Indians are strongly inclined to opt for metal payment cards if the issuing financial institutions and banks include them as part of their offer with same rewards and benefits as in plastic options, a global survey commissioned by Nasdaq listed CompoSecure Inc has revealed.

A staggering nine of 10 consumers in India (91 per cent) said they would select an offer that includes a metal payment card if all rewards and benefits were equal, which is up 6 per cent from a prior Edgar, Dunn survey completed in 2019.  

Also 93 per cent of customers in India said that they would feel more positive about their banks if they are offered metal cards. The latest global survey involved 18,000 people in 18 markets around the world including 1,000 respondents from India.

This India result (91 per cent) was the highest percentage of all regions surveyed and much higher than the global average of 70 per cent. Other Asia Pacific regions also showed a strong preference for metal cards: 82 per cent of Indonesia, 82 per cent of China, 76 per cent of Hong Kong and 71 per cent of Singapore. 

‘Stunning find’

“It (India result) was a stunning finding and the strongest result we saw among any country across the world. We see this as very purposeful opportunity for CompoSecure and our partners to help the market (for metal cards) grow in India,”  Jon Wilk, President & CEO, CompoSecure told BusinessLine.

More specifically that number (91 per cent) goes up to 94 per cent with affluent customers in India, Wilk added.

CompoSecure Inc is a leading provider of premium financial payment cards and cryptocurrency and digital asset storage and security solutions.

Will tap opportunity

Wilk said that market for metal cards is taking off in India and CompoSecure, which has a sales representative office in India, will continue to tap this opportunity through its ongoing partnership with IDEMIA.

“We are early in the life cycle and opportunity for metal cards in India. But we think it is growing and we continue to be excited about the opportunities in India. There is enormous opportunity in front of us. I don’t see the need to expand our physical presence in India but will continue to expand our partnership with IDEMIA”, he added. 

He also said that CompoSecure sees opportunity for its metal cards both in debit card as well as credit card segments.

Asked about data storage and localisation, Wilk said that CompoSecure had no customer specific data and the cards they supply are personalised in the local market by the issuing bank or fintech or financial institution.

Other survey findings

The latest global Survey showed that India, at 76 per cent, had the highest awareness of metal cards. Most Asia Pacific countries had greater awareness than the global average of 41 per cent, including China 65 per cent, Indonesia 59 per cent, Singapore 49 per cent and Japan 46 per cent.

Another finding is 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 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 programme.

Also, the Survey showed that financial institutions offering metal payment cards are better able to retain customers. India and Indonesia are among the top nations (72%) that took their desire for metal cards to the next level by indicating they would leave their bank for another that offered a metal payment card, assuming the payment card benefits and rewards were equal. 

The Survey also highlighted that banks in Asia Pacific may be able to attract younger customers by offering metal cards. The preference for metal cards has spiked among millennials (ages 25-34) across all the regions, and particularly in the Asia Pacific region, with those surveyed in China (89 per cent); India (88 per cent); Indonesia (85 per cent) and Hong Kong (81 per cent) preferring a metal card, the Survey revealed.

Published on June 8, 2022