Juniper Research is forecasting modest growth in the payment card market in the next few years. In that regard, the revenue generated through payment card shipments is expected to climb from $9.7 billion in 2022 to $11.7 billion in 2026.
Much of that revenue will come from metal cards, which offer a sleek form factor that is appealing to high-end consumers. Those premium metal cards will bring in $1.2 billion in 2022, and that number will nearly quadruple to $4.4 billion by the end of the forecast period.
However, Juniper Research suggested that biometric cards will be a more steady driver of growth moving forward, largely because biometric cards will allow payment cards to remain competitive with mobile payment platform like Apple Pay and Google Pay. The volume of biometric card shipments will jump 850 percent leading up to 2026, to the point that 173 million cards will be sent out in the final year covered in the report.
According to Juniper, biometric cards are important because they allow merchants to lift transaction caps, and because they can be more seamlessly integrated with online payment processes. Biometric cards typically come with built-in fingerprint sensors that securely verify the card holder’s identity without a PIN, thereby delivering a faster, simpler, and more secure payment experience.
“Banks and card issuers need to differentiate themselves in order to retain relevance in the digital payments era – adding value to their services by using new card types can add significant value and reduce churn with existing relationships,” said report co-author Damla Sat.
Juniper also highlighted Dynamic CVV (Card Verification Value) tech as an important driver of the card market. Such solutions (like IDEMIA’s Motion Code) change a card’s CVV code at regular intervals, which makes it more difficult for fraudsters to use someone else’s card even if they do manage to get their hands on a legitimate number. Juniper has previously reported that $2.5 trillion worth of transactions was carried out with contactless cards in 2021, while MarketsandMarkets believes that the overall smart card market will reach $16.9 billion in 2026.