With the widespread adoption of EMV-compliant chip technology, financial institutions worldwide face an escalating challenge. In 2021 alone, the cost of these chips increased by over 50%, an increase which continued up until 2023and is expected to continue in the coming years.
Experts believe that several factors contribute to these price surge, but the global Covid-19 pandemic and the war in Ukraine are likely to be the biggest factors. Throughout the pandemic several important cities in countries around the world were in lockdown, which slowed the production of microchips, therefore putting a strain on supply worldwide. The situated escalated with the war in Ukraine, with the hampered procurement of palladium and neon gas, which are fundamental in the development of microchips and are predominantly sourced from Russia and Ukraine.
In November 2021, the American Bankers Association issued a warning on the impending crisis, suggesting that continued supply shortages could potentially lead to challenges for payment card issuers in terms of timely card replacements and new chip card issuances.
One promising avenue to offset the mounting supply costs involves extending the lifespan of physical payment cards provided to both new and existing clients. By crafting cards with enhanced durability, the frequency of replacements can be reduced, thereby extending the cards’ operational lifespan and reducing supply and operational expenses.
In response to this pressing issue, Entrust has taken proactive measures by offering its proven Durable Graphics technology, widely employed in high-volume card issuance, to instant financial issuers. This innovative technology has effectively doubled the lifespan of millions of payment cards currently in circulation. Moreover, it seamlessly integrates with the Sigma DS4 Instant Issuance system, making instantly issued payment cards substantially more resilient. Notably, this technology not only prolongs card life but also provides personalized options that are distinguished by their exceptional clarity and vivid color.
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We look forward to providing you with comprehensive insights into how our solutions can meet your specific needs.