¡°Credit cards are further down the list, and furthermore smaller credit card issuers are even further down the list. So that¡¯s where we¡¯re hearing about the longest delays, credit unions and community banks.¡±
The semiconductor shortage that started in 2020, has 5been exacerbated by increased demand and Russia¡¯s invasion of Ukraine, which reduced the country¡¯s output of neon, a key element in making chips.
¡°We¡¯re facing a shortage of neon, which means that the manufacturing of chips is far more difficult.¡±
Last summer, the Smart Payment Association, a global industry group for cards and mobile payments, warned of a continued impact throughout 2023. And in recent weeks and months -- some credit unions and smaller banks -- have advised consumers the standard time to replace a card has 6stretched. Ted Rossman of Bankrate says this could be a time for consumers to take advantage of more 7contactlessoptions, 8implemented more widely during the pandemic.
¡°The pandemic did really 9juice 10adoption of things like Apple Pay and Google pay. They¡¯ve been around for almost a decade but a lot of people became more comfortable transacting that way when they were afraid to touch physical payment terminals.¡±
A smartphone¡¯s mobile wallet also allows a consumer to keep a card at home for 11safekeeping amid the current 12crunch.