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 dwebster@icma.com 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. Barnhartjbarnhart@icma.com

Association ManagerLynn McCulloughlmccullough@icma.com

Communications Manager/ Managing EditorAnna Lopez-Cifelli alopez@icma.com

Membership Coordinator Michele Giovinemgiovine@icma.com

Project/Advertising Sales ManagerDiane Webster-Sweeneydwebster@icma.com

Public Relations Manager Ken Hitchner

Communications Jen Samueljsamuel@cmasolutions.com

Creative DirectorDave Sherwood

Founder/Industry AdvisorAlbert J. Vrancartavrancart@icma.com

TELEPHONE1-609-799-4900

INTERNETwww.icma.com

E-MAILinfo@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 dwebster@icma.com.

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

11w w w . i c m a . c o m

ICMA’s 2015 EuroForum in Munich, Germany

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 dwebster@icma.com.

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 info@icma.com

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 mgiovine@icma.com 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.

We’d love to hear from you!

Card Manufacturing contains feature articles, listings, events,

company news, industry announcements, association updates and

other information that will influence and grow your business. Card

Manufacturing also includes messages from key industry executives

as well as news and tips from the heart of the association YOU.

• Interested in submitting a bylined feature for an upcoming issue?

Please forward all news submissions, including press releases

announcing new products or services, new hires, promotions,

major contracts and acquisitions, milestones, community activities,

case studies and any other industry news to Anna Lopez at ALopez@icma.com.

• Do you have company information or accomplishments you want to share?

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

© 2015 ICMA. All rights reserved. Reproduction without permission is prohibited. Printed in U.S.A.

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

2016

20162016

April 4-7, 2016

Loews Royal Pacific Resort

Orlando, Florida, USA

JOIN US FOR ICMA’S 2016 CARD MANUFACTURING & PERSONALIZATION EXPOJoin us for expanded content, exhibits and networking covering the full spectrum of cards and payments

ICMA’s 2016 Card Manufacturing & Personalization EXPO continues its tradition of being the industry’s only card production focused event. As the card manufacturing industry continues to evolve and change with emerging technologies, new equipment, efficient processes and more, ICMA is here to keep you informed with education and best practices as lasting takeaways. It is the perfect meeting place to network with potential clients, customers and industry colleagues, while taking advantage of our abundant educational opportunities.

ICMA AND SMART CARD ALLIANCE (SCA) CO-LOCATE ANNUAL EVENTS

The 2016 ICMA Card Manufacturing & Personalization EXPO and the Smart Card Alliance Payments Summit will fuse together the industry’s only global card manufacturing and personalization focused event with the leading forum for smart, secure payment technology, implementation and markets.

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Mark your calendar to join us April 4-7, 2016 in Orlando!

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