New and old uses unite to expand the market for plastic cards.
Plastic cards are breaking the mold. From artistic attributes—including oil-stamped logos and holograms—to out-of-the-ordinary shapes and multi-purpose designs, plastic cards are growing not only in diversity, but also in popularity.
"People are adding a lot of things to cards," said Jim Brown, vice president of sales and marketing, Plastic Printing Innovations, San Diego. For example, instead of the typical four-color process, clients want silkscreen, pms color and foil stamps.
"We've had a lot of interest lately in using card and key tag combinations in retail loyalty applications," noted Jerry Sumner, director of product management, Arthur Blank & Company, Boston, Mass.
This combination generally consists of a credit card-sized card with one to several detachable key tags attached. "Not only is it used in the supermarket area, but also in the general retail market," said Sumner.
Steve Pye, account executive, BFI Print Communications, Whitman, Mass., has had no problem selling this combination piece. "It's just a matter of getting it in front of people and showing them the value of the piece," he said. "As soon as people see it they like it—it almost sells itself."
The card and key tag combination offers something extra which, according to Pye, is something customers are looking for. "First I just sold a plain card, but then end-users wanted to target the whole family," he noted. "This piece allows one family member to carry the card and others to carry the key tag, and they all get the benefit of carrying a loyalty card."
Another new development in plastic cards is e-money, which capitalizes on the popularity of the Internet. People can go into a retail store and purchase this card, which can then be used on the Internet with specific merchants who accept it.
"E-money offers people who are either without a credit card or concerned about putting credit card numbers out on the Internet," noted Sumner. "These people now have security and privacy because they can order something and not have to use a card that's already attached to their name." According to Sumner, the popularity of e-money has grown and will continue to do so in the future.
While the new developments in the industry are currently in the spotlight, old uses for cards still remain popular. Sumner stated that the familiar, thicker cards with magnetic stripes are most popular for Arthur Blank & Company.
According to Russ Herman, general manager, Allegheny Printed Plastics, Cranberry Twp., Pa., such is the case for them as well. He noted that phone, gift and loyalty, key lock, identification and private label credit cards account for most of their sales.
Know Your Stuff
Knowing the client's needs is the key to making a successful plastic card sale. For example, distributors must know the thickness and number of colors needed, and whether a magnetic stripe or signature panel is needed.
In terms of the thickness, cards typically run from 10 mil. to 30 mil. Sumner pointed out that the 10 mil. to 20 mil. card market is more for promotional and membership applications, while the 24 mil. to 30 mil. cards tend to have some kind of an interaction with the point of sale terminals—either scanning the bar code or swiping the magnetic stripe on the card.
Brown noted that customers using a 10 mil. card are usually trying to save money by using the thin plastic. At the other end of the spectrum, Herman noted that 30 mil. cards tend to be made to very precise specifications so that they can fit the equipment they operate.
Sumner reported that of Arthur Blank & Company's 24 mil. to 30 mil. cards, 75 percent have magnetic stripes. At Allegheny, about 25 percent of the cards have magnetic stripes. Magnetic stripes are generally used on any card that operates equipment—such as phone, gift, credit and key lock cards.
"We ask distributors how the end-user will be using the card," Sumner noted. "We like for them to give us a day in the life of a typical card in their customer's application."
"For example, if the card will operate a piece of equipment there are probably some dimensional specifications for the card—limitations on how thick it can be, how precise the diecutting dimensions have to be and tolerances for features such as magnetic stripes and bar codes," said Herman.
Brown added that squaring away the artwork is another hurdle. "Once we get the final proof approval of the artwork, the manufacturing of the cards can begin," he said.
Due to the convenience that plastic cards offer, industry professionals agree that they have become a necessity in many markets—and will continue to experience popularity.
Sumner noted, "We see continued growth in both the number of applications and uses of the cards and also the number of cards with magnetic stripes." Brown agreed, adding, "The reason we're in the business is because plastic cards will continue to grow."
By Danielle Litka