Despite the shortage, extending the life of existing cards is not recommended
Card shortage is coming: here’s why. Source: pexels.com
There could be an oncoming card shortage in the second half of 2021 caused by semiconductor supply issues, according to Le Figaro.
The Smart Payment Association (PSA) has warned that millions of cards will be missing if the situation is not salvaged. This is the firm that represents major card manufacturers such as Thales or Idemia.
Urgent measures should be undertaken to avert the shortage of semiconductors. Otherwise, the entire world will be affected. If the card shortage hits, then customers will no longer be able to renew or recover a card.
This comes as semiconductor production plants in Asia fail to meet the growing demand. The shortage has affected various sectors such as the automotive industry. This network is vital for smart cards as it enhances network security and card identification.
While the card shortage problem may be felt in the second half of 2021, it will become more prevalent in 2022. The situation can be salvaged if the sector is prioritized in the supply of chips. During the coronavirus pandemic, the sector has been classified as critical which ensured that it operated despite the successive confinements.
Despite the shortage, extending the life of existing cards is not recommended. This will only cause confusion and interfere with the security.
We’ve reported that smart POS terminals in service to grow by nearly 160% by 2026.
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