Smart Payment Association Warns of Supply Chain Challenges Impacting Payment Card Industry
The Smart Payment Association (SPA) has issued a position paper highlighting growing supply chain pressures affecting the global payment card industry. Key concerns include increased demand for semiconductor manufacturing capacity driven by AI and data center applications, which is diverting resources from mature nodes used in payment cards. Additionally, geopolitical tensions are disrupting supplies of precious metals like gold essential for EMV chip components. SPA notes that while these chips do not require advanced node technology, the competition for older 28nm or larger manufacturing processes has intensified due to AI demand. This is compounded by supply constraints on trading routes and material shortages affecting production timelines. The association advises card issuers to improve communication with manufacturers regarding future demand forecasts and product mix changes. SPA emphasizes that proactive coordination will help secure semiconductor capacity, reduce risks of chip shortages similar to those seen post-pandemic, and support long-term planning for the industry.
Topics: chip_availability geopolitical_risk payment_cards raw_material_costs