Smart payment card shipments hit one billion in 2011
Cartes in North America, 5th March 2012, Las Vegas, USA - The six SPA members, who represent more than 85% of the total available market, shipped 898 million smart payment cards (of which more than 90% were EMV cards); a healthy 12% rise in volumes on 2010 figures. Launched today, the annual review of the smart payment card market by the SPA* highlights strong growth across the globe in 2011.
• Americas +29% and Asia +26%
• Contactless and dual interface : 15% of total shipments
• Almost half of cards shipped were DDA/CDA
In 2011, for the first time in history, the number of smart payment cards shipped annually to financial institutions worldwide passed the one billion mark (1037 million), according to figures released today by the Smart Payment Association (SPA).
The six SPA members, who represent more than 85% of the total available market, shipped 898 million smart payment cards (of which more than 90% were EMV cards); a healthy 12% rise in volumes on 2010 figures. Launched today, 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.”
Smart Payment Association Representative, Brian Russell, has delivered a keynote at Cartes in North America today presenting the analysis of 2011 over 2010.
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Notes to Editors:
* The figures published in the press release are actual shipments published by 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 anonymises 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.