The power of prestige in payments

In an era when digital wallets and virtual payment methods are increasingly popular, why are physical cards still relevant? The answer may lie in differentiation. By creating premium experiences – from the “unboxing” moment to personalized choices around card materials and design – banks and financial institutions can stand out from competitors and connect with customers on a deeper, more emotive level.

In fact, a recent study from InterFund Solutions, based on qualitative interviews with card program managers from major banks in the UK, US, and Canada, found that premium metal cards were influencing customer behavior, leading to increased acquisitions and spending. For example, in Canada, one fintech reported 40% growth in customer acquisitions due their metal card offering. Meanwhile, one interviewee from a traditional global bank said, “Our metal credit cards have driven a 40% increase in spending, highlighting their strong appeal and value to premium customers.”¹ In addition, research conducted by Forbes and published by InterFund Solutions found that 73% of companies with above-average customer experiences perform better financially,² demonstrating the value of premium offerings. 

The future of an all-in-one payment and banking experience, from payment cards to issuance experience, is therefore about combining convenience with a sense of luxury, using cutting-edge technology such as AI to create more personalized experiences that connect more deeply with consumers.

Payment cards as a lifestyle statement

Premium payment cards have evolved beyond basic tools for transactions to become methods for self-expression. From sleek and durable metal to eco-conscious wood to the futuristic appeal of biometric features, consumers are increasingly choosing cards that reflect their values, lifestyles, and aspirations. Designing cards is becoming a means for consumers to explore their individual identities, turning everyday payments into personal statements.

To meet these demands, banks and financial institutions can adopt a more segmented and personalized approach. They can align specific card materials and features with distinct customer personas – from the luxury-seeking tech enthusiast to the environmentally minded minimalist – to deepen the relevance of their cards to customers and increase loyalty. 

Since their emergence in the payment cards space, neobanks and fintechs have typically adopted this segmented approach most successfully. By introducing more creativity and personalization to cards and the wider payments experience, these financial institutions have been better able to attract new and different types of banking customer, bringing more competition and innovation to the traditional retail banking market. 

When executed well, segmentation and personalization go beyond physical cards to include digital and “phygital” experiences as well. This includes not only the unboxing moment, but also the in-app experience, which should build on the personalized approach to enable a more seamless and convenient end-to-end payments experience. 

Effective segmentation of prestige customers shows a diverse range of preferences shaped by values, lifestyle, and aspirations. For example, prestige customers with a desire for exclusivity and innovation are drawn to ceramic cards – viewing them as symbols of cutting-edge technology and rarity. In contrast, sustainability enthusiasts will gravitate toward wooden cards, since such customers are more likely to value eco-friendly materials and products that reflect authenticity and purpose. 

Meanwhile, tech-savvy and security-focused customers might opt for cards with biometric and dynamic CVV, prioritizing more advanced security features and frictionless experiences. Finally, the classic premium customer often remains loyal to the enduring appeal of the metal card, appreciating its durability and the tangible luxury it brings to everyday transactions. 

Having this nuanced understanding of customer segmentation can allow banks and financial institutions to tailor offerings that resonate with the unique identities of each prestige customer type. Just as luxury brands leverage the psychology of exclusivity, banks and financial institutions have an opportunity to build card programs that are aspirational for customers, as well as functional.

Premium is an experience beyond just the card

First impressions count in the premium payment card space, and the unboxing experience is where banks and financial institutions can leverage the perceptions and emotions of customers to drive engagement. The moment a card arrives should be the customer’s first physical interaction with their unique premium product, shaping their brand loyalty from day one. More than a simple delivery, card issuers should consider the unboxing experience carefully. It should reinforce the card’s value and elevate it beyond a transactional tool to a status symbol. 

To embrace the overall phygital customer journey that acts as a solid backbone of the unboxing experience, card issuers can take design cues from brands in the luxury retail and high-end technology spaces. Leveraging design inspiration from these brands can help influence digital onboarding journeys, as well as physical packaging itself. In sectors like luxury retail and high-end technology, bespoke packaging details such as magnetic box closures and embossed lettering help to transform products into elite, treasured possessions. Meanwhile, personalized welcome letters written directly to the customer can add to the sense of intimacy and exclusivity. The customized high-end packaging experiences that InterFund Solutions offers to its clients are comparable to those of luxury brands. 

These physical elements can be further enhanced with digital features – such as QR codes linking to unique onboarding experiences or exclusive perks – to bridge the gap between brand and customer even more.

Brands like Apple or Rolex understand that packaging and design are a key part of the product, and banks and financial institutions can leverage these ideas for card issuance. Investing in the unboxing experience in these ways can help deliver value from payment cards even before they’re activated.

The future of prestige payments

As the payments industry continues to digitalize, the purpose of physical cards is changing. As contactless payments and digital wallets become the norm, premium physical cards are emerging as an important method for banks and financial institutions to build their brand and enhance customer loyalty. 

From the choice of card materials to premium packaging and intuitive onboarding, every customer touchpoint – physical and digital – needs to be seamless, while reinforcing a sense of exclusivity and personalization. Banks and financial institutions that can curate a holistic customer journey – combining high-end design, digital security, and impactful human connection – will set the benchmark for a new era of experiential banking. 

By aligning cards, packaging, and services with the evolving expectations of prestige customers, banks and financial institutions can deepen customer loyalty and ensure their brands stand out in a competitive and increasingly digitalized marketplace.

Published: 12/08/2025