Consumers Love Cards Despite Digital Wallet Growth
Despite the rise of digital wallets and instant provisioning, physical cards aren’t going anywhere.A recent study shows the tangible card remains a surprisingly popular payment method, even as consumers embrace faster, more abstract options.
Gustavo menezes, senior vice president of payments North America at Thales, told PYMNTS that physical cards are still central to everyday spending. Even with the growth of digital alternatives,consumers continue to rely on them.
Contactless payments have actually strengthened the role of physical cards. According to data Menezes cited, 53% of consumers prefer contactless payments in stores, encompassing both tap-to-pay cards and mobile wallets.However, physical cards still account for more than double the preference compared to mobile payments.
“Contactless payments include both cards and mobile wallets, but the cards itself represent more than double of the preference than the mobile payments today,” Menezes said.
He attributes this preference to consumer behavior. “we talk about contactless, so it’s about the human behavior of tap to pay,” he explained.
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This behavior is also influencing card activation. New methods allow users to activate cards simply by tapping them to their phones – a process Menezes described as “much more secure and convenient than just calling the bank or sending a text message.”
More Than Just Plastic
Beyond convenience, physical cards hold emotional and symbolic value. “The card works as a kind of a personal badge,” Menezes said, “of status for the consumer.”
He explained that cards represent more than just a means of payment. Consumers feel connected to the brands they choose, and the card itself embodies that lifestyle. This emotional connection significantly impacts card acquisition, notably for premium products.
Design,finish,and uniqueness can influence a consumer’s decision to apply for a card,sometimes even before considering rewards or interest rates.
“The card, a premium card that’s a unique card, is most of the time kind of an object of desire for many customers,” Menezes said. “So that definately drives acquisition for a specific card product.”