Study: Metal Cards Attract Members

A third of American consumers are willing to switch banks in order to get their hands on a metal payment card, and almost half said they would like their credit unions or financial institutions more if they offered metal payment cards, according to a new survey commissioned by Somerset, N.J.-based card manufacturing firm CompoSecure.

The survey of 18,000 people in 18 markets around the world found that 45% of U.S. consumers said they felt more positively about their financial institution if it offered metal payment cards, and 33% said they would switch to a financial institution that offered a metal card. Payments consulting firm Edgar, Dunn & Company conducted the survey. 

“In today’s competitive market, financial institutions are looking for differentiators that can give them a competitive edge,” CompoSecure CEO Jon Wilk said. “The data proves that premium metal cards coupled with a strong loyalty and rewards program, can build a bank’s customer loyalty, grow their customer base and ensure solid footing for the future with a younger demographic. The metal card is the best manifestation and representation of a premier brand.”

People outside the United States were even more apt to switch financial institutions to get their hands on metal cards. Globally, half of consumers said they would leave their banks for other financial institutions that offered metal payment cards, assuming the card benefits and rewards were the same. But in Mexico, 74% were willing to switch, as were 74% of respondents in Turkey, 68% of respondents in Brazil, 61% of respondents in China, 59% of respondents in India and 58% of respondents in Russia.

Demand for metal cards is also rising in markets where demand is also up for premium products and experiences, particularly in China, Mexico, Turkey, India and Brazil, the company noted. However, the data suggested the market is still in its infancy: 66% of respondents globally were unaware of metal cards; in the United States, 56% were unaware of them. 

“Metal cards are the card of choice (75%) for affluent consumers throughout the world with equal benefits and rewards. This is especially true in the U.S. (80%),” it noted.

Millennials (59%) and wealthy (64%) consumers were most inclined to switch financial institutions in order to get a metal card, according to the data. 

“The preference for metal cards spiked to 73% among millennials (ages 25-34) across all the regions, and particularly in the U.S., where 77% of this demographic said they prefer metal,” it added.

“According to survey respondents, the top two reasons consumers are attracted to metal payment cards are its durability and look and feel. However, in Asia (Hong Kong, Singapore, India, and China), using the metal card to make an impression is also a key motivator,” CompoSecure said.