Global Metal Cards Market Research Report: Forecast (2024-2030)

Market Definition

Metal cards are cards made of different materials, like stainless steel, titanium, brass, etc., and are typically used by banks and government agencies for identification & financial transaction purposes. The ongoing digitalization trend across the globe is promoting the usage of metal cards across various industry verticals.

Market Insights & Analysis: Global Metal Cards Market (2024-30):

The Global Metal Cards Market size is estimated to grow at a CAGR of around 16% during the forecast period, i.e., 2024–30. The factors contributing to the growth in the global market comprise the increasing inclusion of metal cards by financial institutions and the rising adoption of near-field communication (NFC) metal cards by government agencies for transportation & employee identification. Over the past few years, internet connectivity & smartphone adoption across the globe, especially in the Asia-Pacific and Middle East, have significantly increased.

According to DataReportal, in 2022, the total number of internet users across the globe reached around 5.3 billion, an increase of about 8% compared to 2021. The higher internet penetration across the countries transformed the Banking, Financial Services and Insurance (BFSI) sector across the globe since financial institutions encouraged the adoption of metal cards for monetary transactions rather than cash payments. As a result, the Global Metal Cards Market experienced growth & expansion during historical years.

Furthermore, there is an emerging trend of online shopping across the globe. Several consumers are shifting towards online shopping rather than traditional shopping since it is more convenient & flexible for them. According to Shopify, a leading online shopping platform, in 2023, the global e-commerce market was valued at around USD 6.3 billion. The increasing shift of consumers towards online shopping has led to a competitive war between the brands. As a result, several retail & e-commerce platforms have started offering gift & reward cards to consumers. This has subsequently enhanced the demand for metal cards and is anticipated to augment the size & volume of the Global Metal Cards Market during the forecast period.

Global Metal Cards Market Driver:

Increasing Issuance of Metal Cards by Financial Institutions – Over the past few years, governments across the globe, particularly in countries like India, the UAE, etc., have taken initiatives for digitalization. As a result, several industry verticals, such as banks, insurance companies, etc., have adopted digital solutions to streamline the administrative process. This digitalization encourages the adoption of contactless payment solutions such as digital credit cards & debit cards rather than conventional payment solutions such as cash. As a result, banks are increasingly issuing metal payment cards, driving the growth & development of the Global Metal Cards Market.

In addition, in recent years, consumer preferences have also changed. Individuals nowadays prefer flexibility & convenience. As a result, they prefer contactless payment solutions compared to traditional payment methods. Therefore, to cater to the demand of the young generation & millennials, the banks have started offering contactless payment metal cards. For instance,

• In 2023, the Indian Bank partnered with One Card, a metal credit card manufacturing company, to introduce mobile-first, contactless, metal co-branded credit cards.

This increasing adoption of metal cards in the BFSI sector is offering an opportunity for metal card manufacturers like ICK International Inc., CompoSecure, L.L.C., etc. to deliver their unique range of metal cards to banks. Therefore, it is estimated that these factors will drive the growth of the Global Metal Cards Market in the forthcoming years.

Global Metal Cards Market Opportunity:

Increasing Sustainability Initiatives to Create Opportunities for Market Growth – The usage of plastic cards in several sectors like transportation, healthcare, retail, and E-commerce for reasons such as transit or travel purposes, medical insurance cards, gift & loyalty cards, etc., has resulted in plastic pollution across the globe. According to the Government of the UK, in 2022, almost 76 million plastic cards were discarded in Britain, causing higher pollution. Similarly, countries like the US, China, etc., are also witnessing environmental challenges since these plastic cards are non-recyclable. As a result, to mitigate these environmental issues, the governments of these countries are taking initiatives to encourage the adoption of metal cards rather than conventional plastic cards. This, in turn, would accentuate the demand for the metal cards.

In addition, consumers are also becoming more environmentally friendly and are consciously seeking to adopt more sustainable alternatives. This transition of consumers towards eco-friendly options would further compel the industry verticals to issue metal cards to consumers, consequently offering a good volume of opportunities for growth & expansion in the coming years.

Global Metal Cards Market Challenge:

High Costs & Limited Customization Options Hindering Further Growth – Metal cards are relatively costly compared to polyvinyl chloride (PVC) cards owing to the limited availability of raw materials such as precious metals like gold & silver. The higher costs prevent end-users from opting for metallic cards, impeding market growth & development.

In addition, the imposition of the design on metal cards is a complex process due to the physical properties like thickness, brittleness, etc. As a result, there are only a limited number of designs available. Moreover, the customization based on the client’s requirements is done at a higher price since the imposition of the design on metal cards requires specialized equipment and expertise. Hence, end-users seek to use other payment solutions rather than metal cards, hindering further market expansion.

Global Metal Cards Market Trend:

Incorporation of Smart Chip Technology into Metal Cards – In recent years, there has been an increase in the adoption of metal cards by financial institutions like banks, insurance companies, etc., for transactions. The shift towards digital payment solutions has also led to cyber security issues across the globe. According to Astra Security, a cybersecurity solutions provider, almost 2,200 cyberattacks occur per day globally. These cyberattacks affect organizations economically. Therefore, companies are incorporating smart chip technology into metal cards to mitigate cybersecurity issues.

Moreover, the smart chip-enabled metal cards also support contactless payment capabilities, which allow users to make quick and convenient transactions by simply tapping their card on a compatible payment terminal. This feature enhances the overall user experience by reducing transaction times. As a result, more consumers are inclined towards smart chip technology, opening new dimensions for the growth of the Global Metal Cards Market.

Global Metal Cards Market (2024-30): Segmentation Analysis

The Global Metal Cards Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at the global level. According to the analysis, the market has been further classified as:

Based on Material:

• Stainless Steel
• Titanium
• Brass
• Copper
• Gold
• Silver
• Others (Aluminum, Platinum, etc.)

Stainless steel holds a major share of the metal card industry. The metal cards are generally made up of stainless steel material owing to their physical characteristics like higher durability, resistance to corrosion & rust, and higher structural integrity. Stainless steel material provides higher strength to the metal cards, making them less susceptible to damage & deformation during bending or warping. As a result, it is a more sought-after material for manufacturing metal cards. In addition, the price of stainless steel is relatively lower than that of gold & silver. Therefore, metal card manufacturers use stainless steel as the raw material to lower production costs and increase profitability.

Furthermore, stainless steel is abundant, unlike materials like titanium, gold & silver, which are scarce. Therefore, there are no issues in the supply chain during the manufacturing process of metal cards. Hence, the manufacturers seek to use stainless steel as the raw material to develop metal cards, enhancing the share of this segment in the Global Metal Cards Market.

Based on End User:

• Banking, Financial Services and Insurance (BFSI)
• Government
• Corporate Offices
• Others (Entertainment, Retail & E-Commerce, etc.)

In recent years, the governments of countries like India, the UAE, etc. have increasingly encouraged digitalization in the different industry verticals, especially Banking, Financial Services and Insurance (BFSI), to streamline the transaction processes. Digitalization across these financial institutions, like banks, insurance companies, etc., aims to provide convenience & flexibility to consumers by encouraging contactless payments. As a result, the banks are issuing metal cards and encouraging other digital payment solutions for financial transactions rather than the conventional payment solution via cash.

Further, the governments of these countries are also encouraging the banks to offer metal cards with Near Field Communication (NFC) technology. For instance, in 2023, the government of India asked the public & private banks to issue mobility-enabled cards to ease financial transactions. This, in turn, is compelling the banks to provide metal cards to consumers, enhancing the share of Banking, Financial Services and Insurance (BFSI) in the Global Metal Cards Market.

Global Metal Cards Market (2024-30): Regional Projections

Geographically, the Global Metal Cards Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

North America has the prevalence of several world-class financial institutions, like Bank of America, JPMorgan Chase & Co., etc., that are digitalized. As digitalization is transforming the banking industry, consumers in North America are increasingly inclined towards advanced payment technologies and adopting new payment methods, including metal cards equipped with smart chip technology. Moreover, these banks cater to diverse consumer needs and preferences. As a result, to compete aggressively and retain customers, the banks offer innovative premium banking products and services like metal cards to differentiate themselves in the market.

Furthermore, in recent years, there has been a growing awareness of environmental sustainability and the negative impact of plastic waste. Owing to this, environmentally conscious consumers in North America are seeking eco-friendly alternatives for their financial transactions and are increasingly using metal cards, accentuating market growth & expansion in the coming years.

Global Metal Cards Industry Recent Development:

• 2023: CompoSecure, L.L.C., the company, launched a new range of innovative metal cards, including LED cards, for financial institutions like banks across the globe. These cards light up with LEDs when a contactless transaction takes place.

Gain a Competitive Edge with Our Global Metal Cards Market Report

1. Global Metal Cards Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Global Metal Cards Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.