Smart Payment Association Highlights Supply Chain Challenges in Payment Card Industry

The Smart Payment Association (SPA) has issued a position paper addressing increasing global supply chain pressures impacting the payment card industry. AI-driven demand for semiconductors, combined with geopolitical instability and rising raw material costs, pose significant threats to chip availability.

SPA notes that semiconductor foundries are prioritizing AI-based applications, affecting the supply of chips reliant on mature nodes critical for payment cards. Additionally, geopolitical tensions strain the supply of key materials like gold used in EMV chip components.

Manufacturers are urged to adapt by sourcing alternative chip production solutions. To mitigate risks, SPA recommends that card issuers provide early demand forecasts and engage in collaborative long-term planning with manufacturers and suppliers.

The SPA pledges to continuously monitor these evolving supply chain dynamics and provide updates to its stakeholders.