NFC SIM ‘losing its fight’ against Embedded Secure Element and Host Card Emulation

16 februarie 2017

The NFC SIM card is losing its fight against embedded secure elements and host card emulation (HCE) technologies which are „continuing to gain momentum due to ongoing interest from banks …” ABI Research says. “SIM card shipments will reach nearly 6bn in 2017 and maintain relatively stable growth until 2021, despite a sharp decline in NFC SIMs worldwide.”

ABI Research forecasts SIM Card shipments will reach nearly six billion in 2017 and maintain relatively stable growth until 2021 despite a sharp decline in NFC SIMs worldwide. „The NFC SIM (known to the industry as Single Wire Protocol SIM) is losing its fight against the eSE (Embedded Secure Element) and HCE (Host Card Emulation), which continue to gain momentum due to ongoing interest from banks, financial institutions, and transportation authorities.”, according to the press release.

“With the steady drop of Single Wire Protocol and declining average selling prices, the SIM market has no choice but to adapt accordingly,” says Dimitrios Pavlakis, Industry Analyst at ABI Research. “It is necessary to take more aggressive steps to market higher-end SIMs with RSA encryption, memory capacity above 512KB, 4FF form factor, and of course, higher incentives for LTE SIMs to ensure a level of revenue growth in a flattening market.”

Leading SIM card and IC vendors include G&D, Gemalto, Morpho, and Oberthur Technologies. EM Microelectronic, Infineon, and Samsung continue to lead the market. 4G SIM penetration rates are increasing rapidly, albeit with varying degrees of regional success, and overall 4G SIM shipments are forecast to account for 43% of the total SIM shipments by 2021.

On a global scale, while North America and Europe are remaining relatively stable in terms of new organic growth, ABI Research detects the largest growth percentage will occur in Latin America, Africa, and select Asia-Pacific regions. Specifically, China emerged as a prominent player in the LTE race with both government and industry entities showing signs that the region is planning to dominate the race for upcoming 5G rollouts.

These findings are from ABI Research’s SIM Cards and SIM Card ICs reports.

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Gabriela Nistor – director general adjunct BT

Tendinţele pe care le-am remarcat înainte de începerea pandemiei s-au accelerat pe perioada stării de urgenţă. Am văzut acest lucru ca o oportunitate, un tipping point pentru bancă. Post-pandemie nu avem cum sa ne întoarcem la comportamentul financiar pe care îl aveam până în februarie a.c. Relaţia românilor cu online-ul s-a schimbat. In plus, cardul fizic se va dematerializa. Vom asista la o scădere a cererii pentru cardurile fizice, respectiv la o creştere a preferinţei pentru componenta digitală a acestora.”

Sondaj

In 23 septembrie 2019, BNR a anuntat infiintarea unui Fintech Innovation Hub pentru a sustine inovatia in domeniul serviciilor financiare si de plata. In acest sens, care credeti ca ar trebui sa fie urmatorul pas al bancii centrale in 2020?