The global smart card market size was valued at $10.19 billion in 2019, and is projected to reach $15.57 billion by 2027, growing at a CAGR of 6.2% from 2020 to 2027

1. Smart Payment Plays an Important Role in Achieving the Vision of a Smart
City
Today, more than half of the world population lives in urban areas and this proportion is
expected to rapidly rise higher by the year 2050. Implementation of smart cities around the
globe is all set to adopt smart payment methods for an array of benefits. Payments feature in
most of the basic services provided to the citizens such as business procurement, tax
collection, salaries, consumer expenditure, and others, thereby, are a significant component
of smart cities.
Smart payment or digital payment can help to enhance the overall payment ecosystem of a
country by covering multiple citizen to government (C2G) payments such as water,
electricity, healthcare, education, toll & transit, tourist places, social services, public
convenience, and so on. Likewise, digital payment can cover government to citizen (G2C)
payments such as scholarships, subsidies, monetary awards, senior citizen benefits and
more.
The global smart card market size was valued at $10.19 billion in 2019, and is projected to
reach $15.57 billion by 2027, growing at a CAGR of 6.2% from 2020 to 2027. The Asia-Pacific
region is currently holding the highest market share, owing to high penetration of
smartphones along with growing 3G & 4G connectivity users in emerging economies like
China and India.
Moreover, as smart payment offers high speed and hassle free services, many corporations
around the world are planning to establish a sustainable cashless ecosystem. For example,
Uber provides a superior customer experience by providing frictionless payment system. At
the end of the ride, cab charges are automatically deducted from the customer’s credit card.
Similarly, several telecommunication providers, groceries, retailers, and others are
launching their mobile apps in order to provide products and services based on customer
convenience. This in turn can help them to stay competitive in the market. For instance, in
the US, customers can conveniently order and pay through a mobile app in Starbucks rather
than waiting in the cashier line.
Artificial intelligence (AI) and machine learning (ML) are the two integral parts of smart
payment systems because they can provide a secure and seamless payment infrastructure.
At the same time, they can detect history of customer operation such as buying & spending
habits, thereby can improve user’s experience, sales, communication and product
recommendation.
Furthermore, banks are presently testing security features in voice activated transactions by
using AI based voice recognition technology. Voice activated transactions is an example of
future of payments. The system requires a part of payment processing systems where smart
assistant verification and biometric security can automatically confirm the identity of a user.
With this technique, users can simply name for a service they want including making

2. payments, transferring money, & more, and receive an automated response on their mobile
phones. Most of the banks and financial institutions have already integrated customer
service interfaces with voice technology by using Amazon Alexa. Others are also adopting
their products & services with voice services such as Google Assistant or Siri. Here, it is worth
mentioning that, with the world advancing in technological development, the global smart
payment market is having huge scope to gather exponential growth in the near future.
Author’s Bio - Suchita Gupta is an explorer, musician and content writer. While pursuing
MBA, she found that nothing satisfies her more than writing on miscellaneous domains. She
is a writer by day, and a reader by night. Besides, she can be found entertaining her audience
on social media platforms. Find her on LinkedIn & Instagram.