SOMERSET, N.J.--(BUSINESS WIRE)--CompoSecure, L.L.C., a pioneer and global leader in the design and manufacturing of premium metal financial cards, released the findings of a year-long survey of 18,000 people in 18 markets around the globe that analyzed the impact of metal cards as a marketing tool for financial institutions. The survey was commissioned by CompoSecure and conducted by Edgar, Dunn & Company, an independent global strategy consulting firm specializing in payments and digital financial services.
The survey revealed that metal cards are a competitive differentiator for most (58%) consumers. This group stated that they would feel more positively about their bank if they offered metal payment cards. This was true with nearly half (45%) of U.S. consumers and was significantly higher in China (86%), India (83%), Turkey (82%), Mexico (77%), and U.A.E. (74%), where metal cards are just entering the market.
Half of consumers surveyed (50%) took their desire for metal cards further by indicating that they would leave their bank for another that offered a metal payment card, assuming the payment card benefits and rewards were equal. Millennials (59%) and wealthy (64%) consumers have a greater inclination to leave their bank for one that offers a metal card. This willingness to switch was strongest in the emerging markets of Mexico (74%), Turkey (74%), Brazil (68%), China (61%), India (59%) and Russia (58%). One-third (33%) of U.S. respondents would switch to a bank offering a metal card.
“In today’s competitive market, financial institutions are looking for differentiators that can give them a competitive edge,” said Jon Wilk, CEO of CompoSecure. “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.”
The survey findings prove that metal cards are an important decision-making detail for the consumer’s choice of financial institution in conjunction with a strong loyalty and rewards program. Key findings of the survey included:
- Choosing Metal Over Plastic – The majority (65%) of the respondents across all surveyed markets indicated that they would choose a metal card over a plastic one, if all other things were equal. There is an especially strong demand for metal cards across emerging and developing economies where the growing middle class is pursuing the premiumization of products and experiences such as in China (91%), Mexico (88%), Turkey (86%), India (85%) and Brazil (82%).
- Customer Awareness – The metal card market has only begun to grow. Globally, the majority (66 percent) of people were unaware of metal cards. The U.S. was one of the top markets that is familiar with metal cards (only 56% unaware), however many untapped regions have tremendous growth potential due to lack of awareness of metal cards: Poland (82%), Germany (81%), Australia (81%), Canada (79%), Italy (75%), Brazil (73%), Mexico (72%), France (71%), Turkey (70%) and U.K. (68%).
- Affluent Attraction – Metal cards are the card of choice (75 percent) for affluent consumers throughout the world with equal benefits and rewards. This is especially true in the U.S. (80 percent).
- Future Customer – The preference for metal cards spiked to 73 percent among millennials (ages 25 – 34) across all the regions, and particularly in the U.S., where 77 percent of this demographic said they prefer metal.
- Why Metal? – 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.
Methodology
Edgar, Dunn & Company’s research encompasses documentation of financial industry and consumer trends along with an original survey to gauge and validate consumer demand and card issuer interest in metal cards. Edgar, Dunn & Company surveyed more than 18,000 consumers across 18 markets (Australia, Brazil, Canada, China, France, Hong Kong, India, Italy, Mexico, Japan, Poland, Russia, Singapore, Turkey, U.A.E., U.S. and U.K.) to present a holistic overview of the sentiment towards metal cards. These markets were selected as representative of a cross-section of global economies. The survey was conducted in three stages over 13 months:
- 6,000 consumers across the U.S., U.K., Brazil, Singapore, Hong Kong and Japan in May 2018
- 4,000 consumers across Australia, Canada, India, Mexico in December 2018
- 8,000 consumers across Italy, Russia, Poland, France, Turkey, Germany, China, U.A.E. in June 2019
For more information about the survey and other market research, contact sales@composecure.com
About CompoSecure
Founded in 2000, CompoSecure 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.
