The future of payments is often described in terms of digital wallets, mobile apps, and embedded finance. Yet, the humble payment card remains at the center of commerce. Globally, cards accounted for nearly 45% of transaction value in 20241, while in the U.S., cards captured 62% of transaction value as of 20232. This is despite record adoption of mobile-first banking tools, signaling that cards - both physical and virtual, within the respective apps, continue to play a central role in customer engagement.
Why? Because cards are more than a payment utility. They are one of the few daily, tangible touchpoints consumers have with their bank. Unlike a mobile app that can be deleted or replaced, a card lives in a consumer's wallet, purse, or pocket - ready to be seen, touched, and used multiple times a day. That ubiquity gives issuers a unique opportunity: to make the card itself a symbol of trust, identity, and lifestyle.
Increasingly, U.S. issuers are seizing this opportunity by reimagining cards not just as instruments of payment, but as trendsetting products. Luxury co-branded metals, ceramic prestige cards, and even natural wood finishes show how financial institutions are moving beyond plastic. For customers, these cards are no longer commodities; they are lifestyle statements that mirror aspirations and values.
Three forces are driving this transformation: personalization, security, and lifestyle-aligned design. Together, they represent the next chapter in how banks can differentiate their offerings in a crowded, commoditized payments market.
Lifestyle Differentiation: The Rise of Premium Cards
The shift toward premium cards is perhaps most visible in the rise of metal cards, which have become synonymous with exclusivity and prestige. Global shipments entering 2025 were projected to reach 79 million, reflecting steady double-digit growth since 20213. Banks such as American Express, Chase, and Capital One have embraced this trend, redesigning their flagship programs with heavier, tactile cards that reinforce a sense of status every time they are used. For affluent customers, the physicality of a metal card signals not only financial standing but also membership in an exclusive tier of services and rewards.
The increase in premium cards has expanded beyond metal. Ceramic cards are emerging as the next frontier, with G+D's Convego® Ceramic leading the way. Crafted from zirconia-based ceramic, these cards are designed for ultra-high-net-worth individuals and aspirational consumers who see exclusivity and material choice as extensions of their lifestyle identity. Unlike plastic or even metal, ceramic cards carry a unique sheen and durability that elevate them into luxury territory. Similarly, cards crafted from wood connect with consumers seeking natural, tactile experiences that signal authenticity and sustainability.
Nonetheless, premium cards are not limited to materials alone. Personalization has become equally critical, particularly for younger generations. More than 70% of Gen Z consumers4 say they want financial products tailored to their personal identity. This has led to a surge in co-branded designs, limited-edition collaborations, and even bold, digital-native vertical layouts. For some consumers, a payment card can be as much a fashion accessory as a functional tool. Issuers are responding by experimenting with customizable designs, influencer partnerships, and even gamified card experiences.
The emphasis on lifestyle extends to the way cards are introduced to consumers. Increasingly, banks are focusing on the "unboxing moment." Premium packaging, AI-enabled onboarding, and personalized welcome experiences, even interactive paper materials, turn the delivery of a new card into a loyalty-building opportunity. For some issuers, packaging is no longer just about logistics; it is the first chapter in an ongoing customer relationship.
Security as a Differentiator
While materials and design capture attention, security remains the foundation of consumer trust. In the U.S., card-not-present fraud has become a growing challenge, accounting for the majority of e-commerce fraud losses, with recent estimates suggesting it represents roughly 73% of all U.S. card payment fraud losses5. At the same time, consumers often struggle with the basics: forgetting PINs, choosing overly simple ones, or abandoning transactions when authentication feels burdensome.
New card innovations are helping issuers tackle these issues head-on. Dynamic CVV technology, such as G+D's Convego® SecureCode, integrates a small e-ink display that generates a new code for every transaction. By rendering stolen credentials useless, dynamic CVV directly addresses the vulnerabilities of online commerce. It also responds to a critical market reality: global e-commerce fraud is projected to reach $107 billion by 20296.
Biometric authentication represents another leap forward. G+D's Convego® You card embeds fingerprint recognition directly into the card, eliminating the need for PINs while providing secure, seamless access for high-value transactions. For cardholders already accustomed to unlocking smartphones with biometrics, the experience feels natural and intuitive. For issuers, it represents a chance to reduce fraud while enhancing user satisfaction.
These hardware-based solutions are increasingly complemented by AI-enhanced fraud protection. By analyzing patterns across millions of transactions in real time, AI can detect anomalies, reduce false declines, and flag suspicious activity without creating unnecessary friction for legitimate customers. This layered approach - combining dynamic CVV, biometrics, and AI - creates a secure environment that balances accessibility with protection. For U.S. issuers, the payoff is twofold: lower fraud losses and a differentiated reputation for delivering both safety and convenience.
Individualism: Aligning Payments with Consumer Values
As security becomes table stakes, the next differentiator is individualism. Consumers today expect financial products to align with their values, lifestyles, and aspirations. In response, banks are reimagining cards as tools of self-expression.
One way issuers are delivering on this expectation is through eco-innovation in materials. G+D's Convego® Beyond portfolio offers recycled PVC cards made entirely from recycled plastic, polylactic acid (PLA) cards derived from bioplastics, and cards produced from plastics collected in coastal communities1. These materials not only reduce environmental impact but also resonate with customers who want their purchasing behavior to reflect their commitment to sustainability.
Design is also emerging as a powerful lever for individuality. Ocean-inspired, or "Ocean Wave" patterns (a signature design element for cards made from ocean plastic), bold color palettes, light-in-card features that illuminate the issuer's brand with every transaction, and co-branded collaborations transform payment cards into lifestyle accessories. For younger consumers, a card is more than a means to pay - it is an everyday item they are proud to carry and display. This parallels trends in other industries, where personalization and customization have become defining features of consumer products. From sneakers to smartphones, the ability to choose or design elements has shifted from novelty to expectation.
Generational differences amplify these dynamics. Millennials and Gen Z, now in their peak earning years, place high value on authenticity, sustainability, and individuality. They are also more likely to make banking decisions based on alignment with sustainability principles and social impact. By blending eco-conscious materials with striking, customizable designs, issuers can position themselves as forward-thinking partners who understand and reflect the values of their customers.
Strategic Value for U.S. Issuers
The business case for innovation in card programs is strong. Premium cards help retain affluent and ultra-high-net-worth clients who expect more than standard products. These customers not only generate higher spending but also demonstrate stronger loyalty when issuers meet their expectations for exclusivity and design.
At the same time, personalization and eco-conscious materials create powerful appeal for younger demographics. Millennials and Gen Z are driving much of today's consumer spending growth, and their preferences will shape the payments market for decades to come. By offering cards that reflect individuality and values, banks can secure long-term loyalty from these cohorts.
Physical cards also provide differentiation in an increasingly crowded landscape. Digital-first neobanks and big tech competitors often compete on convenience or price, but they cannot replicate the daily, tangible presence of a card. By treating the card as a lifestyle product rather than a commodity, issuers can create a sense of connection that purely digital solutions struggle to achieve.
Looking Ahead To The Next Frontier
The evolution of payment cards does not end with metal, ceramic, or biometrics. Wearables and phygital integrations are already reshaping how consumers experience payments. Rings, bracelets, and other form factors are expanding the definition of a "card," while digital cards ensure continuity between physical and digital environments. AI-driven personalization promises to take card programs even further, tailoring offers, designs, and benefits at an individual level.
For U.S. issuers, staying ahead of these developments requires both vigilance and boldness. Monitoring global trends, preparing for regulatory shifts, and experimenting with new materials and technologies will be significant. Those who act proactively will not only keep pace but also lead the market.
The evolution of payment cards is not simply about new form factors; it is about delivering trust, identity, and lifestyle alignment. By embracing personalization, security innovation, and individualism in materials and design, U.S. banks can modernize their card programs into functional tools that double as aspirational lifestyle experiences.
In today's phygital world, where digital convenience intersects with tangible daily touchpoints, the payment card remains a powerful bridge between technology and human connection. For forward-looking issuers, that bridge represents more than continuity - it represents opportunity: to secure loyalty, to differentiate, and to meet the evolving expectations of consumers across generations.
About the Author: Mikko Kähkönen is the Vice President Global Head of Card Products for Giesecke+Devrient (G+D), a global SecurityTech company headquartered in Germany, with its U.S. headquarters in Dulles, Virginia. For more information, please visit
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