EVM Card Market: A boon to Cashless Economy

EVM Card Market size was valued at USD 15.08 Bn. in 2023 and the total EVM Card revenue is expected to grow at a CAGR of 4.2% from 2024 to 2030, reaching nearly USD 20.12 Bn.

EMV is a global payment industry specification named for the organizations that jointly created it--Europay, MasterCard, and Visa. The EMV specifications address the secure interoperability between chip-based payment applications and payment terminals. EMV (Euro pay Mastercard and Visa) cards are smart cards, also called chip cards, integrated circuit cards, or IC cards, which store their data on integrated circuit chips, in addition to magnetic stripes for backward compatibility. These include cards that must be physically inserted or "dipped" into a reader, as well as contactless cards that can be read over a short distance using near-field communication technology. Payment cards that comply with the EMV standard are often called chip and PIN or chip and signature cards, depending on the authentication methods employed by the card issuer, such as a personal identification number (PIN) or digital signature.

EMV cards are widely utilized in applications such as credit cards and other forms of payment cards, corporate and government identity cards, and transit fare payment cards that need quick, secure transactions while protecting personal information. EMV smart cards are used as documents on occasion, such as electronic passports and visas. As a result, the increased demand for EMV/ smart cards is expected to increase the EMV card market growth during the forecast period.To know about the Research Methodology :- Request Free Sample Report
EVM Card Market Dynamics:
Increasing government initiatives to promote the cashless economy

A cashless economy is one in which there is no cash movement within an economy and all transactions are conducted via electronic media channels. Transparency, precision, and accountability are enhanced through digital transactions. It leads to the freedom to transact whenever and wherever the individual desires. As a result, governments all around the world are using ICT to promote cashless economies. Various attempts are being undertaken by governments to modernize the payment process.

The Indian government, for instance, has implemented a variety of initiatives to encourage cashless economies. Digital India, the debut of the Unified Payments Interface (UPI), and the 14444 helpline number all serve as accelerators in the transition to a cashless economy. These activities serve to promote digitalization and raise awareness about the benefits of utilizing a new technology. In addition, the government has introduced the Bharat Interface for Money (BHIM) App to encourage cashless transactions.

Other governments, including Singapore and Australia, have introduced a wide range of digital payment programs. The Monetary Authority of Singapore (MAS) has recommended consumers and companies adopt digital financial services and e-payments, and limit visits to Financial Institutions' premises, in response to the COVID-19 pandemic and to achieve heightened safe distancing measures (Fls). As a result, such government initiatives are expected to drive the EVM card market growth during the forecast period.

High infrastructure costs, along with security and data theft concerns

EVM cards have attracted a significant amount of interest among customers in recent years, because of the benefits they provide. However, the EVM card’s high cost is expected to be the major restraining factor for the EVM card market during the forecast period. Setting up EVM cards for access control and other applications requires a significant initial capital investment. Readers for EVM cards are required to read encryptions and get information in order to allow physical or logical access.

The deployment of these readers incurs extra expenditures. Smart card readers range in price from USD 50 to USD 300 on average. Smart cards range in price from USD 2 to USD 10. The usage of high-capacity processors with extremely advanced capabilities raises the cost of the cards. As a result, equipping employees with multipurpose EVM cards is expected to necessitate higher initial investments than traditional cards.
Blockchain enables a new type of information security for consumers.

Blockchain is a revolutionary innovation that enables businesses to develop rapid and safe 

implementations that fulfill stringent security requirements. EVM cards can maintain cryptographic keys efficiently and securely, enabling efficient and secure transactions in blockchain applications. They serve as vaults for the storage of cryptographic keys. When EVM cards are connected to the Internet via POS scanners, the keys contained in them may be compared to keys in online libraries. Users are authenticated if the match is successful. This is expected to attract more customers and other ecosystem stakeholder’s better safeguard and validate user identities, minimizing instances of cyber theft and offering lucrative growth opportunities for the EVM card market.
EVM Card Market Segment Analysis:
By Type, the Debit Card segment dominated the global EVM card market with a market share of 62% in 2023 and is expected to grow at a CAGR of 4.7% during the forecast period. As a banking product, debit cards have gained in popularity over recent years, with more and more consumers swiping. In India, the total number of debit cards in circulation as on November 2017 was 731,332,595 and this grew to 805,522,146 as on August 2018, thereby registering about 109% growth. Consequent growth in rupee value was 2,492,721.70 Mn (November 2017), as against 2,759,761.00 Mn (August 2018), which is a jump of 109.67%. Thanks to the advantages given by the debit card services, the segment is expected to witness significant growth during the forecast period.By Interface, the Contactless segment held the largest market share of 55% and dominated the global EVM card in 2023. The segment is expected to maintain its dominance by holding a market share of 59% by 2030. A contactless smart card has an integrated smart card secure microcontroller or comparable intelligence, internal memory, and a tiny antenna; it connects with devices through a contactless radio frequency (RF) interface. Radio-frequency identification (RFID) or near-field communication (NFC) communication technologies are generally utilized for contactless smart card applications.

COVID-19 is having a positive influence on the contactless smart card industry since the World Health Organization (WHO) and governments across the world are supporting the utilization of contactless smart cards for a variety of applications in order to ensure social distance and control the transmission of the virus. Users benefit from the simplicity, speed, and convenience provided by contactless smart cards. The contactless interface has become extremely important in the present COVID-19 context, particularly for payment applications, because it enables safe and secure transactions without physical contact.

By Application, the BSFI segment held the largest market share of the global EVM card market at 36.45% in 2023 and is expected to maintain its dominance by 2029. The adoption of EVM cards in BFSI provides a variety of benefits, including personal data security and secure data transfers. Thus, the segment is expected to witness a significant growth rate during the forecast period. Additionally, in the BFSI sector, EVM cards are used for payment as credit or debit cards, access control cards, and authentication cards. They may be used as electronic wallets by putting monies into the EVM card, which can then be transferred to a vending machine or an account using cryptographic protocols. For a long time, the banking sector has seen the benefits of magnetic stripe card technology and has transitioned to memory chips or microprocessors on card technology.
EVM Card Market Regional Insights:
The North American region dominated the global EVM card market with the highest market share in terms of both value and volume in 2023. The region is expected to grow at a CAGR of 4.5% and maintain its dominance by end of the forecast period. The high demand for Contactless cards in the United States is expected to be the primary growth driver for the region thanks to the convenience of magnetic stripe transactions with no signature required, minimal incremental spending, and modest merchant uptake.

United States Debit Card Circulation Key Findings:

85% of U.S. adults have at least one debit card (across all age groups, income brackets, and education levels).

57% of total payments in 2023 were made with credit cards and debit cards.

In 2020, consumers made the majority of their payments with debit cards, followed by credit cards and cash.

Almost half of Americans had a Visa credit card in 2020.

Visa accounted for about half of the purchase volume on credit cards in 2020.

The Asia-Pacific region is expected to grow at a significant growth rate during the forecast period and offer lucrative growth opportunities for the market players. The robust banking industry that is being increasingly digitized, as well as government agencies implementing smart chip-based systems for better process monitoring, are driving APAC countries to adopt smart card solutions due to increased demand, particularly in the transportation, BFSI, retail, government, and healthcare sectors. In some APAC countries, smart cards are used to pay for tickets for metros, buses, and ferries, among other modes of transportation. Additionally, security concerns, particularly in the public realm, are expected to drive the EVM card market growth in APAC.

China is expected to grow at the highest CAGR of 4.15% during the forecast period. The availability of a significant customer base and a number of smart card manufacturers in the country is expected to be the key growth factor for the market. Smart cards, when properly deployed in all industries, have shown to be extremely useful in combatting theft and fraud. Additionally, government initiatives like India's Aadhar card are expected to raise demand for EVM cards for usage in a wide range of industries.

The European market is expected to grow at a moderate growth rate during the forecast period. High demand for EVM cards due to increasing digitalization, increasing adoption across multiple sectors, etc. is expected to increase the European EVM card market revenue growth. The South American, Middle East, and African market is expected to witness a slow growth rate during the forecast period. The increasing popularity, increasing tourism, etc. are some of the factors that are expected to increase EMV card awareness in the region during the forecast period.
EVM Card Market Scope: Inquiry Before Buying



Global EVM Card Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 15.08 Bn.


Forecast Period 2024 to 2030 CAGR:
4.2%
Market Size in 2030:
US $ 20.12 Bn.


 Segments Covered:
by Type
Debit Card
Credit Card


by Brand
Euro pay
Visa
MasterCard
Other


by Interface
Contact
Contactless
Dual


by Functionality
Transaction
Communication
Security & Access Control


by Application
BFSI
IT & Telecommunication
Government
Food & Groceries
Health & Pharmacy
Restaurants & Bars
Consumer Electronics
Shopping Malls & Retail
Media & Entertainment
Travel & Tourism
Others



EVM Card Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria, Turkey, Russia and Rest of Europe)
Asia Pacific (China, India, Japan, South Korea, Australia, ASEAN and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina, Columbia and Rest of South America)
EVM Card Market, Key Players are
1. American Express
2. CardLogix Corporation
3. CPI Card Group Inc.
4. Equinox Payments
5. Giesecke + Devrient GmBH
6. HID Global Corporation
7. IDEMIA, Infineon Technologies AG
8. JPMorgan Chase & Co.
9. NCR Corporation
10. Perfect Plastic Printing
11. Samsung
12. Thales
13. VeriFone
14. Versatile Card Technology Pvt. Ltd.
15. Mastercard
16. Visa Inc.
17. ABCorp
18. CPI Card Group
19. Gem alto
20. Giesecke & Devrient
21. Morpho (Safran)
22. Oberthur Technologies
23. Versatile Card Technology Ingenico
24. PAX Technology
25. SZZT Technology
26. ATOS World line
27. Cyber Net
28. Equinox
29. Fiserv Inc.
30. Keycorp
31. NCR
32. Spire Payments
33. Hengbao
34. Watch data systems Co. Ltd
35. Gold Pac
36. Others

FAQs:

1. What are the growth drivers for the EVM Card market?
Ans. Increasing government initiatives to promote the digital economy are expected to be the major driver for the EVM Card market.

2. What is the major restraint for the EVM Card market growth?
Ans. The high cost of EVM is expected to be the major restraining factor for the EVM Card market growth.

3. Which region is expected to offer potential growth opportunities in the global EVM Card market during the forecast period?
Ans. The Asia-Pacific market is expected to offer potential growth opportunities forecast period.

4. What is the projected market size & growth rate of the EVM Card Market?
Ans. The EVM Card Market size was valued at USD 15.08 Bn. in 2023 and the total EVM Card revenue is expected to grow at a CAGR of 4.2% from 2024 to 2030, reaching nearly USD 20.12 Bn.

5. What segments are covered in the EVM Card Market report?
Ans. The segments covered in the EVM Card market report are Type, Brand, Interface, Functionality, Application, and Region.