Quick expansion of metal cards
This trend of “premium” products has now moved into credit cards, where issuing banks offer a fancy metal card to their select customers as a way to differentiate themselves. In fact, financial institutions began to offer metal credit cards or hybrid versions of them as they realized the impact of prestige products in a market that promises significant expansion potential. Metal cards have gained notoriety with demand, sometimes outpacing existing stocks, according to Bloomberg. Many issuers have launched metal card programs beginning in the United States and now showing strong growth potential internationally, including Latin America.
Issued by a trusted brand, metal cards convey attributes usually associated with “premium” products, such as high quality, superior design and style. Today, metal credit cards are still in the early stages of adoption.
Card issuers can use metal cards as a visible part of their robust rewards and benefits package to differentiate their brand and capture market segments that demand a “premium” or prestige product. This is particularly true for companies looking to attract and retain millennials.