Insight: Smart Cards

Convenience for small value transactions is the core benefit of stored value cards (SVCs), says Datamonitor's Global Smart Cards report. No worries about change, less weight to carry, multiple function cards and travel abroad were cited as the core benefits.Users prefer easy access to multiple loading facilities, including ATMs, POS sites, and bank branches.

Phone cards, the cheapest form of SVC, dominate the global smart card market, with the bulk of this volume in the French market. In the last two years, however, the increase in SVC use has been driven by applications such as SIM cards for mobile phones and for added security for pay-TV. Massive growth in the industry will await the high volume applications such as health cards and purses which may be attractive to or foisted upon large sections of the public.