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Lack of Understanding the Differences Between RFID and Contactless Smart Cards Causing Concerns - Although contactless technology is experiencing a surge, there is still much confusion over the similarities and differences between RFID and contactless smart card technology notes Frost & Sullivan Industry Analysts
Lack of Understanding the Differences Between RFID and Contactless Smart Cards Causing Concerns

 

PRZOOM - /newswire/ - Singapore, Singapore, 2007/05/30 - Although contactless technology is experiencing a surge, there is still much confusion over the similarities and differences between RFID and contactless smart card technology notes Frost & Sullivan Industry Analysts.

   
 
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The market still lacks a clear understanding of what smart card technology is able to do in terms of security and processing. Hence, there is a need to crystallize the market’s understanding of the differences between RFID and contactless smart cards so that better informed decisions can be made and suitable applications be employed for each technology. This will also help boost the growth of the two technologies.

"RFID as well as contactless smart cards are seeing healthy growth levels in the Asia Pacific region," notes Frost & Sullivan Industry Analyst Michelle Foong. "New applications continue to emerge and prices of devices such as cards, tags, and readers are falling as the market matures in some of the key applications."

Notwithstanding the numerous benefits of RFID and contactless smart cards, there remains considerable confusion about the similarities and differences between the two technologies. This, in turn, is leading to user anxiety and concerns over the security and privacy issues when used for personal documents and confidential transactions.

The convenience, speed, and efficiency provided by contactless technology in RFID and contactless smart cards are far superior to the capabilities of older technologies such as bar codes, magnetic stripes, and paper-based tickets. Contactless cards, in particular, are capable of transacting more sensitive and confidential information than RFID cards/tags as they are usually equipped with higher authentication mechanisms and security layers. It should not be confused with RFID technology, which is more popular in instances where less confidential data are transacted and single application is used.

Smart cards have become popular in a several key applications such as mass transit, government transactions, banking, and access control. RFID on the other hand is more popular for tracking items and goods, like supply chain and logistics management.

"Confusion between the two technologies could eventually impede the potential growth of the both the RFID and contactless smart cards markets," says Foong. "Hence, it is imperative that market participants work towards increasing market awareness of both their capabilities and features so that users are able to make better informed decisions when selecting the type of technology to be used for specific applications."

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the issues surrounding the similarities and differences between RFID vs Contactless Smart Card, then send an email to Donna Jeremiah, Corporate Communications, at djeremiah[.]frost.com with your full name, company name, title, telephone number, fax number, and email address. Upon receipt of the above information, an overview will be sent to you by email.

RFID vs Contactless Smart Card is part of the Global Smart Cards Growth Partnership Service program, which also includes research in the following: world smart card markets, world smart card IC market, and world contactless smart card market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

About Frost & Sullivan
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective, and combines ongoing analysis of markets, technologies, econometrics, and demographics.

 
 
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Lack of Understanding the Differences Between RFID and Contactless Smart Cards Causing Concerns

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