Convergence between these two applications can bring greater benefits and efficiencies for issuers as well as consumers.
New analysis from Frost & Sullivan (smartcards.frost.com), Strategic Assessment of the Asia Pacific Smart Card Mass Transit and Payment Markets, reveals that the time is ripe for issuers in both industries to consider working together with merchant outlets and retailers so that all parties can gain from a multi-application platform.
"Contactless smart card technology is able to provide this common platform and can be designed to create a balance between security and commercial application," notes Frost & Sullivan Industry Analyst Michelle Foong. "The market in Asia Pacific is ready for this convergence in many countries, and some are already in the process of convergence to reap the benefits of multi-application."
However, readers and cards used within the mass transit and banking markets may not always be interoperable and based on common protocols. Their backend systems and infrastructure are often not linked, making interoperability a short-term restraint for the market.
"Retailers and merchant outlets need to have a common platform of readers and terminals to accept cards from a variety of issuers, be it from transit agencies or financial institutions," says Foong. "This has not happened in most cases and it will take some time before all the readers become interoperable."
In order to ensure convergence between the two industries, various parties such as transit agencies, financial institutions, merchants, and card issuers need to work together to create a healthy, efficient, and interoperable eco-system. The contactless smart card infrastructure should also be developed further for this to materialize.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the strategic assessment of the Asia Pacific smart card mass transit and payment markets, then send an email to Sarah Lourdes, Corporate Communications, at sarah.lourdes[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by email.
Strategic Assessment of the Asia Pacific Smart Card Mass Transit and Payment Markets is part of the Smart Cards Growth Partnership Services Program, which also includes research services in the following markets: 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.
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Strategic Assessment of the Asia Pacific Smart Card Mass Transit and Payment Markets