Market Trends of Middle East Smart Card Industry
This section covers the major market trends shaping the Middle-East Smart Card Market according to our research experts:
Growing Deployment in Personal Identification and Travel Identity is Expected to Boost the Market Growth
- Smart cards offer numerous advantages to commuters, including reduced traveling time and improved service efficiency. They also facilitate governments and transport services to collect commuters' travel data quickly.
- In April 2022, The General Department of Security Relations and Media at the Kuwaiti Ministry of Interior stated that the Ports Security Sector announced, based on coordination with the Ministry of Foreign Affairs, that citizens of Kuwait and citizens of the GCC countries are allowed to travel to and from the GCC countries using the smart national identity card. The ministry clarified that citizens could travel to and from the Cooperation Council for the Arab Gulf States countries utilizing the smart national identity card, as it was before the COVID-19 pandemic, after verifying the entry requirements for the countries to which they want to travel.
- In December 2021, The Public Authority for Civil Information PACI announced the launch of a new Civil ID card for residents under Article 20 (Domestic employment).PACI informed that, unlike the current card, the new card contains a smart chip.
- Also, smart cards are rapidly being adopted in the personal identification segment. The UAE's Federal Authority for Identity, Citizenship, Customs, and Port Security plays a vital job in the nation. Set up in 2004, one of its duties is managing identity, employment, and other biographical data for the country's population. The Emirates ID is a fundamental part of UAE life, used as proof of residency and even as a health insurance card. Soon, it would be used as a travel document, too. This year, as the population exceeds 10 million, the authorities of UAE are implementing a major update to the card, announcing that from April 1, 2022, it will serve as a replacement for visa stickers inserted into foreign residents' passports. The move is another step toward simplifying how residents interact with the government.
- As people, goods, and money become more mobile, keeping track of crime and fraud is harder. Perhaps the most notable security change to identity documents in recent years has been biometric data, including facial recognition, fingerprints, and eye scanners, a technology endorsed heavily by the International Civil Aviation Organization. In the UAE, such records are stored in encrypted formats for added security. Other physical changes to official documents include complex holograms, intaglio printing (images that can only be seen at particular angles), sophisticated edge design on the ends of pages, watermarks, and crucially polycarbonate materials, which are far harder to tamper with and replicate than paper.
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The BFSI Sector is Anticipated to Witness a High Market Growth Rate
- The demand for data and information interchange has increased as information and communication technology (ICT) has progressed. Complex data security concerns arise, particularly in the banking and finance sectors. To combat these concerns, an effective and appropriate solution is required, which banking and financial smart cards give-this major driver driving the global banking and financial smart card market forward. Due to stringent government laws, the banking and financial sectors have imposed rigorous limits on the usage of banking and financial smart cards.
- For instance, in April 2022, Mastercard's aspirational card in Morocco, the first corporate biometric payment card, and an accelerated service acquisition procedure for Idemiaservices to enable fintech and neobanksmove ahead are among the newest biometric payment card announcements. Meanwhile, Idemiaand Thales compete for a significant contract to digitize banking from the Egyptian government.
- One of the primary driving factors in the growth of the Banking and Financial Smart Card market is the increase in the frequency and complexity of data security threats. With the increased frequency and complexity of data security threats such as unencrypted data, new technology without security, third-party services, hacking, and unsecured mobile banking, the need for implementing a data security solution that ensures that the user's data and assets are well protected is growing.
- Furthermore, in February 2021, First Abu Dhabi Bank (FAB) signed a five-year strategic collaboration agreement with Mastercard for corporate cards and payment services. The two companies want to work together to make B2B payments easier, safer, and more accessible for businesses in the country. Clients of the banking institution will have access to Mastercard's corporate cards and payment platforms, as well as a variety of product perks for firms and employees.
- With the advent of new payment mechanisms such as EMV chips, personal identification number (PIN) cards, and mobile wallets, the card industry has experienced a digital transition. With the increased use of these methods, there is a pressing need to limit fraudulent actions such as identity duplication, necessitating the development of a solution that reduces security concerns. The data stored on smart cards is difficult to decipher and can only be accessed with a PIN code that is exceedingly tough to decode, making transactions more secure and counterfeiting more difficult, propelling the market to significant expansion over the forecast period.
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