The Critical Component – Microchip Shortages Impact on Payment Processing
It's hard to avoid how integral technology has become to our day-to-day lives. Everything from your smartphone to your light switches and refrigerator could have an embedded microchip to connect the device to the cloud. It’s made life much more accessible when you can unlock your iPhone and see who is ringing your front doorbell in the middle of a haircut.
Access to critical technologies when it comes to credit card processing equipment, point-of-sale terminals, and credit/debit cards will be affected. As reduced supply drives demand, and prices, higher. The difficulty in acquiring enough technology to meet demand will only increase as this crisis worsens.
Unfortunately, the resolution to this shortage is not going to be immediate. Intel is planning to invest in creating plants in both Europe and America to help solve the problem, but the chip shortage is expected to persist well into 2022. For our clients, we know this may mean lengthier waits for critical items, and frustration is inevitable. During this taxing time, we ask that you be patient, and know that we will do everything we can to provide you with the technology you need, in the shortest timeframe we can.
By using Nexio, you have access to products like tokenization and digital wallets. If you anticipate that your business might be affected by the current shortage, we’d encourage you to seek ways to utilize Nexio’s tokenization to store credit card tokens on file for card-not-present transactions and explore mobile wallets like Google Pay, Apple Pay, Paypal, Klarna that do not require a physical, semiconductor-requiring chip to enable purchases.
Nexio has solutions to help reduce the impact of the chip shortage. We are staying engaged in developing trends and pushing for innovation. There is no way to know what is coming next, but we are committed to supporting our customers and partners in whatever direction the future takes us.