Our world keeps becoming more digital. Paper road maps are gone. Streaming has replaced CDs. Yet despite the relentless rise of digital solutions, there remains a strong and persistent appetite for experiences that are physical, sensory, and human—and several formats are thriving precisely because of it. Board game sales are projected to double by 2032[1]. Vinyl records have grown for 17 consecutive years[2]. Collectible trading cards are a $13 billion market[3].
Why? Much of it comes down to how we function as human beings, psychologically and neurologically. Physical experiences engage multiple senses in a way that digital ones simply cannot. The more senses involved, the more memorable and emotionally charged the experience becomes. Chip Wade, CEO of Union Square Hospitality Group, distilled it into a single question that should guide every customer interaction: “How many new memories did we create?”[4]
But this isn’t a digital versus physical story. It’s a digital and physical story—and the most compelling experiences today are those that blend both. IKEA uses augmented reality to let customers visualize furniture at home.[5] Trade Republic pairs an almost entirely digital banking experience with a striking metal card featuring a mirror-like surface, so that every time customers pay, they see their own reflection.[6]
In payments, that blending plays out in a particularly tangible way. Compared to standard plastic, metal cards engage three senses at once: they look different, feel different, and sound different. That sensory dimension helps explain why even the most digital of players—Robinhood[7], Coinbase[8], Bilt[9]—are issuing premium metal cards. Beyond the sensory layer, these cards serve as physical anchors to an otherwise entirely digital customer experience.
The logic extends well beyond payments. In ticketing, a premium metal card doubles as a commemorative keepsake—a lasting physical connection to a moment that a QR code simply cannot replicate. In luxury goods, a metal card engraved with a product’s serial number and linked to a blockchain-based digital passport turns provenance verification into something as intuitive as a tap. In gaming and gambling, the same card could authenticate transactions, grant access to VIP areas, and serve as a mark of recognition for the most loyal customers.
Looking ahead, the most successful innovations will be those that seamlessly integrate digital and physical elements—leveraging the unique strengths of both. The future isn’t digital or physical. It’s phygital.
[1] https://www.fortunebusinessinsights.com/board-games-market-104972
[2] https://deadline.com/2024/03/recorded-music-sales-2023-streaming-vinyl-1235869333/
[3] https://datahorizzonresearch.com/collectible-trading-cards-market-45950
[4] https://www.mckinsey.com/industries/retail/our-insights/how-many-new-memories-did-we-create-rethinking-restaurant-success
[5] https://lbbonline.com/news/ikea-launches-ikea-place-a-new-ar-app-that-lets-you-place-furniture-in-your-home/
[6] https://traderepublic.com/en-de/card
[7] https://robinhood.com/creditcard/
[8] https://www.fintechweekly.com/news/coinbase-amex-bitcoin-rewards-credit-card-launch
[9] https://www.bilt.com/card