Making Physical Cards Matter in a Digital World

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 m