Smart Card Shipments to U.S. and Canada Double to 31.2 Million in First Half of 2002

Smart Card Shipments to U.S. and Canada Double to 31.2 Million in First Half of 2002

Smart Card Alliance Annual Conference, Scottsdale, AZ, October 7, 2002–Smart card shipments to the U.S. and Canada from January through June 2002 were 31.2 million cards, more than double the same period last year according to new research announced today at the Smart Card Alliance 10th Annual Conference. The study, which is updated twice yearly, was conducted by KPMG LLP, the accounting and tax firm, for the Smart Card Alliance, a not-for-profit cross-sector association that includes government and private industry users, card issuers, manufacturers and systems providers.

The total number of smart cards shipped for use in the United States and Canada in the first half of 2002 was 31,200,000. This represents a 111% increase from the same period in 2001, during which 14,770,000 cards were shipped. Of the total, microprocessor cards accounted for 24,950,000 in 2002, up 87% from 13,310,000 a year earlier. Memory card shipments in 2002 jumped to 6,240,000 compared to 1,460,000 in the same period last year, more than a threefold increase.

“The growth in smart card shipments is accelerating, bringing total shipments to the U.S. and Canada to over 122 million smart cards since 1999,” said Randy Vanderhoof, president and CEO of the Smart Card Alliance. “The change we are seeing is that the volume is more evenly spread across several sectors including financial, retail, pay TV and government. This is very positive because it makes the industry less dependent on telecom, although that sector remains among the largest.”

Dan Cunningham, chairman of the Market Research Committee for the Alliance and president and CEO of Potomac Systems & Technologies, added, “The rapid growth in shipments we are seeing today is built on a solid foundation. The smart card-based systems already deployed will combine with developing sectors like transit and access control to keep industry growth strong for years to come.”

At the Alliance’s 10th Annual Conference, smart card industry leaders are gathered to discuss the ‘Catalysts for Convergence’ such as policy decisions, standards and new infrastructure implementations that are changing how corporations and government agencies do business using smart card technology.

Smart card-based systems verify, authenticate and protect a cardholder’s identity and personal information and are used worldwide for secure identification, payment, transit and mobile telecommunications applications by major financial institutions, retailers, government and healthcare organizations and enterprises. More information is available at

About the Smart Card Alliance

The Smart Card Alliance is a not-for-profit, multi-industry association working to accelerate the acceptance of smart card technology.

Through specific projects such as education programs, market research, advocacy, industry relations and open forums, the Alliance keeps its members connected to industry leaders and innovative thought. The Alliance is the single industry voice for smart cards, leading industry discussion on the impact and value of smart cards in the U.S. For more information please visit