A quarter of card customers no longer order a plastic card

A little over a year ago, Coop Pank gave customers the option to give up plastic cards and make all transactions using only virtual cards. “Most customers who use a virtual card are between 26 and 45 years old. The average virtual card owner is 39,” says Moonika Maaring, Head of Daily Banking for Private Customers at Coop Pank, describing the most active segment of virtual card users.

The average age statistics are influenced by the age limits set by digital wallets, which means that children use a plastic card up to a certain age. For Apple Pay and Google Pay, the age limit is 13.

According to Maaring, the share of customers who prefer a virtual card is the same for both debit and credit cards, and the preference is similar among both private and business customers.

A virtual card is not the same as a “plastic card in your phone”

It is important to note that a virtual card is not the same as a plastic card added to a phone. Previously, customers had to order a physical card and add it to a digital wallet, such as Apple Wallet or Google Wallet. Now the bank can also issue a fully digital card, which takes less than a minute to create, is ready for immediate use and offers the same functionality as a familiar plastic card. Not all Estonian banks offer this option yet.

In terms of use, a virtual card does not differ significantly from a plastic card. It can be used to pay for online purchases and subscriptions, and to withdraw cash from contactless-enabled ATMs of all banks as well as at Coop store checkouts. Cash can be withdrawn at the checkout together with a purchase transaction, with a limit of 100 euros at a time. However, compared with a plastic card, a virtual card provides an additional layer of security.

Security and a smaller environmental impact

Using a virtual card also improves the security of the user’s card details, as they can only be accessed through the internet bank, the app and the wallet on a smart device, all of which require additional authentication with a password or biometrics. This reduces the risk of card details falling into the hands of unauthorized people. If there is any suspicion that this has happened, the virtual card should be closed immediately. A new one can be ordered right away with just a few taps. Coop Pank’s virtual cards have no monthly fee. As with a plastic card, limits should also be set for a virtual card, and customers should make sure these match their actual card use. The limit can be changed in the bank’s app or internet bank if needed.

Maaring also offers a safe travel tip: “When going on a trip, it is wise to create a separate account and order a virtual card for the duration of the trip. If, for example, a hotel or car rental company asks for credit card details, virtual card details can be used. Later, the virtual card can be closed, providing additional assurance that the card details will not be misused.”

In addition to greater convenience and flexibility, a virtual card gives customers the opportunity to reduce their environmental impact. A physical bank card is made of PVC plastic, whose production has a significant environmental impact. Because plastic cards have a short lifespan and limited recycling options, this impact is even greater. When disposed of in a landfill, a plastic card remains there for hundreds of years. Since a virtual card involves no material or transport costs, every card used virtually helps protect Estonia’s environment.