Asia's new age of payments

Of all the applications smart cards are being used in, the financial segment expects to contribute a large portion to the unit shipment of smart cards in many regions. The use of financial smart cards for the purpose of security is no longer the only business case. Convenience of small value payments has also encouraged the growth of smart cards.

The EMV mandate has been the most decisive factor in the migration of all magnetic-based banking cards to chip-based cards. Contactless payment technology has also become a driving force in the uptake of financial smart cards with the punch line being stressed on the ease of payments.

All these factors coupled with the assurance of more safer and secure means of financial transactions have provided a good business case for the Asian market to take up smart cards for the banking segment.

Smart card vendors will ship just under 2.9 billion SIM, banking, ID and other microprocessor smart cards in 2007, up 20% from 2006, vendor trade association Eurosmart predicts.

CardTechnology reports that the predicted shipments of SIM cards will grow by 19% next year to more than 2.1 billion, as China's torrid market cools somewhat. The group also projects banking smart cards will reach 480 million units worldwide, mostly credit and debit smart cards complying with the international EMV standard, but including 20 million contactless cards shipped mainly to the US.

The fastest growth will come in ID and security cards and documents, including health cards and e-passports, which will jump for a second year in a row by at least 50%, the group forecasts.

On Track Innovations (OTI) is to acquire the main assets of SuperCom, including the international project solution (IPS) division of SuperCom.

The business activities of IPS, which account for approximately 95% of SuperCom's revenue, will be integrated with the existing electronic smart ID operations of OTI.

The transaction will allow OTI to offer an end-to-end ID solution by adding a Web-based enrolment, population registration and document issuance system, and enhancing OTI's card and electronic passport design, security printing technology, machinery, manufacturing capability and production technology.