Cardholders expect the convenience of tap-to-pay experiences whether buying coffee, taking public transportation, or picking up groceries. According to the 451 Alliance Blog by S&P Global, contactless card payments in the US comprised 28% of Visa’s face-to-face transactions by fiscal year 2022. As of the second quarter of fiscal year 2025, this number surpassed 60%.
For financial institutions, credit unions, and fintechs, that shift raises a practical question. What does it take to get durable contactless cards into cardholders’ hands and keep them coming?
How contactless payment card issuance works
Contactless payment card issuance is the process of manufacturing, personalizing, and delivering payment cards that let cardholders pay with a tap. It includes the card body and embedded components, the secure encoding of each cardholder’s data, and final fulfillment.
The key difference from a standard EMV® card is what’s inside. A contactless card carries a dual-interface EMV® chip connected to an antenna embedded in the card body. When the card comes near a contactless-enabled terminal, the antenna picks up the terminal’s signal, powers the chip, and the chip completes a secure, encrypted transaction using near field communication (NFC). No need to insert or swipe the card at the terminal. Just a quick tap completes the transaction and gets the consumer on their way.
Why contactless card issuance matters for top-of-wallet position
Contactless payments change how cardholders use their cards. Data from Visa shows that contactless is driving two additional transactions per card per month and an additional $70 in spending per card per month for debit card users in the US. One in three consumers say that receiving a contactless card led them to use it more often than non-contactless cards.
For a card issuer, that’s top-of-wallet position. And once a competitor takes it, it’s hard to earn back.
The EMV® chips and antennas behind contactless payment card manufacturing
A contactless card is only as reliable as its parts. Two components matter most: the EMV® chip and the antenna. If either is delayed, your reissuance schedule or new product launch can be delayed too.
The global semiconductor shortage of recent years showed how quickly that can happen. Issuers working with manufacturers tied to a single chip source faced longer lead times, and some had to push back launch dates.
How ABCorp keeps contactless card supply chains resilient
Card programs do not operate in a vacuum. Pandemics, tariffs, trade restrictions, natural disasters, and geopolitical conflict can ripple through global component supply chains with little warning. When a critical part like an EMV® chip or antenna gets caught in that disruption, the delay lands on your cardholders.
ABCorp’s approach to supply chain resiliency starts with diversification. We maintain relationships with multiple EMV® chip suppliers and antenna suppliers, providing flexibility when one source encounters constraints. Instead of waiting on a single vendor, we can shift to keep your program on schedule.
We also manufacture our own antennas. Producing antennas in-house gives us better control over quality, lead time, and capacity. It also reduces our exposure to supply chain disruptions that can stall contactless card production.
Pair that with bespoke card manufacturing, on-demand personalization, and creative fulfillment capabilities, and you get a contactless program built to withstand pressure. ABCorp’s card solutions cover the full payment card program lifecycle, all from a single, secure provider.
Contactless card issuance in action for transit in Quebec
Contactless technology reaches well beyond traditional payment cards. ABCorp partnered with the Société de transport de l’Outaouais (STO) to deliver contactless transit cards for riders in Quebec. Read the STO case study to see how the program came together.
Central and instant issuance for contactless payment cards issued by financial institutions
Contactless cards can be issued two ways. Central issuance works well for large-scale reissuance and new account mailings, with personalization and fulfillment handled in a secure facility. Instant issuance lets branch staff print a personalized, contactless-ready card on the spot, so a new member or customer can walk out and tap the same day.
Many financial institutions use both. The right mix depends on your branch footprint, cardholder expectations, and growth plans.
Choose a contactless card issuance partner who plans ahead
Contactless is how cardholders expect to pay. The partner behind your cards should be thinking two steps ahead about components, capacity, and timelines so you don’t have to.
ABCorp works alongside your team to build card programs for today and tomorrow. Our card experts are here to help explore options for your contactless card program.
