How Challenger Banks Are Targeting A Younger Demographic
In the final post of our series on Metal Cards, learn how challenger banks are tapping into a younger audience and meeting their needs.
The evolution of the metal credit card has seen this payment method become synonymous with wealth and status. From the coveted American Express Centurian card, which was made of jet black titanium and came with an annual fee of $5000, to the launch of Apple’s minimalist metal card in 2019, the contactless payment card can be a real must-have item for the younger, trend focused customer. And with challenger banking institutions proving keen to tap into this market, offering a stylish metal payment card makes for a successful strategy.
The Choice of Challenger Banks
Apple is one such challenger, and its decision to launch a physical credit card appears to be a significant and strategic decision. After all, Apple already boasted a leading digital payment method in the form of its Wallets application.By choosing to develop a traditional payment card, the brand highlights how this financial staple remains the leading means of making transactions. By manufacturing their card in lightweight yet durable titanium metal, Apple was clearly making the statement that a credit card can be just as coveted an accessory as the latest iPhone.
The Contactless Payment Card is Here to Stay
The data shows that customers continue to overwhelmingly prefer making transactions with a traditional payment card [1], even in the face of an ever-expanding variety of other payment options. Digital payment methods have certainly gained traction in the last few years, with mobile accounts and digital wallets proving popular, particularly with a younger demographic, however the familiarity and convenience of the physical contactless payment card are well anchored. By introducing high-status, stylish metal cards, the young and fashionable consumer is attracted to the challenger banking institutions which can offer them.
An Attractive Accessory
In an era where having the latest must-have device or label is important, the metal credit card gives style conscious youngsters the perfect accessory. With exclusivity and distinctive design, such cards allow affluent customers to enjoy a touch of luxury with every transaction, whilst discreetly demonstrating their financial status. Furthermore, by choosing durable and sustainable materials over conventional plastic, these cards can appeal to those with an environmentally friendly outlook, as well as providing the necessary convenience, ease of use and familiarity.
A Secure Solution
Of course, a luxury metal payment card can be a tempting prospect for criminals, and with card-present fraud figures on the rise, it’s essential that the challenger banks that provide these cards factor in stringent security methods. A highly effective solution already exists, in the form of biometric authentication. A fingerprint sensor may be unobtrusively built into each card, ensuring that only the authorized card owner can make payments, whilst doing away with the need for transaction limits and PINs. And with a younger demographic already familiar with fingerprint recognition technology, thanks to its use in smartphones and other devices, including this simple yet effective security measure is an obvious solution for challenger banks hoping to capitalize on this market.
Resources:
[1] https://www.ukfinance.org.uk/sites/default/files/uploads/Summary-UK-Payment-Markets-2021.pdf
