With the widespread acceptance of credit cards, debit cards, and electronic money, cash is going the way of the dinosaur, says a new market research report from INSIGHT RESEARCH. And smart card systems may prove to be the best method for secure, convenient low-value transactions between businesses and their customers.
According to INSIGHT’S report, Beyond Payphones: Vending, Low-Value Transactions and the Information Age 1998-2003, telecom service providers have the opportunity to rejuvenate the long stagnant payphone calling market with smart card technology. With its own data processing capabilities, a smart card can store both customer profiles and electronic money. This e-cash is added and subtracted directly from the card — making transactions more secure and convenient for the vendor and the customer. Plus, expanding smart card usage beyond payphones could result in an e-cash system for all low-value transactions, including vending machines, transit fares, or even Internet payments.
“Look at where payphones are located — in airports, at gas stations, in the shopping malls — all places where the consumer has the opportunity to or needs to make other low-value transactions,” says Robert Rosenberg, president of INSIGHT. “We see payphones as a way of jump starting the widespread use of multifunctional smart cards in the US,” Rosenberg concludes.
According to INSIGHT, global spending on smart cards will grow from $1.1 billion in 1998 to nearly $2.8 billion in 2002, with prepaid phone cards representing about 35 percent of the market by the end of the forecast period.
Further insights into the smart card and payphone markets, including five-year revenue forecasts segmented by application, vendor, and region, are published in Beyond Payphones: Vending, Low-Value Transactions and the Information Age 1998-2003, a 120-page market research study now available from INSIGHT RESEARCH for $3,495.
INSIGHT RESEARCH, based in Parsippany, NJ, is a respected source for telecommunications market research reports, competitive analysis, and custom research. INSIGHT can be reached via the web at , and an excerpt of this study is on the page.Details