Contactless Card Shipments Jump enabling Shoppers Take Advantage of Everyday Payment Convenience

shaping the future of payment technology
SPA Members global smart
payment card shipments 2013
A unique set of data based on SPA Members’ actual volume sales
March 2014 – V2.7.3

shaping the future of payment technology2
Exclusive preview
 EMV is a truly established, global secure &
interoperable infrastructure, with Smart
payment card shipments exceeding 1.5 billion
in 2013.
 Contactless technology was present on 37% of
all payment cards shipped in 2013
 Over 450 million contactless cards delivered by
SPA members in 2013 (twice the quantity that
was shipped in 2012)
 Move towards ever more secure ways to pay:
DDA more than half of shipments

SPA’s role in shaping the future
of payment
01.

Who we are
The Smart Payment Association addresses the challenges of today’s evolving
payment ecosystem. We offer leadership and expert guidance to help members
and their financial institution customers realize the opportunities of smart,
secure and personalized payment systems and services - both now
and in the future.
Since 2004
Members:

What we do
 The SPA works in partnership with global standards bodies, its own vendor
community, and an expanding ecosystem of established and emerging
brands; offering an ever-growing portfolio of advisory and support services.
Fig 1
Extending advisory and
support across the evolving
community, the SPA is
addressing today’s challenges
and shaping the future
direction of payment
technologies, standards and
business models.
Ecosystem Expert Advisor Services
Help shape the future of payments
Members Customers Services
Bring Value to Financial Institutions
Members Services
TradeOrganization
Non
Traditional
Traditional/ Smart Card Advanced/ New
Customers
Technologies

How we do it
 By delivering the market’s most accurate barometer of
payment trends
 An annual analysis of payment trends based on actual manufacturer
sales data
 SPA members 85% of the total smart payments card market
 By supporting the creation and adoption of standards and best
practice
 EMVCo: Technical Associate and Board Advisor for Card Sector
 EPC-CSG/SEPA: Card Representative and Vendor Sector
Spokeperson, Chair of the EPC-CSG Task Force to specify the SEPA
functional and security requirements for emergent & remote
payments ( Internet + Mobile), Convenor of the new EPC-CSG
Expert Team on Card Innovative Payments, Member of the
Preparatory Committee of the SEPA Security Certification
Management Body
 By extending expert advice and support across the payments
ecosystem
 An eye-growing library of expert technical resources and thought
leadership collaterals to shape the future of payment

Latest SPA’s Publications
 NEW! Tokenization
 NEW! Digital Wallets
 Instant Issuance
 Biometrics for EMV Payment Cards
 UICC Application Lifecycle Management
 Software to Chip Fallback Solution
 Security Certification for Mobile Platforms
 Security for Mobile Payments
 PIN by SMS
 Private Label Payment Solutions
 Business Continuity in the Payment Card
Issuance Industry
May 2014
Download at
www.smartpaymentassociation.com

SPA & its members in the US
 Cartes America (http://www.cartes-america.com/ )
 Smart Card Alliance
(http://www.smartcardalliance.org/)
 EMV Migration Forum (http://www.emv-
connection.com/ )
 ISO:
 Smart cards, electronic authentication, biometrics,
middleware / collaboration with NIST(ISO JTC 1)
 Mobile payments / collaboration with major US Banks &
Federal Reserve (ISO TC 68)
 EMVCo Technical Associate & Board Advisor
 EMVCo NextGeneration Taskforce
 Optimize interoperable processing of contact / contactless
and mobile payment cards*
*tamper-resistant hardware, personal, portable device to execute
payments, i.e. ID-1 card contact or contactless, SE (SIM/UICC)

SPA global smart payment card
shipments 2013
03.

TAM > 1.5 Billion units in 2013*
* 2013 Estimated Total Available Market (1546 units) by Geographies in Millions –
Includes all chip payment cards
** Includes Turkey
NORTH AMERICA
TAM: 103M
SOUTH AMERICA
TAM: 248M
SOUTH EAST ASIA
TAM: 104M
NORTH ASIA
TAM: 495M
EUROPE
TAM: 329M
Payment Chip cards deployed
or in advanced deployment
Chip cards in deployment
Chip cards migration initiated
No Chip cards
CISMEA** & EASTERN
EUROPE
TAM: 267 M
May 2014

shaping the future of payment technology11 May 2014
US is the next wave
 EMV migration started in 2013
 Mindshift ignited among issuers and consumers, with a sense of ‘urgency’ ,
boosted by
 Data breaches: an EMV enabled ecosystem would have been less
attractive for fraudsters
 2015 Liability shift: MasterCard and Visa reiterated that they would not
push back October 2015 counterfeit liability shift deadlines
 Common AID solution facilitating domestic debit networks migration
 Fear of competitive disadvantage by turning too late
 Translating now into concrete migration plans, and the first mass
volume issuance
 Expected growth for 2014 above 30% (including Canada)

450+ Mio. Acceleration in 2013 of
Contactless Payment Card
Shipments, notably Dual-Interface
 Contactless technology =
37% share of smart
payment card shipments
 Dual-interface =
115 % YoY growth
(represents 94 % share
of contactless shipments)
 Driven by Asia and
Europe
May 2014
Contactless
Contact
11%
12%
13%
15%
580 675 798 975
2008 2009 2010 2012
898
2011
Adoption rate
contactless
cards
1 245
2013
23%
37%

More than half of shipments
are DDA
 DDA Growth in 2013: +50%
 Supported by Europe & Asia
675 798 898 975580
2008 2009 2010 2011 2012
26% 32% 41% 47% 56% 66%
DDA ADOPTION
2013
1245
May 2014

shaping the future of payment technology14 May 2014
US consumers would benefit
from DDA & Dual Interface
 Ensure a consistent consumer experience for the few offline transactions, with
the optimal security level
 Cardholders traveling abroad and doing transactions in offline
environments (vending machines, unattended kiosks…)
 For the sake of speed, Retailers may manage transactions in batch with
deferred authorizations
 Dual Interface
 Co-branded programs with Transit operators
 Ensure a consistent consumer experience in gesture & speed versus a
magstripe transaction

Take away
04.

Take away
 EMV is a truly established, global secure & interoperable infrastructure, with
Smart payment card shipments exceeding 1.5 billion in 2013.
 Acceleration of contactless payment penetration (37% in 2013 vs 23% in
2012). Paving the ground for the ®evolving connected world.
 Move towards ever more secure ways to pay (DDA more than half of
shipments).
 These figures should definitely serve US issuers , and inspire them
for a wiser migration path, going directly to DDA and Dual Interface

One Address:
March 2013
Contact: info@smartpaymentassociation.com

Thank You

Appendix
05.

SPA Market Data Monitoring Process
 The figures in this presentation are actual shipments published by SPA.
 Actual shipments data, segmented by region and by interface, are sent
on a quarterly 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.
 Once a year, total market estimates by region are also sent by SPA
members to this independent third party to evaluate TAM (Total
Available Market).

Comparing Market Figures
 Cards in circulation / installed card base:
 Cards in circulation means that all cards that have been
issued in the current/covered year as well as all
previously issued cards that are still valid are taken into
account.
 Card validity differs across markets, typically between 2
to 5 years.
 Total Available Market (TAM):
 Only cards issued in the current/covered year are
counted (new cards, replacement cards, re-issued
cards) – This number is estimated by SPA.
 Actual Shipments:
 Actual shipments data, segmented by region and by
interface, are sent on a quarterly basis by SPA members
to an independent third party who aggregates and
anonymizes the data so that no SPA member is able to
identify another SPA member's contribution.
 Differences in card types counted
 EMVCo reports on EMV payment cards only
 Other reports may include local/domestic schemes and
other non EMVCo member payment chip cards. *In million units
Source 2010* 2011* 2012*
Grow
th
EMVCo Cards
in Circulation
1,083 1,340 1,549 16%
SPA
Estmated
TAM
916 1,036 1,166 13%
SPA Actual
Shipments
798 898 975 9%
March 2013

Contactless Card Shipments Jump enabling Shoppers Take Advantage of Everyday Payment Convenience

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