In the lab: innovating card payments

Today we speak with Thomas Tarantino, Technology Director, R&D Card Products, at G+D and President of the International Card Manufacturers Association (ICMA), about innovation and R&D at the lab, his daily work, and finding inspiration in unexpected places. 

Thomas, we’re sitting here in this really impressive Convego^® Labs facility in Munich, surrounded by machinery and materials. For the benefit of our Spotlight readers, what is the purpose of Convego^® Labs?

Convego^® Labs is an innovation hub where we develop new and innovative card payment products. Everything from testing different renewable materials to developing advanced security features is done here.
The lab also gives us a platform to showcase these innovative new ideas, both within the company and to our customers. It helps us differentiate between prototypes and fully developed products. After all, G+D is all about innovation, and we want to get our customers excited about that.

Your journey at G+D started over three decades ago. How did you end up here?

I joined G+D’s development arm, originally known as Gesellschaft für Automation und Organisation (GAO), in 1991. My initial role involved setting up the first production line for smart cards, which led to the successful introduction of Deutsche Telekom’s first telephone card. After a decade of developing various smart card products, I was promoted to head of the development department. This role gave me the chance to establish our development sites in various countries. Since then, I have focused on innovation in payment technologies, which remains my primary area of interest here at the Convego^® Labs.

How do you come up with new product ideas at the lab?

It’s a very collaborative effort between our cross-functional team in Munich and our international teams in China, Brazil, and America, who give us a comprehensive view of the global market.
We use a specialized tool to gather all kinds of ideas and inspiration from various industries, no matter how crazy they may seem. There really are no boundaries at this stage. One colleague recently added a sample of something they saw on a fashion page, which was really quite cool. 

How do these ideas translate into new card products?

We meet here every two weeks to discuss all the ideas that have been submitted. When we have promising idea, we quickly gather the necessary materials to create initial samples, which are then evaluated by our sales team and customers for feedback. Depending on the response we get, we either proceed with development and hand it over to our internal global R&D partners for implementation, or we shelve the idea. We follow a “test fast, fail fast” principle.

What trends influence card designs? 

A big one, of course, is sustainability. Consumers are becoming more environmentally conscious, so it’s important our cards reflect that. This is why we produce cards from sustainable materials like wood, PLA [polylactic acid], and ocean plastic. Another factor is personalization. Our cards can be personalized to reflect individual lifestyle and identity, which enhances their appeal among consumers

What is so special about what you do here in the lab?

What’s quite unique about our lab is that we use our own formulas for processing the recycled materials that are used to make our environmentally friendly cards, such as the ocean plastic card. Once processed, the material can then turned into plastic sheets, which is where the magic happens and we add the different colors, security features, and optical effects.

At what point does the customer provide input?

In order to develop the best products, it’s important to understand the customer’s needs as early as possible in the development process.
The best way to get their feedback is to invite them onsite to workshops in Munich for a few days to produce the samples with them. We take them through the whole process from scratch, turning the raw materials into fully functional card samples that they can take with them and decide how they want to proceed. 

That sounds exciting. What feedback have you received from customers after these workshops?

They love the hands-on experience, as they can engage directly with the raw materials and products. It’s often a completely new experience for them to see first-hand how the products are made, and it’s a real success story for us. It’s about more than just providing an immersive experience to our customers – it’s something that can generate real revenue.

We are currently developing two new products from workshops last year. This is a great value proposition we can demonstrate to our customers to motivate them to visit our lab and see the latest and most exciting innovations. And the direct feedback we can get from our customers when they interact with our new ideas up close is like gold.

Why does so much effort and expense go into bank card design? 

The payment card is a trademark for the bank and a symbol of its connection to its customers. Offering unique features on the cards is a way banks can strengthen that bond, which is why we are constantly striving to develop innovative materials and features that deliver a visual wow factor.  

Innovation never stops. Is that what gets you out of bed each day and keeps you motivated after all these years?

That, and coffee! [laughs] The constant influx of new challenges and the opportunities to innovate are what drive me. At G+D, I’ve enjoyed the flexibility to pursue my interests and shape my own path. I love thinking outside the box and drawing inspiration from other industries – it keeps me excited and motivated to push boundaries.

And that passion runs in the family. Your son also works in the G+D labs. How do you find that?

To be honest, it’s really fun. He is working on new environmentally friendly materials, which is something he’s really passionate about. But he doesn’t get anything for free – he worked his way up from being an intern and to where he is now. When we’re at work, we stick to work.

Looking further ahead, what market and technology trends do you think will be crucial for the future of payment cards?

Environmental sustainability is non-negotiable. Not just because of our pledge to eliminate the use of virgin plastics by 2030, but also because customers are increasingly conscious of their environmental responsibilities. This awareness is not just about compliance, however; it’s an opportunity for banks to improve their appeal to customers.

Beyond sustainability, the demand for diverse product offerings is also growing. Customers have varied needs, so we have to be able to cater to that broader spectrum by offering variety. We can do this, for example, with different materials, designs, and functionalities, like biometric and light cards. Finally, accessibility for people with impairments is important, so we are constantly asking ourselves how we can serve these groups with innovative new products.

Finally, what advice would you give new employees joining the R&D team?

Always be open to new ideas and fight for what you believe in. Sometimes you will have a great idea, but you need persistence to fight for it. And if you can do that, you can make a real difference.