Chip Shortage Causes Debit Card Delays

Phone, Keys, Wallet?

When most people leave the house, they habitually pat their pockets to double check for their phone, keys, and wallet. This order might not be random. Of these three, your credit cards are typically the least important, since they are so easy to cancel and replace. Or, rather, were.

Thanks to the ongoing chip shortage, it can now take up to eight weeks to get a replacement debit or credit card.

Chips are a staple in modern credit and debit cards – and not just because it’s more convenient to tap than swipe. Chips store a user’s account number and ID information to enhance the card’s security. But the chip shortage and resulting demand across industries means you shouldn’t expect a replacement card anytime soon.

Who Needs Cards?

In the past few years, debit card technology has gone from “swipe” to “insert” to “tap” in what feels like record time. But despite all this advancement, the US is actually behind other countries when it comes to payment technology.

In most other developed countries, many consumers rely on their phones to pay. In 2022, 45% of Chinese adults used mobile payments, followed by 35% of Indian adults. Meanwhile, just 6% of American adults reported using their phone to buy things.

Although services like Apple Pay (AAPL) are now a staple in US stores, Americans have been slow to adopt digital wallets. But this may be starting to change.

Going Mobile?

During the pandemic, mobile payments began to gain popularity as a more hygienic and speedier way to checkout. On top of that, mobile wallets eliminate the need to carry around a physical collection of plastic cards. With the chip shortage and delay on replacement cards, the trend toward mobile payments could continue to gain steam.

Of course, no one will force you to use mobile payments. If you’re not ready to part with your plastic, you can still get a new card – as long as you’re willing to wait for a couple months.

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS23020802