Contactless Card Shipments Jump

PRESS RELEASE

• 450 million contactless cards delivered by Smart Payment Association (SPA) members in 2013 – twice the quantity that was shipped in 2012

• 37% of all payment cards shipped to issuers worldwide in 2013 featured contactless technology

• Contactless growth in all regions: Asia Pacific + 193%, Europe +64%, Americas +45%

• Now present in over 30 countries, contactless payment infrastructure paving the way for contactless mobile payments and bringing NFC to the mass market

• Contactless brings convenience and speed, and multi-application possibility: payment, transit, access control etc.

Munich, 13^th May 2014 - Contactless payment card shipments accelerated globally in 2013, according to figures released today by the Smart Payment Association (SPA). at an opening-day session at the CARTES America conference and exhibition in Las Vegas. In its annual review of the smart payment card market, the SPA reports that contactless technologies were present on over one-third (37 percent) of all smart payment cards shipped in 2013.

By far the greatest increase was experienced in the Asia Pacific region, where contactless shipments grew by a staggering 193 percent compared to 2012. Other regions around the globe experienced strong growth rates, ranging from 45 percent in the Americas to 64 percent in Western Europe.

Whether in the form of a ‘tap-and-go’ credit or debit card or contactless payments via a smartphone, growing consumer and retailer hunger for the convenience and opportunities presented by contactless payment accounts for this rapid growth. In 2013 more than 450 million contactless cards were delivered by SPA members in over 30 countries worldwide, demonstrating that the full potential for consumers, providers and retailers is now being realized.

Shipments of dual interface cards, incorporating both chip and PIN and contactless technologies, grew by an impressive 115 percent in 2013, largely driven by growth in Asia and Europe. As a result, dual interface cards now represent 94 percent of all contactless shipments.

The data*, collated by the SPA – whose six members represent more than 85 percent of the total available market – reveals the migration to contactless payment is a reality in more than 30 countries worldwide. The deployment of contact payment infrastructures, which includes terminals and POS, is paving the way for mobile payments and accelerating the introduction of NFC to mass markets.

More than 1.5 billion cards were shipped last year, with the highest increased once again recorded in the Asia Pacific region (up 75 percent) driven largely by China’s migration to chip based payments and the initiation of EMV in India. EMEA’s strong growth of 12 percent was in part driven by SEPA rules which enforce chip and PIN and the growth of EMV in Russia. A substantial 37 percent growth in North America reflects the completion to EMV by Canada and the escalating migration to EMV currently underway in the USA.

The drive to increased card security also continued apace in 2013, with adoption rates of Dynamic Data Authentication (DDA) mechanisms escalating by over 66 percent to account for more than half of all global card shipments, thanks to the major payment schemes pushing forward with DDA or Combined Data Authentication (CDA) schemes to combat fraud and respond to the increasing adoption of contactless payments.

The majority of dual interface cards are now using DDA technology, with significant growth being seen in mature and rapidly maturing markets. Asia Pacific exhibited the greatest increase in DDA adoption (up 155 percent) while the Americas demonstrated strong growth of 77 percent. Meanwhile, CISMEA & Eastern Europe combined registered an increase of 31 percent in DDA-enabled cards.

SPA’s review of the smart payment market highlights that EMV is now a truly established, global, secure and interoperable infrastructure, with NFC operating as a contactless extension that’s paving the way for today’s fast evolving connected world.

“The data from this report reveals a growing hunger by consumers for the convenience and immediacy of contactless payment, and issuers are responding with innovative payment options, including those with transit features that put them ‘top of wallet’,” says Sylvie Gibert, president of the Smart Payment Association.

“The acceleration of contactless payments is, in turn, fuelling demand for mobile payments via NFC, which in itself represents a major mass market transition. The SPA plays a key role in shaping the future of smart payments, not just through its thought leadership but also with its ongoing involvement in the evolution of SEPA, EMV and ISO standards maximizing the very highest levels of interoperability and security, regardless of form factor.”

SPA’s president, Sylvie Gibert, will present at Cartes America (www.cartes-america.com) the detailed report on Tuesday 13th May 2014. The presentation will be made available from www.smartpaymentassociation.com that day.

-Ends -

Note to Editors:

*The figures published in the press release are actual shipments published by the SPA. Actual shipments data, segmented by region, and by interface, are sent on an annual basis by SPA members to an independent third party. There is no direct exchange of data between SPA members. Consistent with SPA’s practices for the exchange of historical data, the third party aggregates and anonymizes the data so that no SPA member is able to identify another SPA member’s contribution. The data is published on an annual basis, at the end of the first quarter of the following year. SPA member shipments represent more than 85% of Total Available Market (TAM). TAM is estimated by SPA members following the same process as for volume sales reporting detailed above.

About Smart Payment Association (SPA)

The Smart Payment Association (SPA) addresses the challenges of the evolving payment ecosystem, offering leadership and expert guidance to help its members and their financial institution customers realize the opportunities of smart, secure and personalised payment systems & services both now and for the future.

For more information on the SPA, visit our website: www.smartpaymentassociation.com or contact us by email: [email protected].

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