Payment cards, such as credit, debit or prepaid, are being affected by the shortage of chips and according to research, the issuance of 740 million cards is at risk due to this reason.
From the beginning of 2021 chip shortage has been affecting globally to the manufacture of consoles, graphics cards, smartphones, computers, televisions and even vehicles. However, this 2022 will also harm, considerably, to payment cards.
The plastics that are needed to make transactions in restaurants, businesses, warehouses, department stores, among others, require a Chip EMVwhich includes a Integrated circuit that facilitates payments, also validates the authenticity and protects once morest counterfeit card fraud.
However, these have been affected by the lack of semiconductors and according to the research regarding the shortage of them and how it would affect the cards, carried out by the global company dedicated to smart technology ABI Researchrevealed that:
“This year 740 million payment cards are at risk of not being issued due to lack of chips (…) The offer cannot be kept up to date with the growing demand and the payment card industry is by no means immune to this situation.”
Who would be directly affected?
The low number of chips available in the world is a fact that puts the banks in trouble and directly to all people who need to renew their cardget a new one for loss and those who require a plastic for the first time.
The lack of cards might hit the global economy very hard, according to the director of Digital Security Research at ABI Research, Phil Sealy.
“Although they do not necessarily receive the attention or support from governments that they deserve, payment cards are a critical enabler for the global economyfrom the perspective of the consumer as well as of a company”.
To which he added that access to cards is essential to carry out transactions and buy both in the physical and digital domain on a daily basis. He in turn pointed out that “the most worrying is the possible interruption of the Gross Domestic Product (GDP)”, set of goods and services produced in a country.
“The lack of payment cards will translate directly into fewer purchaseswhich will ultimately have a detrimental impact on GDP,” he said.
“The card industry must be considered one of the main chip supply priorities“, he sentenced.
Solution being adopted
Banking entities are working on digital solutionssuch as virtual cards that can be manipulated from the applications of their banks.
This alternative is being implemented in order to try to stop the negative impact that can be had due to the lack of chipssays the media specialized in technology Hipertextual.
