The six SPA members, who represent more than 85% of the total available market, shipped 898 million smart payment cards (of which 90% were EMV cards); a healthy 12% rise in volumes on 2010 figures. The annual review of the smart payment card market by the SPA highlights strong growth across the globe in 2011.
The highest regional climb was recorded in the Americas. Here, Canada’s completion of its EMV migration, the increasing adoption of chip and PIN cards across Latin America and the first significant volumes of EMV cards to be issued in the United States all contributed to a +29% jump in shipments. The Asia Pacific market was similarly buoyant in 2011, with the region showing a +26% increase.
The annual review highlights the ever increasing penetration of contactless payment, with pure contactless and dual interface payment cards accounting for 15% (130 million) of SPA member shipments in 2011. By investing in contactless cards issuers are increasingly able to offer faster, more convenient and more intuitive payment options to customers; while investments made on the acquiring side (terminals and infrastructure) are paving way for the expected growth in mobile NFC payments.
The review also underlined the continued move towards ever more secure ways to pay. Almost one out of every two (47%) cards shipped featured Dynamic Data Authentication (DDA) or Combined Data Authentication (CDA) mechanisms. Mature markets, stimulated by payment schemes and/or regulatory compliance, are increasing the pace of migration towards these more secure authentication methods; in Western Europe 90% of shipments were DDA/CDA. Similarly, Static Data Authentication (SDA) remained the natural option for “phase 1” migration to EMV in other areas (e.g. 90% SDA in Americas).
According to Andreas Strobel, President of Smart Payment Association: “Consumer demand for increasingly convenient and more secure payment methods have seen the establishment of the globally secure and interoperable payment infrastructure we see today. And as mechanisms continue to evolve in our connected world, the role of the SPA in shaping the future of payments will become ever more crucial – supporting both innovation and adoption in the coming year.”
