PR Newswire
28 Sep 2022, 18:00 GMT+10
LONDON, Sept. 28, 2022 /PRNewswire/ -- The payments industry considers 2022 to be the make-or-break year for the market. With stocks now largely depleted, the exact extent of the chip shortage impact is being felt. Global technology intelligence firm ABI Research forecasts payment card shipments to reach 3.029 billion in 2022, a slight drop from the 3.11 billion shipments in 2021. The payment cards market has proved more resilient to the effects of the pandemic and ongoing chip shortage than initially anticipated, particularly when compared to other smart card verticals, such as SIM cards.
"Despite another year of issuance decline, the market was able to minimize the impact owing to closer collaboration with issuing banks and by utilizing existing stock levels to minimize supply impacts. Better than expected activity in Latin America, alongside a continuation of low-level growth in Europe, near counterbalanced significant market reductions in North America, which declined YoY, driven by the U.S. and its reissuance cycles," explains Sam Gazeley, Digital Payment Technologies Research Analyst at ABI Research.
The industry should begin to see additional capacity becoming available at the end of 2023. However, recovery will not match issuance levels seen in pre-COVID years. Growth will be limited compared to previous expectations due to a continuation of chip supply constraints, increases in component, material, and supply chain costs as well as consumers looking to reduce spending and debt where possible, owing to the global rise in inflation and energy costs which will contribute to lower transaction volumes in the near future.
"A recovery to standard issuance levels will likely not become a reality until around 2025, coinciding with the resolution of supply constraints, replenishment of depleted stock and, from 2023, an increase in chip production which will close the gap between demand and supply," Gazeley concludes.
These findings are from ABI Research Payment and Banking Card Technologies market data report. This report is part of the company's Digital Payment Technologies research service, which includes research, data, and analyst insights. Market Data spreadsheets are composed of deep data, market share analysis, and highly segmented, service-specific forecasts to provide detailed insight where opportunities lie.
ABI Research provides strategic guidance to visionaries, delivering actionable intelligence on the transformative technologies that are dramatically reshaping industries, economies, and workforces across the world. ABI Research's global team of analysts publish groundbreaking studies often years ahead of other technology advisory firms, empowering our clients to stay ahead of their markets and their competitors.
ABI Research 1990
For more information about ABI Research's services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific or visit www.abiresearch.com.
Contact Info:
Global
Deborah Petrara
Tel: +1.516.624.2558
[email protected]
SOURCE ABI Research
Get a daily dose of Singapore Star news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Singapore Star.
More InformationGENEVA, Switzerland: Japan's car industry is facing a multibillion-dollar blow as sweeping U.S. auto tariffs threaten its largest export...
TALLAHASSEE, Florida: A famous old ocean liner, the SS United States, will soon become the world's biggest artificial reef off the...
MANILA, Philippines: A Philippine security official stated that acquiring F-16 fighter jets from the United States will not harm any...
WASHINGTON, D.C.: Amazon.com has announced that it will launch the first 27 satellites for its Project Kuiper internet network this...
NEW YORK, New York - UN Secretary-General Antonio Guterres has voiced profound concern over the escalating human toll in Gaza, as...
LONDON, U.K.: Daniel Kretinsky's path to owning Royal Mail is nearly complete, as his firm EP Group announced this week that all regulatory...
SINES, Portugal: A massive data centre project in Portugal is set to receive a multi-billion-euro boost, as tech giants fuel global...
NEW YORK, New York - U.S. stocks settled on Monday following massive falls across the globe. Hong Kong's key index, the Hang Seng dived...
WINDSOR, Ontario: Production at Stellantis' Windsor, Ontario assembly plant will pause for two weeks, as mounting trade tensions trigger...
AUSTIN, Texas: Tesla's early-year performance has taken a hit, as sliding sales, rising competition, and CEO Elon Musk's growing political...
MUMBAI, India: India's jewellery exporters are facing their toughest year in over a decade as fresh U.S. tariffs threaten to cut off...
TOKYO, Japan: Mitsubishi Corp is weighing a potential role in Alaska's ambitious LNG export project, as the Japanese trading giant...