Chip card migration beats expectations in US, China
EMV card issuance in the U.S exceeded original industry expectations for 2015 at nearly 600 million units, while China shipments approached 850 million.
The two countries led worldwide market growth, accounting for 53 percent of the 2.6 billion-plus EMV cards shipped in 2015, according to ABI Research.
“EMV migration in the U.S. ramped up quickly, with market penetration likely to hit close to 100 percent over the next two years,” said Phil Sealy, senior analyst at ABI. “Our findings show that U.S. EMV shipments will peak in 2016 and reach approximately 617 million units. ”
Additional opportunities in the U.S. include the replacement of mag-stripe private label credit cards and next-generation migration plans surrounding contactless issuance.
“In 2015, Apple and Samsung Pay helped educate U.S issuers and users on the value and convenience that contactless payments can enable,” said Sealy. However, he said, “ABI Research believes that the U.S. will remain primarily a contact-based country for the short term.”
The company anticipates a larger contactless card impact will be felt in two to three years’ time.