How One Overlooked Company Earns A Cut Of America’s Credit Card Fees
We’ve gone full circle: from metal coins to paper cash, then to lightweight plastic cards, only to return to metal once more. But this time, it’s in the form of credit cards. In a bid to win over affluent customers, major players like American Express and JPMorgan have embraced metal to give their credit offerings a premium feel. And since 2010, a modest $500M firm has produced over 144M of these metallic cards, solidifying its position as the driving force behind America’s heavier wallets.
- CompoSecure says it produces over 150 different metal payment cards, including popular ones like the Amex Platinum and Chase’s Sapphire Reserve.
- In 2023 alone, the company raked in a staggering $391M from card sales, with a margin of over 50%. And for 2024, it’s aiming for even higher revenue of $408M-428M, maintaining a similar margin.
Pedal to the metal: With figures from 2022 showing that CompoSecure pockets ~$12 for each metal card it ships, it’s definitely riding the wave of the credit industry’s lucrative fees. The company could ship over 33M metal cards this year by its projections. And among these, you’ll find some of the most unique payment cards ever seen in the industry — like Delta’s card crafted from 747 steel and Robinhood’s exclusive Solid Gold card.
