The Smart Payment Association (SPA) is warning of a potential shortage in payment cards, including credit and debit cards, due to a global shortage of chips.
According to the SPA, card payments have become a much more common payment method—nearly 90 per cent of non-cash payments in physical stores involve cards, and 40 to 60 per cent of online purchases are made using cards.
More than 3 billion EMV-standard-based payment cards need to be produced and delivered to consumers worldwide every year.
However, a global shortage of chips could become a problem for those who need a new card—whether because their old one expired, or they need to replace a lost card.
Additionally, with no end in sight to this shortage, the problem is expected to persist through the rest of 2021 and into 2022.
As a result, the SPA is anticipating significant disruptions, in payment card production beyond the control of manufacturers.