People whose bank card expiry date ends in 2022 could find themselves without a new card to make their purchases. Blame it on the shortage of components which complicates their production.
“If the situation was already complicated in 2021, it could be even more so in 2022”, announces to CNEWS Cuong H. Duong, president and CEO of Linxens, a company which supplies more than half of the connectors fitted to the chips of our cards. banking around the world. And this shortage affects the entire sector. “Before October 2020, when we ordered chips, we had a three-month deadline for delivery, then that period went from 4 to 6 months. In 2022, these same suppliers are now talking about 9 to 12 months, ”warns the manager who believes that bank customers may not receive their card on time when they are renewed.
A real problem “because of the snowball effect” that such a lack could have on the global economy, consumers may find themselves unable to make purchases, which today mainly pass through bank cards. Although the idea of exceptionally extending their period of validity has been put forward, this solution is proving to be difficult to implement immediately, which implies investing in systems deemed too expensive for an exceptional situation.
Towards a return to normal in early 2024?
In 2021, another 3.1 billion bank cards were manufactured and shipped around the world, but the drop in production could be sharper next year. “The smart card industries sector did not immediately warn those in charge of the automotive industry in order to take certain decisions that would have made it possible to avoid this shortage and the situation may not return to normal before the end of 2023,” or even early 2024 ”, estimates Cuong H. Duong. Because this sector is also dependent on other industries which require certain identical components. This is the case, for example, of car manufacturers who are affected by this shortage and who had badly anticipated orders as well as the resumption of activity.
Speculation on certain components, problems with the production of raw materials and slowed production in some factories, especially in Southeast Asia, due to Covid-19 are among the causes of this worrying shortage.
Another point, the rise in prices affecting the production of components. After a first wave of growth where prices have increased by 15 to 20%, some components will jump from 40 to 45%. “However, companies achieve low margins on this type of production,” concludes Cuong H. Duong.