Leveraging metal cards to attract high-value customers

As card issuers seek to expand the range of benefits to their clients, recent research from CompoSecure and Capuchin Behavioural Science illustrates how metal cards increasingly align with premium financial services. By tapping into sensory cues and emotional drivers, issuers can optimise customer acquisition while fostering higher engagement and stronger brand awareness.  

The research from CompoSecure and Capuchin Behavioural Science shows that issuing metal cards is an efficient way for banks and fintechs to acquire high-value customers, to encourage them to spend using the card (making it top of wallet), and to retain them. Today, the metal card is more popular and in demand than ever among consumers worldwide. People are captivated by the aesthetics of these cards, the way they feel, their weight, and the distinctive sound they make.

Leveraging metal cards to reinforce the brand among broader customer segments

While metal cards were not originally aimed at wider customer groups, their issuance created a positive brand perception across broader customer segments. In today’s banking landscape, where new players continue to emerge, leading to the disintermediation and unbundling of financial services, the way a bank is perceived is arguably more important than ever. There are many ways to optimise this perception, and this research shows that one highly effective measure is to include metal cards in the bank’s or fintech’s offerings.

Segmenting the customer base to optimise the uptake of metal cards

The research highlights specific customer segments that are particularly likely to embrace metal cards:

• Elites have considerable financial wealth, a higher social status, and refined interests such as social causes. They tend to prefer traditional banks. ‍
• Innovators are both Gen Z and Millennial customers who are drawn to lifestyle, technology, new trends, and innovation. They typically lean towards fintech providers. ‍
• Up and Coming are young, well-educated individuals (primarily Gen Z) who have already achieved significant professional success and are status-conscious. Sometimes referred to as HENRYs – High Earners, Not Rich Yet. ‍

Immersing the senses – the sensory power of metal cards

Compared to standard plastic cards, metal cards stand out by engaging 3 of our senses:

• They look different– sight;
• They feel different – touch;
• They sound different– hearing.

Interestingly, the Elite, Innovator, and Up and Coming segments place significantly more value on these sensory attributes than the general population.

Positioning the metal card to maximise its impact

Compared to the general population, the aforementioned segments tend to value metal cards as ‘accessories.’ They see the cards as symbols that communicate their values, lifestyle, identity, and status. Using a metal card becomes a form of self-expression. Interestingly, these segments prioritise experiences and emotional connections over mere functionality. It's also important to note that these groups prefer the exclusivity of metal cards within their select group, reinforcing the successful strategy many issuers have used: offering metal cards (only) to carefully selected segments and/or pricing them with a (significant) premium compared to standard plastic cards.

Using the right cues when communicating about metal cards

To truly captivate the Elite, Innovator, and Up and Coming segments, issuers of metal cards should carefully consider the cues used in their communication. It’s important to create the impression that these cards are scarce, rare, premium, and unique. This will reinforce the FOMO (fear of missing out) effect and strengthen the sense of exclusivity. It's also crucial to emphasise that metal cards are rare for a reason: they are (hand)crafted through long and complex processes that require expert skills, advanced technology, and specialised equipment, using rare materials.

Summary

This research highlights how today, metal cards are more popular and more in demand than ever they have been. Consumers around the world are captivated by the aesthetics of these cards, the way they feel, their weight, and the distinctive sound they make. Banks and FinTechs can leverage metal cards not only to improve acquisition, spending, and retention among selected segments, but also to optimise the overall brand perception among all customer segments.

About author

 

Jesper Domargård, Marketing Director at CompoSecure, possesses a diverse and extensive background in various sectors of the payments industry, having previously held positions at Visa, Worldline, and IDEMIA before his tenure at CompoSecure. He's widely recognised for his analysis and comments on the payments field, with several of his articles featured on various platforms. Jesper holds an MSc in Business administration from the University of Linköping, Sweden.

 

About CompoSecure

Founded in 2000, CompoSecure (Nasdaq: CMPO) is a technology partner to market leaders, fintechs, and consumers enabling trust for millions of people around the globe. The company combines elegance, simplicity, and security to deliver exceptional experiences and peace of mind in the physical and digital world. CompoSecure’s innovative payment card technology and metal cards with Arculus security and authentication capabilities deliver unique, premium branded experiences, enable people to access and use their financial and digital assets and ensure trust at the point of a transaction. For more information, please visit www.CompoSecure.com and www.GetArculus.com.