve converged markets. These vendors are well positioned, with e-government solutions already in place, a host of specifications and standards from which each can leverage, and online solutions, providing multiple platforms to enable access to converged solutions through multiple channels. Competing in a converged market will likely be a more crowded playing field, requiring multiple partnerships and/or consortiums to bring products to market,” noted ABI senior analyst Phil Sealy. “Those smart card vendors active at the top end of secure credential manufacturers want to be a part of this market trend, strategically positioning themselves now to become future of choice.”

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