Contactless payment card shipments are increasing at a strong clip, according to annual review data released by the Smart Payment Association. Nearly a quarter of all smart cards shipped in 2012 included contactless technologies, with the largest year-over-year increases in Western Europe and Asia Pacific, at 106 percent and 111 percent respectively.

Shipments of dual interface cards, incorporating both chip and PIN and contactless technologies, are now are growing at 77 percent year over year. The overall number of smartcards shipped was up 9 percent on the year. 

More than 975 million cards shipped last year, with the largest increase in the Asia Pacific region, where China's migration to chip-based payment cards drove a growth rate of 24 percent. Europe showed an 8 percent growth rate, but this was due mainly to a move to contactless technology. Contactless card shipments in North America increased by just 1 percent, with most bound for Canada.

In 2012, 56 percent of global shipments featured dynamic data authentication or combined data authentication — up from 47 percent in 2011 — indicating a significant step in the direction of increased payment security in more mature markets. CISMEA and Eastern Europe, the Americas and Asia Pacific registered increases of 69 percent, 60 percent and 45 percent respectively in DDA/CDA-enabled card shipments.

"The data from this annual review points to a rapidly-changing payment marketplace," said Andreas Strobel, president of the Smart Payment Association. "NFC contactless payment is becoming a priority, but without effective collaboration between global and regional standards bodies, the ability to deliver on consumer expectations will be constrained. SPA's role is to help facilitate these discussions and support innovative new approaches to assure the industry is able to realize the tremendous opportunities that new technologies can bring."

Annual review data comes from the six SPA members, which represent more than 85 percent of the total available market worldwide. Numbers are sent to and aggregated and anonymized by an independent third party 

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