Industry’s First Official Baseline for Smart Card Shipments Shows a 79 Percent Increase in Smart Card Shipments from First To Second Half Of 2001

AUSTIN, Texas, February 7, 2002–The Smart Card Alliance, a non-profit association working to accelerate the widespread adoption of multiple applications for smart card technology, today announced the findings of a report, “United States and Canada Smart Card Shipment Survey,” that shows a 45 percent growth in smart card usage in the United States and Canada from 2000 to 2001 and a 79 percent growth from the first to second half of 2001. This is the smart card industry’s first official baseline for North American smart card shipments and demonstrates the growing usage of smart cards within the U.S. and Canada. The findings were released today in Austin, Texas during the Alliance’s February conference.

“The increased smart card activity in the industry underlines that smart cards are the preferred device for portable and secure network authentication,” said Paul Beverly, vice president, SchlumbergerSema Smart Cards and eTransactions. “The survey results clearly show the increased level of card issuance and adoption, and highlight the importance of implementing smart card programs at this time. The predicted hockey stick growth of smart cards is occurring.”

The study surveyed all major smart card manufacturers and collected results in nine vertical markets, including government, wireless/telephony, transit and parking, financial and retail that supplied smart cards to the United States and Canada from 2000 to 2001. The largest growing segment is the U.S. Federal Government with over a 1000 percent growth rate. The other top markets include wireless/telephony and retail. The retail segment had a 377 percent growth and the financial market grew by 146 percent, reflecting the response of card associations and banks to consumer demand for expanded card services. Contrary to worldwide trends in wireless, the North American market grew by four percent.

“Through this report, we have provided the smart card industry with an accurate picture of the growth in smart card implementation,” said Donna Farmer, chief executive officer and president, Smart Card Alliance. “These results show the growing adoption of smart cards in a variety of industries and provide a means of identifying opportunities to further accelerate the rates of growth and implementation.”

The total number of smart cards manufactured for use within the United States and Canada for 2000 was 28,430,000. The total number in 2001 is 41,320,000, a 45 percent growth rate. Smart card shipments in the first half of 2001 totaled 14,800,000 and the second half of 2001 saw the growth of smart card shipments of 26,520,000, which is a 79 percent increase in smart card shipments from the first to second half of 2001. Smart card growth from 1999 to 2000 was 37 percent.

Smart cards verify, authenticate, and protect a cardholder’s identity and information and are used worldwide for identification, payment, transit and parking and mobile telecommunications by major financial institutions, retailers, government and healthcare organizations and enterprises.

About the Smart Card Alliance

The Smart Card Alliance is a not-for profit, multi-industry association of member firms working to accelerate the widespread acceptance of multiple applications for 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 https://www.securetechalliance.org.