#Germany #Munich #Smart Payment Association #contactless cards #sustainable cards

Smart Payment Association Reports Significant Increase in Payment Card Shipments

In a recent announcement from the Smart Payment Association (SPA), the organization revealed that its members successfully shipped 2.5 billion payment cards and chip modules in 2024. This figure not only represents a recovery to pre-pandemic shipping levels seen back in 2022 but also reflects the industry's ability to bounce back from widespread supply chain disruptions caused by the COVID-19 pandemic and the subsequent chip crisis.

Market Correction and Temporary Disruptions

The SPA noted that the rise in shipments can be attributed to a normalization in the supply chain for payment chip modules, which play a vital role in the manufacturing of payment cards. In 2023, suppliers faced significant challenges as many companies hoarded modules in anticipation of future shortages. Consequently, there was a noticeable decrease in new shipments in 2024 as inventories from the previous year were gradually utilized.

Dominance of Contactless Cards

One of the most striking aspects of 2024's shipment figures is the extraordinary popularity of contactless payment technology. A remarkable 92% of all cards shipped were enabled for contactless transactions, demonstrating a substantial consumer shift towards quick and secure payment methods. Notably, countries including the United States, Latin America, and Japan have observed strong growth in contactless card adoption, while nations that were previously slower to adopt this technology, such as India, are now leading the charge with an impressive 98% contactless adoption rate.

Growth of Sustainable Payment Cards

Moreover, sustainable payment card shipments have shown significant growth, with an impressive 28% increase in 2024. This sustainable card segment now accounts for one-third of all payment card shipments globally, with Europe leading the way—76% of card shipments in this region are now categorized as sustainable. The SPA anticipates this upward trend to continue, as members align with global mandates aiming for sustainability in the payment landscape by 2028.

Industry Resilience and Commitment

Andreas Strobel, the President of SPA, emphasized the resilience and innovative spirit of the industry during these challenging times. "The sector appears well-prepared to cater to the evolving demands of both issuers and consumers. Our commitment to supporting the transition towards eco-friendly payment cards is as strong as ever, particularly in our progressive European markets."

The SPA intends to further its efforts not just in expanding contactless payment options but also in enhancing the sustainability of payment solutions across the board.

As the landscape of payment technology continues to evolve, the SPA remains a key player, providing crucial insights, relevant data, and support to both members and clients within the payment ecosystem. The association’s market monitoring initiatives and the establishment of advisory councils pave the way for inclusive dialogue and strategic planning across the industry, ensuring stakeholders are well-informed and equipped to navigate the future.

This full analysis of SPA's shipment data is available for purchase by non-members, increasing access to vital market intelligence that informs decision-making in the fast-changing financial technology space.

Conclusion

The Smart Payment Association’s report serves not only as a benchmark for current market conditions but as a call to action for continued innovation in payment technology. As global consumers increasingly prioritize speed and sustainability, the future of payment cards looks promising, with SPA at the helm guiding industry progress.

For further information, check out the SPA website at www.smartpaymentassociation.com.