Unveiling the future of payments: the role of experience, branding, and luxury in shaping winning strategies

Amanda Gourbault from CompoSecure reveals the role of experience, branding, and luxury in shaping winning payments strategies.

With the landscape of payments continually being redefined, revisited, and reimagined, one might speculate on the ingredients vital for achieving success in the future of payments. Forrester emphasises that in the years ahead, ‘it’s the payment experience, not the payment, that matters’, while McKinsey argues that returns in the future payment landscape ‘will accrue to players that can seamlessly embed payments into customer lifestyles and behaviours’.

A glance at recent history reveals subtle indicators validating the foresight of Forrester and McKinsey. Notably, a discernible trend has emerged where payment cards endowed with distinctiveness and a unique allure have eclipsed conventional ‘plain vanilla’ cards in metrics such as activation rates, usage frequency, and customer retention. This distinctiveness could stem from various facets—be it the material, design, or personalisation features, such as incorporating a chosen photo of the cardholder.

Further reinforcing this perspective is the escalating competition within the banking sector, propelling traditional banks, fintech, and bigtech entities to seek differentiation. Leveraging payment cards as a potent means to remain front of mind with their customers has become pivotal. Indeed, these cards represent one of the most visible components of a bank's brand, encountering customer engagement multiple times daily. Every time a customer pulls out a card is a branding and marketing opportunity, fostering what academia terms as mental availability for the brand. And as rational beings of the 21st century, we might perceive ourselves as thinking individuals who feel. However, brain scientist and neuroanatomist Jill Bolte Taylor emphasises the reverse—we're feeling beings who think. Consequently, the tactile sensation of a card as it's pulled out holds utmost importance.

A perhaps somewhat unexpected sector offering insights into the potential blueprint for future payment success lies within the luxury industry. Forecasts predict a robust 8 to 10 percent growth in the global luxury market for 2023, surging to a historic 1.5 trillion euros in sales. Bain & Co. anticipates sustained mid-single-digit growth until 2030, propelled by strong underlying fundamentals. Interestingly, this surge includes high-end watches. While smartphones have obviated the need for watches as mere timekeeping tools (the ‘functional’ aspect), the continued embrace of luxury timepieces speaks volumes about their symbolic value in projecting identity and style (the ‘fashion’ aspect).

Consequently, a discernible trajectory emerges for the future of payments, with successful businesses harnessing the full potential of payment cards, transforming them into personalised and fashionable experiences - transcending mere transactional functionality. This trajectory unequivocally leans toward metal cards: delivering aesthetics, tactility, weight, acoustics, and the perception of sturdiness akin to artisanal craftsmanship. Metal cards, reminiscent of accessories and fashion statements, communicate the cardholder's lifestyle and values, potentially emerging as the quintessential element distinguishing successful payment strategies in the future. Only time will tell.

About Amanda Gourbault

Amanda Gourbault serves as the Chief Revenue Officer of CompoSecure, Inc. (Nasdaq: CMPO), a leader in metal payment cards, security, and authentication solutions. She is responsible for leading the company’s sales, pricing, marketing, and revenue management activities. She is also focused on driving the adoption of the company’s revolutionary authentication and cold storage solutions, Arculus, using her 25 years of experience in the payments and security industry.

Prior to joining CompoSecure, she served as Executive Vice President of the Financial Institutions Business Unit at IDEMIA, a global leader in payment cards and identity/security credentials. At IDEMIA, Amanda was responsible for a global division with more than 2,600 employees, comprising sales, marketing, and product development teams, as well as more than 30 card personalization centers worldwide. Before IDEMIA, Amanda was with Giesecke & Devrient, where she created and ran their UK subsidiary. Amanda holds a BA in Modern Languages from Durham University in England. She is also Chair of the Compass for Life Foundation, helping disadvantaged children achieve their dreams.             

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.