- Growth attributed to recovery post chip shortage and SPA
perimeter extension
- Next generation eco-friendly [2] global card shipments
represented 21% of worldwide total SPA card shipments, a +7
percentage points compared to 14% in 2022
- Contactless products accounted for 88% of total shipments by
SPA members
MUNICH, July 4, 2024
/PRNewswire/ -- Smart Payment Association (SPA), the trade body of
the cards and mobile payments industry, today released findings
from its annual review of the smart payment cards market.
Led and organized by the SPA, utilizing data collected from its
own members and participants of the SPA Market Monitoring Advisory
Council, this annual analysis of worldwide smart payment card and
module shipments reveals a total shipment volume of 3.2 billion
units were delivered in 2023 – up from 2.6 billion units shipped in
2022.
The rise in shipments can be attributed to several factors. In
addition to welcoming new members into the SPA, 2023 saw a few
existing members extend their market perimeters. This expansion of
SPA coverage resulted in the capture of incremental shipment
figures for the 2023 review.
In parallel with these changes, disruptions, caused by the
global silicon chip shortage, reduced throughout the year. As a
result, SPA members were able to meet the increased demand caused
by the need to replenish inventory levels, as well as the demand
from 2022 that was postponed to 2023.
"The commitment of SPA members to maintaining payment card
production and minimizing any impact to customers and consumers,
despite chip shortages, is definitely reflected in the SPA figures
for 2023," says Jacques
Doucerain, SPA President.
Growth in sustainable payment card [3]
shipments
Reflecting growing consumer demand for eco-friendly payment
cards alongside new corporate ESG mandates from governments, 2023
saw issuing banks in regions around the word accelerate their
rollout of sustainable card issuance strategies designed to reduce
plastic waste and carbon emissions.
Last year global eco-friendly card shipments represented 21% of
worldwide total SPA card shipments. This strong share increase (+7
percentage points compared to 14% in 2022 figures), highlights the
pace and scale at which banks are transitioning away from first-use
PVC as a payment card material.
50% of these eco-friendly card shipments were for the European
market, demonstrating the leadership of this region in the
transition, while 40% were delivered to the Americas.
Close collaboration across the payment card industry is helping
to fuel these transformative efforts. In addition to eco-card
innovations, SPA members are pioneering end-to-end approaches that
encompass a breadth of 'cradle to grave' processes – everything
from rethinking materials such as inks, envelopes and packaging
through to end-of-life recycling.
"The industry continues investing in new eco-innovative
materials and processes. As climate and environmental concerns grow
for consumers, banks are accelerating their sustainable card
issuance rollouts around the globe. But cards are just the tip of
the iceberg. As the global industry moves towards enabling a more
sustainable future, today's expanded eco-focus includes new
services such as card collection and recycling," says
Jacques Doucerain.
Contactless cards dominate as consumers in all
markets embrace touch free payments and tap-to-pay goes
mainstream
A growing consumer preference for contactless payments helped
propel a significant uptick in contactless card shipments in
markets around the world.
Accounting for 88% of total global shipments recorded for 2023
(up 4 percentage points on 2022 figures), SPA members reported an
impressive 27% increase in overall contactless shipment
volumes. With every country in the world now issuing dual
interface cards that support contactless payments, the lowest
regional share of contactless shipments hit 78%, with the highest
achieving 99%.
"NFC, the contactless payment technology used by cards and
mobiles, has established itself as the reference as consumers
worldwide have integrated tap-to-pay into their habits, a
convenient, secure and interoperable way to
pay," concluded Jacques
Doucerain.
More information
A full breakdown and analysis of all results is available for
sale to non-members. As part of its extensive market monitoring
activities, the SPA has established two Advisory Councils to enable
non-SPA members to access the most up-to-date marketplace data
available. The SPA Monitoring Advisory Council is open to EMV
technology vendors supplying cards and/or modules, while the SPA
Forecasting Advisory Council is open to organizations operating in
the wider payment ecosystem. For more details, click here.
About the Smart Payment Association
(SPA)
The Smart Payment Association (SPA) is the trade body of the
cards and mobile payment industry. SPA addresses the challenges of
the fast-evolving payment ecosystem, promoting innovation,
security, and interoperability of payment instruments. SPA works
closely with regulators and standardization bodies, offering
leadership and expert guidance to help its members and their
customers adopt new payment technologies of today and tomorrow.
For more information on the SPA visit our website at
www.smartpaymentassociation.com.
[1] Embedded in the payment card body during manufacturing,
the module consists of the encapsulated smart card chip attached
and electrically bonded to the micro connector or contact
plate.
[2] The following companies participate in the SPA
Market Monitoring process: Austria Card Group, CPI, G+D, IDEMIA,
NXP, STMicroelectronics, Thales.
[3] Payment card bodies
containing sustainable materials including R-PETG, Recycled PVC,
Ocean Bound Plastic, Bio-sourced material, whatever the % of the
total body.
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SOURCE Smart Payment Association