RT--US and CANADA Smart Card Survey Shows Usage Surged 37% in 2000
Smart Card Alliance's Research Sets Industry's First Official Baseline by
Documenting Card Shipments in both 1999 and 2000
Survey Shows Largest Growth Was in Financial Market Segment
NEW YORK, Oct. 11 /PRNewswire/ -- Smart card usage in the United States
and Canada increased 37% in 2000 from 1999, according to a report from the
Smart Card Alliance, the nations largest not-for-profit organization dedicated
to accelerating the widespread acceptance of multiple application smart card
technology. The Smart Card Alliance announced this and other research results
at their Annual Meeting yesterday in McLean, Virginia.
"This research provides the first accurate data on our industry in the
21st century," said Paul Beverly, Chairman of the Smart Card Alliance. "We've
now established a benchmark that will be particularly useful to every
organization considering a smart card program. The survey results clearly show
the increased level of card issuance and adoption, and highlight the
importance of implementing smart card programs at this time. Companies and
organizations not doing so will surely miss an opportunity to capitalize on
the benefits of smart card technology."
The new study, conducted by KPMG's Information Risk Management practice,
surveyed all major smart card manufacturers supplying the United States and
Canada, for the years of 1999 and 2000. The Alliance plans to report 2001
statistics in the first quarter of 2002.
Smart cards contain a microprocessor chip with the capacity to interact
with and operate among networks. More than merely storing value, the smart
card verifies, authenticates, and protects the cardholder's identity and
information, over online and other networks. Its ability to communicate with
other systems gives the smart card the critical capacity of a computer chip in
the user's pocket. Smart cards are used in all sectors; examples include ID
cards, payment cards for transit and parking, SIM cards for use with mobile
phones, and credit cards by major financial institutions and retail companies
to ensure security of transactions and allow for loyalty programs.
The total number of smart cards manufactured for use within the United
States and Canada for 1999 was 20,775,000. In 2000, the research showed that
this at number grew to 28,430,000 -- a 37% growth.
The fastest growing market segment between 1999 and 2000 was the financial
market sector with a growth rate of 244%, reflecting the response of card
associations, banks and American Express to consumer demand for expanded card
services.
"These results will assist the Alliance and its membership in gauging
market trends and adoption of smart cards, as well as provide a means of
identifying opportunities to further accelerate the rates of growth,"
commented Donna Farmer, CEO and President of the Alliance. "We hope to provide
our members with continued research that heightens understanding and builds a
business case for smart cards."
Nine vertical market segments were used to characterize growth rates by
specific applications, including Government, Wireless/Telephony, Transit and
Parking, Financial, and Retail. Areas that experienced significant
microprocessor card growth rates between 1999-2000 include:
* Corporate Campus use - growth of 125%.
* Education Campus use - growth 116%
* Wireless use - growth 89%
"The increased activity in these markets underlines that smart cards are
the ultimate device for portable and secure network authentication," said Mr.
Beverly.
"Numerous applications in the Government and Transit sectors are already
established successes," said Dan A. Cunningham, Chairman of the Alliance's
Market Research Committee. "Given the recent public interest in the security
and privacy advantages of this technology, we fully expect public and
commercial implementation of smart cards to rise."
The Smart Card Alliance Annual Meeting brings together hundreds of smart
card industry leaders for three days of education and conference programs
focused on the crucial opportunities and obstacles facing businesses,
government and individuals in this new era of digital trust.
The full report titled, "United States and Canada Smart Card Shipment
Survey," will include data from 2001 and will be available in the first
quarter of 2002. Further information about Alliance research projects in
progress is available at smartcardalliance.org.
About the Smart Card Alliance:
The Smart Card Alliance is a not-for profit, multi-industry association of
over 185 member firms working to accelerate the widespread acceptance of
multiple applications for smart card technology. Through specific projects
such as education programs, market research, advocacy, industry relations, and
open forums, the Alliance keeps its members connected to industry leaders and
innovative thought. The Alliance also is the single industry voice for smart
cards, leading industry discussion on the impact and value of smart cards in
the U.S. For more information please visit www.smartcardalliance.org.
About KPMG
KPMG LLP is the accounting and tax firm that understands the needs of
business in the global economy. The firm helps its clients by devising
results-oriented business strategies, providing insights that help them stay
ahead of the competition and achieve market-leading results. KPMG LLP is the
U.S. member firm of KPMG International. KPMG International's member firms have
more than 108,000 professionals, including 7,000 partners, in 159 countries.
KPMG's Web site is us.kpmg.com .
Media Contacts:
Donna Carlucci, Smart Card Alliance, 212-837-7791 or
dcarlucci@smartcardalliance.org
Christopher Mittendorf, Edelman Public Relations, 212-704-8134 or
Christopher.mittendorf@edelman.com
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Perhaps those biometric patents might be worth something, one day.
Best, Savant |
