BY: CHARLES ABUEDE
The total revenue from global payment card shipment for technology companies has been projected to rise 20 percent to $11.7 billion in 2026 after the value reaches $9.7 billion in 2022.
A recent report by Juniper Research projects that the rise by 20 percent in 4 years reflects new innovations emerging in the payment cards space while the contactless cards roll-outs reach its latter stage.
Juniper Research, a provider of research and analytical services to the global hi-tech communications sector, which made available in its report titled, ‘Payment Card Technologies: Segment Analysis, Vendor Strategies & Market Forecasts 2022-2026,’ predicted that the introduction of biometric cards, metal cards and dynamic CVV (Card Verification Value) cards as being majorly disruptive trends over the next 5 years.
It said these new card types all have the same aim to make cards fit for the new, digital-first payments ecosystem. The research found that these new card types will help evolve the payment experience for the digital age, increasing security and usability; making card usage more appealing in the face of increasing mobile-first payment innovations.
Damla Sat, co-author of the research, explained that “Banks and card issuers need to differentiate themselves in order to retain relevance in the digital payments era – adding value to their services by using new card types can add significant value and reduce churn with existing relationships.”
The research report further projects that metal cards will account for over $4.4 billion in hardware revenue for technology providers globally in 2026, from the $1.2 billion it projects to be realised in 2022. Juniper also identified the premium appearance of metal cards as highly appealing as a differentiator; driving their future growth.
Also weighing on the strong potential of biometrics cards, the research found that the use of biometric cards featuring embedded fingerprint sensors will grow significantly, with shipments expected to increase by almost 850 percent over the next five years to 173 million in 2026 globally.
It said these cards will facilitate card payments to better compete with mobile payments, including Apple Pay and Google Pay, and also, eventually allow payment cards to have no transaction limits as it recognises this development as critical in getting rid of the barriers to the growth for contactless payments.