Online payments are growing around the world and with them the requirement of dual interface payment cards and this the reason why the global dual interface payment card market size is expected to reach USD 23.66 billion by 2030. The dual interface payment card market will register a CAGR of 16.2% from 2022 to 2030.
In June 2021, according to the Smart Payment Association (SPA), payment cards consist of 40-60% of total online payments made, either directly or indirectly. At the same time, the strong emphasis of payment service providers on offering enhanced payment solutions to their customers is expected to propel growth.
Further, there are a number of mergers, acquisitions, collaborations happening between banks, hybrid smart cards, and dual interface card manufacturing companies and this is proving to be a huge positive factor for the market growth over the forecast period. For instance, in December 2020, Kasikornbank extended its partnership with dzcard, a smart card manufacturer. This partnership was aimed at launching a contactless debit card along with a credit line by leveraging dzcard’s dual interface EMV debit card.
The increasing investments by venture capital into the companies offering dual interface cards for payment is anticipated to create new opportunities for the growth of the market over the forecast period. For instance, in April 2022, Financepeer, an Edu-fintech company, raised USD 31 million through a Series B funding round. The funds were utilized to enhance its technology platform and expand its offerings. Later, in June 2022, Financepeer launched a UVA card powered by Visa. This UVA card or a dual-interface card was designed for students to make the day-to-day transaction easier. Such initiatives are expected to propel the growth of the industry.
The outbreak of the COVID-19 pandemic played a vital role in driving the growth of the dual interface payment card market. The COVID-19 pandemic increased the preference for contactless payments among the people while processing payments at restaurants is one of the factors expected to drive the market growth. Moreover, in April 2020, according to a Mastercard survey, almost 8 out of 10 people located globally said that they use contactless payments.