The lure of metal: Indian consumers & Gen Z prefer metal bank cards says survey

Metal debit and credit cards are in demand with Indian consumers as well as Gen Z and millennials according to this global survey.

With various expressions of the premiumisation wave in different industries, from mass affluent to high-net-worth segmentations, the banking market is offering metal credit cards and metal debit cards to differentiate with strong distinctive products and exclusive services.

Read more: Women led Indian FinTechs ahead of US & China says report

These cards that reflect a high-end lifestyle and status symbol are an asset to win and retain high-value cardholders.

A recent global survey led independently by Data 2 decisions (Dentsu Aegis Network) on 2,791 respondents representative of more than 2.3 billion people in the markets including Brazil, France, India, Japan, Malaysia, Mexico, South Africa, UAE, UK, and USAIDEMIA revealed how metal cards are getting attention from consumers in different markets and with different social life styles.

The survey revealed that 88% of new age customers prefer a metal card when looking for a new credit or debit card. In fact, 55% of Indian customers are willing to switch banks to get metal cards. Moreover, 70% of Indian consumers use their metal cards more often than the other cards in their wallet.

Also, interest in metal cards is at its highest among Gen Z and millennials, who rank metal cards as their preferred method of payment, throughout the world, and in emerging countries among consumers of all ages. In other words, these segments, which will dominate future global spending, want to pay with metal cards.

The Tech Panda spoke to Amit Kakatikar, SVP, Financial Institutions at IDEMIA, about the latest craze for solid metal cards.

India is one of the most vibrant payment markets, which along with a bias towards younger demographic population, is extremely keen on adopting new trends. Add to this the aspirations of this generation and metal cards become a passport to them citing ‘they have arrived’

“India is one of the most vibrant payment markets, which along with a bias towards younger demographic population, is extremely keen on adopting new trends. Add to this the aspirations of this generation and metal cards become a passport to them citing ‘they have arrived’,” he says.

Interestingly, the demand for metal cards is at its strongest in developing countries like India and among young customers, that is, the market segments that will dominate global spending tomorrow.

“65% of global consumers would choose a metal card over a plastic card if all other things were equal. Furthermore, 73% of global millennials prefer a metal card over a plastic one,” he reveals.

Banks Win Hearts with Card Designs

In an increasing digital world, payment cards are the only tangible connect of the bank with its user. At a time when banks need to differentiate strongly from one another, this game-changing technology gives them free reign over their card designs, while allowing them to use unrivalled graphics such as etching, or a brushed look combined with high-definition colouring techniques on their metal cards.

“Payment cards are no longer mere payment tools. They have become fashion accessories reflecting the lifestyle and values of their users,” says Kakatikar.

Payment cards are no longer mere payment tools. They have become fashion accessories reflecting the lifestyle and values of their users

“For banks, metal cards are valuable marketing assets to strengthen the link with their customers and build a lasting relationship. One of the hottest tickets in town, these cards allow banks to reach high value as well as trend driven customers,” he adds.

IDEMIA and companies like FPL technologies, offer a large portfolio of attractive and eye-catching high-end metal credit and debit cards to match every customer aspiration. The materials range from full metal to a combination of plastic and metal-based materials that fit with any customer need and emerging trends for luxury products.

Specifically designed to meet the expectations of the market, several card models with various structures are available. A variety of design features such as specific coatings, sophisticated engraving, and knockout to metal are available to enhance the brand and give each card a unique look, feel, and sound. Bespoke solutions can also be developed to meet the boldest creations with solid Metal cards.

The Wave of Premiumisation

With consumer buying power on the rise around the world, more and more consumers are willing to pay to get exclusive products, ranging from sober smartphone models to exclusive chocolates and limited-edition clothing.

“We can see this premiumisation wave sweeping through the world, and research showing that buying premium products makes 52% of global customers ‘feel good’ confirms this phenomenon,” says Kakatikar.

Read more: How technology can include rural India in its FinTech success story

Some of the criteria defining a product as premium within the eyes of the consumers is that the product is made with high quality materials or ingredients, that it has superior style or design and that it’s handcrafted, using artisanal methods.