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If you've been waiting for your new credit card for a month already, that's may be due to a chip shortage. It used to take around a week to get a new credit card, but not anymore, at least with some issuers.
The pandemic took a heavy toll on most industries and manufactures. It also started the shortage of chips. And while we are not in the severe restrictions of the pandemic anymore, the impact is expected to continue through the end of the year.
With current chip shortage, debit and credit card deliveries can take up to two months, and this trend may continue through 2023. The chip shortage mainly affects small card issuers and credit unions, but not only. In fact, card manufactures were not the only ones affected. For example, car manufacturing industry, phone, computer, and video gaming industries are also in trouble.
However, while for some a chip shortage is a grave situation, for others it's a chance to finally break free from the past and move on. Current technology allows us not to wait on chips or plastic cards. Many major credit card issuers offer virtual credit cards along with plastic cards. Plus, you can pay with your card using digital wallets and keep your physical card safe at home. You don't actually need a plastic card with a chip with today's technologies.
Americans have long been wary of accepting contactless payments and digital wallets because they don't like the idea of flashing their phones to pay by mobile. However, the pandemic has changed the attitudes. Mobile payments have jumped from about 5% of in-store purchases just a few years ago to about 30% today. This leap can be a chance to embrace the new virtual reality without plastic and chips.
