MUNICH, Germany — July 22, 2026 (XOL Africa) — Members and advisory council participants of the Smart Payment Association shipped 2.47 billion payment cards and payment chip modules in 2025, marking a year of consolidation following the global chip shortages and supply adjustments of recent years, the industry group said Wednesday.
The association said inventories of payment modules were about 5% above pre-shortage levels, indicating that supply pressures have eased as the global payments industry adjusts to changing demand.
“2025 should be read as a year of consolidation,” said Jacques Doucerain, president of the Smart Payment Association.
“Inventory normalization and region-specific demand shifts explain much of the correction, while strong growth in key regions, continued migration to eco-cards and fintech-driven issuance, point to a resilient, evolving market.”
Regional performance varied significantly during the year. Shipments declined in parts of the Middle East and Africa, where inventory consumption in Africa affected volumes, while demand also weakened in China amid slower market activity and changes to card-renewal rules by Indian banks.
The declines were partly offset by growth in other markets. Shipments increased 17% in South Asia excluding India, 10% in Brazil and 6% in North Asia excluding China, according to the association.
Contactless payment cards remained a major part of the market, with 2.3 billion contactless cards shipped in 2025. Global contactless penetration reached 94%, an increase of 2 percentage points from the previous year.
The association also reported continued growth in sustainable payment cards, with cards made using materials such as recycled plastics and bio-sourced materials accounting for nearly 30% of total member shipments.
Europe remains the leading region for sustainable card adoption, while the association said emerging markets and Latin America recorded particularly strong growth. A global payment scheme mandate targeting 2028 is expected to further accelerate adoption in 2026 and 2027.
Fintech companies are also becoming an increasingly important source of demand. The segment now accounts for nearly 10% of total payment card unit volumes, highlighting the continued role of physical cards in digital-first financial services and the growth of fintech and neobank customers.
“SPA members’ ability to maintain volume and drive innovation underscores the fundamental health of the payment card industry,” Doucerain said.
The Smart Payment Association represents companies involved in the cards and mobile payments industry and focuses on innovation, security and interoperability in payment technologies.
The association’s market monitoring process includes Austria Card Group, G+D, IDEMIA, NXP, STMicroelectronics and Thales. A detailed breakdown and analysis of the 2025 results is available for purchase by non-members.
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