CompoSecure, L.L.C., a pioneer and category leader in premium financial cards, today released Metal Cards: A Competitive Edge for Fintech Issuers, a report on the benefits of metal cards as part of a robust proposition to attract new cardholders. The report can be downloaded for free and was commissioned by CompoSecure and produced by Aite Group, a global research and advisory firm delivering comprehensive, actionable advice on business, technology and regulatory issues and their impact on the financial services industry.
”Fintech firms see card design and material decisions as critical to success when competing with traditional banks and credit unions worldwide,” said David Shipper, Senior Research Analyst at Aite Group. “These fintech firms attest to the fact that metal cards are well worth the higher price, citing higher revenue generated from new account growth, better activation and usage and increased cardholder retention.”
The report identifies the key challenges fintech firms face when launching and managing card programs, including building trust, competing for customer attention, developing the right brand and product position, overcoming regulatory hurdles and selling products without a branch network. The report provides the best practices for launching a successful metal debit or credit card product and how it can attract cardholders and support a tiered structure that provides the most benefits to premium customers.
“With increased competition between financial institutions, companies are looking for ways to stand out and attract new customers,” said Jon Wilk, CEO of CompoSecure. “Companies have an opportunity to build a relationship with their customers by offering a uniquely designed and customized metal card with a variety of material options and enhancements that would create a premium experience for the cardholder.”
According to consumer research cited in the report, 65% of global consumers would choose a metal card over a plastic card when all benefits and rewards are the same. Key benefits of a metal card include:
- Eco-friendly – Metal cards offer several environmental benefits. For instance, metal veneer cards are made with 75% recycled stainless steel.
- ROI – There are key expense considerations for a metal card, including per-card cost, card personalization, card delivery or other expenses. However, the return on the investment is high, such as greater account acquisition, increased card activation, improved transaction revenue, heightened cardholder retention, and additional fee income.
- Consumer demand – Plastic cards are unlikely to achieve the prestige inherent to a metal card regardless of the design.
- Brand exposure – Issuing a metal card can increase the number of online and social media mentions, providing ongoing benefits to the issuer’s brand and products.
To download the free report, please visit: https://www.composecure.com/competitive-edge-for-fintech-issuers
Metal Cards: A Competitive Edge for Fintech Issuers is based on Aite Group interviews in 2020 Q3 and Q4 with 16 executives at tech companies, challenger banks, neobanks, and cryptocurrency organizations in the Asia-Pacific region, Europe, Latin America, and North America; research conducted by Edgar, Dunn & Company and commissioned by CompoSecure; and desk research, along with the author’s experience managing card programs at financial institutions.
About CompoSecure, L.L.C.
Founded in 2000, CompoSecure, L.L.C. is a pioneer and global leader in the design and manufacturing of premium financial cards. The company focuses on serving the affluent customers of credit card issuers worldwide using proprietary production methods that meet the highest standards of quality and security. The company offers clients secure, innovative and durable proprietary products that implement leading-edge engineering capabilities and technology in both the public and private sector. The mission is to increase clients’ brand equity in the marketplace by offering card products that differentiate the brands they represent, thus elevating the traditional card transaction process to a special cardholder experience. For more information, please visit www.composecure.com. Follow us on Twitter & Instagram @composecure and also on LinkedIn.