The Official Publication of the International Card Manufacturers Association
December 2015 Volume 25 • No. 8
Card Market Trends—A Standards Perspective
2015 Gift Card Fulfillment Study: Key Elements that Make Gift Card Fulfillment Truly Memorable
Speaking the Same Language
A Year of Celebration| By Jeffrey E. Barnhart
2015 has been a year of celebration here at ICMA. This past April,
ICMA commemorated our 25th anniversary at the 2015 EXPO. It was
a great event full of education and spending time with colleagues and
friends, new and old. Since starting this association with Al Vrancart,
ICMA’s Founder Emeritus and Industry Advisor, it was great for Al and
I to take time to reflect on the years past and how far the association
and the industry has come. Thank you to everyone who has been a
part of ICMA through the years and for those that came to help us celebrate this
momentous occasion.
As we move into 2016, we will continue to see ICMA grow with new opportunities for
members to connect with each other, the association and its offerings. ICMA’s 2016 Card
Manufacturing & Personalization EXPO will be co-located with the Smart Card Alliance
Payments Summit and is being held April 4-7, 2016 in Orlando, Florida. Registration is
open and we encourage you to sign up today. The meeting is sure to be the must-attend
event of the year. Keep watching ICMA’s Inside for new and exciting offerings from the
association in the coming months.
We wish all of our members a safe and happy holiday season and a happy and healthy
new year. We look forward to seeing you all in 2016.
ICMA New Supplier Recognition Program
| By Diane Webster-Sweeney
In the Special Events II issue of Card Manufacturing, I shared some
reasons why your company should think about exhibition and
sponsorship opportunities, not only with ICMA but other tradeshows you attend. I now
have one more reason to share with you. Recently, ICMA unveiled our new Supplier
Recognition Program. This program allows our supplier members a chance to earn
additional marketing visibility through the association just by sponsoring, advertising,
exhibiting and more.
The program offers us at ICMA the opportunity to showcase and honor our longtime and
new supporters. Many of our supplier members have been with the association from the
beginning and we wanted to find a way that we could not only thank you, but give back to
you for your loyal support. As we close out 2015, I want to personally take the opportunity
to thank each and every one of our members that has supported ICMA throughout the
year. For more information on this great new program turn to page 9 to learn more. Or
you can contact me directly at [email protected] or call (609) 799-4900.
executive director
from the ICMA staff
is published by CMA Publications Group,a Creative Marketing Alliance Company,for ICMA.
Please submit all articles, news releases and advertising to:
CARD MANUFACTURING™
C/O: CMA191 Clarksville RoadPrinceton Junction,New Jersey 08550 USA
Founder/Executive DirectorJeffrey E. [email protected]
Association ManagerLynn [email protected]
Communications Manager/ Managing EditorAnna Lopez-Cifelli [email protected]
Membership Coordinator Michele [email protected]
Project/Advertising Sales ManagerDiane [email protected]
Public Relations Manager Ken Hitchner
Communications Jen [email protected]
Creative DirectorDave Sherwood
Founder/Industry AdvisorAlbert J. [email protected]
TELEPHONE1-609-799-4900
INTERNETwww.icma.com
Card Manufacturing™ publishes information for the benefit of its members and readers. The sponsor, International Card Manufacturers Association (ICMA), the publisher and the editors of Card Manufacturing™ cannot be held liable for changes, revisions or inaccuracies contained in the material published.For more detailed information on the product, programs, services or policies covered in Card Manufacturing™, it is recommended readers contact the appropriate person, company, agency or industry group.
3w w w . i c m a . c o m
20
2015 Gift Card Fulfillment Study:
Key Elements that Make Gift Card
Fulfillment Truly Memorable
This article details the findings of the recently published Gift Card Fulfillment Study. Take a look and see what some trends consumer and retailers are following.
| By Katherine LaSee, Associate Marketing
Manager, Travel Tags
Speaking the Same Language
Are you thinking about implement-ing drop-on-demand printing in your business? This article takes an in-depth look at the implementation, usage and best practices for this new way of printing.
| By Friedbert Bayer, Business Area
Manager, Security Printing Systems
Division, Atlantic Zeiser
RECURRING SECTIONS F E A T U R E S
3 Executive Director’s Message
5 Member & Product News
9 Association News
12 EXPO News
24 ACE News
27 Industry News
29 New Members
18
4 C A R D M A N U F A C T U R I N G | D E C E M B E R 2 0 1 5
18 22
VOLUME 25 • NUMBER 8
DECEMBER 2015
www.icma.com
COVER STORY14 Trends & Forecasts: The Next 5 Years? After recently sharing his regional insights at ICMA’s EuroForum and North American Workshop, Al shares the trends and forecasts that will shape the card industry throughout the next five years in this article.
| By Al Vrancart, Founder Emeritus and Industry Advisor, ICMA
Card Market Trends—
A Standards Perspective
David shares some of the recent standards that were completed in 2015 and goes in depth on some updates to previous standards.
| By David Tushie, Magellan Consulting, Inc.,
ICMA Standards and Technical Representative
c o n t e n t s
22
20
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c o n t e n t sABnote Introduces flexifoil™ High Speed Variable Foil Card Personalization
American Banknote Corporation
(ABnote) announced the introduction of
its new flexifoil™ range of unique design
features. This exclusive new solution
applies vibrant, reflective foil design
accents to both static and variable infor-
mation, such as the cardholder’s name
and account number on payment and gift
cards. ABnote is the first North American
card issuance provider to include flexi-
foil™ in their personalization process.
In addition to its value as a card
personalization option, flexifoil™ also
offers a more cost-effective alternative
to traditional foil-stamping by removing
the time and cost of origination. During
the ABnote card personalization process,
the card issuer simply selects one of the
many eye-catching foil accents available.
From there, ABnote’s flexifoil™ solution
quickly applies the selected font and foil
to each card, adding a burst of color and
reflectivity to both the card design and
the card user’s individual number and
name on the card. Because no tooling is
required, prototypes and changes to the
design are easy, quick and affordable.
For more information, please visit
www.abnote.com.
Entrust Datacard: Instantly Issued Payment Cards Boost Bank Revenue
Cardholders are 22 percent more likely to
be satisfied with their bank if they have
received an instantly issued debit card
instead of a card sent by mail, according
to a new Javelin study sponsored by
Entrust Datacard. As consumer ex-
pectations for on-demand services rise,
a growing number of banks and credit
unions are shifting debit card distribution
from mail delivery to instant issuance.
The new study, “Instant-Issuance
Payment Cards: Fulfilling Consumer
Expectations for Immediacy,” provides
insights into how banks can optimize
their in-branch experience and build
customer trust by offering instant card
issuance services.
For more information, please visit
www.entrustdatacard.com.
G&D and Ericsson Partner for Globally Applicable M2M Solutions
Ericsson announced a partnership with
Giesecke & Devrient (G&D) to deliver
a commercial end-to-end subscription
management solution. Via a highly
secure process, the system will enable the
remote provisioning and management of
mobile operator SIM profiles and policies.
The joint solution will make it possible
for mobile network operators (MNOs) to
provide their business customers with a
one-stop shop for global M2M connectivity
services. In addition, by minimizing the
complexity involved in setting up services
across disparate regions, the collaboration
will target businesses’ need to deliver
connected devices worldwide.
Ericsson and G&D will provide an inte-
grated solution to address the challenges
that come with deploying connected
devices across borders. These challenges
include the provisioning and re-pro-
visioning of the SIM profiles remotely,
automated billing, reporting, support,
and operational management processes.
The solution provides MNOs and service
providers who use the Ericsson Device
Connection Platform (DCP) with the abil-
ity to optimize the processes involved.
The collaboration between Ericsson and
G&D makes it possible for MNOs to re-
motely manage the initial connectivity, on
demand and on a global scale, during the
roll-out phases of an M2M/IoT solution.
For more information, please visit
www.gi-de.com.
member & product news
continued on page 6
Ireland Deploys HID Global Passport Card
Ireland’s government deployed their
identity solution, Irish Passport Card, from
DLRS Limited and HID Global. The
solution is International Civil Aviation
Organization compliant. DLRS Limited
joined forces with HID Global Ireland
Teoranta together with Absolute Graphics
and Purple Pod, to implement the Irish
Passport Card project. HID Global show-
cased the mobile ID experience on smart-
phones and shared its latest innovations
in thin secure polycarbonate e-passport
datapages at the International Civil
Aviation Organization Machine Readable
Travel Documents Conference.
HID Global also announced its ActivID
Tap Authentication solution was named
the year’s best new software/IT product
by Security Products magazine. The
company added that it was the 17th
award that HID Global has received for
its solutions powered by Seos technology.
HID also recently announced a technol-
ogy alliance with SureID to combine
its Seos credential technology with the
latter’s identity management programs
to provide organizations the ability to
conduct identity screening, verification
and credentialing for vendors, contractors
and volunteers in order to increase safety
and security.
For more information, please visit
www.hidglobal.com.
Lauffer Pressen Introduces a New SLS Short-Cycle Lamination System
Maschinenfabrik Lauffer GmbH & Co.
KG recently introduced its latest develop-
ment, the new Lauffer SLS series during
the Card & ID Technology Days held at
Lauffer. The new SLS is a compact
twin-stack lamination press system
for laboratory use and flexible volume
continued on page 8
6 C A R D M A N U F A C T U R I N G | D E C E M B E R 2 0 1 5
manufacturing. The system, which
encompasses a thermal oil heated hot
press for process temperatures up to
280°C as well as a water cooled cold
press will be available in two basic for-
mats to cater the needs of e.g. 3x8 single
sheet as well as 2x(3x8) double sheets
in ID1 production. The system will be
available in different press force ranges
to reach typical high-end lamination
parameters of up to 145N/cm² 210 psi)
in the hot press and 290N/cm² (420 psi)
in the cold press. The system therefore
allows for the lamination of e.g. PVC,
PC or other material cards and inlays
as well as the lamination with high-end
lamination plates and added security
features such as MLI/CLI technology
given its continuous and precise pressure
regulation within the complete pressure
range in both the hot and the cold press.
Lauffer’s new SLS lamination system
offers a universal production solution for
small batch sizes and flexible production
demands. Whether it is used for quick-
cycle single sheet production or conven-
tional lamination book build-ups, the SLS
combines proven process technologies
for high-end lamination with innovative
answers to new and more flexible
production demands. It thereby offers
the whole range of production processes
such as single-stack capability, twin-stack
capability and mixed process capability
(e.g. pre-cooling in the hot press).
For more information, please visit
www.lauffer.de.
MasterCard and NXP Partner to Bring Payments to Any Device
NXP Semiconductors N.V. announced
a collaboration with MasterCard to
simplify the on-boarding of secure
element-based devices by integrating
NXP’s Loader Service solution into
MasterCard’s payment ecosystem.
Through MasterCard’s new program,
which aims to enable any IoT device to
become a payment device, the compa-
nies are revolutionizing how OEMs and
banks deploy secure “pay” solutions to
the market.
By incorporating NXP’s Loader Service
solution into MasterCard’s ecosystem, de-
vice manufacturers can easily enable their
customers to use their new devices, such
as activity trackers, mobile phones, smart
watches, smart jewelry, etc., for conve-
nient and secure mobile payments. NXP’s
Loader Service provides the scalability
and flexibility necessary for running highly
secure services, which enables OEMs and
Service Providers to easily deploy “Pay”
solutions by significantly simplifying the
value chain of deploying credentials to
devices and lowering associated costs.
For more information, please visit
www.mastercard.com.
Matica System Relocates to Larger Manufacturing Site with Triple the Capacity
Matica Technologies AG announced
that it relocated its Matica System S.p.A.
production plant from Paderno Dugnano
(Milan) to Turate, close to Lake Como and
Milan Malpensa International Airport in
Italy. Investing in this new facility provides
Matica Technologies with three times the
capacity of its previous site, allowing the
company to significantly grow its manu-
facturing output. For the first time, the
company has also created space to host
the ‘Matica Academy,’ which will deliver
worldwide seminars and training for its
partners and customers. In addition, a
brand new laboratory for sytems and
desktop solutions provides testing and
manufacturing for card samples, performs
technical benchmarks and product tests.
For more information, please visit
www.maticatech.com.
member & product news
Plastek Cards Embarks on Expansion
Plastek Cards has embarked on an
expansion plan to better meet the
manufacturing needs of its domestic and
international customers. The two-phase
plan includes a new card manufacturing
facility at its U.S. headquarters south of
Los Angeles, California doubling its size.
For more information, please visit
www.plastekcards.com.
Q-Card Agrees to Distribute KEOLABS Testing Solutions
Q-Card announced an agreement with
KEOLABS to promote KEOLABS’ testing
solutions in the United States. Q-Card
will collaborate on the promotion and
support of KEOLABS’ solutions for
validating smart cards, card readers and
NFC mobiles for applications such as
payments, identity and transportation.
With an extensive smart card testing
offering, Q-Card has the technical exper-
tise to advise and support prospective
customers for EMVCo, NFC Forum, ICAO
and ISO/IEC 14443 testing tools.
KEOLABS enters this agreement with
Q-Card to increase sales bandwidth and
meet increasing demand that is resulting
from deployment of EMVCo contactless
payment solutions and NFC mobiles.
“With our EMVCo and NFC Forum quali-
fied testing solutions, we are well placed
to benefit from growth in contactless
and mobile payments in the U.S.,” stated
Michael Leplatois, KEOLABS’ president.
“However, to capitalize on this opportu-
nity KEOLABS needs expert partners like
Q-Card to guide and advise prospective
customers on testing requirements and
solutions,” he added.
For more information, please visit
www.q-card.com.
8 C A R D M A N U F A C T U R I N G | D E C E M B E R 2 0 1 5
SMARTRAC Extends Value Plus Partner Program with Tadbik
SMARTRAC welcomed packaging
solutions specialist Tadbik Advanced
Technologies as a new member of its
Value Plus Partner Program. SMARTRAC’s
Value Plus Partner Program fosters
close relationships with highly spe-
cialized partners to create increasing
demand for solutions that are jointly
developed and marketed by SMARTRAC
and its Value Plus Partners. Tadbik relies
on SMARTRAC tags and inlays, and is the
company’s exclusive distributor in Israel
and South Africa.
For more information, please visit
www.smartrac-group.com.
TSYS and Ingenico Group to Offer New Semi-Integrated EMV Solution
TSYS and Ingenico Group announced a
new semi-integrated solution to simplify
the EMV® certification process. The
combined TSYS and Ingenico Group
offering provides Value-Added Resellers
(VARs) and Integrated Software Vendors
(ISVs) with a simple and secure pathway
to begin enabling EMV payments. This
easy-to-implement solution empowers
VARs and ISVs to focus on developing
their core products, while offering them
a secure method for accepting payments,
including magnetic stripe, EMV and NFC
contactless payments.
Using a semi-integrated approach,
communications between the PIN pad
and point-of-sale (POS) system are
limited to non-sensitive exchanges,
preventing card data from entering the
POS. By taking the POS out of the pay-
ment flow process, not only are EMV
certification and PCI compliance simpli-
fied, but overall costs and time required
for EMV implementation are reduced as
well. Fully certified through all major card
brands, this new TSYS-certified solution
also has the ability to process with TSYS
Guardian EncryptionSM, ensuring
payments are both reliable and secure.
For more information, please visit
www.tsys.com.
Visa to Buy Visa Europe
Visa Inc. and Visa Europe Ltd. announced
a definitive agreement for Visa Inc. to
acquire Visa Europe, creating a single
global company. The transaction consists
of upfront consideration of €16.5 billion
with the potential for an additional earn-
out of up to €4.7 billion payable following
the fourth anniversary of closing, for a
total value of up to €21.2 billion. The
upfront consideration comprises €11.5
billion of cash and preferred stock con-
vertible into Visa Inc. class A common
stock valued at €5 billion. Both compa-
nies’ boards were unanimous in their
support of the transaction. The transac-
tion is subject to regulatory approvals
and is expected to close in Visa Inc.’s
fiscal third quarter of 2016.
As a result of the combination, European
clients will have greater access to Visa
Inc.’s scale and resources and global
clients will have a more seamless experi-
ence. Additionally, European clients will
benefit from direct access to Visa Inc.’s
investments in innovative technology
member & product news
and differentiated products and services.
The transaction capitalizes on strong
growth opportunities in a highly attrac-
tive region. It positions the combined
Visa to create value through increased
scale, efficiencies realized by the inte-
gration of both businesses, and benefits
related to Visa Europe’s transition from
an association to a for-profit enterprise.
The transaction will position the com-
bined business to take advantage of a
significant growth opportunity. In Europe
an estimated 37 percent, or USD $3.3
trillion, of personal consumption expen-
diture is still done via cash and check.
Europe has also been an early adopter of
mobile payments, which analysts predict
will see strong growth in the future given
the widespread availability of Near Field
Communication technology. Visa Inc.
has aggressively launched new mobile
payment partnerships, platforms and
products that will enable faster growth
and adoption of mobile payments in
Europe. This includes new tokenization
services, support for digital wallets and
wearables, strategic investments in
other enabling technologies, ecommerce
and P2P payment capabilities, as well as
the opening of several global innovation
centers.
For more information, please visit
www.visa.com.
ICMA is excited to launch a new recognition program for Supplier members as a way to showcase companies who
make a significant investment in the association. Supplier member support ensures our education and other benefits
continue to bring tremendous value and impact to Manufacturers and Personalizers.
Diamond, Platinum and Gold—Three Levels of Recognition
There are a number of ways you can achieve the levels of recognition—each offering great visibility for your company
through all ICMA marketing materials. Whether it’s advertising in Card Manufacturing magazine or e-newsletters,
exhibiting at our annual Card Manufacturing & Personalization EXPO and/or our Regional Events, or by
sponsoring the EXPO. Visibility levels can be achieved at any time during the year, but the earlier
your company signs up for these marketing opportunities, the more you can take advantage of the
expanded company visibility through ICMA.
2016 Diamond Supplier Member:
2016 Gold Supplier Member:
For more information about the program, contact Diane Webster-Sweeney at [email protected].
ICMA LAUNCHES SUPPLIER RECOGNITION PROGRAM
Supplier
RecognitionProgram
9w w w . i c m a . c o m
association news
10 C A R D M A N U F A C T U R I N G | D E C E M B E R 2 0 1 5
association news
ICMA REGIONAL EVENTS BRING OUTSTANDING EDUCATION TO YOU
ICMA’s 2015 Regional Events in Munich, Germany and Chicago, Illinois provided card manufac-
turers, personalizers, and suppliers the opportunity to discuss the future, challenges, trends and
more. The North American Workshop and EuroForum featured great networking events that,
as in years past, allowed ICMA members to form long-lasting relationships. ICMA would like
to thank Thies Janczek, COCASO and Brian Summerhayes, Barnes International for chairing
the EuroForum and Guy Meeker, Teraco for chairing the North American Workshop. ICMA’s
interactive roundtable discussions looked at issues facing card manufacturers and personalizers
today. Keep a look out in the next issue of Card Manufacturing for a wrap-up article. With market
dynamics continually changing and challenging the industry, ICMA’s Regional Events offered the
perfect opportunity to learn how to deal with those fluctuations.
ICMA’s 2015 North American Workshop in Chicago, Illinois
2016 ICMA EXPO Co-located with the SCA Payments Summit
April 4-7, 2016 Loews Royal Pacific Resort Orlando, Florida, USA
EXPANDED FOCUS, EXPANDED AUDIENCE
Join us for increased content, exhibits and networking covering the full spectrum of cards and payments
2016 will mark the first time that these two leading industry associations are co-locating events, giving attendees a
broader perspective and expanded opportunities. The content and exhibits of the event will cover technology rang-
ing from the core manufacturing and personalization of a card, to the rapid evolution in secure payments, involving
EMV chip cards, mobile wallets, and transportation payments.
The event will include a joint exhibition and opening general session, as well as separately led educational tracks
open to all attendees. Each association will also hold separate networking events for their members on the closing night.
Full event registrations offer access to all joint programs and the exhibition. The event is open to everyone to attend and
members of either organization will receive special offerings and registration discounts available through their organization.
Register today for discounted rates. Visit www.icmaexpo.com for more information and to register.
2016
2016
20162016
12 C A R D M A N U F A C T U R I N G | D E C E M B E R 2 0 1 5
EXPO news
Register now!
www.icmaexpo.com
2016
2016
20162016
A Bigger Stage for Secure EMV, Mobile and Transit Payments
Get ready for the next leap forward in industry growth at the Payments Summit as the industry continues a remarkable evolution: the U.S. migration to EMV is here and the Smart Card Alliance, the authoritative industry leader for EMV, will continue its comprehensive leadership of this landmark transition. In 2016, the Payments Summit transitions to a location with expanded facilities with room for additional conference content, a larger exhibition, and a wider range of participant networking opportunities and activities.
An Expanded Focus on Card Manufacturing and Personalization
ICMA’s 2016 Card Manufacturing & Personalization EXPO continues its tradition of being the industry’s only card production focused event. The EXPO is the perfect meeting place for the card manufacturing industry to network with potential clients, customers and industry colleagues, while taking advantage of our abundant educational opportunities. Topics covered on ICMA’s educational program include card industry trends, technology advances, growth opportunities and how to improve manufacturing and personalization performance.
13w w w . i c m a . c o m
Exhibitors and Sponsors
Exhibit space is filling up fast! Have a new product or service to showcase? Interested in exhibiting or sponsoring? Booth space selection is based on the order in which contracts are received, so secure your booth now to ensure premium site selection.
For sponsorships or exhibits, contact Diane Webster-Sweeney at [email protected].
The following companies have secured a sponsorship and/or exhibit as of December 2, 2015:
tele-marines, trade gothic lh extended bold
Card & RFID Automation
EVENT LOCATION
Monday, April 4• Golf Outings• Payments Summit Pre-Conference Workshop• Opening Reception in Exhibit Hall
Tuesday, April 5• Exhibits• Opening Keynote/Joint General Session• Separate General Sessions• Reception in Exhibit Hall
Wednesday, April 6• Exhibits• Track Sessions led by each Association• ICMA Élan Awards Ceremony and Dinner• Payments Summit Outdoor Reception
Thursday, April 7• Track Sessions led by each Association (half day)Note: Each association will also offer certification training and exams.
SCHEDULE AT A GLANCE
Loews Royal Pacific Resort at Universal OrlandoOrlando, Florida, USAThe 2016 venue is located right on the grounds of Universal Orlando. Experience the feel of the South Pacific at this unique resort featuring a lagoon-style pool, all access pass to Universal Studios, home of The Wizarding World of Harry Potter,™ a luxurious day spa, Torch Lighting Ceremony, Wantilan Luau and more!
Loews Royal Pacific Resort at Universal OrlandoICMA/SCA Group Rate: $219.00Cutoff date to ensure rate availability: March 14, 2016
cover story
14 C A R D M A N U F A C T U R I N G | D E C E M B E R 2 0 1 5
Recently I had the opportunity to present regional forecasts and trends to ICMA
members at our EuroForum and North American Workshop events. These events
allow me to take a deeper look at the overarching themes and data that I present at
ICMA’s annual EXPO. This year I took at new approach to my presentations and re-
ports looking at the next five years (2014-2018) and what this holds for our industry,
the potential data, trends and forecasts. My global reports show mixed growth rates
throughout the world over the next five years. What we see globally is somewhat
echoed in Europe and North America.
Al Vrancart – ICMA Founder Emeritus and Industry Advisor
15w w w . i c m a . c o m
continued on page 16
The global card industry manufactured 34.8 billion
cards in 2014, which equates to $17 billion USD in
cards. Trending and forecasting through the next five
years, the number of global units manufactured will
have a six percent increase to 37 billion cards manu-
factured in 2018. The global dollars from cards
manufactured takes an even more significant increase
of 34 percent from $17 billion USD to $26 billion USD
in 2018 driven by the global conversion to smart chip
cards. Looking at these numbers it is clear the card
manufacturing industry is alive and well.
EUROPE
Europe continues to be number three, coming in behind
Asia Pacific and North America respectively, in both
cards manufactured and cards fulfilled. Here we will
take a look where Europe stands currently and the out-
look for the region over the different market segments.
Looking at cards manufactured, Europe produced 5.7
billion traditional cards and 2.8 billion smart cards in
2014. Looking forward the trend shows that traditional
cards will decline with a compound annual growth
rate (CAGR) of -4.6 percent. While traditional cards
will decline, smart card production will increase by 5.6
percent CAGR with the region manufacturing 3.7 billion
smart cards by 2018. The outlook for the manufacturing
of card units is mixed, however the dollars associated
with those cards show growth in both traditional and
smart cards with over $5 billion dollars manufactured
by 2018. The 2014-2018 overall European growth is
forecasted at 0.9 percent CAGR for Units and 4.6
percent CAGR for dollars.
ID/membership and prepaid phone cards show
declining growth over the next five years impacted
by the growth of mobile phone applications. The
manufacturing of access control, government/health
and financial cards continues the mixed outlook that
we have globally. All three segments will have declining
growth for traditional cards and an increase in produc-
tion for smart cards. The market segments will, like
the global forecast, see an increase in the amount of
dollars earned through 2018, both for traditional and
smart cards. Moving through the next five years the
smart chip SIM mobile cards will experience moderate
growth. Europe is a mature market for SIM mobile with
the most important market driver being declining chip
prices. The SIM card market will see an increase of 1.4
percent CAGR in cards manufactured and only 0.5 per-
cent CAGR in dollars because of declining chip prices.
Not surprisingly the market that will see a continual
increase over the next five years is the gift card market.
Gift cards will see significant growth in both cards man-
ufactured and dollars. The two threats to the European
gift card market are the low cost of imported cards and
digital card growth, with market stakeholders being
keenly aware of these threats. Consumers will continue
to drive this market with their preference for an impact-
ful physical plastic card for gifting.
NORTH AMERICA
North America which comprises the U.S., Canada and
the Caribbean continues to be number two, coming in
behind Asia Pacific in both cards manufactured and
cards fulfilled. North America will see robust growth
with 11.8 percent CAGR in the dollar value
of cards manufactured with only 0.1 percent
CAGR Unit growth over the period 2014-2018.
Traditional cards will see at -4.6 CAGR as the
region is moving more towards the overall
adoption of smart cards. In return
smart cards will see a 19.5 percent
increase with almost 3 billion smart
cards manufactured by 2018. The
dollars for cards manufactured reveals
traditional card dollars declining by
-3.5 percent CAGR and smart card dol-
lars increasing by 17 percent CAGR.
North America will see the prepaid
phone and gift card market segments
declining over the next five years. The
gift card market will see a very slow
decline in this mature market however
it is important to note that this will
remain a very large unit market with
the consumer preference being to
have a physical plastic card to give.
Access control and transportation
cards see mixed growth through the
next five years. While like other seg-
ments smart cards will grow sharply
in these markets, traditional cards will
decline. Government/health cards will
also see a rise in smart card growth fueled
partly by Federal, State and Local government
demands for more secure cards.
The most volatile markets over the next
five years will be financial and retail & gas
which are being heavily impacted by the
implementation of EMV cards within the U.S.
marketplace. Retail & gas cards will see a
sharp increase in smart card manufacturing
from 2017-2018 with October 1, 2017 being
the liability shift date for all automated fuel
dispensers. Smart cards in this market will
see a 59 percent compound annual growth.
The financial card market will see a rapid de-
cline in traditional cards being manufactured
as issuers will be trading out the mag stripe
cards for smart cards. With the effect of EMV,
traditional cards will decline by 19.2 percent
CAGR and smart cards will see an increase of
26.3 percent CAGR. Financial cards are also
the highest valued dollar market segment
and are driven by the chip conversion. These
cards will enable mobile apps and wallets but
will NOT be replaced by them.
As I have stated many times before, cards will
be here for the next 10 plus years! The card
manufacturing industry is alive and well. The
outlook for both regions looks strong through
the next five years and beyond and while
we see a shift from traditional mag cards to
smart cards we are still able to see growth.
There are some market segments that will
transition better than others, however those
that are able to sustain will continue to be
big drivers of the industry. Staying on top of
these changes and positioning your business
to ride the wave of change will help to place
your business on the road to success.
The information in this article was derived
from my 2015 North American Workshop and
EuroForum presentations which are available
to ICMA members on the member’s only site
by logging in to My ICMA/Login. ICMA
members are also able to download the
2014 Global Card Market & Personalization
Fulfillment reports on the member’s only site.
Non-members can purchase the report for
$1,500 USD. Contact ICMA at [email protected]
for more information.
About the Author: Al Vrancart is founder emeritus and industry advisor of ICMA. With more than 30 years of business experience, Vrancart initially founded ICMA in 1990. Previously serving as president/CEO of NBS and Qualteq, his guidance and counsel has helped ICMA and other industry associations implement growth initiatives effectively and successfully. Al is a frequent presenter/speaker at card manufacturing industry events. He is particularly focused on global and regional industry market statistics and metrics. Al is also on the Board of Directors for ICMA.
cover story
Trends & Forecasts, continued from page 15
16 C A R D M A N U F A C T U R I N G | D E C E M B E R 2 0 1 5
association news
IS YOUR COMPANY LISTED IN ICMA’S CARD PROVIDER LOCATORICMA’s new Card Provider Locator on www.icma.com is now
available and has been getting traffic through the ICMA website.
The search engine allows businesses around the world who are
in need of cards to find your business. It also allows individuals
to search by a variety of fields such as company and product
description, market segment, area accepting business, person-
alization services, size of cards manufactured, added features,
types of substrates used and more, to find a business that fits
their card manufacturing needs. Visit www.icma.com to check
out this valuable member benefit.
Is your company’s profile up-to-date? To fill out your profile
please visit www.icma.com and click the My ICMA/Log-In
at the upper right side of the page. Contact Michele Giovine
at [email protected] for your unique log-in information if
needed. The information you provide on your company will be
used in the new online Card Provider locator page. Don’t miss
out on this great opportunity for easy sales leads that will help
impact your bottom line.
18 C A R D M A N U F A C T U R I N G | D E C E M B E R 2 0 1 5
feature story
Katherine LaSee – Associate Marketing Manager, Travel Tags
2015 GIFT CARD FULFILLMENT STUDY:
In recent years, business to consumer (B2C) gift card sales
have played an integral part in many retailers’ success in
the e-commerce space. The ability to purchase a gift card
online and have it sent to anyone in the world is a quick and
easy way to celebrate a birthday or buy dinner for a friend.
Offering gift cards online is a smart way to boost sales, in-
crease in-store foot traffic and strengthen brand awareness.
With the holidays quickly approaching, many retailers place
an emphasis on promoting gift cards via website banners
and online ads. And, as the recently released Gift Card
Fulfillment Study reveals, there are several key elements
that can make gift card fulfillment truly memorable for the
gifter and the giftee.
A market research team from Travel Tags, a card manufac-
turer and fulfillment house headquartered in Minnesota,
conducted the Gift Card Fulfillment Study as an opportunity
to observe the online gift card presence and physical
fulfillment of 110 top U.S. merchant brands across 14
industries. The goal of the study was to objectively report
on the ordering and receiving process of physical gift card
fulfillment from a consumer point of view. Aiming to bring
forth factual observations and best practices, this study is
provided as a means to educate and give a preview into
the needs and wants of the end-consumer.
Overall, the study found exceptional gift card fulfillment is
a result of an entire experience, not just various steps of a
process. For a positive consumer experience, each part of
fulfillment should be customizable and user-friendly. With
online shopping on the rise and more people becoming
comfortable with the idea of purchasing products via tablet
and phone, online consumer experience is at the forefront
of retailers’ minds. Retailers and manufacturers can get
ahead of the game by focusing on these key elements that
take gift card fulfillment from average to exceptional!
Product Placement and Promotion82 percent of retailers link directly to gift cards from
their home page
With the average attention span lasting about eight seconds
(officially less than that of a goldfish), shoppers visiting a
website need the quickest and easiest route to what they’re
looking for. Over the past three years that the Gift Card
Fulfillment Study has been conducted, findings actually
show a downward trend in retailers placing a link to gift
cards in a central location, such as the header or footer of
a website’s homepage.
Research also shows that about one-fourth of the retailers
observed see value in displaying banners or advertisements
promoting gift cards and the ease of purchasing. Typical
banners and advertisements focus on seasonal holidays and
buy-one-get-one promotions.
There is no escaping the topic of digital gift cards and their
recent rise within the industry. Whether you call it an e-gift
card or a digital gift card, the idea is to offer consumers with
an alternative option for sending and receiving gift cards via
a redeemable code emailed directly to the recipient. With
previous research showing a fluctuation of the number of
retailers offering digital gift cards, 50 percent of retailers
Key Elements that Make Gift Card Fulfillment Truly Memorable
19w w w . i c m a . c o m
continued on page 26
this year offer the ability to order and send digital gift cards
alongside physical gift cards.
Card and Carrier Customization94 percent of retailers offer between one and 35 unique card
designs for various holidays and occasions
A 2014 study from The Retail Gift Card Association found
that 59 percent of shoppers state the best thing about
getting a gift card is that they can purchase whatever
they want. But the choices can start at the very beginning
with the customization of the gift card design, carrier and
packaging. This year, the Gift Card Fulfillment Study shows
that about 94 percent of retailers carry between one and 35
unique card designs, with the top card design themes being
store branded, Birthday, Thank You, and Congratulations.
Customization can go one step further by adding photos
and text to the card itself. The study found that the majority
of retailers do not support this feature, even though it can
be used as a value-add.
Gift card carriers can also be used as a value-add or a
standard inclusion with the gift card. The study found that
although many retailers included a carrier with the gift card,
81 percent did not advertise this during the purchasing pro-
cess. This increase of carrier inclusion rose from 51 percent
in 2014.
Shipping and Delivery67 percent of retailers provide free standard shipping
for gift cards shipped nationally
As with any online shopping experience, a certain standard
should be upheld for quality and reliable service. From a
shopper’s point of view, perks like free shipping and con-
firmation emails are critical details. Supporting this is the
7th Annual Consumer Holiday Shopping Survey conducted
by the e-tailing group MarketLive, which reports that 75
percent of people want the ability of online receipts, and 77
percent want the ability to purchase products for same-day
delivery. It’s visible that consumers have a craving for
urgency and details, especially with increased spending
around the holidays.
Results from the Gift Card Fulfillment Study show an
increase in retailers offering free standard shipping but
a decrease in order and shipping confirmation emails.
Whether it’s a technical issue in the automation of order
and shipping confirmation receipts or a serious lack in
receipts all together, consumers may not appreciate being
left in the dark. What always excites consumers is the offer
of free shipping and options for expedited delivery.
Brand Right Results11 percent of gift cards arrive in an unmarked or
unrecognizable envelope
Gift card fulfillment stands out in the mail when details
regarding outer packaging and return addresses are given
the attention they deserve. A happy recipient is the best
promoter of a brand’s B2C gift card program.
The Gift Card Fulfillment Study shows that out of 79
successful fulfillment orders received, a fair portion were
20 C A R D M A N U F A C T U R I N G | D E C E M B E R 2 0 1 5
feature story
Friedbert Bayer – Business Area Manager, Security Printing Systems Division, Atlantic Zeiser
SPEAKING THE SAME LANGUAGE The first drop-on-demand systems
specifically for personalizing EMV
banking cards are now available.
But how easy are they to integrate
in existing infrastructures?
For those with an interest in personal-
izing EMV banking cards, the future
belongs to the technology of drop-on-
demand (DoD) inkjet printing. The ef-
ficiency and operating cost advantages
of this technology are so compelling
(and cost pressures in the industry are
so great) that its widespread adoption
is inevitable in the long term. This
applies in particular at a time when
issuers need to migrate huge numbers
of magnetic stripe-based cards to more
secure EMV smart cards. The feature
story in Card Manufacturing (Special
Events One 2015) previously highlighted
the potential of DoD technology. DoD
technology is about three times as fast
as legacy production processes using
embossing and thermal transfer tech-
niques. Compared to thermal transfer
printing and the protective overlay it
requires, DoD printing reduces the cost
of consumables by 98 percent. At the
same time, DoD printing offers around
four times better abrasion resistance.
Unlike impact processes, contactless
DoD printing is practically wear-free so
that the equipment requires little main-
tenance. These production advantages
become even more compelling when
considered alongside the marketing
benefits. White lettering on a dark
background, horizontal or vertical card
orientation, rapid font style and size
changes, flexible positioning of the
card number—such design freedom is
unprecedented. Now DoD printing is
seen as the only technology capable
of delivering these layout options
economically.
In practical trials, this abundance of
creative variation is immediately ap-
parent and embraced by prospective
adopters. It is not by chance that the
two major credit card companies, Visa
and MasterCard, have already given
their blessing to DoD personalization
technology across their full range of
products. Some questions persist, how-
ever, concerning not the technology
itself but the production environment,
such as can these DoD systems easily
be integrated in existing infrastructure?
Are there circumstances in which exist-
ing personalization processes have to
be reconfigured? Although such queries
are both understandable and justified,
the underlying skepticism is unfounded.
Standardized commands
Smart cards contain a computer chip.
Rather like a PC or laptop, these cards
also run an operating system and ap-
plication software. Personalizing the
chip entails sending a sequence of
commands, which—in simple terms
—instruct the chip how to process and
store the personalization data it re-
ceives. The way in which the personal-
ized data are stored and the structure
of the necessary command lists can
differ substantially from application to
application and from one card issuer
to the next. But the rules according to
which the commands are issued—their
language and grammar, as it were—
are determined by the non-profit orga-
nization Global Platform Initiative. The
organization defines generally acces-
sible standards for open and interop-
erable infrastructures serving smart
cards and the associated terminals.
The structure and syntax of the scripts
used for the electrical personalization
are likewise defined in Global Platform
scripting specifications. Irrespective
of the technology used for graphical
personalization, whether embossing,
thermal transfer or DoD inkjet, when-
ever an EMV chip-based banking card
is personalized, the commands must
comply with Global Platform scripting.
The personalization software solution
that is being used is irrelevant in this
context. In consequence, systems
exploiting DoD inkjet printing technol-
ogy and complying with the Global
Platform scripting specifications for
electrical personalization can simply
continue to use existing personaliza-
tion processes with only minimal
modifications. The personalization
data formats also correspond to the
conventional industry standards and
therefore do not present any barriers.
No more idling
DoD systems are bringing about a
21w w w . i c m a . c o m
SPEAKING THE SAME LANGUAGE
significant difference in the way that relevant
data is processed. The personalization data used
thus far for magnetic stripe-based cards now
have to be migrated to the format required by
an EMV smart chip. Some banks prefer not to
undertake the necessary data processing them-
selves. Although very familiar with the data
that usually appears on the card or magnetic
stripe, for smart cards they now have to give
consideration to additional elements, including
cryptographic keys, PIN numbers and verification.
For this reason, perso bureaus now generally
take care of the data processing. Compared
to DoD systems, the old-established embossing
and thermal transfer techniques are very slow
in most cases and can therefore do the data
preparation very quickly. In other words, during
the electrical personalization process the card
dwells in the programming position while its
data is being made ready. Thus far, this idle time
has not been regarded as critical because the
severe speed limitations associated with em-
bossing and thermal transfer techniques have
other causes. DoD systems are different. They
operate so fast that on-the-fly data preparation
would either seriously impair their efficiency or
require more readers, which in turn would sub-
stantially raise costs. For this reason, higher-
speed DoD systems call for the prior batch
processing of the relevant data. Actual chip
programming in the machine can then begin
as soon as the card reaches the programming
position without any idle time. A further benefit
of this two-step process lies in the option of
portioning the processed data and assigning
batches to different machines. Flexibility can be
considerably enhanced in this way.
Open interfaces gaining in significance
Like its predecessors, DoD personalization
systems depend on the smooth interaction of
three elements, namely the card personalization
equipment, the mailing system, and the higher-
level personalization management software
that controls the whole process. The adoption of
DoD technology is likely to prompt some perso
bureaus to re-examine their production setup.
In ideal circumstances, users should be able to
build systems comprising the three forenamed
components as required to meet their individual
needs—enabling them to exploit technological
progress in one of the three stages efficiently
without needing to renew the entire system.
Therefore it makes sense for users to regard the
hardware and software as discrete components
while at the same time focusing attention on the
availability of open interfaces. This approach
ensures that the machinery and software sup-
plied by one vendor can readily communicate
with the products of other vendors. All too
often in the past, personalization management
software was sold in a package together with
the hardware in order to tie perso bureaus to
the solutions of a particular provider—at the
expense of end-user flexibility. Instead, the focal
point should be the way in which the software
facilitates complete control of the production
environment; in other words, the user-friend-
liness of the operator interface and the ease
with which it enables job priorities to be set and
jobs to be allocated. Another key factor is the
software’s ability to manage all the production
and personalization keys, and support a central
hardware security module (HSM) complying
with the FIPS standard. In addition, it should be
possible reliably to track and trace all the events
in the production chain in an audit process. The
software must also be able to control the high-
security environment for the entire workflow,
including the operating personnel’s authority to
access the relevant systems. All these are key
criteria which, in view of their long-term impact
on everyday operations, outweigh the arguments
in favor of procuring all the components from a
single source. There are now alternatives to the
traditional, inflexible end-to-end solutions.
DoD can clearly be adopted more easily and
quickly than initially supposed. There’s nothing
new about a superior novel technology ousting
decades-old legacy methods. But this transition
could also trigger a stronger desire to question
formerly invincible solutions.
About the Author: Friedbert Bayer is the busi-ness area manager in the security printing sys-tems division of Atlantic Zeiser, a global provider of card personalization solutions. Prior to joining Atlantic Zeiser in 2001, he was with Marconi Communication and BOSCH as project manager for large-scale fiber-optical telecommunication networks. He holds a M.Sc. degree in electrical engineering from Karlsruhe University in Germany.
As we are coming from this year’s final meeting of the SC
17/WG 1 working group, it is a good time to summarize this
year’s accomplishments and to focus on the market needs
and program plans for next year’s body of work. The Stan-
dards completed this year include:
• ISO/IEC 7811 Identification cards - Recording technique,
a series of nine standards
• ISO/IEC 18328 Identification cards - ICC managed devices
• INCITS 322 Information technology - Card Durability Test
Methods
• INCITS 440 Information technology - Card Durability /
Service Life
• INCITS 410 Information technology - Identification cards
- Limited Use (LU), Proximity Integrated Circuit Card (PICC)
Also a rewrite continued on the ISO/IEC 24789 Identification
cards - Card service life - Part 1: Application profiles and
requirements, and Part 2: Methods of evaluation. These
standards deal with card durability and test methods and
will be important for any new card developments.
Looking ahead, there are two overarching card trends in
process that will continue to be center stage throughout the
coming year. They are: improved card durability that is re-
quired to support longer expiration times and the addition of
“devices on cards” to support new card-based applications.
Two other initiatives already in process are the introduction
of EMV technology in the U.S. and the deployment of dual
interface cards in the global marketplace. Dual interface
card technology is required to migrate contact chip card
markets to the versatility of contactless cards.
The card durability tests that were run at Xavier University,
sponsored by the INCITS (ANSI) card standards task group,
clearly showed that card durability can be improved using
composite card constructions. While composite cards can
increase card durability, the selection of the best technology
for the specific use application is not clear. Many options
are available and picking the right combination of materials,
layups, core thicknesses, adhesives, lamination temperature
and pressure all at the right price point to make the business
decision obvious, is not a simple process.
Defining the necessary card life for an application is a good
place to start. The continued improvements being included
in the ISO/IEC 24789 - Card service life Standard will provide
guidance on methods and their usage to simulate a card’s
service life. INCITS 440 (the American Card Durability Stan-
dard) has been significantly revised and is newly published
(2015). For Issuers, making sure their cardholders are never
without their card in their wallet is also a key requirement,
so being conservative can pay dividends. They need to
know what it costs them to have a good customer without
their card and what it physically costs to replace it. Also
remember that the card industry has lots of experience with
PVC cards and therefore is able to predict card failure rates,
confident that a major card reliability problem is remote.
New card constructions can test well in the laboratory, but
there is always the nagging feeling that we might have
missed something, unsure about the correlation to actual
field experience.
CARD MARKET TRENDS – A STANDARDS PERSPECTIVE
David Tushie – Magellan Consulting, Inc., ICMA Standards and Technical Representative
industry standards
22 C A R D M A N U F A C T U R I N G | D E C E M B E R 2 0 1 5
Another initiative is the addition of devices on cards. ISO
Standard 18328-1 Identification cards - ICC-managed
devices - Part 1: General framework is a good starting point
to consider. All manner of devices are being defined by card
application developers with the intent of making these de-
vices part of the card’s construction. With all the emphasis
on mobile transactions using smart phones, it’s not much of
a stretch to consider how these type of mobile transactions
could be conducted using your credit/ID card. Biometric
sensors, displays, keyboards for entering PINS or pass codes
and even cameras, microphones or micro-speakers are all
being considered. Card constructions capable of providing
these new features may require different plastics and new
automated manufacturing technology to deliver cost-effec-
tive, reliable solutions for the important applications being
considered.
EMV deployment in the U.S. is a robust initiative with cards
and terminals being delivered at record rates. While the
transition to EMV has occurred in the card manufacturing
plants, personalization bureaus and at the merchant point
of sale terminals, actual EMV “chip-on-chip” transactions
are just getting started. These EMV transactions are likely to
grow rapidly as merchants and customers get accustomed
to inserting the card rather than swiping the card.
Dual interface (or DI) cards have been gaining momentum
especially in Canada and parts of Europe where migration
to contactless card technology also requires the card to
support the contact chip applications now installed and
operational. Much of this could be driven by the increasing
use of mobile devices for traditional card applications. This
is seen as a disruptive technology as it introduces additional
players into the circle of issuers, acquirers and transaction
processors that has existed for years. Very recently changes
have been made to the fundamental contactless card
standard, ISO/IEC 14443 Contactless integrated circuit cards
- Proximity cards that enables Near Field Communications
(NFC) and contactless devices to operate together in a
seamless fashion. Manufacturing process improvements
and Coil on Module (CoM) technology are improving DI card
yields and operational reliability. Market predictions are for
increasing DI card growth going forward at the expense
of chip only financial transaction cards. While the market
projections may be optimistic, this is a vibrant and growing
segment of the secure card business.
Our industry is constantly being bombarded with new
mobile smart phone applications, from financial transactions
and loyalty programs to ID and driver licenses. With the
types of technologies, mentioned above on board a card
product, there is nothing a smart phone could do to conduct
a transaction that a card couldn’t do. This is going to be an
exciting industry to be in for a long time!
23w w w . i c m a . c o m
24 C A R D M A N U F A C T U R I N G | D E C E M B E R 2 0 1 5
2015 EuroForumACE-M
Stanislaw Treder,
Argo Card
2015 North American Workshop
ACE-M
Mike Howard,
CPI Card Group
Kristen Raley,
CPI Card Group
James Boyer,
PPG Industries, Inc.
Staci Burkey,
CPI Card Group
Dave Lowman,
CPI Card Group
Jim Colleran,
CPI Card Group
Chin Chee Hoong,
PPG Industries, Inc.
Laura Faria,
PPG Industries, Inc.
Tammy Y. Bocuzzi,
PPG Industries, Inc.
Lori Bautista,
Teraco not picurred
ACE-P
Jorge Moran,
Transilwrap Company,
Inc.
ace news
ICMA is excited to announce that 12 individuals recently passed the ACE-M and ACE-P exams at ICMA’s
EuroForum and North American Workshop. Through hard work and dedication, the individuals listed below
successfully passed the ICMA ACE exam, which has become a global marker for card manufacturing and
personalization education. Congratulations to our new ACEs!
ICMA Card Manufacturing & Personalization EXPO
ACE-P Training, Sunday, April 3, 2016
ACE-M Training, Monday, April 4, 2016
ACE-A Training, Thursday, April 7, 2016
ACE-M Exam, Thursday, April 7, 2016
ACE-P Exam, Thursday, April 7, 2016
ACE-A Exam, Friday, April 8, 2016
ICMA Announces 12 New ACE Designees
ICMA Announces April ACE Exam Dates
Join the growing number of ACE-certified professionals.
Mark your calendars for our 2016 ICMA EXPO ACE
training sessions and exams. Now including ICMA’s
new ACE-A training session and exam!
25w w w . i c m a . c o m
Did you know? ICMA ACE enrollees are 95 percent more likely
to pass the ACE exam if they have taken ICMA Standards Rep-
resentative David Tushie’s interactive training session. David
guides you through your questions about the ACE exams and the
manuals they are based upon. As demand for experts in the card
manufacturing industry grows, continual training and expertise
remain crucial for individuals and companies to stay ahead of
the competition.
ACE-A Launching in January!
ICMA’s newest ACE accreditation, ACE-A is launching in January
with training and testing dates now announced (see opposite
page) for April. ACE-A is the next step for those looking to
advance their card education and become accredited in areas
such as smart card manufacturing, RFID, and more. Sign
up today to be included in this elite group. ACE-A will require
proficiency in advanced materials and card construction, card
technologies such as magnetic stripes, smart card technologies,
and optical memory cards, security technologies, and environ-
mental initiatives.
26 C A R D M A N U F A C T U R I N G | D E C E M B E R 2 0 1 5
Gift Card Fulfillment, continued from page 19
feature story
missing critical information and unrecognizable as a gift.
What constitutes as ‘critical information?’ Details such
as the monetary value of the card, whom the gift is from,
a recognizable return address, and the personal message
written by the gifter are seen as valuable elements of gift
card fulfillment. When these pieces of information are miss-
ing, it makes it difficult for the end consumer to get excited
about how much they have to spend, or who to send a
thank-you card to.
When it comes to outer packaging, results vary across the
board and show no real standard for shipping gift cards.
The Study shows that gift cards are delivered in packaging
styles ranging from greeting card envelopes, shipping boxes
and bubble wrap, standard #10 envelopes, elegant gift
boxes and padded shipping envelopes. In terms of aestheti-
cally pleasing, gift cards fulfilled in smaller envelopes that
resemble personal correspondence, display a recognizable
return address, and are brand-right portray a positive
experience with a higher giftability factor.
Whether a brand currently has a gift card program or is
considering implementing one, the most important factor to
reflect on is how they want to position themselves to loyal
and prospective customers. Brands that pride themselves in
brand identity and quality typically maintain higher standards
when interacting with customers, therefore giving more
attention to details like exceptional gift card fulfillment.
Brands that focus elsewhere might still provide quality gift
card fulfillment, but on a minimal level that provides an
average gifting experience. As a manufacturer, vendor,
sales or marketing professional, aim to go above and
beyond with your partners to collaborate and create truly
memorable experiences for the end consumers.
About the Author: Katherine LaSee is associate marketing manager at Travel Tags and focuses on market research and communications. With a liberal arts education, Katherine has conducted and collaborated in the completion of several mar-ket studies in the prepaid card space, including Travel Tags’ annual publication of observational data related to holiday gift card trends.
27w w w . i c m a . c o m
industry news
‘Tap and Go’ Credit Card Purchases are Surging in Canada
Punching in a security pin is rapidly
becoming passé for Canadian credit card
users when making small purchases.
Cards equipped with technology that
allows a user to pay with a simple wave
or tap of a card is surging, new data
shows. But shoppers could be tapping
their way to bigger monthly statements,
some suggest. “Increased use of credit
cards, particularly contactless credit
cards, was a key factor” in the decline of
cash payments, a new Bank of Canada
study says. Canadians ‘tap’ debit more
often as cash payments fall sharply.
Transaction fees divided up between
banks, credit unions and credit card
companies are being cut. Purchases at
drug stores, gas stations and conve-
nience stores were the chief drivers of
the spike, Moneris said. Canada’s two
biggest card providers, Visa and Master-
Card, have offered cards with contactless
technology for the past several years, but
it now appears usage has hit a “tipping
point,” according to Michelle Michalak,
Visa Canada’s head of public affairs.
One big reason for that is the number of
merchants, or store owners, that have
terminals that can handle tap payments
appears to have hit a critical mass,
experts say.
Japan Follows Estonia’s Lead with Electronic ID Cards
Japan will become the first large country
to introduce an electronic ID card follow-
ing Estonia’s initiative. The announce-
ment was made by the Japanese Minister
of Finance Akira Amari after he visited
Estonia to learn more about the coun-
tries e-services. The card will be called
MyNumber and feature a unique personal
code for each person, the same as
Estonia’s ID card. During the visit Amari
became an e-resident of Estonia and
Prime Minister Taavi Rõivas and CIO
of Estonia Taavi Kotka became the
first foreign nationals to get Japanese
MyNumber e-cards. The card will be
launched in January 2016.
The Estonian ID card is a picture ID card
that contains a chip, which was intro-
duced in 2002. It contains digitised data
about the holder and can be used to vote
online, as a national health insurance
card, to pay for public transport and acts
as a pass to all of Estonia’s online digital
services. It can also be used to add
digital signatures to documents.
U.S. to Drive Smart Card Ticketing in Public Transportation
The Americas have been viewed as a
major target for the development of
smart ticketing in public transportation.
Until recently, Latin America was
driving much of the excitement, as high
urbanization and poverty meant that
public transportation was a key target
for government investment across the
continent. Now that the commodities
boom in Latin America has come grinding
to a halt, this market has lost some of its
luster. Argentina, Brazil and Colombia
are still important markets in the short
term but the long-term outlook, due
to precarious economic situations, has
become increasingly less optimistic. The
U.S. now has the brightest prospect to
drive growth in the region.
The biggest change in the U.S. will be
the migration of projects toward new
and more advanced standards. Presently
MIFARE Classic is the standard for the
vast majority of U.S. projects, but by 2020
both MIFARE DESFire and MIFARE Plus
will have made significant gains, in terms
of shipments and installed base. The
changeover to new advanced standards
is already occurring in the U.S., but is not
expected to build momentum until 2017.
New Identity Card for Foreign Residents in Saudi Arabia
Saudi Arabia recently introduced a new
identity card. The new Muqeem card in
Saudi Arabia is valid for five years and
does not have to be replaced annually
like the Iqama. However, the information
on the Muqeem has to be confirmed
online annually. The new card will be
machine readable at checkpoints, banks,
police offices and other institutions, and
it will be delivered by post instead of
collected in person.
NSSF to Introduce Smart Cards in Uganda
The National Social Security Fund (NSSF)
in Uganda will introduce the use of smart
cards by the end of 2015. According to
the Fund’s managing director Mr. Richard
Byarugaba, the card will not only improve
customer experience and loyalty, but
is also expected to ease work for the
fund’s staff. This will come with the new
technology that the fund hopes to adopt
to reduce errors. Mr. Byarugaba said
the strategic plan will be hinged on four
pillars which are deep financial strength,
innovation, ensuring efficiency and cost
reduction. According to the Secretary to
the Treasury Mr. Keith Muhakanizi, NSSF
Uganda is the largest pensions fund in
East Africa with the current assets base
standing at Shs5.58 trillion.
continued on page 28
28 C A R D M A N U F A C T U R I N G | D E C E M B E R 2 0 1 5
Migrating to Chip-and-Signature Credit Cards “Overwhelming” for Many Small Retailers
A gift shop owner told the U.S. Congress
that making the change to chip-and-
signature credit cards has been “over-
whelming” for many small businesses
and that owners are disappointed that
without PINs they are being pressured to
make an expensive investment without
receiving the full level of security that
could be provided. “The EMV transition
is overwhelming and expensive for an
independent, small retailer,” Keith Lipert,
owner of The Keith Lipert Gallery, a
single-location, three-employee store in
Washington, said. “Small retailers are
entirely at the mercy and whims of the
big players. We have no say and no way
to use the marketplace to make our ob-
jections heard and our concerns valued.”
“EMV is all new to me, and banks and
the networks are not contacting small
businesses to help the transition in any
way,” Lipert said. “No one from my bank,
processor or existing supplier even
contacted me about the need to add a
new EMV device, let alone a deadline
by which to do so.” Lipert testified on
behalf of the National Retail Federation
before the House Small Business Com-
mittee during a hearing on how Europay
MasterCard Visa cards will affect small
businesses. The hearing follows the re-
cent deadline set by the card industry for
merchants to install chip-card readers
or face increased fraud liability if a chip
card is used in a non-chip reader.
Lipert said a key concern is that the EMV
cards being issued by banks in the U.S.
are chip-and-signature cards rather than
the chip-and-PIN cards used in virtually
all other countries where EMV cards are
used. He cited Federal Reserve statistics
showing that using a secure, secret per-
sonal identification number to approve
transactions is seven times more secure
than an easily forged and often-illegible
signature. Lipert said small businesses in
particular are seeing “significant delays”
in obtaining chip card readers or getting
them certified once they are installed.
With each chip card terminal costing as
much as $2,000 when installation, soft-
ware and other expenses are included,
Lipert said the price is “extremely high.”
And without PIN, “it makes little sense in
any serious customer protection or basic
return-on-investment analysis.”
Dubai Plans New Wearable Devices for Transit
The RTA in Dubai has unveiled plans to
launch its own smart device that could
potentially replace its Nol card on public
transport. The new device, which was
displayed and the 35th Gitex Technology
Week, will use near field communication
(NFC) that is currently used on NFC-en-
abled smartphones. A survey will provide
the RTA with information that will enable
it to devise a business model, and also
come up with designs and prices for the
watches. Credit card details can also be
loaded onto the device, which will do
everything that a regular Nol card does.
Mobile Payments Awareness Soars, Adoption Slow in the U.S.
The advent of multiple mobile payment
options has soared awareness among
consumers but has done little to increase
adoption rates, with fewer than one-in-
five North Americans reporting using
them at least once a week, a new Ac-
centure report has found. The results of
the report, which are based on responses
from 4,000 smartphone users from the
U.S. and Canada, found awareness
among users about the ability to use
their cellphone as a payment device rose
by about 10 percent to reach 52 percent
growth since last year. However, the
growth of mobile payments was found
to have crawled up by just one (1) per-
cent. The adoption rates driving growth
of mobile payments were found to be
highest among high-income consumers
(those who have a household income
of more than $150,000), followed by the
millennial consumer base. Thirty-eight
percent of high-income consumers said
they make mobile payments weekly,
while 23 percent of millennials reported
the same.
So, what would it take to finally lift
mobile payments usage off the ground?
The survey results point towards a
demand for discount pricing associated
with mobile payments. About 79 percent
of users said they would increase their
mobile payments usage if they were
offered coupons based on past buying
behavior. On the other hand, 54 percent
of consumers who do not use mobile
payments said they would start using
them if they were offered discount
pricing or coupons. The survey results,
which come on the heels of Apple Pay’s
first anniversary, also found Apple Pay
as the top mobile payment method,
accounting for more than two-thirds,
or 68 percent, of mobile transactions
in U.S. stores.
industry news
29w w w . i c m a . c o m
new members
PRINCIPAL MEMBERS
Shanghai HUAYUAN Electronic Co., Ltd. Phoebe Buwww.huayuansh.com
HUAYUAN Electronic has been a manufacturer of RFID, smart
card, plastic card, passive RFID, NFC, contactless cards, and
various RFID/NFC products for more than 20 years, with experi-
ence in applications and solutions.
Guangdong Chutian Dragon Smart Card Co., Ltd. Rita Guowww.ctdcn.com
Chutian Dragon Smart Card is a card manufacturer specializing
in the production of various banking IC cards, such as contact
IC cards, contactless IC cards, dual interface cards for VISA,
MasterCard and UnionPay, SIM/USIM/UIM/RUIM cards (GSM
& CDMA), magnetic stripe commercial cards and ID cards.
ASSOCIATE MEMBERS
Shanghai Lijin Information Technology Co. Sandra Wengwww.lijin-info.com
Lijin manufactures and supplies high quality lamination plates
mainly for card manufacturers. The company’s mission is
to constantly provide its clients with plates of stable quality
and also tailor-made products with cutting-edge technology.
Founded in 2002, Lijin started as a distributor for BASF magnetic
stripes, and gradually extended its product line.
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Card Manufacturing contains feature articles, listings, events,
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marketplace
Barnes International ...............................17
ITW Brand Identity ....................................7
Graph-Tech USA ......................................9
Magellan Consulting ...............................29
Melzer Maschinenbau GmbH .................26
Mühlbauer High Tech International.........25
index of advertisers
Sabic Innovative Plastics..........................2
VFP Ink Technologies .............. Back Cover
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AprilICMA EXPO co-located with the SCA Payments Summit April 4-7, 2016
Orlando, Florida, USA
Cards & Payments Asia April 20-21, 2016
Singapore
MayCards & Payments Middle East May 31 - June 1, 2016
Dubai, UAE
NovemberTrustech (CARTES) November 15-17, 2016
Paris, France
2016
30 C A R D M A N U F A C T U R I N G | D E C E M B E R 2 0 1 5
industry calendar
2016
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20162016
April 4-7, 2016
Loews Royal Pacific Resort
Orlando, Florida, USA
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