This new Amex Platinum Card feature – Genius or Gimmick?

“The preference for metal cards spiked to 73% among millennials (ages 25-34) across all the regions, and particularly in the U.S., where 77% of this demographic said they prefer metal,” it added.

Credit Cards as a status symbol

As per this article by CM Magazine, a section of Millennials in the US see metal cards as a sign of higher status.

“Representing an essential demographic, 24% of millennials in the United States view their credit cards as a status symbol, according to a survey from LendEDU. This is a salient point for card issuers because design and style are of ever-increasing importance to enhance the perceived status. As a Harris study found, millennials have a propensity for social experiences and spend more freely than other generations; this reinforces the interest in the attention garnered from a status card in social situations.”

What’s also interesting is that the research revealed that consumers who value status and link that with a metallic credit card are more likely to take that card out and use it in a social setting.

“The NBER analysis of transactions indicated that consumers in general, not just millennials, were more likely to use a status card for expenditures in a social environment such as in restaurants and bars.”

What’s also interesting is that customers in the US are more than willing to switch to a metal based credit card, since it signifies status and affluence.

“In the United States, 56% would switch to metal, and when viewed by income, the rate increased to 80% among those with an annual income of $200,000 or more. This was mirrored internationally with three of four (75%) affluent people exhibiting a higher level of willingness to switch cards and selecting a metal card with equal benefits and rewards.”

Global Phenomenon

However, this is not just restricted to the US. Over the last half a decade, this seems to be a trend happening globally.

“Today, 70% of global customers say they would use a metal card more often than other cards in their wallets. In an era when banks strive more than ever to establish a primary account relationship with their customers, it is particularly striking that 55% would switch banks to get a metal card.”

Also, a-la-Apple, card issuers are now looking to drive eyeballs and traction through social media by making their card launches and refreshes an ‘event’.

“User experiences created by internet giants such as Google and Apple have recalibrated customer expectations. In fact, today’s consumers expect every company they interact with to provide a similar level of personalization. And the banking and payments realm is no exception. Customers are demanding more personalization, leading to hyper-personalized features that deliver tailored experiences based on every customer’s individual needs and profile.”

Also, card issuers seem to have enough data backing that fact that customers will bite, given that they’re looking to experiences and for products that not just look premium but also feel premium to them.