CORDIS - EU research results

Powered smart card with a biometric one time password system

Periodic Reporting for period 1 - QuardCard (Powered smart card with a biometric one time password system)

Reporting period: 2016-04-01 to 2016-08-31

CardLab and QuardLock ambition is to become major players in the global market of financial payment cards, by introducing a disruptive credit card with state-of-the art security level. The SMEs forecasts to achieve cumulated revenues of €772M with net profits of €242M within five years after market rollout. The present feasibility study represents a key step towards the implementation of our overall innovation project, the primary goal of which is and adaptation of a 2nd generation QuardCard to replace a credit card and full-scale demonstration. Through the large number of meetings with financial institutions, the demand for a biometric OTP (One-time-password) smart card, as QuardCard, was clearly verified. Our analysis shows that our ambition may be fulfilled if a focused route-to-market strategy is followed.
During the feasibility study we: • defined and characterised our primary market segments – online banking, e-commerce and Card Present (physical transactions); • further develop and enhance the business plan based on the findings during the feasibility study; • confirm that the acceptance and competitiveness of the QuardCard is, first and foremost, dependent on gaining market confidence; • concluded that the overall strategic vision should be expanded to other markets (e.g. access control, medical card, etc.) after securing the huge financial market; • validated or even enhanced the concept, approach and impact.
Different customers foresee different use pattern for the card product meaning that some expect a high use rate due to a wish to merge different functionalities into the same card, therefore it will be necessary to introduce a card with rechargeable battery as an additional offer. Also, several users prefer to have a fingerprint touch sensor instead of a swipe sensor on the card.
QuardCard is a disruptive idea to the financial payments market, which is currently facing major increases in fraud levels. QuardCard combines, for the first time a smart card with biometric fingerprint to generate an OTP, which will drastically reduce the financial frauds in all targeted segments. The commercialization of QuardCard solution will have the following socio-economic impact (Year – Turnover | Net profits, € Million | New job positions at CardLab + at QuardLock):
2019 – € 100.3 | € 25.9 | 45 + 15
2020 – € 123.8 | € 32.7 | 20 + 15
2021 – € 150.8 | € 43.9 | 15 + 10