The Smart Payment Association (SPA), an organisation that represents large payment card manufacturers, such as Thales or Idemia declared that ‘without any improvement in the situation, millions of cards will be missing’. In a press release, the structure points to the urgency of taking action to protect these companies from the shortage of semiconductors, a supply problem that affects the whole world. The consequences of stopping the production of bank cards would be substantial as customers around world won’t be able to recover a card or to renew it.
For several months, semiconductor production plants, mainly located in Asia, have not been able to meet growing demand. As a result, several sectors have already found themselves in complicated situations, in particular the automotive industry. Smart cards use this technology to identify themselves and ensure network security.
The problem is urgent. According to the SPA, the first problems could be felt as early as the second half of 2021, but they would become much more noticeable in 2022. In order to limit the breakage, the Smart Payment Association hopes that the sector will be considered a priority in the supply of chips. It had already been classified as critical during the COVID-19 pandemic, which allowed it to continue to operate despite successive confinements.
However, the SPA does not recommend extending the life of existing cards. Indeed, the multiplication of risks requires a renewal every two years to guarantee safety. Also, it could create confusion among users.
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