How a Hybrid Strategy Balances Digital Speed with the Trust of Physical Cards
By Nicole Machado, VP Card Solutions, Vericast
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Need to Know
- 98% of consumers still say having a physical card is important. Cards offer a sense of control, identity and reliability that digital-only options haven’t replicated, and tap-to-pay serves as a behavioral bridge between physical and digital habits.
- More than 70% of consumers want their card immediately when opening an account or replacing a lost one, yet many institutions still haven’t prioritized instant issue. Cloud-based solutions have made it more accessible than ever — but even those offering it often fail to market the capability.
- Sixty percent of consumers care about what their card is made of, and among Gen Z, 64% say sustainable materials would improve their perception of a financial institution. Offering eco-friendly card options has moved from niche to competitive differentiator.
For all the talk about digital transformation in financial services, one thing has remained surprisingly consistent: consumers still value the physical card. In fact, recent Vericast research found that 98% of consumers say having a physical debit or credit card is important, and three out of four say receiving that card instantly from their financial institution matters.
It is easy to assume that physical cards would fade as digital wallets and mobile payments take off, but that has not been the case. Even among younger generations, cards still signal trust, control, and convenience. The path forward is not about replacing plastic with pixels. It is about creating a payment experience that reflects how people really live, bank, and pay.
Why Physical Still Wins on Trust
When people reach for their physical card, it is not just out of habit. It is a moment of control. Consumers trust what they can see and hold, especially when managing something as personal as money. Digital options may offer speed, but they have not yet earned the same emotional confidence.
There is also a sense of identity and loyalty attached to the card itself. Card design, material, and even the feel of a metal card can reinforce brand connection. These moments matter. They create a tangible representation of the relationship between the customer and their financial institution.
Tap-to-pay is a good example of this crossover. The action starts with a physical card but introduces a behavior that moves the user toward digital. It builds muscle memory in a way that digital wallets alone have not yet achieved.
The Instant Issue Gap is Still Too Wide
While most consumers want physical cards, they also want them quickly. Vericast’s research shows that more than 70% of people value getting a card right away when they open a new account or need a replacement. Yet many institutions have not prioritized instant issuance.
There are two common assumptions at play. One is that digital card provisioning makes instant issue unnecessary. The other is that instant issuance is too expensive or operationally complex.
Both are outdated.
Digital cards are an important part of the future, but most consumers are not there yet. Skipping over instant issue in favor of a digital-only strategy means missing a key opportunity to meet customers where they are.
On the operational side, the market has shifted. There are now more options at different price points, including cloud-based solutions that are far more accessible than in the past. Institutions no longer need large IT investments to deliver a modern card experience.
Even for those already offering instant issue, the question becomes: are you telling your customers about it? Too often, this feature is hidden in the background. If consumers do not know they can walk into a branch and leave with a new card, the benefit gets lost.
Sustainability is More Than a Feature
One of the more surprising findings from the Vericast survey was that 60% of consumers care about what their card is made of. More than half say that a card made from sustainable materials would improve their perception of their financial institution. Among Gen Z, that number climbs to 64%.
Offering sustainable card options is no longer a niche play. It is a loyalty driver.
We recently saw this play out firsthand. A customer replacing a metal card was given a choice: do you want a metal card reissued or a card made from sustainable materials? That one small prompt turned the transaction into a moment of brand alignment.
Financial institutions spend millions on brand-building. Sometimes, the most effective signal is as simple as giving customers a meaningful choice that reflects their values.
Reliability Still Favors Physical
Digital wallets are convenient, but they are not infallible. Nearly half of consumers in the survey experienced a failed digital transaction in the past year. Whether it is a dead phone battery, poor reception, or a merchant not set up to accept mobile payments, there is a growing recognition that digital alone is not enough.
This is where a hybrid model becomes critical. Instant issue and digital provisioning should not be seen as competing approaches. They are complementary. Both can support the broader goal of giving customers options and helping them build new behaviors over time.
A physical card, especially with tap-to-pay capability, serves as a bridge. It allows consumers to start adopting digital payment behaviors in a way that still feels reliable.
What Financial Institutions Can Do Now
The next few years will not be defined by a sharp decline in physical cards. Just as checks and cash have not disappeared, cards will remain an important part of the payment mix. The opportunity is not to phase them out but to make them work harder.
Financial institutions can act now by:
- Closing the instant issue gap with more accessible, modern options
- Framing sustainable materials as part of the customer value proposition
- Actively marketing card capabilities as differentiators
- Investing in hybrid card strategies that allow for both trust and innovation
Physical cards are one of the few brand artifacts that customers interact with daily. They are visible. They are shareable. They are part of conversations, whether it’s comparing cards for a split check at dinner or a lost wallet being replaced on the same day.
Rather than viewing cards as a legacy product, it is time to treat them as the brand asset they are.
