Infographic: Contactless cards set to flood US
Next generation of chip cards may speed adoption of tap-and-go payments
By Juan Rodriguez and Jeff Herman
Just as Americans are getting used to dipping instead of swiping their credit cards, a second generation of chip cards will soon be asking us to tap.
Contactless chip cards will soar in use, according to ABI Research, which tracks transformative technology innovations. U.S. contactless card shipments, which numbered 25.5 million in 2015, are expected to balloon to 405 million in 2021, the company’s research says.
This is a second wave of new cards, says Phil Sealy, senior analyst at ABI Research. Payment cards last about three years, he says, so the first EMV chip cards, which rolled out in 2014, will start being replaced with contactless chip cards en masse in 2017.
While tap-and-go is common in Canada and some other countries that preceded the U.S. with the switch to chip cards, “A number of Americans will already be familiar with contactless payments through their use of Apple Pay and Samsung Pay,” he says.
New contactless cards make use of the dual interface chip form factor. They have two chips: a contact chip for dipping into card readers, and another contactless chip that works with a thin antenna wire around the edge of the card to communicate with a contactless card reader’s radio frequency interface.
The new cards also will have the contactless symbol, a series of waves, atop the cards.
Cardholders will still be able to use the contact aspect of the card for dipping, but the addition of contactless will enable quick and convenient payment authentication for lower value purchases (typically under $30), Sealy says.
Why is Canada ahead of the U.S. with contactless cards? With more than 1.2 billion cards in circulation, manufacturing costs played a huge part in the U.S. issuers’ decision to opt for contact-only cards, he says. Canada, on the other hand, skipped first generation contact cards and deployed contactless cards from the outset.
To use the graphic on your site, use the following code:
<center><a href="http://www.creditcards.com/credit-card-news/infographic-contactless-cards-flood-us.php"><img alt="Infographic: Contactless cards set to flood US" border="0" src="http://www.creditcards.com/credit-card-news/images/contactless-cards-flood-us.jpg" /></a> </center>
Published: November 15, 2016
- Card delinquency hits 15-year low – It's another sign of U.S. consumers' improving finances ...
- Smartphones shift holiday gift-buying to the bedroom, bathroom – Millennials most likely to holiday shop while prone or on the throne, survey finds ...
- Millennials boosting retail 'un-gift' card sales – Millennials are driving significant growth in retailer-specific gift cards, but they're ignoring the gifting part and using the cards themselves ...