Smart Cards Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Type (Contact-based and Contact-Less), By End-User Industries (BFSI, IT & Telecommunication, Government, Transportation, and Other End-User Industries), By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 17.04 Billion
CAGR (2026-2031)	13.39%
Fastest Growing Segment	BFSI
Largest Market	Asia Pacific
Market Size (2031)	USD 36.22 Billion

Market Overview

The Global Smart Cards Market will grow from USD 17.04 Billion in 2025 to USD 36.22 Billion by 2031 at a 13.39% CAGR. Smart cards are portable devices embedded with an integrated circuit chip that processes data for secure authentication, identification, and information storage. The expansion of this market is primarily driven by the escalating demand for robust security in the banking and telecommunications sectors alongside the global transition toward cashless payment ecosystems. Governments worldwide are also increasingly mandating the digitization of national identity documents, which further stimulates the adoption of high-security contact and contactless card technologies.

According to the Smart Payment Association, in 2025, the organization reported that its members shipped 2.5 billion payment cards and modules globally during 2024. Despite this substantial volume, a significant challenge impeding broader market expansion is the rapid proliferation of purely digital mobile wallets and software-based security solutions. These virtual alternatives reduce the necessity for physical hardware and could limit future growth opportunities for traditional smart card manufacturers as consumers increasingly rely on smartphones for daily transactions.

Key Market Drivers

The rapid adoption of contactless payment technologies is fundamentally reshaping the Global Smart Cards Market, compelling financial institutions to accelerate the issuance of dual-interface cards. This transition is driven by consumer demand for transaction speed and hygiene, which has necessitated a wholesale upgrade of legacy banking card portfolios to support Near Field Communication (NFC) standards. The ubiquity of this technology in the manufacturing pipeline is evident; according to the Smart Payment Association, May 2025, 92% of all payment cards shipped globally during 2024 were contactless-enabled, signaling that non-contactless hardware has become virtually obsolete in major markets. This saturation in card issuance correlates directly with utilization rates at the point of sale. According to Mastercard, October 2024, in the 'Q3 2024 Earnings Conference Call', contactless payments now represent approximately 70% of all in-person switched purchase transactions on their network, confirming that the infrastructure upgrade has successfully altered consumer behavior.

Simultaneously, government mandates for electronic identity documents are acting as a critical secondary driver, fueling demand for high-security, microprocessor-embedded smart cards. Nations worldwide are migrating from paper-based identification to digital credentials to mitigate fraud, enhance border security, and facilitate access to e-government services. These sovereign projects require sophisticated smart cards capable of storing biometric data and executing complex cryptographic functions, effectively creating a high-value vertical for manufacturers beyond the financial sector. The financial impact of this demand is substantial for key industry players. According to Thales Group, October 2024, in the 'Order intake and sales as of September 30, 2024' report, sales in the Digital Identity & Security segment increased by 15.7% during the first nine months of the year, underscoring how public sector modernization is actively expanding the addressable market for secure smart card technologies.

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Key Market Challenges

The rapid proliferation of purely digital mobile wallets and software-based security solutions constitutes a significant barrier to the expansion of the global smart cards market. As consumers and businesses increasingly adopt virtualized credentials stored on smartphones, the operational necessity for tangible plastic cards embedded with integrated circuits diminishes. This technological shift decouples secure authentication from dedicated hardware tokens, allowing general-purpose mobile devices to replicate critical functions such as contactless payments and digital identity verification. Consequently, the reliance on physical form factors weakens, directly hampering the volume potential for card manufacturers by facilitating digital-first issuance models that do not require a physical companion.

The scale of this competitive pressure is underscored by the massive adoption of mobile-centric financial ecosystems which operate independently of traditional physical card infrastructure. According to the GSMA, in 2025, the association reported that the number of registered mobile money accounts globally surpassed 2 billion during 2024, facilitating approximately 108 billion transactions. This widespread utilization of software-based platforms demonstrates a robust and growing consumer preference for mobile interfaces over physical mediums. As these virtual solutions achieve ubiquity, they limit the addressable market for traditional smart card technologies and restrain shipment growth in both emerging and mature economies.

Key Market Trends

The integration of biometric authentication sensors onto card surfaces is emerging as a vital trend to combat fraud while enhancing user convenience. Financial institutions are deploying payment cards embedded with fingerprint scanners, allowing cardholders to authorize transactions by simply holding their thumb over the sensor, thereby eliminating the need for PINs. This technology effectively secures contactless payments against unauthorized use without compromising transaction speed. The consumer demand for such innovation is substantial; according to Idemia, January 2025, in the 'Idemia launches smartphone enrolment for biometric payment cards' press release, a study revealed that 79% of global consumers view banks more favorably if they offer biometric cards, prompting issuers to prioritize this feature in premium portfolios.

Simultaneously, the market is transitioning toward recycled and bio-sourced materials to align with global environmental goals. Manufacturers are aggressively replacing virgin polyvinyl chloride (PVC) with eco-friendly alternatives like reclaimed ocean plastics and recycled PVC to minimize carbon footprints. This shift has moved beyond pilot programs to mass adoption as banks strive to demonstrate sustainability commitments to environmentally conscious customers. The scale of this transition is evident; according to the Smart Payment Association, May 2025, in the 'Smart Payment Association Reports Shipment of 2.5 Billion Units of cards and modules in 2024' report, the global shipment of sustainable payment cards grew by 28% in 2024, now constituting one-third of all cards delivered worldwide.

Segmental Insights

The Banking, Financial Services, and Insurance segment represents the fastest-growing category within the global smart cards market, driven by the critical demand for secure transaction methods. Financial institutions are actively migrating from traditional magnetic stripe cards to EMV chip standards to mitigate fraud and ensure data integrity. This transition is supported by technical specifications from institutions such as EMVCo, which establish global interoperability requirements for secure payments. Furthermore, the widespread adoption of contactless payment technology has compelled banks to issue dual-interface cards, significantly contributing to the rapid expansion of this sector.

Regional Insights

Asia Pacific dominates the Global Smart Cards Market, driven by extensive government mandates for digital transformation and financial security. The region’s leadership stems from the widespread migration from magnetic stripes to secure EMV chip cards, a transition actively enforced by regulatory bodies like the Reserve Bank of India to mitigate payment fraud. Additionally, the mass deployment of smart national identity schemes and a vast telecommunications sector requiring subscriber identity modules fuel consistent demand. These strategic infrastructure upgrades, coupled with the rising adoption of contactless payments, secure the region's status as the principal hub for smart card utilization.

Recent Developments

• In May 2025, Giesecke+Devrient introduced the Convego SecureCode, a payment card designed to combat the rising threat of card-not-present fraud. The card featured a battery-free e-ink display on its surface that generated a dynamic three-digit security code for every transaction, replacing the static CVV number traditionally printed on the back. The display was powered by energy harvested from the payment terminal during contactless use or could be updated via a mobile application. This launch provided banks with a future-ready tool to secure online payments by ensuring that compromised card details would quickly become invalid, thereby protecting customers from unauthorized use.
• In November 2024, Infineon Technologies AG presented the SECORA Pay Bio solution at the Trustech trade show, demonstrating a significant advancement in biometric smart card technology. Developed in collaboration with Fingerprint Cards AB, this solution integrated a secure element with a biometric sensor into a unified module that utilized inductive coupling technology. This design eliminated the need for complex wire connections between the module and the card antenna, which streamlined the manufacturing process for card vendors. The innovation was designed to facilitate the scalable production of dual-interface biometric payment cards, making secure fingerprint authentication more accessible for mass-market adoption in the financial sector.
• In September 2024, the Alaska Division of Motor Vehicles awarded a contract to Thales to provide next-generation driver’s licenses and identification cards. Under this agreement, the technology provider committed to supplying credentials manufactured from 100% polycarbonate material, which incorporated advanced translucent window features to prevent physical alteration and counterfeiting. This collaboration represented a renewal of the partnership between the state agency and the company, focusing on enhancing the security and durability of citizen identities. The deployment aimed to provide residents with high-security documents that offered superior resistance to fraud compared to the traditional composite materials previously utilized in the region.
• In June 2024, IDEMIA Secure Transactions launched a new payment product known as the IDEMIA Starlight card to support financial institutions in differentiating their brands. This innovative smart card integrated OLED technology to create a distinct illumination effect on the card body during contactless transactions, powered solely by the Near Field Communication field without the need for an internal battery. The product received official certification from major payment networks, including Mastercard and Visa, verifying its compliance with global standards. By combining a unique visual user experience with secure dual-interface payment capabilities, the solution addressed the growing consumer demand for premium and distinctive banking card products.

Key Market Players

• Thales Group
• Giesecke+Devrient GmbH
• IDEMIA Group
• NXP Semiconductors
• Infineon Technologies
• STMicroelectronics
• Diebold Nixdorf
• Visa Inc.
• Mastercard Inc.
• American Express

By Type	By End-User Industries	By Region
Contact-based and Contact-Less	BFSI IT & Telecommunication Government Transportation Other End-User Industries	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Smart Cards Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Smart Cards Market, By Type:

• Contact-based and Contact-Less

• Smart Cards Market, By End-User Industries:

• BFSI
• IT & Telecommunication
• Government
• Transportation
• Other End-User Industries

• Smart Cards Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE