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Technavio Announces Top Five Emerging Trends Impacting the Global Transit Cards Market Through 2020Technavio's latest report on the global transit cards market provides an analysis on the most important trends expected to impact the market outlook from 2016-2020. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline. Amrita Choudhury, a lead analyst from Technavio, specializing in research on automatic identification systems, says, "The transition from paper-based ticketing to transit cards has enhanced the ticketing system and these cards are gaining prominence in the transportation industry in developed countries. The transportation sector is integrating smart card technology into fare collection systems because of the many benefits it offers in terms of convenience, efficiency and also enhanced security." The top five emerging trends driving the global transit cards market according to Technavio ICT research analysts are:
Introduction of hybrid smart cards Hybrid smart cards have a dual-interface (a combination of contactless and contact interfaces) on a single card. They have shared storage and processing of information, eliminating the need for multiple cards. Hybrid smart card authentication requires smart card middleware, a smart card, a smart card reader, and a smart card PIN. It is easy to use because the data and information is consolidated in one smart card. The emergence of hybrid cards will support the adoption of smart cards by the transportation sector. Increase in adoption of e-passports The need for passport authentication is growing with the increase in cross-border travel. In addition, the increasing cases of terrorism are leading to an ncrease in the demand for chip-embedded passports (i.e., e-passports). E-passports are embedded with smart chips that generate a unique code for the identification of a user. These codes are difficult to decode or forge, making e-passports more reliable than the traditional paper passports. The increased adoption of e-passports is thus driving the growth of the market. Emergence of contactless smart cards in transportation sector Contactless cards are convenient and easy to use compared to contact-based cards. The transportation sector is increasingly deploying contactless e-ticket cards to improve security in billing and payment processes. Contactless smart cards are becoming the preferred choice for the transportation sector because they enable fast identity and fare payment transactions allowing high passenger throughput in less time at border crossings. The card does not have to be inserted, swiped, or scanned by the reader. France, Russia, Brazil, Indonesia, Poland, Malaysia, South Africa, and Canada are likely to see increased adoption of contactless smart cards during the forecast period. Introduction of multi-application smart cards With advances in technology, a number of vendors are offering multi-application smart cards. These cards are a combination of contactless and contact interfaces on a single card. Multi-application smart cards eliminate the need to carry multiple cards for different applications because they have shared storage and information processing. Blue from American Express (News - Alert) is a smart card that provides additional security while shopping online and booking tickets. Santander Universities has provided multi-application smart cards to students for multiple applications such as secure access to computers, transit ticketing, parking access, and electronic purses. Increased adoption of contactless smart cards in developing countries Government organizations in developing countries are increasingly adopting contactless and contact-based smart cards for identity verification and authentication. Contactless smart cards are widely used in India for driving licenses, ID cards, e-passports, vehicle document smart cards, and voter IDs. Gemalto (News - Alert) is organizing training sessions for its customers to help them understand the importance of contactless smart cards. "The adoption of contactless smart cards will increase in the government, healthcare, transportation, and defense sectors in developing countries such as Brazil during the forecast period," says Amrita. Browse Related Reports:
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