Indian genz and millennial love for metal now extends to cards
Jon Wilk, CEO & President, CompoSecure Inc.
Financial institutions in India and Indonesia have the greatest opportunity to create a positive image of banks, secure new customers and improve retention by offering a metal card
New Delhi/Somerset, NJ – June 11, 2022 –CompoSecure, Inc. (Nasdaq: CMPO), a leading provider of premium financial payment cards and cryptocurrency and digital asset storage and security solutions, released a new report based on an independent global survey from Edgar, Dunn & Company and commissioned by CompoSecure. The Asia Pacific region consistently ranked highest among the countries for awareness, interest and importance of metal cards.
The survey found that metal payment cards are one of the best tools for financial institutions to bolster brand loyalty, attract new customers and establish positive brand interactions. The survey further identified India and Indonesia as two of the top nations with awareness and affinity toward metal payment cards. Both countries had the highest percentage of customers who would feel positive about their banks because they offered metal cards, significantly higher than the average survey respondent (89% vs. 58%).
A staggering nine of 10 consumers in India (91%) would select an offer that includes a metal payment card if all rewards and benefits were equal, which is up 6% from a prior Edgar, Dunn survey completed in 2019. This was the highest percentage of all regions surveyed and much higher than the global average of 70%. Other Asia Pacific regions also showed a strong preference for metal cards: 82% of Indonesia, 82% of China, 76% of Hong Kong and 71% of Singapore.
The survey also points to metal cards as an important decision-making trigger for the Asia Pacific consumer’s choice of financial institution in conjunction with a strong loyalty and rewards program. Key survey findings for the Asia Pacific region included:
- Customer Retention–Financial institutions offering metal payment cards are better able to keep their customers. India and Indonesia were among the top nations (72%) that took their desire for metal cards further by indicating they would leave their bank for another that offered a metal payment card, assuming the payment card benefits and rewards were equal. Wealthy consumers in Indonesia have the greatest inclination (92%) to leave their bank for one that offers a metal card.
- Customer Awareness – Awareness of metal cards also grew 11% in the Asia Pacific region from the prior survey. India had the highest awareness of metal cards at 76%, which also had the highest growth of 18%. Most of the Asia Pacific countries had greater awareness than the global average of 41%, including: China 65%, Indonesia 59%, Singapore 49% and Japan 46%.
- Affluent Consumers – Financial institutions can better target wealthy customers by offering a premium metal payment card solution. Metal cards would be the card of choice for affluent consumers in Indonesia (97%) and India (94%), if the benefits and rewards were equal to plastic options. The majority of wealthy customers in Indonesia (97%) and India (93%) also would feel more positive about a bank for offering a metal card.
- Future Customers– Banks in Asia Pacific may be able to attract younger customers by offering metal cards. The preference for metal cards spiked among millennials (ages 25-34) across all the regions, and particularly in the Asia Pacific region, with those surveyed in China (89%), India (88%), Indonesia (85%) and Hong Kong (81%) preferring a metal card.
- Recycled Metal– The report also indicated a global climate mindset, with an overwhelming majority (72%) of respondents saying they would choose a payment card made of eco-friendly materials if all rewards and benefits were the same. This was particularly true in India (91%) and Indonesia (84%), which were among the top countries concerned about sustainability. CompoSecure’s premium metal card products should be of particular interest since they contain 54% post-consumer recycled material, made from an average of 65% post-consumer recycled stainless steel.
- Metal Attraction– According to survey respondents, the top two reasons consumers are attracted to metal payment cards are the durability and innovative design. However, metal cards also are associated with exclusivity and luxury in many countries. This is especially true in India (49%), Indonesia (42%) and China (41%).
To download the free metal card report, please visit: https://www.composecure.com/the-growth-of-premium-metal-cards
Methodology
The global survey of 18,000 people in 18 markets around the world was commissioned by CompoSecure and conducted by Edgar, Dunn & Company, an independent global strategy consulting firm specializing in payments and digital financial services. This latest 2021 study validates data from an initial study from 2019, reinforcing the value and demand for metal payment cards and the risks of customer attrition for banks only offering plastic products.
Edgar, Dunn & Company’s Metal Card Consumer Study encompasses documentation of the 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 18different markets (Australia, Brazil, Canada, China, France, Germany, Hong Kong, India, Indonesia, Italy, Japan, Mexico, Poland, Russia, Singapore, Turkey, 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.
For more information about the survey and other market research, contact sales@composecure.com.Â
Founded in 2000, CompoSecure is a pioneer and category leader in premium payment cards and cryptocurrency and digital asset storage and security solutions. The company focuses on serving the affluent customers of payment card issuers worldwide using proprietary production methods that meet the highest standards of quality and security. The company offers secure, innovative, and durable proprietary products that implement leading-edge engineering capabilities and security. CompoSecure’s mission is to increase clients’ brand equity in the marketplace by offering products and solutions which differentiate the brands they represent, thus elevating cardholder experience. For more information, please visit www.composecure.com. ArculusTM was created with the mission to promote cryptocurrency adoption by making it safe, simple and secure for the average person to buy, swap and store cryptocurrency. With a strong background in security hardware and financial payments, the ArculusTM solution was developed to allow people to use a familiar payment card form factor to manage their cryptocurrency. For more information, please visit www.GetArculus.com.
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