shaping the future of payment technology
SPA Members global smart payment card shipments 2013A unique set of data based on SPA Members’ actual volume sales
March 2014 – V2.7.3
shaping the future of payment technology2
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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
shaping the future of payment technology
SPA’s role in shaping the futureof payment
01.
shaping the future of payment technology
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 nowand in the future.
Since 2004
Members:
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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 1Extending 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 ServicesHelp shape the future of payments
Members Customers ServicesBring Value to Financial Institutions
Members ServicesTrade Organization
Non Traditional
Traditional/ Smart Card Advanced/ New
Customers
Technologies
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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
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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
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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 / contactlessand mobile payment cards*
*tamper-resistant hardware, personal, portable device to executepayments, i.e. ID-1 card contact or contactless, SE (SIM/UICC)
shaping the future of payment technology
SPA global smart payment card shipments 2013
03.
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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
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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)
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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 % shareof 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%
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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
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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
shaping the future of payment technology
Take away
04.
shaping the future of payment technology
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
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One Address: www.smartpaymentassociation.com
March 2013
Contact: [email protected]
shaping the future of payment technology
Thank Youwww.smartpaymentassociation.com
shaping the future of payment technology
Appendix
05.
shaping the future of payment technology
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).
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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
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