Selecting the Right Smart Card Vendor for Metal-Based Payment Solutions

Banks and financial institutions are continually looking to separate themselves from the competition, which means that the metal payment card has become well-placed to provide a clear physical and tactile benefit. The metal payment card has now established its own area in the payment card market by offering a durable and secure option for both issuers and their customer bases, alongside the physical appeal.This resource assesses and compares the leading vendors of metal payment cards for the banking and payment cards market. ABI Research selected the most prominent players offering multiple metal card solutions and currently partnered with banks.

Market Background

Banks and financial institutions are continually looking to separate themselves from the competition, which means that the metal payment card has become well-placed to provide a clear physical and tactile benefit. The metal payment card has now established its own area in the payment card market by offering a durable and secure option for both issuers and their customer bases, alongside the physical appeal.

The historical trend has seen the metal payment card launched toward the High-Net-Worth (HNW) customer segment. Then, with the introduction of market disruptors such as neo and challenger banks, these entrants expanded the metal payment card market to new customer bases, particularly the mass affluent and even to some millennial segments. The pivot from only targeting HNW clientele to opening metal payment cards to the mass-affluent has significantly widened the available market for the metal payment card market.

This resource assesses and compares the leading vendors of metal payment cards for the banking and payment cards market. ABI Research selected the most prominent players offering multiple metal card solutions and currently partnered with banks.

Metal Payment Card Innovations Banks Should Prioritize

ABI Research determined the top innovators in the metal payment cards market by evaluating the following criteria of a vendor:

• Durability: An assessment of the hardiness and resistance to wear and tear for the metal payment card offering.
• Design Features and Capabilities: Involves composition types, such as Polyvinyl Chloride (PVC)/metal and metal core, the inclusion of alternative materials, and personalization techniques, such as laser engraving. Capability for in-house design will also be assessed, as well as card tactility, including weight and finish.
• Security: An evaluation of physical security (resistance to tampering) and chip-based security.
• Sustainability: An assessment of the use of ecological material, and manufacturing and personalization techniques and practices. This includes the use of recycled metals, reused materials for manufacturing, eco-conscious transportation of product, and sustainability certification.
• Convergent Technologies: The inclusion of next-generation card technologies within metal payment card offerings, such as biometric sensors, Light-Emitting Diodes (LEDs), or Dynamic Card Verification Value (DCVV).

Top Three Most Innovative Metal Payment Card Vendors

CompoSecure, Thales, and IDEMIA were ranked the top three most innovative companies developing metal payment cards. Here’s an overview of how our analysts came to this conclusion.

#1: CompoSecure

CompoSecure is a clear innovation leader in the metal payment cards market, going beyond metal only and launching metal in combination with Gorilla Glass with the Lux Glass offering and a mirror card in the Echo Mirror solution. These innovative cards provide a range of options for banks and financial institutions to introduce one-of-a-kind differentiated payment cards into their portfolios. Furthermore, CompoSecure’s use of recycling programs, water reduction policies, and metal recycling in its payment card offerings means it does not compromise on Environmental, Social, and Governance (ESG) goals to provide these solutions.

#2: Thales

Thales has achieved second place as a leader in the innovation rankings. A well-established sustainable policy around the manufacture of metal payment cards with the steel used in its cards being recycled (and this is being expanded to include recycled tungsten), coupled with a diverse range of personalization options, tactile effects, gold plating, and jewelry embedding, have secured Thales a place as a leader in this category. Furthermore, Thales is currently working on including next-generation payment card technologies in its metal payment cards portfolio.

#3: IDEMIA

All of IDEMIA’s metal payment cards offer at least the mandated 3 to 5 years in the field, which is an industry standard. IDEMIA’s metal payment card offerings have an exposed plastic surface and stainless metal, which ensures the highest durability. The new Ultimate Metal Art range also includes tungsten. As it relates to design and personalization features, IDEMIA offers a protective coating with a tactile varnish, satin varnish finish, selective glossy or matte varnish for tactile effect, embellishment with texture, debossing, knockout to metal, sophisticated engraving for signature or doodle, laser, and Drop on Demand (DoD), demonstrating its extensive range of metal card personalization options. IDEMIA also has a dedicated design team worldwide, providing personalized designs.

---

ABI Research is a crucial intersection between financial institutions and smart card vendors looking to capitalize on product demand. Head to our Digital Payment Technologies Research Service for the latest product releases.

---

Metal Payment Card Implementation Factors

Innovation is just one factor in determining the top metal payment card suppliers. ABI Research also assesses a company’s implementation capabilities that banks and financial institutions should seek in a potential partner.

• Global Reach: An assessment of the company’s ability to deliver on a global scale. Formulated by measuring a company’s ability to distribute and the location and volume of manufacturing facilities and capacity.
• Product/Service Range: An evaluation of the variance of a metal payment card portfolio, including metals such as stainless steel, titanium, and tungsten, among others.
• Market Share (Overall Payment Cards): Market positioning and ranking as it relates to the overall payment card market for the full year 2022 (most recent available data).
• Market Share (Metal Payment Cards): Market positioning and ranking as it relates to the metal payment card market for the full year 2022 (most recent available data). This applies to metal payment cards as delivered to issuers.
• Partnerships and Customers: External engagements, including partnerships, ownership/investments, and customers.

Vendors That Best Support Implementation of Metal Payment Card Solutions

The same three companies that led in innovation also led in implementation enablement. However, the order this time around is IDEMIA, CompoSecure, and Thales.

#1: IDEMIA

IDEMIA tops the leaders in the implementation category, with a very strong global presence and a wide range of in-house developed metal payment cards. IDEMIA supplies a wide range of banks worldwide with its metal card solutions and has secured a strong market share position for both traditional and metal payment cards. The French company is trusted by 1,900 financial institutions and fintechs, including most of the world’s largest banks.

IDEMIA has a strong position in the overall EMV payment cards market, having secured second place in the full year 2022 with a 21.5% share of the market. Regarding the metal payment cards market, IDEMIA has leveraged its wide range of banks and fintech partnerships to issue a significant volume of metal payment cards and secured second position. It is well placed to increase this in the coming year.

#2: CompoSecure

CompoSecure has secured second place in the implementation ranking due to its global reach through a very large number of partnerships in the metal payment card space. These extensive partnerships are coupled with the fact that many other vendors use their offerings to supply projects, ensuring a consistent level of business for CompoSecure. The New Jersey-based card supplier’s wide range of products, which are delivered in huge numbers and some of which include next-gen payment technologies, mean that it commands an overwhelming market share for metal payment cards.

#3: Thales

Thales has secured third place in the implementation rankings, demonstrating a strong presence in all regions, enabling the company to access payment card markets worldwide. In partnership with CompoSecure and including its own in-house solutions, Thales can deliver metal payment cards to specification and support significant order volumes. As the traditional payment card market share leader in terms of shipment volumes, Thales has a large accessible market for its metal card solutions.

Get the Complete Ranking

As the metal payment card gains prevalence within the product portfolios of financial institutions, vendors in this sphere are swiftly crafting compelling and alluring solutions to carve out a niche in this burgeoning market segment. The most pioneering companies are securing an expansive market share through card innovations that align with the affluent and HNW consumer. Expansive collaboration among the broader smart card ecosystem is key to bringing new ideas to market.

For a more in-depth look at these companies' business strategies and solutions, download ABI Research’s Metal Payment Cards competitive ranking.