The more banking moves onto a smartphone, the harder it becomes for financial institutions to create a tangible connection with their customers. Yet as more of the banking relationship becomes digital, consumers continue to seek experiences that feel personal and distinctive—from personalized products and luxury brands to rewards, upgrades, and exclusive access.
That creates an interesting opportunity for the physical payment card. Far from becoming irrelevant, the card can serve as one of the few tangible expressions of a customer’s relationship with their FI.
In a PaymentsJournal Podcast, Mikko Kähkönen, Vice President of Card Products at Giesecke + Devrient, and Brian Riley, Director of Credit at Javelin Strategy & Research, discussed how issuers are rethinking the card through new materials, distinctive design, and carefully crafted experiences—turning a familiar payment tool into something that can inspire recognition, loyalty, and sense of status.
A Premium Experience
The premium card offers issuers a physical representation of the banking relationship, often made from innovative materials and designed to be handled and used everyday. These cards can generate greater engagement and, in some cases, a higher share of wallet than standard cards.
“A great premium card design turns into customer segmentation, customer segmentation turns into customer experience,” said Kähkönen. “People enjoy unboxing and showing off the shiny objects they get from their financial institution. That gives a great marketing boost to the program. There’s a lot to be had in premium cards for issuers globally.”
Consumers increasingly want products that reflect who they are and how they see themselves. They value personalization, quality, distinctive design, and a sense of exclusivity. A premium card isn’t necessarily competing with the convenience of the digital wallet. The phone may be the primary payment device, but the physical card serves a different purpose, providing a sense of recognition, identity, ownership, and tangible connection.
At the same time, issuers face a crowded market in which everyone is competing for the same aspirational consumers, from high-net-worth individuals to the mass affluent. The challenge is finding ways to differentiate an offering in a category that is, by design, a commodity. An American Express Black card, for example, doesn’t move through an authorization any faster than a Chase Freedom card.
“That’s where the card design comes in,” said Riley. “It’s a way to distinguish a portfolio. We know from lots of studies that it appeals to people for different reasons, different drivers behind the type of metal, type of coating, and so forth. It really does play an important role in distinguishing customer and adds value to how the card is positioned.”
A Step on the Digital Journey
The most successful issuers are not treating the physical card as an isolated product. Instead, they are making it part of the broader digital journey.
A consumer can go into their bank’s app or website, customize their card, and order it while receiving a digital version immediately. Notifications can keep them updated on the card’s delivery, building anticipation before it arrives. And when the welcome package finally lands, some customers even record themselves opening it.
“The customer feels really recognized before the first transaction with the card even takes place,” said Kähkönen.
In that sense, the payment card may have become more important as consumers’ financial lives have become more digital. From the issuer’s perspective, it becomes a calling card for the financial institution itself.
As branch networks have declined, consumers have fewer opportunities for physical interaction with their banks. A distinctive card helps maintain that connection, keeping the institution physically present in the customer’s everyday life.
From Metal to Ceramic
For that reason, many banks have looked to distinctive materials to make their cards stand out. Metal cards have become a well-established and growing segment of the premium market.
“When I got my first metal card four or five years ago, what I liked about it was when you throw it on a counter, there’s a thump,” said Riley. “You know it’s a real thing.”
But, as with any premium proposition, expectations continue to rise. That’s where ceramic enters the picture—a material associated with luxury watches and jewelry, as well as exceptional durability. Its resilience gives it a sense of permanence that few other card materials can match.
The tactile experience is distinctive, while its weight and feel set it apart from conventional plastic cards and even many metal products. Its unmistakable sound when placed on a table can turn a simple payment moment into a statement.
“The ceramic is really fascinating, because it combines two worlds,” said Kähkönen. “There’s this sort of craftsmanship, and a material which has not really been present in our industry previously.”
Ceramic also allows for bolder color options, because the pigments are integrated into the material itself. Combining zirconia powder and pigments creates different hues, resulting in a sleek, highly crafted aesthetic that can appeal to affluent consumers looking for something beyond the conventional metal card.
“In the premium segment, these innovatively designed cards will become increasingly crafted and personalized,” said Kähkönen. “They may even turn experimental, with the possibility of limited edition card programs that are sold as collectibles.”
Pushing Into the Future
As payment experiences disappear into digital channels and become part of the background of everyday life, the physical card may take on a different role.
“I don’t believe that the physical card is disappearing or anything like that, but its purpose is evolving to membership in a kind of broader ecosystem or, on the other hand, a narrower, more exclusive association,” said Kähkönen. “But the card can also include exciting new features on top of what you see today. You can use your card for authentication to your mobile wallet, or it can be your access and trust anchor into stable coins and crypto, features above and beyond the day-to-day transaction.”
“That’s something we’re committed to,” he said. “That’s our vision also going forward. We’re working on defining the next era of premium payment cards.”
