New analysis from research company Frost & Sullivan
has called for greater standards compatibility if contactless
smartcards are to gain international acceptance.
More than 121.7 million smartcards were shipped in 2004, and the
number is expected to reach almost 850 million by 2009. But the
research shows that a profusion of standards is creating a major
bottleneck to market growth.
Even ISO 14443, the most prominent standard currently available,
has both Type A and B varieties and so offers very little cohesion
in operation.
"International standards have to be worked out to enable
terminals to accept payment through contactless mode, irrespective
of its issuers," said Frost & Sullivan analysts Vihar Bhagwat
and Karthik Nagarajan. “Higher shipments for application segments
such as e-passports will be possible only if an international
standard is agreed up on."
The report adds that the market also has to focus on ridding
users of apprehensions about new applications – in particular,
their tendency to persist with current systems even if they are
faulty or inadequate.
In spite of the hurdles, several European countries are
preparing existing transport systems for upgrades. The proposed
International Civil Aviation Organization (ICAO) e-passport
guidelines for western and central Europe may also give the
contactless smartcard market a boost.
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