Aite Group research report shows how metal cards can attract and retain customers
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.
.@CompoSecure releases free report on benefits of metal payment cards for fintech issuers. @AiteGroup
”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.”
Read More: Deloitte: Hastened by the Pandemic, Global Enterprises Increase Investments in Advanced Wireless
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.”
Read More: iShares Takes Steps to Lead Industry in Style Investing
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.
Read More: Newlink Group Raises $300 Million In Funding From Leading Financial Institutions
