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Report projects healthy growth for smart card shipments

June 27, 2016

Smart payment card unit shipments are forecast to grow from an estimated 2.5 billion in 2015 to almost 3.4 billion in 2020, according to new research from IHS, a global information company.

In a press release, IHS projected that the United States and China will continue to be key markets drive the growth of EMV card shipments over the next five years.

In the U.S., shipments are projected to grow from 223.2 million in 2014 to 644.2 million in 2015. IHS expects that shipments of smart payment and banking cards to the U.S. in 2016 will decline slightly, to 624.7 million, primarily because large issuers and processors overstocked in 2015.

China is further advanced than the U.S. in terms of EMV card migration. Nearly 600 smart payment cards shipped into the country in 2015.

During the next five years, the growth profile of EMV cards in China is projected to slow, reflecting the fact that the Chinese market will shift from an EMV migration market to a replacement market, IHS said.

IHS expects that India and Iran will also see positive growth in EMV card use:

• by the end of 2015 an estimated 30 million smart payment cards were shipped into India. In 2016, this number is expected to increase to 92.9 million; and
• in Iran, the loosening of embargoes is expected to stimulate smart card demand. JCB credit cards will be introduced in September. Visa and MasterCard are negotiating with Iran's central bank to get their payment cards into the market, as well.