Securing the digital
payment experiencesof tomorrow
Which innovations will transform our payment world by 2030?

www.infineon.com

Welcome to the futureof payments, deliveredby ­Infineon
Join us on this exciting journey as consumer trends evolvein line with technical innovation.

The past few years have seen adoption of new payment devices, such as mobiles and wearables,
accelerate significantly. At the same time, consumers have grown familiar with biometric authen­tication and increased their calls for a more sustainable world.

Content
In this brochure, we explore the challenges andinnovations that will shape our payment world by
the end of the decade, including:

Sustainable Payments
What expectations do consumers havefor more sustainable payments?
What sustainable substitutes will makepayments more environmentally friendly?
Biometric Payments
Why offer biometric payment cards?
How do banks and fintechs securely getbiometric cards into the hands of consumers?

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Smart Wearables and Payment Accessories
What will turn wearables from a “nice-to-have”
to a true value-add?
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Banks and fintechs are understandably looking for ways to differentiate themselves with consumers,
to meet and exceed their expectations. Some are offering different types of cards, such as premium
metal cards or innovative LED designs that light up when a card is used. In the coming years, banks
and fintechs will want to give consumers even more choice, providing more sustainable card options
and greater convenience using biometrics. This is critical to securing their loyalty, as consumers seek
versatile payment solutions that can seamlessly fit in with their lifestyle.

Internet of Things (IoT)
How will digital payments accelerate
consumer convenience?
How can we protect new digital payments?

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Digital Currencies
Will CBDCs complement cash and cards?

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Why is I­ nfineon trusted worldwide toenable highly secured, convenient payment
experiences?

In five years’ time you might find yourself paying to charge your electric vehicle without needing
to leave your car or take out your wallet and you might be paying for goods and services online andin-store via a new digital currency.

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Which I­ nfineon payment security products
are right for you and your customers?

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While optimal convenience and security are crucial, it’s also essential to consider user options andfinancial inclusion. The goal is to create highly secured, convenient omnichannel payment experiences.
This encompasses physical, digital and embedded options that place consumer choice at the forefrontof technological innovation, enabling new use cases, business models and form factors.

­Infineon fast facts

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How? With ­­Infineon! Let’s explore …

How will I­ nfineon and the payments industry
navigate this next leap forward together?

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While there are challenges to overcome, not least always-changing customer demands, regulations
and fraud risks, there is so much to be excited about in the future of payments.

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SUSTAINABLE PAYMENTS

What expectations
do consumers havefor more sustainable
payments?
Climate change is one of the top three concerns for
consumers, according to research commissioned by
Visa, while Credit Suisse found that 90% of consumers
are concerned or very concerned about the state of
the overall environment. We must all play our part indriving the green transition, including the payments
industry.
There is a clear market demand for more eco-friendly
materials (most used materials are recycled PVC and
PETG), especially when it comes to physical payment
cards. Steep growth is coming, with recycled PVC
shipments expected to increase from 350 million in
2022 to 850 million by 2026. In 2022, 30% of all cards

shipped in Europe were made with eco-friendly
materials making it the largest region for “eco-carddelivery”, while in 2028 approximately 50% of theentire payment market will be based on recycledmaterials (source: ABI research 2023). The number ofrecycled PETG cards made from manufactured recy­cled waste is also set to rise, from 45 million in 2022
to 65 million in 2026. PETG shows huge potential as a
future, more sustainable card material thanks to its
use of existing recycling infrastructure. Being able
to offer consumers more sustainable payment cards– potentially as part of a Premium service – helps todeliver on this demand for greener options.

Optimising green energy usage –why is sustainability important to­Infineon?
Infineon ranks among the most sustainable com­panies in the world. In 2021, we reduced our carbon
footprint and delivered a net ecological benefit of
113 million tons of CO2 emissions reductions. “Making
more out of less” is the Infineon approach when it
comes to helping solve today’s challenges and actively

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creating a better future. Sustainability starts withthe right choice of partner, and as the market leader
for power semiconductors, Infineon enables energy
efficiency optimization both today and for the future
along the entire electrical energy chain – in mobility,
industry, communication and beyond.

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SUSTAINABLE PAYMENTS

What sustainable
substitutes will makepayments moreenvironmentally friendly?
I­ nfineon innovation is already enabling the production of thinner, more durable and eco-friendly, long-lastingcards. For instance, I­ nfineon’s groundbreaking development of the world’s thinnest dual interface module has
resulted in cards with 70% less weight and 50% less thickness. This trend will continue, with the next generationof cards manufactured using ever more sustainable materials. Thanks to ­Infineon’s technology and long-lasting
TEGRION™ security controllers, cards will also be usable for longer time, potentially reducing the frequency of
new cards being manufactured.

In order to produce an environmentally friendly
payment card, manufacturers should consider
constructing the card without sandwich layers forthe copper wire antenna sheet. By eliminating theembedded copper and simplifying the architecture,
the card can be designed using one material stack.
Removing this one component can lead to an impres­sive 85% reduction in the CO2 emissions associatedwith the sourcing and logistics of payment cards’
electrical components (source: Climate Partner
Report: “Product Carbon Footprint” for SECORA™
Pay Green).
By adopting new card system designs that eliminate
the need for antenna inlays, it would be possible touse truly sustainable and fully recyclable materials,
which can be sourced and produced locally. This
would significantly reduce the amount of energy andmaterial required, including copper for copper-wireantenna and decrease carbon emissions related tomining and transportation.

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What is inductive coupling and its
benefits?
I­ nfineon’s Coil on Module dual interface chippackaging technology uses a radio frequency
link instead of the traditional mechanicalelectrical connection used between a card’s
antenna and the chip module. Known as in­ductive coupling, this method simplifies card
design while also increasing cards’ robust­ness and long-term reliability by removing
mechanical stress.

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BIOMETRIC PAYMENTS

Why offer biometricpayment cards?
In recent years, there has been a clear shift in global
payments trends towards contactless payments.
Today’s consumers expect their payment experi­
ences to be convenient and secured. The question
for banks and fintechs is how can they deliver moreconvenient payment experiences using second
factor authentication?
Biometric smart cards can help enable the con­venient, innovative and personalized payment
experiences that your customers desire. We’refamiliar using biometrics in our daily lives to unlock
devices or paying with a fingerprint on our smart
phones. Biometric smart cards enable verification
for payment transactions just using a banking
card in their pocket – a huge convenience boost for
consumers. The next step is for banks to get thesecards into the hands of consumers at scale, helping
boost top of wallet status with a card that delivers
more than just cosmetic value.

Convenient

Biometric two-factor authentication

Privacy

Allows fingerprint data to be processed
inside the security controller only

Data protection

Biometric credentials are stored in the card,
not in a background system

Hygienic

Touchless interaction with POS terminal

Fast

Biometric two-factor authentication can beused as a PIN alternative

Peace of mind

Two-factor authentication

Benefits of fingerprint
authentication solutions
on payment cards

Ready to use

No infrastructure upgrade required

Enabling consumers with biometric payment cards
Payment cards remain the most common andimportant physical touchpoint between issuersand customers. Payment cards in circulationworldwide will continue to rise, with the Nilson
Report projecting numbers will reach 29.99 bil­lion by December 2028, up from 25.8 billion at
the end of 2022.

Biometric cards enable a similar authentication
experience like mobile payments and provide bio­
metric two-factor authentication that can be used
as a PIN alternative. Consumers are also comfort­
able with biometrics, with research showing 88%
of respondents want their banks to upgrade theircontactless payment cards to support biometrics.

Consumer interest

77% of consumers are satisfied with the useof biometric authentication
Source: Payments Cards & Mobile

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BIOMETRIC PAYMENTS

How do banks securely getbiometric cards into thehands of consumers?

In-field enrollment
will see consumers authenticate their biomet­
rics over the course of their normal shopping
routine. Each time a user uses their fingerprint
at a POS, it confirms their biometric credential
linked to the card. After a set number of trans­
actions, the card is automatically enrolled tothis fingerprint.

Infineon is the only company with a pre-certified, all-in-one module solution for biometric sensor cards. Basedon its easy-to-integrate inductive coupling technology (Biometric Coil on Module), this solution reduces the
cards’ Bill of Materials (BOM) and complexity – enabling scalable and cost-effective production of high-quality,
robust, high-yield biometric cards. This technology reduces card manufacturing efforts, shortens time-tomarket and is helping banks get cards to a greater number of consumer wallets faster. The pre-certified payment
solution enables card manufacturers to get a paper approval within 2 – 3 weeks.
But consumers will not adopt biometric payment cards unless enrollment is easy and hassle-free. That’s why
Infineon and its industry partners are facilitating three methods of enrolling biometric authentication onto cards.

Smartphone enrollment
enables cardholders to enroll their biometriconto their card using a mobile application on
their NFC-enabled smart phone. To make thisprocess even easier, Infineon can provide its
unique enrollment sheet: by placing the cardand phone next to each other on the enroll­ment sheet, a connection is made between the
two and the biometric is enrolled, hassle-free.

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Sleeve enrollment
will use a dedicated device which is delivered
alongside the card. The card is inserted into thesleeve and the user then only has to place theirfinger on the card sensor to enroll the biometricfrom the comfort of their own home.

In the spirit of choice, these enrollment options
can also be completed in-branch for those who
prefer an in-person experience.

Scan QR code and find out
more about enrollment options

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SMART WEARABLES AND PAYMENT ACCESSORIES

What will turn wearablesfrom a “nice-to-have” to atrue payments value-add?

Use of wearable devices has accelerated in recent
years, offering a quick and easy way to pay for goods
and services without needing to take out your wallet.
The payment capabilities of wearable devices areenabled by end users via payment tokenization, withtransactions trackable via an app on a smartphone.
OEMs will continue to explore ways of turning every­
day wearable objects – such as rings or bracelets –into connected devices that can be used for payment.

12This is in addition to smart, battery-powered active
wearables – such as smartwatches – that can pro­vide more features like fitness tracking and texting
capabilities.
Infineon has developed a unique design approach tosmall, passive wearables, with an ultra-small antennathat enables the device to combine payment and NFC
wireless charging capabilities.

The rise of smart wearables has given users greater
flexibility of choice when it comes to payment form
factors. Wearables provide users with the choice to
pay with something they may find more convenient
than a phone. For instance, a ring can be worn on theuser’s body and is a good option for those who value
ultimate convenience. By enabling wider choice,OEMs can offer consumers a true value-add, embed­
ding seamless payment capabilities and choice into
their daily lives by providing more device versatility.

Empowering Smart Wearables and IoT
devices with payments and beyond
Wearables will drive more convenient travel
experiences as use of new wireless technol­ogies like Ultra Wideband (UWB) offer better,more precise location range accuracy. This will
enable a secured, touchless, hands-free expe­
rience, for example: transit ticket gates could
recognize a traveler as they arrive at the gate,
identify their linked payment methods andauthenticate payment, so they can proceedon their journey without needing to physicallypresent their device.

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How can we protect new digital payments?
What do smart wearables, notebooks/tablets, gaming consoles and in-car-payments have in common?
A need for high levels of security. If any device can be a payment device, layered security is critical toverify convenience does not compromise protection from potential scams and fraud.

INTERNET OF THINGS

How will digital
payments accelerate
consumer convenience?
Globally, we’ve seen a surge in digital payments as
consumers increasingly transact online remotelyfrom anywhere they choose. In the EU, digital pay­ments already have a 60% market share, which will
only continue to rise. By 2027, new digital payment
methods will make up approximately 30% of thetotal global payments volume.
Digitizing payment cards into different devices andaccessories such as wearables, laptops or gaming
consoles has been a priority to increase convenienceand reduce the barriers to payment either in person,
online or as part of an in-app experience. Of course,
security and connectivity are key to enabling theseconvenient digital payments.
In the years to come, expect payment form factors
to continue to diversify as consumer behavior

14changes. For example, the rise in electric vehicles will
require more frequent charging stops, driving in-car
payment functionality for consumer comfort so they
do not have to leave their car while it recharges.
Vehicles will become like a payment device for multi­
ple transactions, such as paying for toll roads, parking
and charging, enabling ultimate convenience andencouraging uptake of newer, smarter, greener cars.
As the trend of enabling payment functionality inmore devices continues, industries that have never
had to contemplate payment security will have toverify they deliver convenience and security, or risk
losing ground to rivals. Working together with onestop-shop technology partners that can help themachieve this balance will be crucial.

Secure Element

Tokenization

CDCVM*For some devices, this may makeuse of the Secure Element (SE).
An SE is a secured payment chip
which stores sensitive data re­quired for payment applications
and can be used in any device.
The SE is also the hub for provid­
ing digital connectivity through its
numerous interfaces. Infineon SEs
have secured storage and tamper
detection capabilities to protect
the confidentiality, integrity andauthenticity of information anddevices. This provides high levelsof security at the source.

Payment tokenization will be
another important solution in
the coming years, especially forindustries and OEMs who are
not used to handling payments.
To enable payment on a device,
tokenization is required, as it
helps to encrypt customer pay­
ment information on the device
by replacing the sensitive card
information (Primary AccountNumber, or PAN) with substitutedata or “tokens”. These tokens
can then be securely stored insystems for future without theoriginal data being held.

I­ nfineon also provides further
security through a biometricauthentication method between
IoT devices and cloud-based payments, requiring a cardholder toverify a transaction on theirdevice by using a passcode orwith a biometric verification
method. This helps to make theuser experience as frictionlessand convenient as possible, with­out compromising on security.
* Consumer Device Cardholder Verification
MethodThe rise of the digital wallet
Digital wallets will enjoy significant adoption
by the end of the decade, enabling individuals to
use a verified digital identity to perform a rangeof tasks from providing proof of age, to accessing
healthcare services or making payments. Juniper
Research estimates digital wallet users will exceed
5.2 billion globally as soon as 2026, representing
strong growth of over 53% from 2022. As more
payments are made from digital wallets stored on
more devices, authentication methods are alsochanging. For instance, use of FIDO passkeys –alternative sign-in credentials that don’t requirea password – to verify a user’s identity is on therise, enabling a more convenient, pass-wordlessauthentication experience on websites and apps.
These passkeys should be stored in a SE rather
than the cloud. This will allow the necessary secu­
rity levels to provide peace of mind that sensitive
user data is protected, and safeguard OEMs against
constantly rising fraud rates for card-not-present
payment transactions.

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DIGITAL CURRENCIESWill CBDCs complement
cash and cards?
Central bank digital currencies
As cryptocurrencies and stablecoins both gained
and lost momentum in recent years, governments
began exploring central bank digital currencies(CBDCs) as a way to preserve the financial authorityof central banks and offer a trusted, alternative pay­
ment option for citizens. Think of CBDCs as digitalmoney that can be issued by a country’s central
bank alongside cash.
Different technologies are being explored, such as
the EUDI digital wallet for EU citizens, which will be
stored on a citizen’s smart phone, which will enableoffline use of CBDCs so consumers can spend digitalmoney no matter where they are. This offline func­
tionality will be critical to provide resilience andboost inclusion.

Whichever form factor is used to pay with a CBDC – bethat a smartphone, wearable, smart card – securing
offline usage will be critical for central banks, as well
as delivering trust within each pilot project and any
subsequent roll-out.
Hardware-based security is one option being explored
to increase protection and resilience. This includes
existing solutions such as the Secure Element, whichenables personal data and financial information to
be stored in a secured area on the payment device orsmart card. Solutions based on eSIM will be anotherhardware-based security option to protect CBDCs,
embedded within a mobile or IoT device to reduce therisk of bad actors accessing and extracting sensitive
information.

Rising in popularity:
CBDC pilot projects across the world
Research from the Atlantic Council’s CBDC tracker
shows over 130 countries are exploring a CBDC,
representing 98% of global GDP. For instance,in early 2024, the European Central Bank began
inviting potential suppliers of components andservices related to the creation of a Digital Euro
CBDC to submit applications to establish frame­
work agreements.

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As part of this, central banks must understandthe importance of creating a robust, resilientsystem capable of protecting a nation’s economy
against rising fraud levels without relying on a
network connection.

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Innovations enabling
your growth
Why is ­Infineon trusted worldwide toenable highly secured, convenient payment
experiences?
I­ nfineon means innovation and innovation means opportunities for business growth. Here are just some of therecent innovations from ­Infineon that help to expand and protect payment offers globally:

SOLID FLASH™

Coil on ModuleThis future-proof memory concept meets thegrowing demand for supply chain flexibility. The
smart design supports loading software during
card production and accelerates time-to-market
by over 50%.

Coil on Module (CoM) technology simplifies thetransition from contact-based to dual-interface
schemes that enable contactless.

Integrity Guard 32

Biometric Coil on Module

Integrity Guard 32 enables higher levels of security
without compromising on performance and reliability.
The solution takes a holistic approach, integrating
the system’s processing core, on-chip memories,
buses, caches, crypto accelerators and peripheral
interfaces into a comprehensive security architecture.

The Biometric Coil on Module (BCoM) solution
integrates the Secure Element and a biometric sensor
into a small package, based on inductive couplingtechnology. This significantly improves the robustness
and long-term reliability of biometric payment cards.

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TEGRION™
TEGRION™ security controllers deliver hardware
security, efficiency, performance and ease of imple­
mentation at the same time. This level of security
also supports an extended product lifetime, meaning
cards are in consumers’ wallets for longer.

Infineon will continue to support TEGRIONTM security
controllers as part of our latest 28 nm payment port­
folio for enhanced security.

Discover more
Coil onModuleIntegrity
Guard 32

BCoM

TEGRION™

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­I NFINEON’S PAYMENT SECURITY SOLUTIONSWhich I­ nfineon payment
security products
are right for you andyour customers?
Digitalization is making our lives easier and moreconvenient, but it also increases the need to protect
identities and personal information. Infineon’s securi­ty solutions for smart payment cards and beyond cangive you peace of mind that you and your customers’sensitive data and payments are safeguarded:­Infineon fast facts
Global payment
market leader
According to ABI Research, Infineon has held thenumber one market share position over the last
7 years.

SECORA™ Pay Bio
is an all-in-one solution for biometric pay­
ment card applications, pre-certified for Visa
and Mastercard applets without additional
functional approvals required. It provides
best-in-class contactless performance andadvanced fingerprint sensor technology in atiny chip. This will simplify and standardize
biometric payment card production for card
manufacturers while also enabling frictionlesspayment experiences for cardholders, withan additional authentication option.

SECORA™ Pay

SECORA™ Connect

represents a family of Infineon solutions,which enables contactless payment function­ality. SECORATM Pay products use a security
controller with certified software integrated
into Coil on Module (CoM) chips. This resultsin easier, quicker card production, and fastercontactless transaction performance withoutcompromising on security.

is designed to enable embedded payments
such as smart wearables, laptop payment
wallets or in-car payments to provide con­tactless secured payment and transportation
ticketing via Near Field Communication (NFC).
This enables contactless payment function­ality to be securely integrated in virtually any
device, providing limitless choice and ultimate
convenience for consumers.

28 nm

43%

-100%

is the size of our technology
node for payment chips,
offering a great balance
between reliability,
performance, and cost.

payment global market
share: nearly every second
card contains an Infineon
payment chip.

Infineon is committed to bind­ing CO2 reduction targets: -70%
in 2025 and -100% in 2030

Source: ABI Research “Payment andBanking card Secure IC Technologies”,
2024 QTR 1

Source: Infineon Sustainability Report,
RE100 Renewable Energy 100> 20 BSI approvals
feature Infineon among the highest numbers of approved
EAL6+ products.
Source: BSI

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Taking yournext step forward
How will I­ nfineon and thepayments industry navigate thisnext leap forward together?
Behaviors, trends, technologies and regulations are evolving quickly, as
preferences change and new use cases emerge that add value to our daily lives.
Of course, the great unknown on the horizon is the arrival of quantum computing.
While nobody can say when, it will have a huge impact on the payments landscapeas the technology offers bad actors the opportunity to break complex encryption
algorithms and potentially decrypt sensitive information, compromising thesecurity of financial transactions.
The good news is the industry is ready, with “post-quantum cryptography (PQC)”
alternatives already available and strong enough to protect payment transactions
As an innovator and global security leader, I­ nfineon continues to invest millions
into research and development to allow that its technologies help keep you andyour customers secured, long into the future.

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Published by­Infineon Technologies AG
Am Campeon 1-15, 85579 Neubiberg
Germany© 2024 ­Infineon Technologies AG.
All rights reserved.
PublicDate: 08/2024

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