Global payment card shipment revenue for technology companies will reach $11.7 billion in 2026, from $9.7 billion in 2022. The figures are contained in a new report by Juniper Research.
According to the report's authors, the 20 percent reflects new innovations emerging in the payment cards space while the contactless card's roll-out is reaching its latter stages.
Called Payment Card Technologies: Segment Analysis, Vendor Strategies & Market Forecasts 2022-2026, the study predicts the introduction of biometric cards, metal cards and dynamic CVV (Card Verification Value) cards as being majorly disruptive trends over the next 5 years.
These new card types all have the same aim – to make cards fit for the new, digital-first payments ecosystem. The research found that these new card types will help evolve the payment experience for the digital age, increasing security and useability; making card usage more appealing in the face of increasing mobile-first payment innovations.
Metal Cards Driving Revenue
The research found that metal cards will account for over $4.4 billion in hardware revenue for technology providers globally in 2026, from $1.2 billion in 2022. The research identified the premium appearance of metal cards as highly appealing as a differentiator; driving their future growth.
Research co-author Damla Sat explained: “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.”
The research also found that the use of biometric cards, which feature embedded fingerprint sensors, will grow significantly, with shipments expected to increase by almost 850% over the next 5 years to 173 million in 2026 globally. Biometric cards will enable card payments to better compete with mobile payments, including Apple Pay and Google Pay, eventually allowing payment cards to have no transaction limits. The report recognised this development as critical in removing the barriers to growth for contactless payments.