F&S calls for compatible standards for smart cards

MUMBAI: A Frost & Sullivan analysis has recommended compatible standards for applications for contactlessless smart cards so that they would get international acceptance.

"Applications for contactless smart cards require compatible standards get international acceptance as well as promote payment and government ID markets", the analysis said.

The Frost & Sullivan (F&S) analysis 'World Contactless Smart Cards Markets', revealed that the market shipped 121.7 million units in 2004. It was expected to reach 847.3 million in 2009.

"International standards have to be worked out to enable terminals to accept payment through contactless mode, irrespective of its issuers," analyst Karthik Nagarajan said in a press release.

"There has to be an understanding in this regard between major industry participants since
higher shipments for application segments such as e-passports will be possible only if an international standard is agreed upon," he added.

The analysis also said that after the standardization issue is sorted out, contactless smart cards market participants will have to focus on ridding users of their apprehensions about integrating new applications with the existing technology.

It reasoned that the hesitation to widespread adoption lies with the users' tendency to persist with current systems.

However, the analysis expressed optimism as the "existing transit systems of certain European countries are being readied for upgrades. Many projects plan to substitute the existing system of smart cards and magnetic stripes in Taiwan, France, and other parts of the world with contactless smart cards."