Don Tait, senior analyst, cybersecurity and digital ID, IHS Markit, said the Indian smart payment card market will increase to 342 million shipments in 2021 from 157 million in 2016.
According to the latest digital security report from IHS Markit, 30 million smart payment cards were shipped in 2015, swelling to around 157 million shipments in 2016 — an increase of 423 percent. Growth and volume shipments in India won’t be as high as they are in countries like China and the United States.
Juniper Research says spend on online FDP (fraud detection and prevention) solutions will increase to $9.3 billion (+22 percent) by 2022.
Emerging markets such as Latin America, Indian Subcontinent and Africa & Middle East will account for 4 percent of global FDP spend in 2022.
IHS Markit said digital payments from 2017 to 2021 will increase demand for EMV-compliant payment cards due to India’s decision to scrap the 500 and 1,000 rupee notes in November 2016. Shipments of smart payment and banking cards are projected to grow strongly, from 157.4 million in 2016 to 342 million in 2021.
Tech companies such as Paytm, MobiKwik and ItzCash have achieved significant demand for their mobile solutions as a result of the scrapping of these rupee notes. Samsung has also launched its Samsung Pay mobile payment solution in India, and Apple is looking to roll out Apple Pay in the country sometime soon.
Mobile devices offer a low-cost means to create financial access and payments. Improvements in the telecom infrastructure, access to internet connectivity and low-cost smartphones will eliminate the need for hardware based on fixed-line connections. Mobile-based payments can lower acceptance costs for merchants by eliminating the traditional onboarding process, hardware, authentication and connectivity.
Payment and banking card development is initially being launched in cities and large metropolitan areas throughout India, as such areas tend to have more advanced infrastructure and high-value customers than rural locales.