Contactless payment has revolutionized how we pay for goods and services. A simple tap of a card, and the transaction is complete. But behind this convenience lies sophisticated technology and a global network of manufacturers. Let's explore the technologies that make contactless payments possible and the companies leading the industry.
How Contactless Payment Works
Contactless payment cards use Near Field Communication (NFC) technology to communicate with payment terminals. When you tap your card, an embedded chip transmits encrypted payment data to the terminal via radio waves—all within milliseconds.
The technology relies on several key components:
- NFC Chip: The brain of the card, handling secure data transmission
- Antenna: A thin copper wire coil embedded in the card that receives power and transmits data
- Secure Element: Stores encrypted payment credentials
- EMV Technology: The global standard for chip card security
Types of Contactless Card Technologies
1. Single-Interface Cards
These cards support only contactless (tap) payments. They're simpler to manufacture but less versatile.
2. Dual-Interface Cards
The most popular option today, dual-interface cards support both contact (chip insertion) and contactless payments. By 2024, these cards represent approximately 45% of all new card issuances, with projections showing continued growth.
3. Biometric Payment Cards
The latest innovation combines contactless technology with fingerprint authentication. Instead of entering a PIN, users verify their identity with a fingerprint sensor built into the card. Major manufacturers like IDEMIA and Thales are leading this technology.
4. Metal Cards
Premium cards made from stainless steel or titanium, offering a luxury feel while maintaining full contactless functionality. These require specialized manufacturing techniques to embed antennas in metal substrates.
Major NFC Chip Manufacturers
The chips that power contactless payments come from a handful of specialized semiconductor companies:
NXP Semiconductors (Netherlands)
The global leader in NFC chip technology. NXP's MIFARE series is the most widely deployed contactless smart card platform worldwide. In 2024, they launched MIFARE DUOX, integrating advanced cryptography for enhanced security.
Infineon Technologies (Germany)
A major player in security chips for payment cards. Their OPTIGA series provides robust authentication and encryption capabilities.
STMicroelectronics (Switzerland/Italy)
Specializes in secure microcontrollers for payment and identity applications. Their chips support advanced biometric processing directly on the card.
Texas Instruments (USA)
Provides NFC solutions primarily for industrial and IoT applications, with growing presence in payment technologies.
Thales Group (France)
Following their acquisition of Gemalto, Thales has become a comprehensive provider of both chips and complete card solutions.
Leading Payment Card Manufacturers
These companies produce billions of payment cards annually for banks and financial institutions worldwide:
Thales/Gemalto (France)
One of the world's largest digital security companies. Following the 2019 merger, Thales offers complete end-to-end card solutions, from chip design to card personalization.
IDEMIA (France)
Formed from the merger of Oberthur Technologies and Morpho, IDEMIA produces over 800 million payment cards annually for approximately 1,800 financial institutions across 180 countries. They're pioneers in biometric payment cards.
Giesecke+Devrient (Germany)
With over 160 years of security technology experience, G+D is a trusted partner for payment card production. They've committed to eliminating virgin plastic from payment cards by 2030.
CPI Card Group (USA)
North America's largest independent card producer, specializing in financial payment cards and prepaid solutions.
Goldpac Group (China)
A leading Asian manufacturer serving banks across China and internationally, producing both standard and premium metal cards.
Valid (Brazil)
Major Latin American provider with growing global presence in payment and identity card solutions.
Industry Trends for 2025
The payment card industry is evolving rapidly:
- Sustainability: Major manufacturers have formed the Greener Payments Partnership to reduce plastic usage. Bio-sourced and recyclable materials are becoming standard.
- Biometric Integration: 43% of new card MCUs are biometric-ready, supporting fingerprint authentication.
- Digital-First Design: Cards increasingly integrate with mobile wallets and digital banking apps.
- Enhanced Security: 32-bit processors and advanced encryption are becoming standard to combat fraud.
Market Growth
The numbers speak to the technology's success:
- NFC chip market: $2.46 billion in 2025, projected to reach $4.90 billion by 2030
- By 2026, 81% of all payment cards will be contactless
- Roughly 6 billion payment cards are manufactured globally each year
- 4.5 billion NFC-enabled devices projected to be active by 2025
The Future of Payment Cards
Despite the rise of mobile payments, physical cards remain essential. The next generation of payment cards will feature:
- On-card displays showing transaction details or dynamic CVV codes
- Multiple payment accounts on a single card
- Enhanced biometric options including fingerprint and potentially even heartbeat recognition
- Full recyclability and carbon-neutral manufacturing
The payment card industry continues to innovate, balancing security, convenience, and sustainability. Whether you're a bank looking to issue new cards or a consumer curious about the technology in your wallet, understanding these technologies helps appreciate the sophisticated engineering behind every tap-to-pay transaction.